inspections coming

Whether or not Thornhill amalga-
mates, soon building inspections
will be mandatory\NEWS A12

Help for parents

The mother of a handicapped —
child organizes a support group
for parents\COMMUNITY B1

Mountain madness

Terrace bikers head south for
last meet of the season in
Kitimat\SPORTS B7

WEDNESDAY
October 8, 1997

RD =

93¢ PLUS:7¢ est
~ VOL, 10 NO. 26

Loggers are still on the critical ist

UNSECURED CREDITORS owed
millions of doilars by Skeena Cellulose
are waiting for their tum now that the
company has been saved.

Although the Royal and Toronto-
Dominion banks, the provincial povern-
ment and the pulp union in Prince Rupert
have reached a deal to revive the compa-
ny, nothing has been presented to the
creditors, says the spokesman for a local
group.

Justin Rigsby of the Repaper Creditors
of B.C. says it has had no contact from the
provincial government.

“I think the frustrating thing is that
while we’re happy to be back at work and
we now have cash flow we've had fixed
costs that are killing the creditors and

we've not been consulted or given the
opportunity for input.”

Rigsby has talked to the monitors
appointed by the courts when the compa-
ny sought creditor protection earlier this
year and anticipates receiving a proposal
by the end of the month.

The monitors from Coopers and
Lybrand have until Nov. 28 to draft and
have approved a plan to satisfy the
creditors.

One suggestion, that the provincial
government assign some of its 45 per
cent shareholding in the company to
creditors, may not be welcomed.

“We don’t know if we’re talking so
many cents on the dollar or a deferred

adamant they want payment of what’s
owed them,” said Rigsby.

His group, mainly logging contractors,
represents 30 companies owed $20 mil-
lion of the nearly $100 million in debts
outstanding.

Rigsby noted that his group is nearing
the first anniversary of when Skeena
Cellulose told contractars would pay
them when it could.

And that came after years of ever
increasing delays in the company making
payments to suppliers.

Even after a suitable arrangement is
struck with creditors, Rigsby said changes
are needed in the way contractors are paid
by forest companies.

He suggests that lien regulations be

adjusted permitting seizure of logs if pay-
ments fall behind.

And Rigsby prefers having payment
terms be enacted through regulation
changes.

“We have to set industry standards and
pethaps have a bonding process to protect
contractors,” said Rigsby.

“The probability of a second Repap in
this province in the next five years is
good,” he said.

Fears that Skeena Cellulose might have
sued contractors, forcing them to deliver
logs, prevented them from withholding
services in the months leading up to
Skeena Cellulose seeking creditor protec-
tion, said Rigsby.

payment plan. Some of our members are

CRANBERRY JUNCTION used to be the Mecca
to pine mushroom pickers. That's Roy Stinson,

Picking a way
By SHEELAH GULLION
EITHER IT was all over three weeks ago or there’s
three weeks left.
No, it’s not Groundhog Day, it’s the mushroom sea-
son.
‘TT don't believe the season’s over,’ said Brent

given up for this year.

McNeil and his friend Kevin Johnson said last week
that they’d had enough and were hitting the road look-
ing for greener pastures.

“We were picking every day when we first got
here,” said Johnson, ‘But when we got discouraged, I
was only doing a half-assed job.’

Dean Brown arrived in Terrace with five others two
months ago to pick the prized fungus, but after strug-
gling to break even, they gave it up.

“I spent about $460, fo come up here to pick

MeNeil, an experienced picker from Ontario who's:

he’s picked for seven 1 years and he! $s one of many
who ara moving on to mare promising lands.

of life for many

mushrooms and all I got one day was 48 cents,” he
said.

“That was a joke. When that happens,’’ Brown con-
tinued, ‘you start to think about what the mushrooms
mean o you in terms of all your hard work and it’s in-
aulting.’”

Indeed, buyers in Terrace and parts north have been
packing up and leaving town in droves recently.

Those buyers that remain say that this has been the
worst year in recent memory.

Local buyers are part of a network feeding the lucta-
tive Asian market for pine and other mushrooms. It
represents a significant cash economy in the northwest.

The buyers also insist thai the low prices are not set
by the individual buyers, but rather by exporters in
Vancouver.

Cont'd Page A9

The Deal

The deal that saved Skeena Cellulose -
calls for the province to kick in $124 mil- .
lion in loans, payments and loan ©
guarantees. ,

That breaks down to a $74 million loan
for improvements — $26 million over
seven years to buffer what would have
been benefits cuts to Prince Rupert pulp
workers, $8 million over three years for
roads and a guarantee of $16 million .
toward the $40 million for start up costs.

For that, the province is taking a 45 per
cent stake in the company with the Royal
and Toronto Dominion banks holding the

See Loggers A2

Councillors meet
with casino backer

By SALWA FARAH
A VANCOUVER casino operator inter-
ested in opching a similar venture here
spent Jast week lobbying city councillors to
gauge his chance of success.

Royal Diamond Casinos Inc. president
Gary Jackson got-a largely cool reception
from city councillors.

Provincial rules require any new casinos
within municipal boundaries to have the ap-
proval of the relevant city council.

Casino developers have until Nov. 28 to
submit proposals to municipalitics.

Jackson said his private meetings with
councillors were a way for him to get an
idea of where they stand before submitting
an official application.

Jackson's interest in Tertace makes for
two known possible casino ventures here.

Terrace Inn owner John Georgilas is in-
terested in opening a gaming establishment
on his premises.

City councillor Tim Down said he was

- worried about meeting privately with Jack-

son and got clearance first from city admin-
istrator Bob Hallsor.

‘Hallsor says there’s nothing wrong with
city councillors meeting. privately with a
casino developer.

‘He's just up on a fact- finding mis-
sion,’’ Hallsor said of Jackson. ‘‘He might
talk to the chamber of commerce, the man
on the street, whocver.””

Most of the councillors who met Jackson
say they’re opposed to increased gambling
here.

Linda Hawes called it just another form
of taxation that would bring economic
hardship on those who are most vulnerable.

“T think the timing is wrong with our
economy as itis,’? she said, ““When people
are desperate, they tend to spend money un-
wisely.

“We would be harming our community
by allowing this to happen now.”’

Val George, Ron Vanderlee and Rich
McDaniel also say they’re opposed to the
idea of gambling in Terrace because finan-
cial benefits to the municipality would not
offset the social problems associated with
gambling.

George said increased policing costs to
the municipality could wipe out any profits
to the city.

“T don't see it making any money,’” said

George.

It is up to the municipality to decide if,
and what shape the casino will take —
charity or destination.

The former features a share of profits
going to charities while a portion of the lat-
ter ends up in municipal coffers.

Royal Diamond has operated a charity
casino in Vancouver at 750 Pacific Blvd,
across from GM Place, for the past 11
years. The casino has roulette wheels and
blackjack tables with a $500 bet limit.

Down said that if a casino was built, he’d
lean toward a charity form, rather than the
destination version.

‘T would prefer to see the charities get

Most of the councillors who
met the developer say they're
opposed to increased gam-
bling here. One called it just
another form of taxation that

would bring economic
hardship on those who are
most vulnerable.

the money rather than the municipality,”’ he
said.

Councillor David Hull says he’s not op-
posed to the project from the outset, al-
though he wants to see more information.

He said gambling is already here in many
forms including lotteries, bingo, horse
racing, pull tabs and Keno.

“If gambling is going to present social
problems, it’s already here,’’ he said, ‘“This
opportunily won’t make a difference either
way,”

Hull said it appears the proposal might -

provide some jobs and could pour millions
of dollars into local charities.

“Anything we can do to keep bringing
people this way is to our advantage,’”” he
added,

Jackson says Terrrace’s position as a hub
of the northwest makes it a viable location
for a casino serving the region.

Hawes said the issue won't likely be
debated in an open council meeting unless
Jackson makes a formal application, requir-
ing the cily to make a decision.

‘We're not going to take any initiative,”’ -

said Hawes.

Shelter playing host
this Thanksgiving

THANKSGIVING without
doesn’t seem right.

That’s why the Terrace emergency shelter
is throwing open its doors for a Thanksgiv-
ing meal on Oct. 13. Anyone who doesn’t
have sorieone to spend the holiday with is
welcome to drop by,

The shelter, located at 2814 Hall St. on
the southside, is going to be open all day.
The dinner will be held from 5-7 p.m.

This is the first time the shelter has ever

the turkey

‘thrown open its doors for a public
_ Thanksgiving dinner.

No one else in Terrace seems to putting
on a dinser for the less fortunate, explained

house manager Janet Costain, .

Volunteers and board members have
agreed to keep the emergency shelter open
and put on the dinner. The shelter’s budget
doesn’t allow for that expense, sie sald.

The Salvation Army is donating turkeys
for the dinner, and someone else has of-
fered potatoes,

If people can donate any canned vegeta-
bles, money, or paper plates, it would be
appreciated, says Costain.

If the dinner proves popular, the shelter

will organize others ot Christmas and.
Raster, If you'd iike to help, phone Costain

at the shelter at 635-5890.

ot