We goofed

Pacific Northern Gas officials say
they're fixing a glitch that
overbilled gas users\NEWS A10

Relaying hope

Local volunteers are gearing up
for the May 13 Relay For a
Friend\COMMUNITY B1

Slush up derby

Bikers, boarders and skiers all cut
up the slopes at Shamesina
white blur\SPORTS B4.

VOL, 13 NO. 52 oo. | . a ———o
WEDNESDAY | = ———
April 4, 2001. —__

; eee i)
$1.00 pius 7¢ GST , ©
($1.40 plus 8¢ GST ; Tad
outside of the Terrace araa) . ———

. : hs

Council cuts support

Staff, freezes hiring

By JEFF NAGEL
THE CITY has eliminated three posi-
tions it pays for at the RCMP detach-
ment in the latest round of its dispute
with the province over policing costs.

Gone are two city-paid support staff
positions and one RCMP officer, sav-
ing the city about $170,000 a year.

City council had resolved to take
the unilateral action if the province
did not agree ta more equitable cost-
sharing by the end of March, said act-
ing mayor David Hull.

“At some point you have to draw a
line in the sand and the city has drawn
it,” Hull said, who filled in last week
for a travelling mayor Jack Talstra.

“Terrace is B.C.'s 2.001 Forestry Capital”

City chops RCMP to save money

Several rounds of haggling with
provincial officials over police work-
load statistics and a session with a
consultant the city hired on police op-
tions has convinced council it should
pay less, he added.

“We're convinced without a doubt
we're paying too much,” he said.

The city share of police costs had
been ‘poised to rise $310,000 this year,
to around $2.7 million, because of offi-
cer salary increases and other ex-
penses beyond city control.

But the savings — $50,000 for each
support staff position and $70,000 for
the officer ~ will cut the cost increase
to around $140,000.

One of the support workers, a secre-
tary, is being reassigned to fill a va-
cancy at the city’s public works de-

partment, but the other - the RCMP’s
court liaison officer — has been laid
off.

Because there’s a vacancy among
the officers right now, there won't be
any layoff there.

Instead, the number of city-paid
RCMP officers, which was supposed
to go back up to 25, will instead be
frozen at 24. The province pays for
seven officers.

Not counted among those officers
are others always paid for by the pro-
vinee, such as forensic and serious
crime officers.

The city had wanted the province to
shift one of the city-paid officers over
into the group paid for by Victoria, re-
sulting in a 24-8 split.

The city also wanted two city-paid

support staff to in-
stead be financed
by the province.
Bul the province
refused and the
city decided to
cut its own posi-
tions to save
money.
Hull said the city
will lobby Victor-
ed NE “J ia to add mote
David Hul] = provincially paid
officers.

“We'd like to see the detachment a
titch bigger, but not at our expense,”
he said.

In the meantime, he said, local of-
ficers and support staff may have to
endure a heavier workload.

Friday.

“In the short term, the detachment
is going ta have to take the brunt of
the changes.”

City chief administrative officer
Ron Poole said the RCMP’s options
are ta “find a different way of doing
business or else ask the province for
more money.”

He said the city analyzed support
staff levels at other similar sized de-
tachments and concluded there's more
support staff here than required.

Poole said provincial officials actu-
ally raised the option of an officer
freeze and support staff cuts if the city
felt it needed to reduce costs,

“They have no problem with what
we're doing,” he said. “They sug-
gested it, they said this is what you
can do.”

Property
taxes rise

1.5 per cent increase okayed

PROPERTY taxes will go up by 1.5 per cent in Terrace
when tax notices go out in June.
City council made the decision on the small tax hike

a

They said they tried to achieve another tax freeze,
but concluded doing that would have meant unaccept-
able cuts to services or allowing the city’s accumulated
surplus to fall to dangerously low levels.

As it is, said councillor Val George, the 2001 budget
will see the city reduce its surplus, really a contingency
fund to deal with costly emergen-
cies, to less than $500,000.

In previous years the city has
tried fo keep the surplus’in the {
$600,000 to $800,000 range.

“That's a pretty minimal surplus
to have in a $13 million operating
budget,” George said.

Council also considered a 1.0 per
cent tax hike, but that would have
drawn the surplus down to $458,000. §

The 1.5 per cent increase will
push 2001 tax revenue up $115,000
to $7.83 million.

City administration was under
major pressure this year to reduce expenditures in alk
city departments. |

It was a difficult budget year because the construction
slowdown of recent years means there’s little new tax
money coming in.

And, the city lost nearly $20,000 in provincial grants.
Treasurer Keith Norman said

Val George

m@ Spring bouquet
CANADIAN CANCER Society volunteers Denise Sawtell, Betty race last week during its annual sale. The stunning yellow

Clent and Laverne Kelln with a vivid reminder that spring is on blooms are a symbol of the Canadian Cancer Society. Can-
its way. The society delivered 1,800 daffodils to people in Ter- vassers will be asking for your support this month.
If that wasn’t bad enough, the city was also told its

PNG shareholders can’t shirk ih
duty to utility, intervenor says esta! loggers unite

to counter green spin

LOGGERS ON the coast
have formed a new group
to combat the myriad of
environmental groups who
want the region preserved.

The B.C. Forestry Sur-
vival Coalition’s aim is to
provide the working per-
son's side of what has be- vironmental groups. We
come an international feel they're needed to
story, says Evan Speliman, keep the forest companies
one of its founders. ‘in check, but we think

any other industrial cus-
tomer so thal it could
perhaps remain open.
There’s no guarantee of
that, he said, and carry-
fing out Methanex’s
wishes would be unfair,
discriminatory and set a
dangerous precedent.
He does back PNG’s re-
quest to increase Metha-
nex’s rates to more
quickly recover capital

vour of wood or
electricity.

biggest customer ~ the Methanex
methanol plant in Kitimat.

“It is PNG's position that any The shareholders, §
revenue shortfalls from any custo- he says, cannot
mer should be picked up by its re- deny responsibility |
maining customers and this reve- for keeping PNG
nue shortfall in its view, should viable after enjoy-
include a 10 per cent return on ing the higher profit
equity to PNG’s shareholders,” premiums. over the
Gathercole says. years,

“The commission should not “Nor can PNG’s
simply approve PNG’s application bondholders who
in the hope that PNG will be able also had to recog-

Fix problem now,

not later, he says

REGULATORS must perform ra-
dical surgery on Pacific Northern
Gas (PNG) if the region’s ailing
natural gas provider is to remain
viable, says a public advocate.
Richard Gathercole of the B.C,
Public Interest Advocacy Centre
called on the B.C. Utilities Com-
mission to reject rate increases

massive international ad-
vertising and lobbying
campaign aimed at the
coastal logging industry,
Spellman added.
“Somebody has to
make them accountable,”
“We're not against en-

requested M Ee toe’ to deal with its problems solely on nize the risk in in- oe cosis of pipelines PNG Spellman, a falling those groups need to be

hearings here in early March. the backs of its ratepayers.” vesting in PNG,” he built to serve Methanex. contractor working on accountable.”
In his final arguments filed last PNG’s shareholders and bond says. Richard To nat do that, he said, - Princess Roya! {sland, Up until now, the envir-
holders should also contribute to Cutting into the Gathercole would let Methanex off | which is the focal point for onmental cause has never

week, Gathercole characterized
PNG's prescription as “filling the
utility full of drugs in the form of
rate increases, hoping it will sur-
vive this year and perhaps
beyond.”

At issue are three as-yet-unap-

proved rate hikes since Oct. 1 to-
. lalling 42 per cent for residential
Ae customers.
Increases of that magnitude
will drive more customers awayt
and further erode the revenue
base, Gathercale says.

He said PNG’s plan neglects
the fact that bigger problems are
likely on the horizon for the utility”
because of the expected {oss of. its

had a defeat in its efforts
to create more parks and
preserved areas, Spellman
continued.

“Every time they’ ve
gone to bat, a park's been
made,” he said.

Although small in num-
ber, the forest’ survival
coalition has plans to cre-
ate a website to help pro-
pel its message.

Failure to act will only
result-in the loss of more
jobs and economic. activ-.
ity, said Spellman,

See page AS for more on
Spellman’ S§ views.

- groups seeking official sta-
. tus for what they call the
Great Bear Rainforest,
said the view of people
who work along the coast
isn’t getting out.

“People have the opi-
nion this is pristine wilder-
ness. It's not,” said Spell-
man, whose family’s work-
ing history along the coast
dates back io 1949,

‘He said the coast has
long been a home.to for-
estry operations and other
types of industrial activity.

..The goal of. the new
group is to counteract the

the hook and leave other
customers paying its costs.

Although Methanex is shut
down contracts remain in force for
at least 18 months requiring it to
pay PNG most of what it normally
would even if it consumes no gas.

The BCUC is expected to hand
down its decision near the end of
April.

Only a portion of the recent
PNG rate increases are related to
PNG’s financial problems.

The bulk of rate hikes are due
to increased natural gas commad-
ity prices, which flow through to
users without interference from.
the commission.

profit margin and

limiting rate ‘increases should mo-
tivate shareholders and bond-
holders to work to find a lasting
solution, he said:

“What is required is a realistic
appraisal of what is necessary to
keep this utility in operation, not
just for this fiscal year but in the

heiping save the utility, he says.
The 10 per cent profit built into
PNG’s rates over the years has in-
cluded a 0.75 per cent premium
reflecting the higher risk of this
utility over and above the
BCUC’s benchmark of 9.25 per
cent for a low-risk utility.
“Ratepayers have paid that
premium in a similar way to an future,” Gathercole argues.
insurance premium,” Gathercole “This needs to happen now,”
says. he said. “To postpone the problem
Now it appears almost certain © for another year, when the situa-
PNG has lost Methanex and is tion will be worse, is not @ rea-
losing volume it delivered to the | sonable option.”
Eurocan and Skeena Cellulose Gathercole also rejects Metha-
pulp mills, as well as homeowners  nex’s proposal that PNG give it a
who have reduced gas use in fa- . lower Bas transmission rate than