Patriarch struggles to keep family mill operating
Terry Halifax
Northern News Services
Hay River (Mar 19/01) - A 40-year-old Hay River family business is facing closure and its owner blames the federal government and the Mackenzie Valley Land and Water Board.
"There's a good possibility that they are going to bankrupt us," Eugene Patterson said.
A mandatory environmental assessment has cut off the wood supply to his sawmill that employs 20 workers.
The company was operating hand-to-mouth on annual permits for the past five years, he said. But last year the Mackenzie Valley Land and Water Board issued a stop work order on Patterson the day before he was to begin cutting timber near Pine Point.
"This board doesn't have any experience in what they're doing," he said, pointing to the recent assessment that halted the Paramount gas project in the Cameron Hills.
"I don't know what experience they have in gas and oil and gas, but they sure as hell don't have any experience in forestry."
The GNWT had policies in place for timber harvesting and wildlife management, Patterson said, but the Indian Affairs and Northern Development department has circumvented that with the new board.
Appeals to to DIAND minister Robert Nault and MP Ethel Blondin-Andrew have gone unanswered, he said.
Eugene's son Daniel has known no other job outside working the mill with his dad. He thinks the government could have worked out a solution where all could have benefited.
"The regulations are already in place to protect the wildlife and if they would have let us continue to operating," Daniel said.
"They could have done their assessment anyway and phased it into the regulations next year."
"What's one more year," he asked. "We've been operating here for 40 years now, so why couldn't they have done something that works for everybody?"
Roland Senjanocs, acting executive director for the Mackenzie Valley Environmental Review Impact Review Board, said they are bound by law to conduct the assessment.
"The legislation requires that no permits will be approved until after the environmental assessment is completed," Senjanocs said.
"Once a referral to environmental assessment takes place, any permits are put on hold."
He said sympathizes with Patterson's dilemma, but said the law is in place to protect both the government and business from lawsuits.
"The legislation requires that certain things happen," he said. "If we try to short-circuit those steps, that essentially leaves us and Mr. Patterson open to legal challenges."
Daniel Patterson and his two sons are out of work now and he doesn't think the mill can wait for an assessment.
"We're looking at a seven-month shutdown and then we won't have any revenue for a full year," Daniel said. "I don't know if we can survive that."
Eugene said the company will lose $300,000 this year and will have to maintain overhead costs of insurance, utilities and the depreciation.
"It doesn't make any sense," he said.
The GNWT needs to revise its forestry legislation to specify blocks of timber designated for harvesters and mill operators, he said.
