il beware Teens tunein The Chosen one oe Regional district politicians are : talking of higher taxes for the unorganized area\NEWS A111 A new voice is making an impact across northwestern airwaves\Community B1 Our judges have decided who the — Coach of the Year is for | 1997\SPORTS B6 — WEDNESDAY . December 3,:1997 93¢ PLUS 7¢ GST VOL: 10 NO. 34 Gov't buys most of Skeena Cellulose THE PEOPLE now own the majority of northwestern B.C.’s biggest forest industry company. In the latest in a series of eleventh hour deals, the pro- vince on Friday bought out the Royal Bank’s stake in Skeena Cellulose. The province will pay the bank more than $31 million ~ $14.65 for the Royal’s 27.5 per cent stake and $16.65 million for its portion of the operating line of credit, Those figures reflect about-40 per cent of the value on paper of the Royal’s stake. The result is that the province will have 52.5 per cent of the shares, the Toronto Dominion bank will have 27.5 per cent and pulp mill employees will have 20 per cent that they gel in exchange for a previously agreed wage rollback. The deal aiso commits the province to pay 70 per cent of all future costs associated with Skeena Cellulose, while the TD bank picks up 30 per cent. Buying out the Royal Bank brings the province’s cost of saving Skeena Cellulose to $244 million so far. That includes the province’s share of anticipated capi- tal expenses over the next seven years. Employment and investment minister Dan Miller said he and the province are committed to tuming around the company despite vocal objections in southem B.C. over the size of the bailout. “There’s a line of critics a mile long saying we should not do anything, we should step back and let the market do it’s thing and let the company go bankrupt,” Miller said. “We don’t want to be in the forest business. We did it to protect the economy, people and communities of the northwest.” A key to the company’s ability to eventually become profitable was the write down of the debt held by the two banks’ from $460 million to $75 million, Only half of that last figure, or $37.5 million, remains now that the Royal’s share has been bought out. When capital expenditure monies are loaned out, the long term debt of the company will be just over $240 million. Miller said the province will eventually seek to scll the company once it becomes profitable. But Miller would not commit to the idea that seats on the company’s board of directors be reserved for north- westemers to ensure the company is accountable to the region. He predicted instead that the seats on the board of directors will be filled with senior executives from the financial community and forest industry. “It’s not out of any disrespect for the ability of any of the people in the northwest,” Miller said, “But the cri- teria is not going to be where you live but what kind of leadership they could bring to this company.” - He said any sell-off of the company will likely be as a single integrated enlity, to ensure the most value is preserved. ; Miller said the government had already received some interested queries from potential buyers. “We will evaluate all of those wilh a view to exiting our ownership position,” he said. B.C. Liberal forest critic George Abbott characterized the deal as one focussed on the pulp mill in Miller’s rid- ing, noting the sawmills could have survived on their own, “It’s a heck of a pile of money,” he noted. “It’s over a quarter of a billion dollars. That's three times the small business, tourism and culture ministry’s budget and more than half of the total ministry of forests budget in the province.” Abbott predicted the bills haven’t stopped coming in, “There’s a whole lot more that will be required down the line (o sustain that one operation.” The company was facing bankruptcy if a deal was not reached and a restructuring plan was not filed with the court by Nov, 28. ; . The latest crisis arose because a collapsing Asian market had hurt sales, and the company required a larg- er operating line of credit. The Royal Bank was not willing to extend more money. Unlike the first time a deal was announced to save the company, Miller isn’t planning any celebration. “We're not here popping champagne corks. It’s an uphill challenge.” But he said he wants to see stability and certainty restored to the northwest. “T’s been too much of a roller coaster,” he said. Goodbye fire protection THE TERRACE-KITIMAT airport is losing its fire department. Transport Canada says on-site fire protection isn't necessary for smaller airports, although other groups argue the move jeopar- dizes passenger safety. It also means Terrace's four airport fire but Terrace Fire Dept. fighters will be out of work as of this weok, That's Chief Gord Bentham with Mark Kennedy in front of the airport's specialized fire fighting trucks. The future of that equipment is up in the air, Two rejections already Chief Randy Smith hopes it will stay here. Casino fate known on Friday VANCOUVER CHARITY casino operator Gary Jackson is down to bis last card in an ef- fort to expand to the Terrace arca. With Terrace and Kilsumkalum councils re- jecting the idea of casino gambling last week, Jackson's last hope is approval this Friday by the Kitimat-Slikine regional district. It doesn’t have ta decide on Jackson's planned location on Hwy16 in Thomhill. All it has to do is say ‘yes’ to the idea of having a charity casino within its jurisdiction. Regional district direclors two weekends ago put off a decision until this Friday, allowing them time to think about the issue. “7 think there is an opportunity for regional directors to do what’s best for their con- stituents,” said Jackson last week in adding they shouldn’t be voting on a morality issue. Jackson was disappointed with Terrace city council’s rejection, saying councillors made the wrong choice, (Councillor) Val George is a hypocrite by saying casino gambling is a bad thing but it’s ok . to spend money on lotteries,” said Jackson in attacking George's motion to reject gambling Kitsumkalum chief councillor Steve Roberts said his council was unanimous in turning down the idea of a casino last week. Jackson said councillors are elected to make decisions on the more mundane municipal is- sues like sewers and roads, but instead they bad . become what he called ‘morality politicians’. “Two (councillors) were influenced by their relationship to the church -—- the others based their decision on politics,’’ he said aboul the way council voted Nov. 24. The northwest has a lot to gain from casinos, said Jackson. While money made at a casino in- ilially goes to Victoria, he said it filters back through various projects, including the recent bail out of Skeena Cellulose. Jackson has already worked out a deal with Palagian Contracting to lease a building on three acres of land in Thomhill. But: Thombill regional district director Les Watmough won't release his decision until the vote this Friday, Jim Thom, a regional districl director and Kitimat city councillor, said he still hasn’t de- cided on how he’ll vote, but said he'll consider the benefits to local charities. While Kitimat recently approved a charity bingo similar to Terrace’s Lucky Dollar Bingo Palace, Thom docsn’t think a charity casino in Thomhill would have a detrimental effect on the charity bingo ball. Kitsumkalum chief councillor Steve Roberts sald his council was unanimous in turning down the idea of a casino last week, ‘‘Nobody wanled to see a casino here — council didn’t even want to consider it,’’ said Roberts, ’ Jackson had approached the band council with a casino proposal, saying it was in the best in- terest of the band to have a destination casino which would guarantee the Kitsumkalum band a percentage of the profit. A percentage of the money made at 4 destination casino goes to the host community and none goes to local __ charities. Cont'd Page A2 MLA target of two recall petitions now MAKE THAT two petitions filed to recall Skeena NDP MLA Helmut Giesbrecht. While Crash Heimut organizer Lorne Sexton was in Vic- Adiia Nov. 28 preparing to file his group’s petition with provincial elections officiais, a local resident visited the government agent’s office here. John How registered his petition at 8:30 a.m. Nov. 28, a full hour and a half before Sexton filed the Crash Helmut one. How says he can’t block the recall forces, but wants to “highlight the absurdity of the process.”” Recall organizers had feared that if they didn’t file at the, carliest opportunity (Nov. 28), an NDP supporter could file. a pelition before them and then not sign anyone up, there- by protecting the MLA, That’s because they belicved that there can only be one cffort to recall an MLA in the course of the term. But Elections B.C. spokesman Jennifer Miiler says there’s no danger of that happening. Any number of petitions can be approved and circulating against a single MLA, she said. It only takes one of the petitions to be successful in gathering the signatures of 40 per cent of the people eligible to vote in the last election to’ force a by-election. The only rule is that the signatures from different petitions can’t be combined to meet the 40 per cent. And, she says, recall campaigners can conduct any num- ber of recali campaigns. But an MLA can’t face more than one by-election in the course of his term. How’s recall application states: ‘‘Because we can’t blame everything on El Nino, Helmut Giesbrecht should be called to account for the current state of affairs in Skeena.”’ How says recall diminishes the value of a ballot cast dur- ing a general election because the vote can be overturned. “The way it is going is clearly a perversion of the politi- cal process,’’ How said. ‘All you have to have is 50 bucks and an axc to grind and you can buy yoursclf a chance to - unseat your MLA.” Cont'd Page A16 MLA plans to use recall campaign SKEENA MLA Helmut Giesbrecht says he'll try 10 use the recall campaign being waged against him to bring more money to the constituency. ; “If I can squeeze some more oul of Victoria because of this, don’t you think [am going to do it?” he said in a press conference Monday. “And I'll let anyone take credit that wants to, Because it all benefits Skeena.” Giesbrecht said he’s not predicting any big flurry of gov- ernment announcements about to come to the riding, And he says any that do take place are initiatives well underway prior to recall and unconnected to the campaign. “There are still some things that haven’t yet come to fruition,” he said, citing the arrival of natural gas in Kitamaat Village as one.’ Giesbrecht was responding to a question about whether recall forces will claim credit for making him more respon- sible to voters... ; “They will do whatever they can to make this look like they've aclually done something,” he said.““Who knows? By the end of this two-month process they will claim all kinds of credit for aclions taken in Skeena.” Giesbrecht said he welcomes the filing of the recall peti- tion against him. “That’s good,” he said. “Now it takes it out of the hands of Lome Sexton and his group and puts it into the hands of the voters.” !