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West Fraser Gives Dire Warning by JEFF NAGEL We're at the Top End of the Cycle and We're Losing a Lot of WEST FRASER Timber Might Walk Away from Its Ter- Money

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West Fraser Gives Dire Warning by JEFF NAGEL We're at the Top End of the Cycle and We're Losing a Lot of WEST FRASER Timber Might Walk Away from Its Ter- Money C eared to land School expands i Ready to go Changes at the airport continue I Veritas school gets the approval /Local nowmo ilers gear for " with a new corporation running for much-needed space for t eir a nual $nowarama event flight services station\NEWS A7 {students\COMMUNITY B4 \SPORTS B5 WE 93¢ PLUS 7¢ GST FEBRU TAI I DAR D VOL: 9 N0,43 West Fraser gives dire warning By JEFF NAGEL We're at the top end of the cycle and we're losing a lot of WEST FRASER Timber might walk away from its Ter- money. We don't really see any end to this -- that the race sawmill if the economics of logging in the northwest [] Union suspects politics, A5 ~ cycle's going to turn around and we're going to make don't dramatically improve. [] Cheques are in the mail, A5 money again without some fundamental changes. And Bruce MacNicol, the company's northwest operations [] FRBC offers programs, A5 that's what we're looking for." manager, raised that spectre last week when confronted • Retail sales affected, A5 MacNicol said talks with government officials are with union accusations that Skeena Sawmills workers are focussed on how the company's timber is appraised. being used as pawns to win concessions from government. Changes there would reduce the stumpage fees the compa- "If you have an entity which is not profitable, you either ny has to pay. "My gut feeling is it's going to take a while have to cure it -- you have to resolve the issues to turn it "It's not our intention to do that," he said. "It's not like to work these things out," MacNicol said. around -- otherwise the alternative is to cut it off I guess, this came out of the blue. We've been talking about this The delay will be even longer for logging contractors and he said." for about a year. Nothing has changed, It's just gotten truckers associated with West Fraser. That's because the "Now that's a pretty drastic step, but ultimately in any progressively worse," Skeena Sawmills log yard is about 80 per cent full, and organization you're going to come to that alternative if "We have never ever shut down operations just because " logs that were cut in the Douglas Channel area last fall there's nothing else you can do. Now hopefully we won't of market swings," MacNicol said. "We have operated ' coutilme to be brought into the yard. come to that. We're anticipating that these things can be this mill since 1983 and gone through several up attd down MacNicoi did hold out the possibility that the company resolved and will be resolved." cycles and not shut down." might modernize the mill, making it more efficient, if dis- MaeNicol maintained the company is responding to eco- "What is different this time is that lumber markets are cnssions with government led to more viable operating nomics, and isn't playing games. fairly good. It's not as if we're at the bottom of the cycle, conditinns. Bruce MacNicol Avenor takeover means job losses IT'S GOING to be awhile before the full provincial goverument which must approve impact of Avenor's planned takeover of the transfer of forest licences. Repap is felt in the northwest. "There is a lot of speculation out there But Avenor official Dominique Dionne is but we are committed to the transaction and pointing to general Avenor announcements continue to support it," said Dionne. of job cuts amounting to 10 per cent of the The province has given a deadline of Feb. -'.-.,,bh~ed Avenor:Repap workforce once 15 to gather opinions on the Avenor-Repap the takeover is completed. deal, after which the northwest tour will "We are looking for that overall redue- take place. tioxh" she said. Shareholders ror Avenor and Repap meet Money saved there and in other cuts is to March 12 to say 'yes' or 'no' to the deal. go toward paying down the debt Avenor is ~ dr ~'/k-,k taking on by acquiring Repap. While Avenor works on its takeover The 10 per cent job loss could amount to plans, the first job losses from the pending 1,200 positions out of the 12,000 people deal have already taken place. now working for Repap and Avenor. Repap last week permanently closed.its The big unknown for the northwest is Atholville pulp mill in New Brunswick. what's going to happen after Avenor That mill was to be the corner stone of merges its B.C. holdings with Repap's B.C. Repap founder George Petty's new Alceil ~t ,.Y,~ "~ operations to create a separate division. pulp process. Avenor intends to sell that off ~ poten- It was shut temporarily early last year be- tially raising $850 million ~ to help pay cause of market conditions with hopes of an down that debt opening should business improve,. , .;.,., But before that happens, Dionne says a For more on Avenor, see Page AIO. management group will be given the task of making the new B.C. division as efficient and profitable as possible to make a sale at- tractive. She acknowledged that'll be a challeng- Avenor meets ing lask given the debt being assigned to the new division. The amount of that debt with locals I isn't Imown but it could be several hundred million dollars. SENIOR AVENOR officials are touring Dioane said the packaging of the B.C. the northwest this week tO explainthe holdings for sale has nothing to do With the' impacts of their company!S l~roposedtakeo- political or economic climate in this pro- ver of Repnp. vince, The contingent is being lead by Darrell "There are no hard feelings, This is a Madill, presideflfof:the-eompany's" wood straight business deal. Avenor's focus is products group. going to be on value added and it just so He's the man in charge of combining the happens that's not in B.C,, she said. B.C. assets of Avenor and Repap into one Avenor and Repap officials will be ac- division¢ for an eventual sale. compauying Skeena MLA Helmut Gies- The Avenor group is meeting with Repap brecht on a tour of the northwest to explain officials and employees and with Colmnunity what's going on. and business leaders. , Avenor officials will have had plenty of Avenor officials remain confident that practice as they are now spending a lot of shareholders will approve the deal to take time talking to reluctant shareholders who over Repap despite mounting criticism that must approve the takeover and to the the company istakingon too muchdebt.wiih THE 1997 NORTHERN B,C. Winter Games are almost here, The athletes are duo to arrive tomorrow and the deal. ~ the stage is set for a weekend of intense athletic competition. That's Games' billeting organizer Paul- winder Thandi with coordinator Diana O'Brien, volunteer Sue Mulvahill, co-chair Rod Cox and medical JOBS ELIMINATED director Brenda LavaUe. For more on the Games, see Pages B6 to BIO. NWC:C cuts courses By CRIS LEYKAUF college can get money from Forest Renewal So let the games begin! APPROXIMATELY 13 full-time teaching B.C. to maintain and expand the current TERRACE TURNS into an athletic Mecca for more northern part of the province, Those zones from, West positions and 25 per cent of urfiversity credit program. courses will be cut as Northwest Community The problem is that the college is currently than 2,000 northern sports worshipers when the North- to East include the North Coast, Kitimat-Slikiae, College trieslto get its debt under contrnl. The offering 140 plus student spaces but .only em B.C. Winter Games begin tomorrow. Bulkley-Nechako, Cariboo, Peace River and Fraser- cuts were approved a new four year plan receives mone~, for 59 spaces If.the:m01ey Those athletes are being accompanied by 200 Fort George, Two other communities are also se,lding athletes - which the- college board passed on the doesn't, come tlu'ough, the college plans to eat coaches and unknown contingents of fans, well-wishers weekend. ! the program t0,84 student spaces over the next the Queen Charlotte Islands and Fort Nelson, for a total and supporters. Over 50 university credit courses are being two years,. ~ . ~ ' : of eight separate regions. Utdike the B.C. Winter Games, which are youth- eliminated ':hnder the plan. The tfiajofity of_ : HealthandSocial Services programs will be For a sport to have a spot at the games, at Ica~t four oriented, the northern variety does not have age limits. those are i~ Terrace and includclall~secc)nd integi:ate&~:with a newcore :eun:iculum. Nearly 600 of the athletes are from the Terrace area, of the zones have to send a re.presentative team~ Th~s year scien~e courses. In Prince Rupert, all ..However, stulidnt eapaCtiyMll decrease' by 24 and about half of them are less than 18-years-old. year, 27 different sports have met those quallficdions, second ye~ university credit c0urses/,Will b e : fuli iih)elspachs, and staff..wiil ~eUiby~(wo, Some, like many snowboarders, are competing as indi- That means athletes will compete in everything from gone. .i~ ' • " " (~::.~.!: :: : Ailild/it:all the c~t~,the. Business'and viduals. archery to wrestling over the weekend. The cuts:, are the board's response t0an Techn~i~ig~;'programi~:getting a b0ost, dtie io ,, However, most are involved as part of various local Not all the competitors are athletes in a physical $800 000 [~lus debt which has acemnulated in6re~i~d student de~i~and, and student Capaci.
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