290 



Native timber is starting to run out, and we will need more of the 

 Forest Service timber to keep any part of those jobs. 



The Chairman. Now, would that say that Southeast Alaska 1, if 

 implemented, could preserve these some 3500 jobs? Do you under- 

 stand the question? 



Mr. Lindh. Are you asking him or are you asking me? 



The Chairman. Both of you. 



Mr. Finney. Again, you have got the "what-if s." If the $15 mil- 

 lion is available and if we are allowed to cut that amount, there 

 will still be a drop in the jobs in southeast Alaska as the Native 

 timber phases out, a fairly large drop. 



The Chairman. Over what period of time would be that drop in 

 jobs, and how much drop? 



Mr. Finney. How much drop? Well again, if we produced a bil- 

 lion board-feet this year and only 400 or 420 of it came off the na- 

 tional forests, it is the jobs associated with somewhere around 600 

 million board-feet. Those are mostly logging jobs because they do 

 not — they export the logs. 



But they do support, those jobs — 50 percent of that material is 

 pulp and it is going into the pulp component now for those two 

 pulp mills. And it will have to be replaced when the Native timber 

 is no longer available. 



The Chairman. Mr. Lindh? 



Mr. Lindh. I would like to comment also, that when the Gover- 

 nor testified last spring regarding the possible effects of the 28 mil- 

 lion board-foot reduction, it was felt that the effect would be mostly 

 felt in terms of new jobs created as the market conditions came 

 back up and more people would go to work. 



The markets were way down and employment was about half of 

 the 1980 figure back in 1985. The timber industry was in its worst 

 condition that it has been certainly since I have lived in Alaska. 



So it was really our feeling that the effect would be more on 

 growth in employment in the portion of the industry that cuts na- 

 tional forest timber. 



Mr. Finney's comments about Native timber. There are various 

 estimates of how fast that will go. It depends on corporate decisions 

 and it could be ten years, it could be less than that. But certainly 

 those corporations can 



The Chairman. Is that a fair statement, do you think, Mr. 

 Finney? 



Mr. Finney. Well, no. Some of them have already cut out their 

 timber and are starting to see a decrease, and it will decrease at a 

 decreasing rate no matter what their corporate decisions are. They 

 only have a fixed amount of timber to operate. 



They may stretch it out over a ten-year period, but it will be a 

 lot less available. 



The Chairman. Let me say from my standpoint that jobs are not 

 the only consideration here. They do not necessarily dictate the 

 terms of the bill. But on the other hand, we would be very foolish, I 

 think, not to know the impact of the legislation that we pass on 

 jobs. 



So for the purpose of going to markup, I would solicit all wit- 

 nesses to further elucidate, if you would like to, in writing on the 

 effect of various formulations. 



