Ellen Engstedt - August 28, 2006
Montana Wood Products Association
Hypocritic Oath
A poster hangs in the office of the Montana Wood Products Association entitled “Hypocritic Oath”. The left hand side has EVIL in red and shows activities like ranching, energy production, mining, logging, and farming. As the activities move to the right side of the poster they become progressively better until all of the outcomes on the right are in green and are GOOD. Obviously this poster has nothing to do with doctors and the oath that they take and everything to do with those individuals who simply will not make the connection between commodity production and their own commodity use.
The annual meeting of the MWPA was held last week with the theme “Montana’s Economic Engine…Natural Resources Driven”. The point of the program was to highlight what is currently happening with Montana’s economy, why there is a half billion-dollar surplus, and who exactly is responsible.
Dr. Paul Polzin with the UM Bureau of Business and Economic Research reported that the booming oil production in eastern Montana is driving the increase in the economy along with a vibrant construction industry. Other major industries such as mining, timber, and agriculture remain strong. The various presentations sounded a lot like how the poster looks. On-the-ground activities produce the value-added products used by all of us every day and to think otherwise is hypocritical. The speakers bore out that fact by presentations relating to the benefits to all Montanans by hard-rock mining, coal mining, energy, oil and gas, agriculture and wood products.
A common thread among the speakers was what each of these basic, natural resource industries brings to the Montana economic table. They provide jobs that average around $65,000 per year with full benefits. This compares to the Montana Department of Labor report that indicates the average Montana wage is just over $29,000. Each mining job translates to a multiplier of at least four times with indirect employment by suppliers and others.
Taxes paid by the coal industry run over $53 million per year with severance taxes, gross receipts, Resource Indemnity Trust, and personal income taxes paid by the companies and the individuals who are employed by those companies. Another $60 million is paid out with purchases of materials and supplies. For anyone to complain and make light about corporations and their contributions to Montana’s economy is insulting. When politicians make negative public statements about the corporations and their place in our economy they are sending a message to the employees of those companies that their contribution to our State is not positive. At some point, it would behoove public figures to stop slamming our businesses and their employees and start promoting what those companies and those Montana families contribute to our communities.
A recent statement by a new age economist saying the oil boom in eastern Montana does nothing for western Montana cannot even pass the laugh test. I guess that’s what happens when promotion of a regional economy is put under the microscope – it cannot pass the bug test. In fiscal year 2005 according to the Montana Business Quarterly, oil and gas production generated $140 million in taxes, with roughly half of the revenue distributed to counties and half to the general fund of Montana government. The study concludes: “The direct economic impact of the entire oil and gas industry in Montana is approximately $5.8 billion and supports over 5,000 Montana jobs. The total economic impact with the output multiplier is valued at $8.6 billion and 12,000 Montana jobs.” All of Montana gains from these positive impacts.
One thing apparently not understood by some newcomers to our State and its economy is that there is a staying power that has continued in spite of obstacles placed in the path of our rural way of life and our production of commodities.
We in the timber community simply wish to continue contributing to the wellbeing of Montana - just like the logging bar on the Hypocritic Oath poster indicates. It travels from logging to pulp and sawmills to paper products and house construction materials showing production of those value-added commodities used by all.
For the Montana Wood Products Association members and our friends in other natural resources driven communities, I’m Ellen Engstedt. Thanks for listening.
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