ee -

EE, o”

be,”

band and two ‘neo forest com- .
panies‘are’on the list of poten-

tial customers for Westar

Timber's Hazelton- ‘based
4 operations,

‘Westar | Group . Ltd; |

large, debt.

The: sale of of Westar’ s Kit

‘wanga and Carnaby: mills:and a

- whole-log chipper in: Hazelton.

as well as other mills in B.C.
would : leave
southeastern coal mines and its

_ coal export port at. Roberts;

Bank: on the.lower mainland.
Westar Group -: president

Larry: Bell said the Gitwangak -
band: has already been con-.
tacted.“about ° buying | its Kit--

wanga | ‘mill.

“And while he wouldn't con-

the:
parent’ of ‘Westar: Timber,. an-.
nounced last week it wants to.
sell ‘the: subsidiary. to. Teducé A

it. with two.

interested in that ‘or Westar’s
other facilities in the Hazeltons,
Bell said Westar was approach-

ed prior to. making its decision.

to sell. i

“q can’t disclose that ‘but. 1

would think that’s the case, ”

.- Said.-Bell-. when «asked about

Skeena.. Cellulose and. West
Fraser. - ;

‘Bell added that Westar
Timber owes its parent Westar
Group approximately" $380
million, He estimated the
Hazelton-based_ operations have
‘a depréciated value, of $50
million, *..

“We do nat have the finan-

cial strength to develop our
timber division to its maximum
potential and therefore ‘the
logical course of action to

TERRACE — Despite ap-
pearances, crews removing
the stumps left after the fell-
ing of Sitka spruce trees
along Halliwell and North
Sparks found evidence of rot
in nearly all cases; says the ci-

' ty*s director of engineering.

esome : ‘residents had queried

“+ the need for the. clear-cut

- because the:tops of many

stumps showed no signs of a
problem,

However, when crews dug

_ up the stumps last Friday,

the base of most.
Christensen said the deci-
~ sion to remove. the trees had
been based on the findings of
two separate studies, both of
which found evidence of
- fungal rot.
He. pointed out ‘profes-

STUMP TRUCK. Crews were busy on Halliwell and North
Sparks last week pulling up stumps left after fungus-infected
Sitka Spruce were felled by the city. Despite appearances to
the contrary, the city says.most showed signs of rot.

It’s rotten work

aie Stew. Christensen ...said :.

they found rot had attacked -

sional forester Doug Davies
of KDM Forest Services,
having taken core samples of
all the trees, had advised the
city ‘'to bite the bullet and
take them out.”’

Although the trees’ adja-
cent to Heritage’ Park had
been™leftstanding, -he said -
they:.too had “‘exactly ‘the
same problem’? and wouid
therefore have to come
down.

However, in resporise to
concerns expressed by the
regional museum society — it
runs Heritage Park — the ci-
ty had agreed to postpone ac-
tion here until September,
the end of the tourist season.

Christensen said it was
planned to plant replacement
trees along. both Halliwell
and North Sparks.

firm : or. deny. that ‘Skeena-:
‘Cellulose and West: Fraser are.

from front |

~Kemano action

the prairies, where they were

Valready partially constructed

before there was any kind of
. legal challenge.”

Bill Rich said the company
‘has made no decisions yet about
‘whether. the court decision will
alter the Kemano construction
schedule,

_>. “We have a lot of review to
do and I can’t predict at this

~ stage what the decisions will

Rich said, “adding he
“couldn't comment further,

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follow i is to o sell " said Bell:

Westar will. examine all offers ,
~ but will want the best deal it can

get, he added.
“We think those assets will
have more value i in the hands of

. Others, They néed more invest-
“ment and: there’s. potential for ‘
“them to be integrated with other

companies,’ Bell said,

The ‘sale, of Westar Timber
will significantly reduce but not. ~

eliminate its debt to Westar —im

Group, Bell continued.

“The possibility of the Git-

wangak band buying the Kit-
wanga mill isn’t new. |

It and Westar began talking.
about the idea two years ago |

when’ Westar said the mill

would have td be closed because:

the equipment was old and the

wood supply was inadequate.
~The mill did close and the

band then blocked access to the

"site.
The -forest ministry. subse-.

quently ordered Westar to begin
operating the mill again...

’ Westar’s other Hazelton-area
mill, Carnaby, was opened as a
state-of-the-art timber ° export

facility five years ago. It replac- .

ed an older mill. .

The sale of. Westar: Timber .
will end a provincial govern--* :
ment involvement in-the forest | “45 going concerns, Maybe that's :.
’ industry that began during Dave...

Barrett’s -_NDP government in pe

the early 1970s.

Larry Bell

Westar Timber has been ‘com ,
tinually plagued by debt but it -

did make substantial capital in-.
‘vestments: to improve its’ Pro-.
duct and’ efficiency.” .

~ Although’ the creation of the
B.C, ‘Resources: Investment’
Corporation and subsequent ac.

tions ‘were criticized; Bell. said

the effort did havea purpose.:
“If you ‘recall,’ when: those
mills were’ purchased by the
government in 1974-75, they
were. in danger’ of shutting
down. They’re-now being sold.

the: ‘ood: news rs here,” he said,

It began buying independent aes

operations threatened ~ with
closure and amalgamated them

under Westar’s predecessor, the . | *.
B.C. Resources Anyestment, oy

Corporation,

Bill, Bennett’s. Social - ‘Credit
government converted:the com-::
pany into @ public one, He also::
issued five free shares to every

B. C. resident.

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