by Michael Kelly ‘It’s going to be a tough year for Northwest sawmills. Asurvey of marketing specialists over the past week has shown world lumber demand in deciine and B.C. in an uncertain position to cope with it. This week Wedeene River Timber’s sawmill in Prince Rupert went into r- ceivership, with the softening export market blamed for the com- pany’s problems. The companies that market and distribute lumber for Wedeene, Skeena Cellulose and Westar agree that the situation is unpleasant and not likely to improve for at least a year. Gary Tattrie is the general manager for Noranda Forest Sales, marketing agent for Wedeene’s 80 million board feet of green export _ lumber sold annually. He said yesterday the market is the worst it’s been since the carly 1980's. Europe is in an economic slow- down due to inflation and high "interest rates, which has depressed housing starts and consequently lowered demand for lumber. The North American market is suffer- ing from the same conditions, and ‘even Japan, despite a strong domestic economy is in a state of _ what Tattrie described as "intro- a soft landing, a crash landing or an aborted landing, What it is, is a recession, whether anyone wants to admit it or not,” he said. Tattrie added that "the outlook for the long- to medium-term is good, it’s just a matter of getting through this slump.” Noranda is expecting a decline in sales over the next year, he said. The critical factor for the industry is to keep production matched to demand. "Traditionally B.C. has, - choked on its wood production," he said.. Production in excess of market demand tends to lower prices. David Mitchell, vice-president of export marketing for Westar, said ‘the companies that have the best chance of coming out of the slump in good condition are those that have carved out a niche in specialty markets and have strong, loyal customers. "The mills in the Northwest will be able to-sell — they have a good reputation for. quality products. But at what price? The price “may not be overwhelmingly attractive. Costs. are increasing, and at some point they may have to make a deci- sion." - Mitchell confirmed that European and U.S. markets are in deciine, and added that although Japan still. logs and lumber. "They have ‘Sup. ply fears due to recent publicity ‘about things like the spotted owls ' and talk of clamping down on raw log exports," he said. "The ports over there are congested with logs and lumber." Reg Lightfoot of Skeena Cellu- Terrace Review — Wednesday, September 26, 1990 ) A3 . lose’ thinks the ‘Terrace sawmill will come through the slump in fairly good shape. "We’re moving very vigorously toward value- added products that are less vul- nerable to market vagaries," he said. "We think it’s going to be tough, but we have a quality pro- ‘Lumber. producers brace for the worst duct and should do better than’ average." When asked about the possibility of production drops or shutdowns, Lightfoot said the company hasn’t budgeted for either, but added that these things are difficult to fore- cast. Building trade union concerned about import workers ‘TERRACE. — While the names . of 25 unemployed carpenters sit on the hiring list at the local carpen- ters’ hall, non-union, out-of-town labour has been used to build a ‘new retail outlet.on Highway 16 and the same thing very nearly happened on a major new school project in Prince Rupert. . Carpenters’ union business agent John Jensen says he’s concemed about it happening again at the $13 million Hazelton Education Centre site, which is why a dozen build- ing trade unionists were at the ‘recent sod-turning ceremony there to hand out information leaflets. Jensen said in an interview Fri- day that Stuart Olsen of Edmonton, the general contractor for the job, had originally intended to sub- reason the deal didn’t go through, and Jensen is now seeking as- surances that the work force build- ing the school will have a substan- tial component of local skilled trades, "They’ve given some assu- _rance to the Village of Hazelton and to me that they will hire locally but they (Stuart Olsen] have never done that before.” Jensen added that his idea of local hiring isn’t "hiring a backhoe to do some excavation and hiring one or two native people as labourers". Information pickets were also set . - up a month ago at the construction site for the new United Buy & Sell furniture outlet on Highway 16 by ‘the Sande overpass. Building trades picketers were concerned tactor, Tri-City Construction of Kamloops, was paying substandard wages. The pickets came down, but the basis of Jensen’s concern about hiring local people remains. On Sept. 21 the Kitimat-Terrace and District Labour Council issued a request to members of all its affiliated unions to avoid patroniz- ing the new furniture store. WHAT'S YOUR HURRY, B.C.? CICBC YOURLOCAL POLICE spection". has a solid economy the Japanese contract the trades work to @ that focal people weren’t hired for "In the U.S. they’re talking about are stockpiling huge quantities of Smithers company. For some the job and alleged that the cont-. ite. yl ed tit a See MM - os _ Shames Mountain ski area 1990/91 Season Pass rates | | INDIVIDUAL TYTN FAMILY ~ EARLY | PRATES.... ERIE) DMTScMm RATES. | BIRD REG. 4 Adult ‘$425 $465 Firstmember $425 $465 | Youth (131017 yrs) $260 $285. Secondmember $260 $285 Junior (ato12zyrs) $200 $220 Thirdmember $200 $220 ‘} Child (7 andunder) Free Free Fourthor more §$ 60 $ 60 « | Senior (65 andover) $200 $220 Plus 7% Plus 7% NN _ : G57. @.S.7, Plus 7% Plus 7% QS.T. GS.T. | - Better value,thatis! Buy yourShames Mountain Season -. 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