Al) - The Terrace Standard, Wednesday, December 17, 2003 Softwood deal will shut out New Skeena, says president | BY JEFF NAGEL TERRACE’s New Skeena Forest Products sawmill will be shut out of the U.S. market if a tentative softwood lumber deal is signed, says the company president. Dan Veniez calls the deal a disaster for the northwest because it hands out quota — how much lumber cach company will be permitted to ship duty-free to the U.S, - on the basis of recent exports. Veniez said his business plan counts on access to the U.S. markel, allowing the sawmill here to run at three shifts a day, should financing be found to open up again. The softwood deal calls for quotas to be set based on exports to the-U.S.-between April -1, 2001] and September 30, 2003. And that’s a problem because the mill hasn’t been open for much of that pericd. “We would be denied any and all access to the U.S. markel,” Veniez says in a letter lo international’ trade minister Pierre Pettigrew. Veniez said he will urge the provincial and federal governments to reject the deal, which he says would “guarantee the permanent closure of the Terrace sawmill.” Indications so far are there will be no separate pool of quota held back for distribution to new entrants into the industry or companies deemed to be in special circum- stances, “The current deal as it reads basically says there is no quota for situations like ours,” Veniez said. Without quota, he said, lumber shipped to the U.S. gets a $200 per thousand board feet duty tacked on —- an amount Veniez said rules out production here for the U.S. market. He objects to the entire concept of fixed quotas to re- strict Canadian lumber exports to the U.S. “A bureaucrat in Ottawa is going to tell us how much we can produce and how much we can ship? “It's a complete capitulation of our national interest,” he said. “It’s’ telling the northwest forest industry ‘Goodbye. You might as well focus on container ports, pipelines and cruise ship docks.’” The scenario is a near replay of the previous 1994 softwood lumber agreement, which left Skeena and Mayor Talstra is new regional district chair TERRACE MAYOR Jack Talstra is the new chair- man of the Kitimat-Stikine regional district. The board, which is made up of municipal reps from around the region and individual directors elec- ted from areas like Thorn- hill, vote in a new chair each year. Talstra defeated past chairman Nass Valley area representative Harry Nyce at the board’s Dec. 5 inau- gural meeting to take the chairmanship for 2004. Kitimat councillor Joanne Monaghan was elected vice-chair, defeat- ing Stewart councillor Craig Caruso. Monaghan is 4 past Kitimat-Stikine re- gional district chair. many alher coastal compa- nies on the sidelines that had been shipping heavily to Japan and Asia prior to the deal, Veniez said this time freezing out new or idled |, producers will work against } not just the hard-hit coastal forest industry bul also new aboriginal ventures. Various bands are re- ceiving chunks of timber from Victoria that has been taken back from major |: companies. But he said those bands — won't be able to ship duty- free to the US. either. “What are they supposed to do? If they want to get into this business, if they want to supply our business, if they want to build a sawmilling capacity, they can’t do it” There may, however, be provision for companies to sell and transfer quota to other companies. Forests minister Mike de Jong indicated that may be one solution for new entrants to the industry or other companies desiring more quota. Venicz said the deal and the allocation of quota will workin favour of companies like ihe merged Canfor-Slo- Dan Veniez ’ can. Canfor has reacted to the 27 per cent duties on Cana- dian softwood by increasing production to run more effi- ciently than ever before. As a result, its recent record production levels assure it of plenty of quota. “The interior guys don’t have much to worry about and that’s why they’re happy,” Venicz said. “The Jake Kerrs of the world at Lignum or Slocan or Canfor that have been running hard for the last three years will have their quota assigned based on those numbers.” : TE | | Charlie has 30 seizures a day | Research may help ~ change his life | EPILEPSY CANADA 1 877 SEIZURE oon Jack Talstra -wwwepilepsy.ca. [Eric Wilson willbe at. 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