BY DAILY NEWS
STAFF REPORTER

The federal government
anntunced today a joint venture
with the province to provide
freight and passenger services
to the northern coastal com-
munities, .

Iona Campagnolo's office
says the province has agreed to
operate the Lumba Lumba, a’
Rivtow Strails owned vessel, on
a coastal passenger roule to
areas previously served by
Northland Navigation while the
federal government will pick up
one half the operating costs,

Provincial! transport minister
Jack Davis said today thal
under the agreement, the B.C,
Ferries Queen of Prince Rupert
will stop at Ocean Falls twice a
week on its trip between Kelsey

” Bay and Prince Rupert.

In addition, the Lumba
Lumba, an 80 foot high speed
motor launch will ‘run
passengers and mall from
Ocean Falls and Prince Rupert
out to Lhesmaller communities.

Freight service will be
carri¢d by. Rivtow Stralts, a

FROVINSIAL CPLPARy

PARLTAWZNT BLOs, :

VICTUNTA

Lumba Lumba to replace Northland

Vancouver-based tug and barge
operation, although the com-

ny has agreed to keep tariffs
iow until experlenced in the
service, ;

Rivtow Straits will not be
subsidized, however, - because
the province has refused to
handle a Queen. Charlotte
Islands service, the federal
government will be subsidizing
a freight and passenger vessel
to the Islands communities,

Federal minister of transport
Otto Lang says ina release this
morning that the cost-sharing
arrangement with the province
will save taxpayers about $3.5
million a year.

The previous federal subsidy
to Northland Navigation for ils
north coast operations cost
more Lhan $4 milliona year and
the current system will include
$500,000.00 a year from the

federal government and
$350,000.00 a year from . the
province.

Mr. Lang says the money
saved om the subsidy will be
better used in improving
transportation systems in B.C.

Construction
plunges in Terrace

The monthly building
inspectar’s report for the
month of Octaber shows that
the construction industry in
Terrace has fallen by about
40 percent if you remove the
building costs listed under
Institutional for last year,
This figure includes more
than five million dollars
construction. cost for the
hospital addition and
renovation project. .

Total construction permil
values for 1975 reached
$10,449,450. When one

- subtracts the $6,147,000
under Institutional the
figure stands at $4,302,450.
This must be compared with
this year’s total figure of
$2,291,700.

Skeena

7 to meet in Terrace | :

Reports from Regional

The “Annual General
Meeting of the Skeena
Federal’ Liberal’ ‘Riding
Association: will be held in
Terrace, Sunday, November
14 at 2 p.m. at the Terrace
Hotel. On the agenda. will

Election of a
executive;
Regional newsletter:

‘new -

Residential unit con-
struction is at about one

uarter of last year’s
igures, insofar‘as units are
concerned with a total of 22.
for this year as compared to
87 last year at the same
time. The permit value in
1976 stands at $902,000 which
is $2,409,000 less than 1975's
figure of $3,391,000.

Commercial permit value
is up this year reaching
$671,000 as compared to
1975's figure of $404,000.

Industrial permit value is
also up this year with nine
permits being issued for a
permit value of $460,000
compared to two permits
last year at a total permit
value of $327,000.

Liberals

Vice-President. and

executive. ;
Tona Campagnolo will be.
attending the meeting,
weather permitting.

For further information
contact Joyce Krause, 635-

- Post Office hours
Remembrance Day

Wicket services will be °

closed at all Post Offices,
Postal Stations and Sub Post
Offices through the B.C. and
Yukon Postal. District and
there. will be no letter
carrier, rural route or
reel post. deliveries on
membrance Day.’

Sunday service will apply
to Special Delivery and
street letter box collections.

Administrative offices of
the B.C. and Yukon Postal.
District will be closed on
Thursday, November 11,
1 . - .

Don Phillips

in Ja

pan to

_. discuss local issues

Don Phillips, Minister of
Economic Development in
the B.C. Cabinet left for

Japan last Saturday to

discuss with the pravince's

partners, N.K.K. Kokan, in
a series of studies on the
construction -of. a steel mill
which would be located in
either Kitimat or Prince

George.

The minister will also be
endeavouring to convince
Japanese steel makers to
‘purchase an additional
"5,000,000 tons of coal from
B.C, Phillips, during..a—
recent meeting in Terrace.
said that the announced
development and upgrading
ational
Railways line between
Prince George hinged on
doubling the guaranteed
delivery of 10,000,000 tons of

of the Canadian

coal to Japan.

The C.N.R. program
would also insure a repair
depot for Terrace providing
per-
manent residents for this

_ additional jobs and

community.

VOTE

The success of such a coal
deal would also be of great
benefit ta the coal producin
areas of eastern. B.C. an
the coal storage and loading
facilities in the developing
port of Prince Rupert.

The minister will also be
discussing other export
potentials for the province
which could have . &
beneficial spin-off for this
area, Amon
discussed wil] be forest
industry products in view of
steps by Japanese builders
to. convert to North
American ‘standards of
lumber, Copper and’ other
non-ferrous metals will also
be discussed during the trip.

Phillips
members of the n
team that has worked wit
.N.K.K. Kokan during ‘the
“studies and officials of the
Economie Development
Ministry. The delegation
will return to B
November 16.

took : along

‘We are now [ooking at

‘upgrading navigational aids

and facilities in the. coastal
regions and announcements will
be forthcoming,'’ he said.
METHODS NOT DECIDED

Although the government has
commilted itself to providing a
regular passenger and freight
service to the Queen Charlottes,
the exact melhods are still
being decided.

According to Mrs, Cam-
pagnolo's office, of the three
boats presently being con-
sidered for the run, one is a self-
propelled vessel two months
away from completion,

Although the need for a waler
service has been indicated, the
federal government is willing ta
re-assess that need if residents
feel air service is more ap-
propriate.

UP TO PROVINCE

Meanwhile, Graham Lea,
NDP-MLA for Prince Rupert
says that although the removal
of the Northland Navigation
subsidy and subsequent
provision of an alternate ser-

vice 18 a federal responsibility,
it {s up lo the province to see
that an emergency tran-
Sportation service is set up to
meet the needs of the northern
coasta) communities.

He said in a Victoria
telephone interview. yesterday
that if the federal government
cannot a will not accept its
responsibilities, then the
provinee must take over in the
interim.

In a letter to Jack Davis,
‘provincial minister of tran-
sport, Mr. Lea recommends
that B.C. Steamships or B.C.
Ferries be used for a coastal
run until analternative is found.

“The people of the central and
northern coastal communities
should not be penalized for the
incompetence that the federal
government has displayed in its
handling of this whole matter,”
he says in the letter which was
delivered to Mr. Davis
yesterday.

He told the Daily News that”

Mr, Davis would be acting
responsibly if he accepted the
preposition of installing @
province-operated service.

“The people on the coast
didn't ask the two governmenta
to get meddled up in
negotiations; all they know is
they have no service, it's
needed, it’s needed now,’ he
said, adding thal some sort of
service should be put in now and
the two governments can argue
later about who's going to end
up paying for it.

Although he said the province
should really be- paying for
transportation to the coastal
communiltles, it shouldn't let the
federal government off the

Ferry services on the eaat
coast are still carried by the
federal government with the
lame excuse that it is between

- provinces, he said,

Campagnolo favors

Northland

ter without portfolio [ona

Campagnolo said Sunday she is
determined to

see that the

M.V. LUMBA LUMBA

boat

Queen Charlotle Islands are
provided with ship, freight and
passenger service to Prince
Rupert.

mazDa
Skeena Aute

Metal Shop Ltd.
635-6572

STUDIO 6

This Week's Special

1974 Buick Century

2 dr. Colonade
Low Mileage

0.003914

$3,995.00

PRICE 20 CENTS

VOLUME 70 NO. 45

the herald

_ WEDNESDAY, NOVEMBER 10, 1976 TERRACE, B.C.

‘Executive: | Vice-President}
on activities of provincial:

matters .

otiating -

on.

on

THE FIRST SECRETARY to the United States.

Ambassador'to Canada in Ottawa was on a tour of

‘Alaska, Kitimat and Terrace to sound out the

population on the construction of a pipeline from
Kitimat to Edmonton for retransmission of crude oil
into existing pipelines down to the Chicago area. The

. Terrace and District Chamber of Commerce held a

reception for Mr. Edward Lee Ness at the Terrace

RE RE ;

Hotel. First Secretary Ness, above center, speaks:
with Skeena M.L.A.. Cyril Shelford

(left) and

Chamber President Ted Taylor, The U.S. Diplomat
expressed some ‘concern at the likely trend of
multiple taxing of a line constructed in Canada by the
federal, provincial, municipal and regional govern-

ments.

CanCel reports third quarter earnings _

Canadian Cellulose
Company, Limited has
reported’ third quarter
earnings, before an ex-
traordinary tax credit, of
$4.0 milion or 33 cents per
share on sales of $43.1
million, Net earnings after
the tax credit. were $7.0

million or 68 cents per

share.
‘ Ronald M. . - Gross,
president and chiet

executive officer, said the

. third quarter performance

was consistent with results
for the first two quarters,
reflecting relatively stable
market conditions for the
company’s kraft pulp and
lumber markets.

Gross | noted
meaningful comparison to

_ the same™ period of 1975

could not be made due to the
closure of operations during
the third quarter last year
for labour and market

-‘Teasons. ;
In a. summary of results,

for the first nine months of
the’ current year, he
reported earnings, before
the tax credit, were $12.3
million or $1.01 per share on
sales of $132.7 million. Net

SHARON

sea

‘that a

earnings amounted to $21.8
million or $1.79 per share.

The strength of the
Canadian dollar in relation
to the U.S. dollar had a
continuing adverse impact
on earnings, Gross reported.

“If the same rate of ex-
change had prevailed in the
third quarter as in the same

. quarter of last year, after-

tax earnings would have
been hig er by °ap-
proximately $1.0 million or
eight cents per share. For
the nine months, with no
change. in the exchange
rate, after tax .earnings
would have been higher by
$2.9 million or 24 cents per
share. . :

Reviewing general
economic conditions and

markets for the company’s -

products, Gross* said
economic recovery in the
U.S., Europe and Japan has
been slower
ticipated. | .
“The market for softwood

terized as being constant

andit now appears it may be’

several months before any

yto occur, We will

than. an-|

kraft pulp can be charac-',

significant improvement is -
likel'

curtail some production .in
the fourth quarter to contral
inventories,” he sald.
“While the short- term
outlook is for relatively flat
demand for our products,

_the fundamental factors in

the current world-wide

MUNICIPAL
COUNCIL

The Terrace Jaycees will
once again invite all can-
didates: for election to
Terrace Municipal Council
to-take part in an all can-
didates meeting to be held at
the R.E.M. Lee Theatre on
Monday, November 15
beginning at 8 p.m,
he general public is
urged to attend this public

-tnéeting to meet the can-

didates, learn what thelr

recove
longer
cycle is probabie.

“We believe,” he added,
“that the pace of economic
activity will be;
crease in 1977.”

indicate that a
an usual economic

All candidates meetings

. platform is and what their
stand’ is
problems.

on current

SCHOOL
. TRUSTEES :
The Caledonia Student

Council is sponsoring a
School Trustee all candidate
forum which will held at the
R.E.M. Lee Theatre on
Wednesday, November 10
beginning at 7:30 p.m, Once
again the genera!
invited to attend
important meeting,

fublic is
ia very

Pedestrian injured

Rose Paupst, a pedestrian

struck by a half ton truck

Saturday, is reported In
‘satisfactory condition.

of the truck driven by

Paupst waiked out in front

Harley Poaugue

Kalum Street.

with the accident.

gin to in-

on
Yellowhead 16 west af

No. charges
‘have been laid in connection

GC.

REALTY’

COUP.

The islands’ 7,000 residents
currently are served by barge
to and from Prince Rupert
twice a week. .

Mrs, Campagnolo, Liberal
MP for Skeena, said the minis-
try of transport will be ap-
proaching Northiand
Navigation Co, just as soon as
an option to purchase one of the
company's ships runs out.

She said a prospective pur-
chaser of the Northland ship
Island Prince has until Tuesday
to make up his mind, She said
she favors the Northland Prince
for service between the islands
and Prince Rupert, under char-
ter. .

Mrs, Campagnolo said two.
other options are open to
federal government: Charter
the Canadian Three, formerly
owned by the Aluminum Co. of
Canada, now being refitted in
Vancouver, or charter the mo-
tor launch Malibu Princess.

‘PARK AVENUE

REALTY LIMITED ©

if

Native dishes
featured at
smorgasborg

Terrace and district
citizens will have a unique
opportunity to savour many
of the dishes which have

made Native ‘‘Potlaches” ©

so famous across the Pacific
northwest with.a very small
investment.” .

The fourth ~ annual
Salvation Army
Smorgasborg will be held at

_ the Citadel ‘at: 4637. Walsh

Avenue. ‘on Remembrance

Day, November 11 between
2p.m, and 6 p.m. 7

This feast has become a
tradition for the Salvation
Army and hesides raising
funds for Native and Army
activities. ‘provides - local
people with the opportunity

’ to taste some of the delights

that have been the banquet
fare of the Native tribes for
centuries.

Included‘on the menu are
smoked salmon, barbecued
fish, fish eggs, fish soup, sea
lion, oolichans, clams,

cockles and on and on. For
those who prefer a more
traditional meal, roast beef
and turkey will also be of-
fered.

The surprising fact about

this smorgasborg is the =:

price. You can eat all you
can consume for $3.50 for an

‘adult and $2.00 for children
‘under 12. The meal will be
_.continudus throughout the

holiday afternoon so you can

-drop- by- at -any.- time, help
- yourself and enjoy" - °°

This is the fourth annual
Salvation Army
Smorgasborg, Thursday,
November 11 at the Army
Citadel, 4637 Walsh Avenue.
The food is prepared far this
occasion by Native cooks
with the aid of members. of
the Salvation Army. Why
not drop by? You can do a

‘ood deed ior yourself while
loing a good deed for Native
and Army projects.

Advance. poll

Terrace citizens
are reminded that
_ there will be an ad-
vance poil for all
. voters who feel that it
may not be possible to
vote on: Saturday,
November 20. This
poll will be at City
Hall in the Municipal
Council Chamber, on
Monday, November
i.
. Murdo Macdonald,
the Returning Officer’
for Terrace -has
confirmed for the
Herald that an elector.
does not have to. be
out of town on voting

day to be eligible to .

cast a ballot at the
’ advance poll. If there
is-a chance that you
will be out of town or
otherwise be unable
“fo vote on Saturday,
November 29, you can.
‘vote on Monday,
November 15,

There will be a
hospital advance poll
as well; This will be
on Friday, November
19 between 49,m. and
6 p.m.

Mr, Macdonald aiso
clarified the fact that
voters are not
required to vote for
any. ‘particular
number of can-
didates. An elector in
the case of the
municipal elections
can vote for one, two
or three candidates
as‘ they chose. The
same applies in. the
case af school
trustees. There is

‘ some apprehension
among electors. that
they have to vote for a.
full slate or their
ballot will be spolled,
This, according to the
Returning Officer, ts
not the case. =:

Fire permits not required.

As proclaimed by the
ef-
fective midnight November
5, 1876 fire permits for open
fires will no longer be

Provincial Cabinet,

uired.

The use of fire for the
purpose of clearing land,

BIGGS  ssturday, november 200

burning slash, brush, grass
or any other inflammable
material or any industrial
purpose is permitted
without a fire permit on ali
lands under the jurisdiction
of the Forest Service,