185 



other chlorine compounds, and would still produce toxic, persistent organochlorine pollutants 

 such as dioxins and furans And there is no guarantee that the pulp produced would sell, or at 

 what price 



Thus this bill would allow L-P to obtain a 23-ycar guaranteed supply of public timber, 

 along with a governmental guarantee to price that timber at a rate that kept L-P 

 competitive with the Pacific Northwest no matter what l^P decided to do with the timber, 

 and an expression or Congressional intent to supply adequate timber for permanent 

 operation of KPC's facilities on a " permanently economical " basis—again, no matter what 

 KPC decided to do with the timber. This timber would come to L-P regardless of the cost 

 or impact of providing it on the taxpayer or any other Tongass resource or resource user. 

 It would come regardless of environmental laws protecting other resources, and the deal 

 could never be altered unless KPC agreed. All based on the rationale of improvements and 

 investments that KPC is not required to make, and might choose not to make. Mr. 

 Chairman, that's a hell of a deal. 



4 Delegation/L-P Claim: Southeast Alaska's economy is dependent on KPC. Without KPC, 

 there will be an economic disaster— 4,000 jobs are at stake— there is no other major timber 

 operator Senator Murkowski has said, "I can't stand back and watch Ketchikan die" 



The Facts: Every job is important. But giving in to corporate blackmail is not the 

 way to safeguard Southeast Alaska's economy. It is especially troubling for the Delegation to 

 be making this argument given KPC's history of using its contract to monopolize the Southeast 

 Alaska timber industry, illegally driving competitors and industry participants out of business.'* 

 The new, 23-vear. taxpayer-subsidized contract L-P wants is a clear example oFa huge 

 government program stifling free enterprise 



Southeast Alaska's largest private employers and its growth industries depend on a healthy 

 environment. Government is the largest employer in Southeast Alaska, with 12,350 jobs In the 

 private sector, activities associated with salmon produce the most natural resource jobs annually 

 in Southeast Alaska 



Commercial salmon fishing and fish processing is the largest private employer, providing over 

 5,000 direct jobs. Commercial salmon fisheries yield 160 million pounds (average annual 

 production from the Tongass) worth about $250 million annually " 



Sport fishing provides another 1,200 direct jobs with over $28 million in earnings and 

 250.000 angler-days, and is growing ai an average of 10% per year '^'^ The Ketchikan charter- 

 boat fleet doubled in size from 1987-92, to 157 boats. ^' 



'^ Reid Bros-Loeeing v Ketchikan Pulp Co . 464 U.S 916 (1981) 



"United Stales Forest Service, Pacific Northwest Research Station and Alaska Region, Anadromous Fish Habitat 



Assessment. Report to Congress. January 1995 at 1 



^"id Note there may be some overlap between sport fishing jobs and tourism jobs 



