Critics balance economic growth against environmental impact.

PEACE RIVER, Alta.

It's the same old story: saving the environment versus creating employment.

Late last year, Daishowa-Marubeni International Ltd. announced the expansion of its operations at Peace River, Alta., when it proposed construction of a new $900-million paper mill. Environmentalists and critics expressed concern that the impact on the environment would be serious, while local residents, including leaders of certain First Nations in the area, were enthusiastic about the potential for new jobs.

"It doesn't directly impact us, in terms of pollution, because we're a bit away from the area," said Kee Tas Kee Now Tribal Council Grand Chief Eddie Tallman, who is also chief of the Whitefish Lake First Nation. "Where it would be important for us would be that we'd have so much to gain in economic spin-offs. We've had a contract with Daishowa for six years and we're hoping that the new developments can put at least 12 more men to work."

"The fear is that the high-capital projects -- like this one -- generate a lot of construction jobs, but little ongoing employment for local people afterwards," said Mary Griffith, an environment and forestry researcher for the provincial opposition Alberta Liberal caucus.

Daishowa claimed that the project will generate 300 direct permanent jobs in the region, in addition to approximately 2,000 direct construction jobs. The new mill, which will produce light-weight coated paper, would be completed in October 2001 at the company's Peace River Pulp Division site.

Daishowa will spend about $261.5 million in the year 2000 in Alberta (not including the effect of the new mill) and contributes some $57 million to government coffers each year. The company employs more than 730 people in northern Alberta and contracts out work which employs another 600 people.

"A lot of companies, Daishowa included, are very proactive in attempting to hire skilled local and Aboriginal people," said Peace River Progressive Conservative member of the provincial Legislature Gary Friedel. "Unfortunately, many of our people don't have the skills required. There are many positive and active training programs internally in place."

But, he said, it isn't likely that most of the permanent jobs will go to local people.

And, whatever the benefits, there will be an environmental impact.

The new mill will require a combination of a chemi-thermal mechanical pulp (CTMP) mill and a kraft pulp mill. The kraft element is required to provide strength in the finished paper product. While it is possible to construct an essentially closed system for a CTMP mill, resulting in almost no effluent discharge, that is not the case for a kraft mill.

"There could be, if everything goes well, little effect on the downstream people and communities," Griffith said. "The problem is that we don't have any room left for margins of error. [The Liberals] have called for an independent audit to see if the numbers are accurate and realistic."

"If they're going to use a combination mill, then that means increased effluent," said Liberal forestry critic Duco Van Binsbergen, member of the Legislature for West Yellowhead. "In light especially of the Northern River Basins Study, it concerns us. The Smoky and Wapiti rivers need a break and to be cleaned up, according to the report."

The Peace River facility is upstream from more than 15 First Nations, all of which have suffered from increased pollution and declining water levels in the Peace River over the past 20 years. The study included serious and significant impacts on the fish, waterfowl and wildlife populations, as well, and many of the First Nations in northern Alberta use those resources as a major source of food and, in some cases, money.

"I have asked that [Daishowa] must go through a National Resources Conservation Board [environmental impact assessment and review] hearing," Van Binsbergen said," and that instead of concentrating on the plant site, the review be extended to cover the timber supply. Not to do so would be a significant omission.

"We still have doubt about the details of the timber-supply numbers as supplied by the government," he continued. "The last time a total inventory was done by the province was in 1971. They began a new one in 1986, but so far have done only about onethird of the province. They're making decisions based on outdated information, and information which was collected in older, less efficient ways than they have today."

Van Binsbergen warned that when Alberta Newsprint Company revised their inventory in the Whitecourt, Alta., area, they discovered that the volume of softwood lumber had been over-estimated by 40 per cent due to a poor inventory and unrealistic calculations of the annual allowable cut. The Peace River area is within a few percentage points of 100, both for coniferous and deciduous trees.

There are also concerns about the role of the government of Alberta in limiting the growth of industry in the North. While the numbers from Daishowa are considered accurate, the government numbers are approached with skepticism by almost everybody involved.

"I would go as far as to say that the government does not have the respect for the environment or the people who live close to it that it should have," Van Binsbergen said. "[Alberta Environmental Protection Minister] Ty Lund behaves more like a minister of Economic Development than the minister of Environmental Protection. You must include a total management plan and take into account sustainable forest management before going ahead with development."

Daishowa will take the new mill proposal before a public review process this year. There is concern in some quarters that the mill is just the tip of the iceberg.

"The key point is the way they downplayed the development of a new pulp mill," Griffith said. "In their announcement, they didn't mention it at all."

In fact, the potential for three new mills was picked out of an amended forest management agreement that was approved without fanfare by the Alberta Cabinet in mid-December.

"Can you blame them?" Griffith asked. "We all know how the public would react to news of one new pulp mill, and they are dealing with as many as three."