The Kootenay Lake Timber Supply Area falls within the Central Kootenay Regional District. The major communities within the area are Nelson with 8,760 residents; Creston, 4,205; and Kaslo, 863. In the late 19th century, prospectors and miners were attracted to the area by deposits of silver, lead, zinc, and other metals. The forest industry developed rapidly to provide wood for communities, industry, and railways. Lake transport was crucial in those years - the last sternwheeler, the Moyie, was retired in 1957 and is now on display in Kaslo.
Forestry remains the leading industrial sector in the Nelson/Kaslo/Creston region and accounts for almost half of the industrial activity (Figure 2). Agriculture is the second leading activity and is undertaken primarily in the Creston area. The mining industry has declined over the years but is still significant in the local economy (SEA p. 13).
Figure 3. Regional income sources by sector
Tourism has experienced rapid growth in recent years, aided by the proximity of provincial parks, spectacular mountain scenery, the Kootenay Lake sports fishery, and a well-developed highway network. The area is growing in popularity for both summer and winter backcountry recreation
(SEA p. 7).
Each of these income sectors creates additional spin-off, or indirect, employment opportunities. As money is spent in the area, employment in grocery and other retail stores is established. Many other businesses, such as banking and restaurants, also provide services to the local population.
Non-industrial sources of income, such as pension income and investment, also help to create employment in local communities. Due to the mild climate and attractive living environment, many retirees have settled in the Kootenay Lake area.
Three major sawmills are presently located within the Kootenay Lake Timber Supply Area - two at Creston and one at Meadow Creek. Four other mills outside the area process about 53 per cent of the timber harvested from the area. Lumber is the primary product. Wood chips and milling residue are sold to pulp mills and power-generation stations.
The harvest and milling of timber from the timber supply area contributes approximately 413 direct person-years of employment in forestry and 286 person-years of indirect employment within the area. Approximately 646 additional person-years of employment are created outside the area, for a total of 1,345 person-years of employment within the province (SEA p. 35).
Timber harvesting within the Kootenay Lake Timber Supply Area is estimated to generate approximately $10.8 million per year in stumpage, taxes and other provincial government revenues (SEA p. 30). These estimates were developed before the new Forest Renewal Plan was announced and do not include the increased stumpage revenues that will be generated from this plan. While stumpage revenues are expected to increase by as much as 80 per cent, it will not be possible to accurately estimate the impact of this change until the new policy has been implemented for a period of time.
