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Senator Wirth. Mr. Funk. 



STATEMENT OF KENT FUNK 



Mr. Funk. My name is Kent Funk. My wife Sherry and I are 

 Ketchikan residents and just recently purchased a home north of 

 town. I am employed as a machinery salesman for McDonald In- 

 dustries. 



McDonald Industries' main office is in Seattle and we operate 

 out of seven branches in Oregon, Washington and Alaska. The 

 Ketchikan Office, one of three in Alaska, was recently expanded. 

 We constantly have managerial and service personnel traveling 

 from Seattle throughout southeast Alaska. We spend a great deal 

 of money on air travel, motels, restaurants and car rentals. 



Company-wide, 52 per cent of our business is dependent on the 

 logging industry. Thus far in the Ketchikan Branch 100 percent of 

 our business is dependent on logging operations in the Tongass Na- 

 tional Forest, from Ketchikan to Haines, including Prince of Wales 

 Island. At the present time we have over $6 million in company- 

 owned equipment operating in the Tongass. This generates revenue 

 for marine transportation, fuel companies, ferry systems and the 

 air taxi services. 



Should the timber harvest quota be reduced it would directly and 

 quickly force a reduction in our presence and efforts in the Ton- 

 gass, not only reducing our volume of business but also our funds 

 spent in the regional economy. We would like to see the harvest 

 levels remain as they are. 



I enjoy hunting and fishing in my spare time. My only concern 

 personally about the management of the Tongass is to ensure the 

 enhancement of our fisheries through proper logging practices. 



Senator Wirth. You came to the magic moment, thank you very 

 much. 



Mr. Bruce. 



STATEMENT OF JIM BRUCE 



Mr. Bruce. I am Jim Bruce. I will skip through the first three 

 paragraphs that you have and Senator, I would ask that that Eco- 

 nomic Analysis of the Ketchikan Economy be entered into the 

 record. I did not prepare it; it was prepared at the local university. 



Senator Wirth. It will be available to the Committee, thank you. 



Mr. Bruce. I support the Southeast Conference's Policy State- 

 ment with what I consider improvements. First, Provision in law 

 should now be made for long-term contract to be extended for an- 

 other 50 years, thereby long-term planning can be continued by in- 

 dustry with assurance that its needs for change and expansion till 

 be met and second, neither the legislation nor the long-term con- 

 tracts should be written in such absolute language as we now use. 

 More leeway must be given the Forest Service to engage in con- 

 stant dialogue with the industry, local officials and the public 

 based on general statutory I guidelines. 



My study in Japan last year taught me that we are not now and 

 will not compete with the Japanese way of doing business unless 

 you who govern make long term peace with industry, with worker, 

 with native, with environment and with the locals. Thank you. 



