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5.0 SUMMARY OF ECONOMIC IMPACTS

This brief has identified the economic impacts which will result from the
routing of asbestos fibre to Vancouver via the Cassiar-Stewart Highway and

through the port of Stewart.

Direct economic impacts during the initial start-up and operating phase are
substantial. During the initial start-up phase, it is estimated that capital
expenditures will total nearly $8.8 million in construction and fabrication of
facilities and equipment. The start-up phase will provide some 173 man-years
of employment with an estimated payroll expenditure of some $4.3 million.
Revenues to the Province of British Columbia from taxes will be about $846 ,000.
During the operating phase, the annual manpower requirement totai is 95 people
with a wages and salaries expenditure amounting to $2.5 million. Annual

revenue accruing to provincial and municipal governments is some $367,000.

Indirect economic. impacts resulting from the route will be the establishment
of a regular freight service to northern communities, specificaliy Stewart;
an inducement to attract additional shippers; and the general economic multi-

plier for goods and services.

In conclusion, the economic impact of the proposed route is beneficial; firstly
to Cassiar Asbestos Corporation Ltd. due to transport cost savings; secondly

to Rivlow Straits Ltd. due to additional transport revenue; thirdly to northern
communities due to the provision of a regular general freight service; and
finally to the Province of British Columbia due to the employment opportunities
provided and the tax revenues accrued from employment and expenditures made in
the Province both directly and indirectly.