Mac Blo Gets Cash, Not Land, for Parks
9/7/99
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Title: MAC BLO Gets Cash, Not Land, for Parks
Source: Environment News Service
Status: Copyright 1999, contact source for permission to reprint
Date: September 7, 1999

VICTORIA, British Columbia, Canada, September 7, 1999 (ENS) - The
province of British Columbia will not trade one set of publicly owned
lands for creating parkland out of another set of publicly owned
lands. Forests Minister Dave Zirnhelt announced Friday the government
will pay MacMillan Bloedel in cash for tree farm licenced lands it
turned over to the province for parks.

Government hired lawyer David Perry to consult with the public before
deciding whether to compensate MacMillan Bloedel for lost harvesting
rights with resource rights, Crown land and/or cash. Perry
recommended the government not use Crown land for compensation, based
on extensive public consultations.

"British Columbians have told us they care deeply about preserving
the resources and ecological integrity of Crown lands for future
generations," said Zirnhelt. "Even though there is a cost to this
course of action, it is a price government and British Columbians are
willing to pay."

More than 1,500 people in 10 coastal communities attended the public
meetings. Perry also received 1,150 written submissions. About 90 per
cent of attendees opposed the land compensation option because they
felt it would hurt native land claims, the environment, recreation
and eco-tourism opportunities in affected areas.

Perry recommended in July that the land for land deal was not in the
best interest of the people of British Columbia.

Instead, the province is opting for a cash payout, expected to be in
the range of Cdn$84 million. Zirnhelt says that is a high price, but
worth it.

Environmental groups like the Western Canada Wilderness Committee are
delighted at the news, but still wary. Forestry campaigner Ken Wu
says there are at least a dozen other compensation deals in the
works, stemming from the B.C. government's commitment to set aside
twelve percent of the province's land base as parkland.

But in spite of that, Wu says, "there is no well-defined way to
compensate logging companies for the creation of protected areas. We
think, if anything, Macmillan-Bloedel owes the people of British
Columbia tens of millions of dollars for trashing salmon streams and
wildlife habitat." Wu also warns about the growing U.S. corporate
concentration in the B.C. forest industry.

Macmillan-Bloedel is in the midst of a takeover by Weyerhaeuser.
Louisiana-Pacific recently took over Evans Forest Products in the
B.C. interior. Wu says, that raises the possibility that the terms of
the North American Free-Trade Agreement will hamstring the B.C.
government in setting its own forestry policies.

"With NAFTA ... we're concerned that this may make it illegal to
establish new protected areas or to re-distribute logging rights to
smaller companies," Wu says.

In response to these concerns, Perry also recommended that government
consider related issues, such as establishing a clear compensation
policy and reviewing alternate tenures for forest lands. Cabinet will
consider these recommendations.

MacMillan Bloedel sued the province after losing harvesting rights
when provincial parks and protected areas were created on Vancouver
Island in 1991 and 1995. The Forest Act requires government to
reimburse licensees for the loss of more than five percent of
harvesting rights and for lost improvements, such as bridges and
roads, built in cutblocks.

On March 16, 1999, the province settled out of court by agreeing to
pay MacMillan Bloedel Cdn$83.75 million, plus interest, in resource
rights, land and/or cash.

Copyright Environment News Service (ENS) 1999

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