18 



and mining. In order to understand the complexity of the problem. 

 the Tongass Committee decided to look at the southeast economy and 

 community interests in depth. The committee used a process of 

 principled negotiation while working on the proiect and constantly 

 notified communities of progress and sought input. The work of the 

 committee was divided into three phases: analysis, option 

 development, and the decision stage. The maiority of the 18 weeks of 

 work was spent in the analysis stage. Following is a brief 

 discussion of the committee's findings. 



The State's economy will, increasingly in the future, be affected and 

 directed by the regional economies rather than a single industry 

 (oil). The regional economy of Southeast is necessarily the future 

 of the Tongass. The well being of the people of Southeast Alaska is 

 inextricably linked to the management of the Tongass National 

 Forest. The economic stability of Southeast is subiect to the 

 decisions that the Forest Service makes regarding permits, sales, 

 practices and day to day management of the Tongass. The 65,000 

 residents of Southeast Alaska rely on four primary industries, 

 timber, tourism, fisheries, and mining, and in many cases a 

 subsistence way of life, for employment and the economic 

 infrastructure. Our economy is beginning to show more strength in 

 traditional industries, i.e. fishing, mining, and forest products. 

 It appears that if our trading markets do not falter, we will see 

 continued growth and diversification. 



The Southeast Alaska region, over the past fifty years, has given its 

 residents one of the State's most economically diverse and stable 

 geographic areas. However, the future of this economic unit is tied 

 to continued vitality in the timber, fishing, tourism and mining 

 industries, as well as subsistence. These industries are inter- 

 related and dependent on one another for their viability. Our 

 Southeast industrial base is fragile, inter-related, and dependent on 

 the price and frequency of goods and services established by the 

 combined demand of fishing, tourism, mining and timber. 



At the present time total employment, earnings to workers and value 

 of finished product from fishing, tourism, and timber are achieving a 

 rough balance. The latest estimates by the Alaska Department of 

 Labor indicates that for the month of July. 1988 there were at least 

 3.205 workers in the timber industry in Southeast. Actual employment 

 in fishing and tourism is extremely difficult to compare across the 

 board. Using baseline data from the USFS and the State, both fishing 

 and tourism may have total employment at similar levels. It is 

 currently estimated by the State of Alaska that 20 to 25 percent of 

 earnings in Southeast are timber industry dependent. By 

 extrapolation, similar levels are assumed in fishing and tourism. 

 Mining has made a startling comeback in the past three years and will 

 soon be an equal partner. Further, subsistence is a significant part 

 of the economies of most small communities throughout Southeast. 



Although certainly employment is not equal across the board, one 

 thing is clear; taken on the average and over time, there is 

 beginning a real " level ing" between these basic industries, their 



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