Gvip of despair Women meet Winning ways Two loggers say their industry is dying and they've been driven to welfare\NEWS A5 — Northwest women gather here March 8 to discuss a variety of issues\COMMUNITY B1 Local female wrestlers grapple their way to capture the zone championships\SPORTS B5 WEDNESDAY FEBRUARY 26, 1997 93¢ PLUS 7¢ GST VOL, ONO, 46 More than $20m bailout needed By JEFF NAGEL FOREST RENEWAL B.C. money might be used to extend assistance io struggling logging contractors in Terrace, Repap owes its northwest contractors and suppliers between $20 million and $50 million, according to - jobs protection commissioner Doug Kerley. “The situation is being actively considered by people ingovernment,"said Kerley; © 0 Some of Repap’s. contractors and suppliers haven't been paid for months, Jeaving them financially lance to keep contractors afloat. - “It's a tough bullet for FRBC to bite,"said Giesbrecht. “This is essentially to assist financially strapped companies — and that’s really not the mandate of FRBC.” ey ; He said it would be a similar,deal to the $4 million FRBC-backed loan program extended to contractors working for Repap in the Stewart area - only a lot bigger. . ‘The mechanism is in place, All we need is a com- mitment to float a larger amount,” Giesbrecht said. "I - company. The proposed assistance would in theory help con- tractors stay afloat until after March 12 — when it's hoped Avenor shareholders will vote in favour of the proposed takeover of Repap. Under the deal, Avenor would pay off Repap's debts within three to six months. But the darker possibility is that the shareholders reject the deal, likely leading to the bankruptcy of Repap, : Local contractors owed money by Repap say a plan Jack Talstra. Today's meeting follows a show of force last Friday when more than 50 local contractors and suppliers - most of them stretched to the limit of their finances - descended on city hall to call for action. The meeting was moved to the Terrace Inn, where the local logging industry made it clear the situation has reached crisis proportions, . Several contractors ‘said they're on the verge of insolvency and may be forced 10 stop operations soon. Contractors said Repap has not paid them anything destitute. ; Lo . Skeena MLA Helmut Giesbrecht said he’s hopeful _FRBC money can be used to provide shart-term assis- told FRBC J wanted $50 million.” The situation facing Repap’s suppliers and contrac- i2, tors is another sign of the financial crisis facing the a s A lifelong commitment SCOTT AND EARL Peden have been involved together in Scouts for the last 21 years. Just last week Scott was given an award for the longest youth involvement in scouting in Terrace. He and his father has shared many experiences together, travelling all over the country for scouling events. For story see BI. is needed to deal with both possibilities after March College offered ray of hope THERE'S A good chance Northwest Communily College will get Forest Renewal B.C, money to help pay for a natu- ral resources program) but there's very litle chance of get- ting anything else to save other programs, says Skeena NDP MLA Helmut Giesbrecht. He made the comment last week in the midst of continv- ing controversy and criticism over the college's plan to cut more than half a million dollars and the equivalent of at least 13 full time jobs. That’s being protesicd by teachers and students who say the cuts will gul the college's ability to offer university level courses, Teaching and support staff unions have asked the college administration to ask the government for more money. The unions claim the way the province figures oul how much money it will give NWCC doesn’t take into account the fact that it's a northern college, serving a sinall, scattered population. But Giesbrecht says the government already takes into account those costs. ‘It’s doubtful we'll get anymore,’ he says, However, he adds it’s important that the college con- tinue to provide courses around the region. Giesbrecht also doubts that a petition and letter writing campaign underway right now will make a difference. “The government utderstands the problem. But there isn’t a lot more (money) to be had. The solution has ta be found within the operation,’’ he added, For more on the college’s problems, see Page A9. They're meeting today with Giesbrecht’ and mayor so far in 1997, and some are still owed for logging that Continued Page A2 Northwest pact to target wood Coalition forming to seek local control A GROUP of municipal and native lead- ers wants a stake in the northwest forest industry. Saying that continued reliance on big cor- porations controlling vast timber holdings works against the interests of the northwesl, the group has its eye on financially crippled Repap B.C. That Montreal-based company is the sub- ject of a takeover by another Montreal com- pany, Avenor. But the group, which met Feb. 20 in Hazelton, said only local control of north- west forests can provide for a stable industry benefiting the northwest. The group drafted an agreement for coun- cils and native organizations to sign, It calls for northwest municipalities and native groups to act as partners in the goal. Terrace city council has yet to discuss or sign the agreement, but councillor Tim Down, who was at the Feb. 20 meeting, said he was excited al the prospect. “This could be a great opportunity,” Down said. “It may tum into a partnership that’s been a Jong time in coming.” The group’s keying on Avenor’s proposed takeover of Repap, subject to approval by shareholders from both companies March 12. If the takeover is approved, Avenor wants to sell Repap’s northwestern holdings within 18 months. That may provide an opportunity for north- west involvement, says Gitksan leader Don Ryan, one of the organizers of the Feb. 20 meeting. And if the deal falls through, the group must be in a position to act quickly given the tenu- ous stale of Repap's finances. Ryan added. He and other Gitksan have talked to bankers and others about the idea of taking ovefnotth- * west woud holdings. . What's needed, said Ryan, is a better match between the kind of wood there is in the north- west with milling facilities... , “There’s no question we have to tum the sit- uation around.” said Ryan. “It's now a matter of how we will do it.” The muscle in the group’s plan comes from two areas — the five per cent take back of a for- est licence when it changes hands and land claims settlements. Should Avenor take over Repap. it'll have to surrender five per cent of the annual allowable cut Repap now controls, That works out to approximately 120,000 cubic metres a year. And another five per cent wil] go to the pro- vince Jater on when Avenor sells off Repap's holdings. : “Thal five per cent could be used as equity for communities to participate in a partner- ship,” said Ryan. Much larger amounts of wood should be available for partnerships from northwest land claims settlements, he added. a The group wants to meet with NDP cabinet ministers prior to the March 12 Repap and Avenor shareholder votes. TERRACE-THORNHILL Merger offer eases property tax bite VICTORIA has added $900,(4X) to its previ- ous Offer aimed at encouraging Terrace and Thornhill to merge. The latest proposal by the provincial govern- ment increases the total restructuring assis- tance grants from $1.97 million to $2.87 mil- lion, to be paid out over four years. But the offer also sets a firm deadline of June 30 for local taxpayers to decide whether they want to take the offer. Also important Victoria says all the parts of its original offer: last summer remain on the table despite provincial cost-cutiing. moves since then that have eliminated some of the programs involved. ; : Mayor Jack Talstra responded Monday night saying the new deal goes considerable distance to ensuring Terrace taxpayers don’t take an unfair. property tax hit to bring Thombhill on board, oo That .was the biggest criticism of the original offer last fat! after an analysis error was uncov- ° ered, making the amalgamation option. more expensive. The prospect of Thornhill forming its own municipality was eliminated altogether at that time as being too expensive, Victoria rejected a range of other demands from the city — a request for downtown east- side revitalization grants. reconstruction of the old Skeena River bridge to two-way traffic, more roadworks in Terrace and water and sew- er projects in Thornhill. Municipal affairs minister Michael Farnwarth did say some of those things could be possible through a revived-Canada-B.C, infrastructure works program, = Talstra said he's dissappointed there wasn't more to the package, but said he wants to study the proposal further and plug new number in to determine the effect on local taxes. © He said it's also important to. ensure busi- nesses in Thornhill don'l take too hard a tax hit. ~ Talsira said the new element since last sum- mer has been the reductions in provincial, grants to the city that totalled half a million dollars. , : “They've taken away $500,000 out of our budget, and giving us $900,000 back which has to be split with Thornhill — I'm not sure if we're any further ahead." : Councillor David Hull said he was not sur- prised by the lack of other incentives given the present state of provincial finances, The province indicated the deal will not remain on the table after June 30, and Hull said it might be that the time is naw right. “Maybe from here it gets worse,” Hull said. ’"Maybe we're best off to take what we can get now.” oe The amalgamation option would create a new municipality including Terrace, Thornhill, Braun's Island. north Terrace and the airport lands. ee Famworth's letter indicates thal. even if restructuring doesn't go ahead he'd agree to a move by the city to extend its municipal boun- daries to take in the airport lands, ee