Printer Friendly

GOV. GARDNER'S TIMBER TEAM SAYS STATE LOG EXPORT RESTRICTIONS SAVE 3,473 JOBS WORTH $92.7 MILLION

GOV. GARDNER'S TIMBER TEAM SAYS STATE LOG EXPORT RESTRICTIONS SAVE
 3,473 JOBS WORTH $92.7 MILLION
 OLYMPIA, Wash., April 21 /PRNewswire/ -- Restrictions on log exports from state lands have saved 3,473 jobs in hard-hit forest product communities, generating $92.7 million in annual personal income that otherwise would have gone overseas, according to a report released today by Gov. Booth Gardner's Timber Team.
 The net cost of saving those jobs, in terms of lost export jobs and lower state timber sale revenues, was put at $5.83 million, or $1,678 for each of the average $26,700-per-year jobs saved.
 "While there is a cost to the state associated with preserving local jobs and industries, I think it's a small price to pay for the economic hardships and dislocation it prevents," Gardner said.
 Landowners have enjoyed windfall gains from the higher prices paid by overseas buyers, Gardner added. "Those gains hurt domestic mills by driving up prices. What these restrictions do is redistribute a portion of this windfall gain to domestic producers and their employers."
 Gardner said he wrote U.S. Commerce Secretary Barbara H. Franklin on Friday, urging her to reverse the Bush administration's January decision not to increase the log export restriction to 100 percent of all timber harvested on state lands. Increasing the percentage of public timber restricted from export would save an additional 1,333 Washington jobs, Gardner said.
 "Washington state cannot afford to lose one more good-paying, blue-collar job in any of its industrial sectors," Gardner said. "We've seen that when these jobs are lost, they're usually replaced by much lower-paying service sector jobs."
 Rep. Jolene Unsoeld, D-Olympia, said she supported expanding export restrictions to cover all timber harvests on state lands.
 "We have families and communities facing bankruptcy. We've been saying that it's ludicrous to cripple small mills in the region by shipping raw logs -- and jobs -- overseas," Unsoeld said. "This report should drive home the fact that we can save a lot of jobs by processing right here in the Northwest the timber from public lands. Here is where those jobs belong."
 The study was conducted by the state Department of Trade and Economic Development, the state Department of Revenue, the University of Washington's Northwest Policy Center and the governor's executive staff. It followed a 1990 decision by Congress to limit exports to no more than 25 percent of timber sales on state-owned lands in Washington state. In the past, roughly 60 percent of timber sold by the Department of Natural Resources (DNR) was exported to higher- paying foreign processors -- starving local mills of logs.
 While export restrictions have driven down prices paid by mills for state timber because of the reduction of foreign competition, the decline was mitigated by a steep drop in federal timber sales, helping hold up state prices even without foreign bidding competition. Due to environmental concerns, such as preservation of the Northern Spotted Owl, sales of timber by the National Forest Service dropped from a peak of 1,486 million board feet in 1988 to only 143 million board feet in 1991, with 400 million board feet scheduled for sale during 1992. Many domestic mills have relied solely on federal timber. State sales also fell sharply during the period, chiefly over environmental issues.
 The study, which has been corroborated by independent analysis, acknowledges that implementing export restrictions will cause Department of Natural Resources timber sale revenue to fall below what it would have been otherwise. This is true because DNR will not be able to sell the bulk of its timber to the more lucrative foreign market. The gap is expected to increase if federal and DNR timber sales recover, raising the net cost to the state to $13.5 million to preserve 3,610 jobs in 1992.
 But Gardner pointed out that DNR timber sales have failed to generate adequate revenues for the common school construction fund for years. For this biennium, $248 million of the $411 million construction fund comes from the general fund, and only $164 million is being generated by timber sales on state lands. "The fact is, this is an inadequate program that no longer comes close to meeting the capital needs of our schools without a significant contribution from the general fund," he said.
 Gardner added that a second part of this study, focusing on the forest products industry, will be released within 30 days.
 -0- 4/21/92
 /CONTACT: Dan Youmans of the Governor's Office, 206-753-6790/ CO: Washington State Office of the Governor ST: Washington IN: PAP SU:


JH-LM -- SE010 -- 0724 04/21/92 13:45 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1992
Words:768
Previous Article:FIRST AND FINAL ADD TO CAROLINA POWER & LIGHT CO. EARNINGS RELEASE FOR PERIOD ENDING 3/31/92.
Next Article:DURIRON BUILDING MOMENTUM WITH RECORD FIRST QUARTER SALES AND STRONG INCOMING BUSINESS; DIRECTORS ELECTED; DIVIDEND ANNOUNCED
Topics:


Related Articles
Changes cloud forestry's future.
JUDGE UPHOLDS FEDERAL LOG EXPORT RESTRICTIONS
U.S. DEPARTMENT OF COMMERCE EXTENDS 75 PERCENT LOG EXPORT BAN FOR TWO YEARS; DECISION WILL BENEFIT WASHINGTON SCHOOLS
TRADE GROUP DISAPPOINTED AT CHANDLER, DICKS, GORTON EXPORT BAN BILL
SIERRA CLUB RESPONSE TO CARPENTERS UNION AND AFL-CIO STUDY ON JOB LOSSES FROM SPOTTED OWL PROTECTION PLANS
Tracking Alaska's timber: Seward sawmill may be key to new timber industry growth.
Log exports: is the tide turning?
An industry under siege.
Taking a toll on timber.
Hope for the timber industry: the timber industry has been hard hit due to a declining timber supply, but it can recover.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters