Pubdate: Wed, 21 Nov 2001
Source: Duncan News Leader (CN BC)
Copyright: 2001 Duncan News Leader
Contact:  http://www.duncannewsleader.com
Details: http://www.mapinc.org/media/1314
Author: Peter Rusland
Bookmark: http://www.mapinc.org/find?330 (Hemp - Outside U.S.)

COMPANY PUSHING HEMP PLANT AS LAKE COWICHAN SOLUTION

Seeds of a fledgling hemp industry based in Lake Cowichan are being planted 
with venture capital raised by TransGlobal Hemp Products Corporation.

President Brian Johnson says his Island company plans to build a $2-million 
hempseed pressing and de-hulling mill near the former Teleglobe site off 
Highway 18.

"We hope to turn soil in the next few months," he said.

TransGlobal's hempseed press mill can be used to process products such as 
food, clothing, building materials and more.

The solar-shingled mill would be built from hemp wallboard, structural 
beams and even hemp concrete.

The plant - complete with movie theatre, snack bar and gift shop - would 
also educate locals and tourists about the hemp industry. Hemp would be 
grown locally, imported from the Prairies or from countries such as China. 
Johnson's trying to close a site deal with Lake Cowichan's Johel Brothers 
Contracting that would give his firm a 99-year lease on 10 acres.

"That's Brian's request to us," said Dave Johel. "The ink's not in the 
drying mode yet."

His lawyers are working on the deal that could be reached in a month or two.

"I think TransGlobal can make a go of it if they do things properly," he 
said, noting forest-dependent communities like Lake Cowichan should have 
branched into clean, alternative industries long ago.

Johnson had earlier pitched his hemp operation to Lake Cowichan council, 
requesting land for his site in return for company shares, Mayor Jack Peake 
said.

"We don't have any land," he said, adding Johnson also requested council 
help TransGlobal apply for government grants.

"These commitments were too risky for our town. If there's such a good 
risk, go to the private sector."

The lake project is the first of nine hemp mills TransGlobal plans to build 
on the Island. Hemp crops would use the west coast's mild growing climate 
and products could easily reach U.S. markets, he said.

Other operations would include a $15-million fibre-separation and textile 
mill in North Cowichan, and a $5-million aquaculture fish feed/bait mill in 
Cowichan Bay.

Johnson hopes to fund his project by attracting interested investors.

His third-party venture capital corporation has gained about $400,000 so 
far toward the project.

"We hope to get the rest by Dec. 31," he said.

Duncan chartered accountant Dan Little confirmed Johnson's pitch that VCCs 
have federal and provincial tax advantages.

"There are limited tax credits on contributions to a VCC," Little said.

"VCCs can also be eligible RRSP investments to provide a further deduction."
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MAP posted-by: GD