Chris Clegg
South Peace News
The proposed tariffs by American President Donald Trump could have a devastating effect on the local lumber industry and High Prairie regional economy mounting to millions of dollars.
It was the message delivered by West Fraser general manger Brandon Marsh at High Prairie town council’s meeting Feb. 11 and Big Lakes County the next day (story on page 3).
Marsh told council the mill employs about 140 people and the proposed tariffs could have a huge effect.
“We don’t have a 25 per cent margin,” Marsh said, referring to the tariffs, and adding the company needed to drum up as much support as possible to educate the public and persuade all governments to oppose the action including MLAs and federal MPs.
“The more letters the better off we are,” Marsh said.
While council promised full support, Councillor Judy Stenhouse asked what the worst case scenario might be.
“I don’t know,” replied Marsh, adding the peak periods of prosperity for the mill in 2020 and 2021 have “disappeared”.
“(It’s so) dependent on what happens to that Trump tariff,” he said.
In addition to the tariff, Marsh told council that 50 per cent of West Fraser’s wood is shipped to the U.S.
Asked if the plant would close, Marsh was not specific but he noted the 140 jobs and spinoff jobs created by the plant was crucial to the local economy. He added if half the plant was laid off, it was $7 million in lost wages plus accompanying jobs in the field.
“That number ($7 million) would easily double,” Marsh said.
Councillor Johnm Dunn asked about the possibility of other foreign markets. Marsh replied China is “off the market” while Japan and southeast Asia is a possibility but the American market was still crucial to West Fraser’s success.
“. . .for what we’ll lose out of the States. Nothing can replace that,” Marsh said.