We ended the year numb enough to open our wallets again By JEFF NAGEL THE STORY of growth, growth, growth through the 1990s tured on its head in 1997, Fear, paralysis and uncertainty were the in- stant responses in March when Repap cut loose its B.C. subsidiary, From that month on, the year was a neverend- ing psychological roller coaster as Skeena Cel- lulose faced oblivion, then was saved, only to have the cycle repeat itself again and again. ’ On the line were 2,400 direct jobs throughout the northwest, thousands more indirect jobs, and $84 million frozen i in unpaid bills to creditors. What set it apart from past resource cycle downtums was the threat of permanent loss of the company and its operations, says federal labour market analyst James Gilham. “People didn’t know if they were going back. They didn’t know if there was a future,” he says. “‘And it wasn’t just a Terrace thing, It was a northwest community thing,’’ The Skeena Cellulose crisis was amplified by the trouble facing the forest industry as a whole. West Fraser also carried out shutdowns and log- ging slowdowns during the year, The troubles The biggest effect was on the spending mood of northwesterners. People instantly tightened up their spending, says City of Terrace economic development of- ficer Ken Veldman. Forest industry workers tended to halt all dis- cretionary spending. Even employees un- connected to the forest industry cut back on major purchases, like cars and furniture. Real estate sales fell off dramatically and prices dipped, although not as low as in Rupert. Some businesses contemplating expansion or location in Terrace put their plans on hold. Others who were far enough advanced in their plans, or had enough confidence in the long- term outlook, built anyway. Managers and business owners everywhere puzzled over the effects of the crisis and what it meant for them. Should more product be or- dered? Should employees who leave be re- placed? Could receivables be collected? “You're playing as conservatively as you can,’’ Veldman says, ‘whether you"re,consider., -- ing hiring an employee, adding an inventory line, doing a renovation on a Store, or maybe moving to a bigger place,’’ lies. campaign. into the constituency. available. democratic vote. “You're not going to be taking those risks in an environment where you have no idea what's going to happen to one of the biggest economic drivers.”’ Going numb Surprisingly, some construction resumed in the fall and merchants reported surprisingly good Christmas sales despite wave after wave of continuing Skeena Cellulose uncertainty, Veldiman said, “Once you go through nine months of that kind of a pattern to some extent you get a little bit numb to it and that sense of crisis goes away,’ Veldman explains. “Consumer confidence is a huge driver of the econoomy and that’s psychology — what people perceive,” Construction in Terrace rebounded in October after flat-lining through the summer. The year appeared likely to end with about $21 million of new construction — the lowest number in three years, but still good considering what happened. Veldman says what struck many long-time residents — who remember the recession of the early- to mid-1980s — about the year was that the town did not dry up. ‘People in this town really noticed how far we'd come along in terms of diversifying who we deliver to,’’ Veldman said, The big boxes The two biggest commercial construction projects also had major implications for the business community. Two big box retailers — Canadian Tire and Real Canadian Wholesale Club — opened up in the fall signalling anew era for merchants. Some feared the big new. competitors would obliterate smaller outlets. But Veldman says that so far hasn’t happened. The two big stores have done very well, likely exceeding their initial targets, Veldman said. And smaller outlets have changed their ap- proach, their product lines and their marketing to set themselves apart and take advantage of a greater regional market now coming to Terrace. *T don’t think I’ve ever scen this many people from Prince Rupert shopping in Terrace,” Veld- man noted. For the most part the existing retailers seem to have done a very good job of adapting,” he said. ‘I’m very pleased with how it’s turned out.” 7? Gilham ‘agrees, saying ‘the two stores have clearly strengthened Terrace’s position as regional shopping and service centre. THE YEAR IN. REVIEW _ Business 1997 | Crisis battered the northwest psyche Pius and minus Other factors helped and hurt the area’s econ- omy in 1997. A ferry blockade by commercial fishermen in Prince Rupert in July prompted Alaska to cut off sailings of its ferries to the city, choking down the flow of tourists along Hwy 16. Veldman says hotel/motel room revenues here were down 13 per cent in August as a result. The service was restored by year’s end. Guide outfitters feared angling licence fee in- creases by the provincial government would drive away more tourists. But Victoria reversed the increases after twin protests in Terrace. The Huckleberry mine opening near Smithers also adds to the base of high-paying jobs in the region, Gilham said. And Veldman pointed to the possibility of fur- ther industry in Kitimat — cither a new aluminum smelter down the road. or a liquid nat- ural gas plant — as pluses. “Any time you hear about good news for Kitimat, consider that part of your own com- munity, quite Grankly,’? Veldman says, Gilham labels Thornhill’s rejection of amal- gamation as a negative that keeps the future un- certain and will mean unnecessary pain for Thomhill taxpayers in the years ahead. Ahead to '98 Hopes are high that Skeena Cellulose will sur- vive, in light of the quarter of a billion dollars the province has invested to get-amajority control of the company, But some of the effects of the crisis, particu. larly the small payout to unsecured creditors, May now come home to raost. “If we start to see bankruptcies occurring, then it starts to become pretty real,’’ Veldman said, ‘“You start to see real layoffs and people going out of business.” In the long term, Veldman is confident. “There’s a lot of people in the market who think Terrace has very good potential and in the long term it’s still a very good investment to be here,” he said. That could play itself out in 1998 with more commercial development now that the retail market has been proven big enough for the likes of Canadian Tire, “T have been talking to other companies with a similar type of store and service that are look- ing at this area and | would certainly think we're going lo sce some follow up on that kind of success,’” Veldman said, The ripple effect Veldman refers to is akin, to, the new development that arrives in a com- munity after it gets its first McDonalds. “People realize the market is big enough and they could be there, toa,” he e stys. } ON T BE MISLED. BY THE ~ THE RECALL CAMPAIGN * Proponents of Recall would have you believe that anything contrary to what they say is a lie. They have misrepresented Helmut’s record of speaking in the legislature and his accomplishments for Skeena. Talk is cheap! Helmut’s record is one of action in delivering projects and programs for Skeena. Recall proponents consistently put forward their opinions as facts and attack the opinions of other as The following is quoted from a letter from Robert Patterson, Chief Electoral Officer of B.C.: At the conclusion of the signature verification process, the signature petition sheets are available for public inspection at this office and copies will be made available on request upon payment of a reproduction fee. Petitions have always been public in Canada. Anything less than full disclosure would be akin to anonymous accusations. What do ‘the proponents of Recall have to hide? After all, they are trying to throw out the results of the last democratic election. . Proponents of Recall’ say they stand for democracy and effective representation. oe o : my In fact, constituents of Skeena had e every opportunity to examine the Tepresentation Helmut provided during his first term, and he was re-elected bya a - * Don’t be misled by partisan polities and special interest groups, Please say “NO” to Recall by refusing to sign the petition, The Terrace Standard, Wednesday, January 7, 1998 - AS . CONSTRUCTION of Canadian Tire went ahead in the spring — one of the few bright spots in a busl- - hess year of seemingly constant impending doom. Get away to ic alll Stay'n Save Inns welcome o you to five of British Columbia's most popular vacation destinations at - Irresistible petaway prices, Enjoy two nights ina comfortable, cosy room plus continental breakfast for two. Discounts are also available for local shopping and _ dining at some locations. One night packages also available. Call rall-free for ese vations 1-800-663-0298 doable o¢cupancy Taxes adallional’ Subject to avcnlubiity. . Vathd Fri, Sit, Sun, Nov 8/9? ta Mor, 298 4 Inches ‘wo. oghts acommedatcn, single, or ot AN Stay'n Save. INNS . ou gE Pride VICTORIA © VANCOUVER AIRPORT. - VANCOUVER BURNABY - KAMLOOPS.” KELOWNA * Proponents of Recall would have you 1 believe that their effort is solely about Skeena and the effectiveness of its MLA. Do you believe we would be faced with Recall if the NDP had a greater majority in the Provincial Legislature? Helmut Giesbrecht is bing seapegosiod through use of the legislation 1 ina way that i is unfair to him, the citizens of Skeena, and the citizens of B. C. * Proponents of Recall have accused the Skeena Taxpayers’ Association of being unethical because of claims that outsiders have heen an integral part of the The evidence of outside manipulation of the process can be found in the recall proponent’ s own materials: Canadian Taxpayers’ Federation ads re: “Boot Out” Helmut in the fall; their admission of having canvassers in other parts of the province to track down and sign up persons whio no longer live in the constituency but are eligible to sign because of a technicality; ads sponsored by the lower mainland based Family Coalition Party; advertising and soliciting for funds province-wide in the magazine B.C. Report; CFT providing training for canvassers; recall spokesperson Mike Roseneau’ s bringing Kari Simpson ° Proponents of Recall have raised a vigorous protest over the Skeena Taxpayers’ Association's Ss clair that the names of petition signers will be publicly A | Authorized by Jerry Reitman, Financial Agent for Helmut Giesbrecht. 638-0062 1 LARA oe ee ee ee ee ee ee ee ee i elidad