Debates of December 15, 2011 (day 9)
QUESTION 81-17(1): PATTERSON SAWMILL IN HAY RIVER
Thank you, Mr. Speaker. I’d like to direct my questions to the government today on behalf of the Patterson Sawmill in Hay River. This sawmill has been in existence for a number of years. It is not a huge company. It is a family-based business. They employ six full-time people. They have the ups and downs with issues with the size of the allowable timber cut being reduced, operating costs and, of course, the market price for the product that they harvest.
Pattersons want to stay in business. They’re the only business of this type in the Northwest Territories. We’re in the middle of a forest here in our part of the North and we would like to keep this business operational in Hay River. It’s extremely important to us. There are bright things on the horizon that may improve the fortunes of this company. How much money would we as a government spend to entice and induce a company like this to come and set up in the North, and yet here’s a company that’s been here many, many years. They are asking for a postponement or abatement of the stumpage fees which they owe this government.
I would like to ask whoever wants to answer the question; I’m not sure if it’s the Minister of ENR or if it’s the Minister of ITI, but I would like to ask this government today. They’re ready to go to work. It’s the time of year when they can go out and cut. What is this government prepared to do to allow this company to continue to operate in Hay River? Thank you.
Thank you, Mrs. Groenewegen. The honourable Minister of Environment and Natural Resources, Mr. Miltenberger.
Thank you, Mr. Speaker. We have been working closely with the Patterson’s operation for the last number of years. We had meetings again yesterday trying to come to some agreement to allow this process to proceed and the operation that the Member talked to about to remain in business. There is still some work to be done, but clearly there are challenges in terms of the revenue that they can generate, the costs that they are incurring and the simple things like stumpage fees and such that they have difficulty generating enough revenue to cover. But we are still at work trying to see if something can be salvaged. Thank you.
The time frame within which this company can go out on roads that are suitable for winter travel to get to the timber that they can harvest is very time sensitive. The clock is ticking. If they do not get in and out and harvest this product within a certain time frame, the option will be to close the sawmill. Tomorrow morning I will be receiving a briefing from a Hay River businessman that hopes to have a business opportunity developed that would make use of waste for biomass for a pellet and briquette mill in Hay River as well. This could potentially enhance the business enterprise of the Pattersons. This is very much on the horizon and very much a possibility to become a reality.
Again, we have written off, forgiven, supported in every kind of way with expensive studies and all kinds of expenditures of this government much more money than this relatively small amount of money that it would take to keep this very long time, established business in operation in Hay River. Time is of the essence. I appreciate the Minister is working on it and I know that his departmental officials did meet with Mr. Patterson yesterday, but I would like to hopefully get some kind of a commitment here on the floor of the House today that would give the Pattersons a signal that they are going to stay in business. Thank you.
Mr. Speaker, the fact that the officials continue to meet to try to find alternatives, there were arrangements made a year or so ago that were not successful, and we have, over the years, written off sums of money as well as deferred payments, reduced payments, any number of things that we could try to think of to allow both interests to have their needs met in terms of the business and the role and responsibility of government and as the administrators of the public purse. So the commitment is that we’re still looking at trying to find a way to do this. I will commit to the Member that when I’m finished in the House today, I’ve already indicated to the deputy minister that I would be calling him at the rise of the House and this will be one of the things on my list to talk about. Thank you.
Thank you, Mr. Miltenberger. Final supplementary, Mrs. Groenewegen.
We do greatly appreciate all of those efforts that the Minister refers to in what they have been able to do. This is not an easy business and strangely, after all these years, it’s still in a lot of ways a fledgling business, but we do hope that the other prospects for the waste material will come to fruition, that this will add additional revenue potential to this company and that we can do something in the short term. They’re not asking for a handout. They’re asking for a postponement or an abatement of the stumpage fees and it is six jobs. The work that they’re involved in in cutting firewood is in keeping with this government’s efforts to reduce fossil fuel consumption in the North and, Mr. Speaker, it is six jobs that are very important to our community. So I would ask the Minister if he would, I’m going to be heading back to Hay River this afternoon, but if he would keep the Pattersons and myself apprised of the outcome of anything they can do to help resolve this issue. Thank you.
I acknowledge, as well, that the Member has been an impassioned advocate on behalf of the Pattersons over the years and to no small way that’s part of the reason that we’re still having these discussions. I appreciate that interest, and I’ve heard her concerns, and I will be following up and I will commit to keep her and her constituents informed. Thank you.
Thank you, Mr. Miltenberger. The Member for Weledeh, Mr. Bromley.