Yukon backs away from dock purchase

Yukon’s new government has decided against purchasing or leasing the former Chilkoot Lumber Company dock at Lutak Inlet.

In announcing the decision Thursday, Yukon premier Pat Duncan called the project too expensive. "The ports initiative would require an investment of more than $6 million. We believe the money would better be spent on priorities such as health care and improving Yukon’s existing infrastructure."

Duncan’s Liberal Party replaced the New Democratic Party as territorial leaders in an election earlier this year. The NDP considered securing a tidewater shipping port a priority for developing the territory’s minerals and timber export industries.

The territory spent approximately $344,000 on the proposal, including environmental testing, and purchase of a series of options on the property, the most recent of which expired Nov 8.

Approximately $202,000 was paid to Chilkoot Lumber Co. owner Ed Lapeyri in exchange for Yukon’s first right of refusal.

Duncan said the territory was unsuccessful in finding private or public partners to help with development of the project. "While we did receive some expressions of support for the initiative, we did not receive any offers for partnerships. We simply cannot afford to do this alone."

Haines Chamber of Commerce president Robert Venables said he wasn’t surprised by the announcement. Venables was one of a group of Haines business leaders who met with Yukon officials at a recent conference in Whitehorse.

"Obviously there was real concern in the Liberal Party about spending money outside the territory. They were looking to take care of things closer to home. The NDP had made a lot of promises and a lot of projects up there got funded that otherwise wouldn’t."

Venables said Haines did all it could to encourage the territory to buy the facility. "We sent a clear, consistent message that we were very enthusiastic about having Yukon make any investment here."

Duncan said the territory will still consider Haines and Skagway as potential shipping ports. "We believe through working with our Alaskan neighbors we can secure access to tidewater without purchasing the properties. We will continue to work with municipal governments and business to insure Yukon goods will get to market."