BELOW-COST TIMBER SALES 



THURSDAY, JUNE 24, 1993 



U.S. Senate, Subcommittee on Agricultural Re- 

 search, Conservation, Forestry, and General Leg- 

 islation, of the Committee on Agriculture, Nutri- 

 tion, and Forestry, 



Washington, DC. 



The subcommittee met, pursuant to notice, at 2:30 p.m., in room 

 SR-332, Russell Senate Office Building, Hon. Thomas A. Daschle 

 (chairman of the subcommittee) presiding. 



Present or submitting a statement: Senators Leahy, Daschle, 

 Cochran, Baucus, Feingold, McConnell and Craig. 



STATEMENT OF HON. THOMAS A. DASCHLE, A U.S. SENATOR 



FROM SOUTH DAKOTA 



Senator Daschle. The hearing will come to order. 



I want to thank all of those who have expressed a desire to be 

 heard on this issue, and I especially thank my ranking member 

 Senator Craig, for all of his cooperation and effort in the planning 

 of this important hearing. 



On April 30, 1993, the New York Times printed a story describ- 

 ing a Forest Service policy to phase out timber programs on 62 of 

 the 156 national forests. That story caused considerable reaction 

 among the timber industry and Congress. As far as I can tell, the 

 proposal was made without any serious analysis of the economic, 

 social, or environmental consequences that would result from such 

 a severe action or whether this policy could be implemented in a 

 manner consistent with other policy initiatives developed by the 

 Forest Service, particularly the trend toward ecosystem manage- 

 ment. 



For many years, environmentalists have criticized the Forest 

 Service for the continuing practice of subsidization in the timber 

 industry, by offering below-cost timber sales. They argue that the 

 problem is compounded by the fact that the excessive level of cut- 

 ting has contributed to broad ecological damage, such as the loss of 

 fish and wildlife habitat. 



There is some basis for these concerns. Currently, there are 242 

 species listed under the Endangered Species Act that occur in na- 

 tional forests. There are over 2,000 sensitive plant and animal spe- 

 cies that may become endangered if not given adequate protection. 

 In the Pacific Northwest, endangered species concerns are now the 

 primary force shaping national forest management. 



We must not forget that there is a human side to this issue as 

 well. People have invested in logging and milling operations, and 



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