Peg; ee

Exhibit 4.2 overleaf summarizes the operating economic impacts. It can be
noted that over a 25 year period total wages and salaries will be approximately
$62.5 million in 1977 dollars. Income tax accruing to the Province of British
Columbia over the same time period is some $4.2 million. Sales taxes accruing
to the Province of British Columbia over the period are estimated to be $1.9

million on a total capital valuation of $30 million.

Revenues to the Province and municipalities from fuel taxes, licensing fees and
permits and property taxes over the 25 year period total nearly $3 million.

nee Indirect Economic Impacts

The indirect economic impacts resulting from the proposed routing are generally
difficult to quantify but are factors which should be considered in an economic
jmpact evaluation. There are three basic areas which will indirectly be

affected by the proposed route, as follows:

e Establishment of a General Freight Service to

Northern Communities °
e Inducement for Attracting Additional Shippers

e General Economic Multiplier for Goods and Services

Abe 51 Establishment of a General Freight Service to Northern Communities

General freight service to northern communities of British Columbia has been
severely disrupted in recent months. Northland Navigation Ltd. operated a
coastal freighter from Vancouver to a number of northern communities including
Stewart but with removal of the Federal subsidy the service was curtailed.
Rivtow Straits Ltd. resumed service to Stewart with a tug and barge operation
but low general freight volumes deemed the service to be uneconomic. At the
present time, there is no water transport to Stewart. The proposed concept
generally will have empty containers returning to Stewart by barge. These
empty containers and the barge service can be made available for general
freight destined to northern communities at a marginal cost to transport the
tonnage. The marginal cost will be substantially lower than a dedicated