Page A8 — Terrace Standard, Wednesday, January 22, 1992

~ BUSINESS REVIEW

Tough times for Skeena Cellulose

Local mill needs a break

TERRACE —Skeena Cellulose
needs realistic viewpoints from
the communities in which it
operates, local governments and
unions representing its workers
if itis to survive in the 1990s, a
senior company official told a
chamber of commerce luncheon
here last week.

Vice president Reg Lightfoot
said the company must find
ways to cut or contain costs in
the face of high. operating ex-
penses and .the threat of
overseas competition.

As it is, the company’s
sawmill here and’ its Prince
Rupert pulp operation would
most likely be closed now if the
company hadn’t spent $250
million in improvements over
the past five years, he said.

“We have to look at major
changes or there are going to be
a lot of casualties, It’s as simple
as that,’’ Lightfoot continued
of conditions affecting Skeena
Cellulose and other B.C. forest
products firms.

“The bottam line is that \ we
have tu be-very competitive,”

Reg Lightfoot

he said.

Lightfoot called on chamber
members to lobby town council
on issues such as property taxes.

And companies and unions
must find ways to reduce
high jabour costs by eiiminating

featherbedding and excessive °
manning, he added.

One of the largest problems
facing B.C. forest. products
companies is overseas competi-
tion because of lower operating
costs, said Lightfoot. —

Countries such as Chile are
specializing in tree plantations
which are more cost-efficient
than the traditional B.C, model
of cutting in wild forests which
require new roads and transpor-
tation to processing facilities.

Overseas’ competitors also
have faster growing conditions
than the climate and terrain
here permit, said Lightfoot.

At the same time, the natural
growth rate for lumber is chang-
ing in the 90s, he said.

Housing starts — the prime
generator of lumber sales — will
be lower in this decade because
of an aging population and
fewer new households being
formed, Lightfoot noted.

As well, Lightfoot said the
annual cutting rate in B.C, is
also subject to reductions
because of past overcutting

TERRACE — A new clothing
outlet here wants to capture a

growing national trend, says

operator Maureen Rosenau.
Class Act Consignments,
beside Trim Line Signs on
Lakelse Ave., takes used
clothing on consignment.

Calling it a form of recycling,

Rosenau said the store has a
sign noting that the outlet is en-
vironmentally friendly.

“Second hand and consign-
ment stores are growing rapidly
across the couniry,’’ she said.
The store also sells new
clothing.

From Prince George,
Rosenau said there are three
similar stores in that city.

Mean ar re na

membershitp y renewals are" tom:
ing in at a good rate, says

‘members at

UT AND ABOUT

manager Bobbie Phillips.

Most of the memberships
came up the end of December
and the rest are due in
February.

The renewals come with an
increase, the first in three years.

There were 273 chamber
the end of
December. The chamber sold 58
new memberships, registering a
net increase of approximately
23 over the year before once
non-renewals were subtracted.

it

Qver the. year before.

$110 from $100 for businesses

STAN HOLLAND
BONDED “A” CLASS
GAS FITTER

is pleased to announce the
opening of his new business:

Skeena Heating
Services Inc.

FOR ALL HEATING INTALLATION AND SEAVICE .
INDUSTRIAL, COMMERCIAL AND RESIDENTIAL

Stan Holland

| 635-7979

eee Ani RO Ree in Se :

CALL STAN

increase. of approximately 25. :

"Fee ‘intteases work out to the Global “TV GulleF th Saska-

(Fax) 635-2208 §

with four to seven employees,
For businesses with 8 to 10
employees, the increase is from
$130 to $143.
KEKKKK
There’s a new reporter com-
ing to Skeena Broadcasters.
Marcia Morash has had
several years of experience in
broadcast journalism, including
a stint with a TV station in
Australia, says Skeena Broad-
casters news director Roger
Millions.

practices.

In responding to questions,
Lightfoot acknowledged that
Skeena Cellulose has been
slower in paying its suppliers of
wood and other products by us-
ing those delays as a form of
credit.

‘Please do that. Give us a
hand ‘in this time, Please bear
with us,’’ said Lightfoot in ad-
ding that things will change
when the company is out of its
current tough cycle.

He said that half of the $200
million invested’ at the com-
pany’s Port Edward pulp mill
has been for environmental con-
trol equipment.

Lightfoot added that labour
cost contre] might come in the
form of more flexibility and
joint problem solving.

Skeena Cellulose's northwest
operations include a sawmill in
Smithers and joint ventures in
B.C. in addition to the mill here
and the pulp operation in Port
Edward, In prime economic

times, combined sales are worth
$400 million, ‘

Parent company Repap has
pulp mills and paper. making
facilities in the US, Manitoba
and New Brunswick, It’s assets
are $3,2 billion.

Under the ‘B’

“B" MEANS bingo but it also means building as the new home
of the Lucky Dollar Bingo Palace begins to take shape on
Legion Ave. The building is 20 feet high, 130 feet long and 60

feet wide. Lindstrom Construction
finished off by local sub trades.

is doing the shell and it'll be

: -Morash-- replaces: Michelle ,, 4

Gayse who is now working witli

toon, Saskatchewan.

AN AIR CANADA CONNECTOR
see ED _—

CHARTERED ACCOUNTANTS

tata Tate

Ar

635-6126

Fax 635-2182

and sav

anytime till

in3 days of

tions apply.

Book now till Jan.31,

economy, round-trip ticket Lo just about
everywhere AirBC flies, And youcan n travel.

Call your travel agent
or Ar Canada now.

Seats must be booked 14 days in advance
for most destinations and 21 days for Toronto
and Montreal. ‘Tickets must be paid for with-

depending on dates of travel and are subject
tochange without notice. Some other condi-

635-7069 |

Morac

eupto 65% ott afulbtare

April 4, 1992.

booking, Fares may be higher

Seats are limited, $0 call now. -

@)ssropian