ACTION ALERT

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Mitsubishi Pulp Mill in Canada Gets Taxpayer Bailout

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Forest Networking a Project of Ecological Enterprises

     http://forests.org/

 

4/12/98

OVERVIEW & COMMENTARY by EE

Following is the corrected Action Alert from Rainforest Action Network

which highlights the inappropriateness of the $130 million Canadian

taxpayer bailout of Alberta-Pacific's industrial forestry operation.

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Title:    Mitsubishi Bail-Out/Action Alert!

Source:   Rainforest Action Network

Status:   Distribute freely with credit given to source

Date:     April 7, 1998

 

APRIL,1998 ACTION ALERT

MITSUBISHI PULP MILL GETS TAXPAYER BAILOUT

 

 

An industrial logging operation owned by the world's largest

multinational corporation might not seem like a deserving candidate

for welfare benefits.  But Alberta's Premier, Ralph Klein, recently

gave the Alberta-Pacific (Al-Pac) mill the most generous of handouts -

forgiveness of $130 million (Canadian dollars) in loans Al-Pac owed

back to the taxpayers of Alberta.  Al-Pac, according to the Western

Canada Wilderness Committee, is now "the most heavily subsidized mill

in history."  

 

Rainforest Action Network has reported on Al-Pac's devastating

operations several times since 1993, when the mill opened for regular

production.  The mill, which cost approximately $1.3 billion to build,

is financed in part by several Mitsubishi-owned banks; Mitsubishi

Corporation is also a 43% owner in the mill.  The province of Alberta

originally made loans to Al-Pac with the understanding that the money

would be returned when the mill became profitable.  To this day, the

mill has not ever had a profitable quarter.

 

 

The situation brings renewed attention to the mill's business

practices.  In its four years of operation Al-Pac has clearcut immense

tracts of Alberta's old growth forests, and has dumped effluents into

the already-polluted Athabasca River System, dramatically increasing

the level of oxygen in the water.  The resulting environmental

catastrophe has lead to the loss of fish, wildlife and safe drinking

water, and has endangered the well-being of northern communities -

including Northern Cree, Metis, and Dene First Nations (Indian) people

who rely on trapping and fishing for their livelihood.  Additionally,

these First Nations communities fear that the continued encroachment

of commercial logging operations onto their land will further undercut

their rights, traditional culture and ancestral ways-of-life.

 

Meanwhile, the provincial government of Alberta has given Al-Pac the

authority to monitor its own environmental performance and effluents

without any independent oversight - while the company systematically

clearcuts Alberta's old growth boreal forest in an area almost the

size of Indiana. 

 

And yet to preserve its lifeline of government subsidies, Al-Pac

continues to promise jobs for the province of Alberta. With a

worldwide slump in the pulp market and increasing automation, pulp and

paper industry jobs are being lost at the rate of 20% per decade -

leaving Albertans with ravaged forests, a sluggish economy, and the

burden of debt for a project they did not support in the first place. 

 

WHAT YOU CAN DO

 

It is not too late for Alberta-Pacific to take responsibility for its

actions.  Community members are calling on Al-Pac to stop the

destruction of Alberta's old growth forests and set aside tracts of

undisturbed wilderness within its logging territory - providing a safe

habitat for the region's numerous species of plants and animals. 

These protected areas should also be open to First Nations people,

giving them free access to hunt, fish and harvest medicinal plants.

Says Gray Jones of the Western Canada Wilderness Committee, "Al-Pac

has a real opportunity to atone for its past misdeeds and show some

leadership in the 21st century." 

 

Tell Mitsubishi's Al-Pac that it cannot continue to clearcut Alberta's

forest resources. In addition to setting aside protected areas, Al-Pac

must address the problem of old growth logging head-on:  ask Bill

Hunter, the new General Manager, to transition the mill into using

non-tree fiber sources. Here is a sample letter (first-class postage

to Canada is 46 cents):

 

Bill Hunter, General Manager

Alberta-Pacific Forest Industries

Box 8000, Boyle, Alberta

T0A 0M0, Canada

 

Dear Mr. Hunter,

 

I learned recently that the government of Alberta has erased $130

million in loans that Alberta Pacific owes provincial taxpayers.  It

troubles me that your mill is subsidized to cut down irreplaceable old

growth forests and pollute the Athabasca River system.  In your new

position as General Manager, the best steps you could take to protect

Alberta's old growth forests are to set aside protected wilderness

areas within your logging territory, and allow First Nations people -

such as the Metis, Northern Cree and others - full access to carry on

their traditional way of life.  Additionally, you must reconfigure

Al-Pac's operation to use non-wood fibers, such as agricultural pulp,

as an alternative to old growth forests in your pulp production.

 

Now that the Premier of Alberta has given you a $130 million gift,

please let me know what you intend to do in return for the people of

Alberta.  I am especially interested in learning how you plan on

improving Alberta-Pacific's environmental record.  I will continue to

monitor your progress on this issue, and support the rights of First

Nations people to protect their land and at the same time establish

preserved areas within your FMA. 

 

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Written with Gray Jones of Western Canada Wilderness Committee

 

The Corporate Transformation Program works to shift ecologically and

culturally destructive corporate practices to those that protect

biological and cultural diversity and integrity.

 

Rainforest Action Network 

Heather Sarantis, Corporate Transformation Program Director

221 Pine Street, Suite 500  

San Francisco, CA  94110  

415.398.4404 

415.398.2732 (fax)

 

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