TERRACE STANDARD Business REvIEw Subsidies an option to aid — offshore drilling — — consultant By JEFF NAGEL VICTORIA’s policy of al- lowing no subsidies for bu- siness may be in for a test if it opens up B.C. waters to offshore oil exploration. Energy consultant John Hunter says the province. may have to consider some form of incentive for the industry to set up here, particularly if it wants ail companies to spend signif- icant amounts of money in B.C. building rigs or boats, “It’s not unusual to have subsidies the first time around,” said Hunter, who was here to address a Chamber of Commerce luncheon Jan. 15. Rather than cutting a direct cheque, he said, the government could agree to tax breaks or to a period of reduced oil and gas royal- ties — which would effect- ively be revenue the pro- vince forgoes to aid the in- dustry while it recovers startup costs. Some people would call that a subsidy as well, Hunter said, but added it may be justifiable. “If the industry never happens you're going to get zero taxes,” he said, Tax policy can also be a tool to encourage deve- lopment jin a particular area, he said. Government could say, he said, that construction of ships for the offshore wouldn’t be taxed in Prince Rupert but would be elsewhere. The industry spent $2.7 _billion in Atlantic Canada preparing for offshore dril- ling, he said, Considerable subsidies were in play on the Hibernia project. Hunter said peaple who think oil companies will lead the charge to carry out drilling are wrong, par- ticularly if other uncertain- ties persist even if the cur- rent moratorium is lifted. Among the obstacles are native land claims, fe- deral-provincial jurisdic- tional issues, and what ’ Hunter called B.C:’s repu- tation as a bad place for business. “Money is a coward,” he said. “I can tell you they will not come until they're welcome.” “if the industry never happens you’re gaing ta get zero taxes.” ~ Hunter said the decision on offshore oil boils down to a judgment call by the government on environ- mental risk versus what could be major economic gain. “There is some risk of bad consequences,” Hun- ter said. “If we take the position we’re going to John Hunter allow zero risk in the off- shore you might as well walk away now, because there’s nothing that’s zero tisk.” Hunter said he believes risks from earthquakes and extreme weather off the B.C. coast are overstated, Oil rigs exist in other areas that are quake and typhoon-prone, he said. “What we have in He- cate Strait is nothing unus- ual and nothing we haven't designed for all over the’ world,” Hunter said. A decision by the pro- vincial government on lif- ting its moratorium on off- shore oil may come in the next few weeks. Energy minister Richard Neufeld is reviewing two reports submitted Jan. 15 on the issue. One is a scientific and technical report by a three- member academic panel on what would be néces- sary to safely drill in B.C. waters. _The other is a report by a group of MLAs who toured coastal communi- ties to gauge local opinion, Neither report has yet been made public. ae An indication the pro- vince may entertain off- shore aid came during last week’s open cabinet meet- ing. Cabinet agreed to for- give $50,000 worth cf roy- alties for new coalbed me- thane wells drilled over the next two years. Finance minister Gary Collins asked if the incen- tive isn’t’a business subsi- dy. Energy minister Richard Neufeld said it is nal, no- ting Victoria’s policy is to eliminate business subsi- dies that favour one busi- ness over another competi- tor. “This applies industry- wide, so there’s no subsidy to one over the. other,” Neufeld said. “What we’ve said is that we'll put this over the whole system in coalbed methane so that everybody works under the same rules, and it doesn’t fall into the subsidy category and actually brings us in line with Alberta, with our competitors across the border.” City’s Skeena Cellulose expense account grows THE CITY has boosted its budget to tackle the Skeena Cellulose crisis. Council voted last week to add another $15,000, pushing the budget for SCl-rélated expenses to $35,000, said admihistrator Ron Poole. So far‘close to $25,000 has been we spent, he said, with about half going for legal opinions and another half for travel by councillors and city of- ficials to Victoria and Vancouver. The city has also switched law- yers, and no longer shares the same: one as Prince Rupert." cH te & ia | oe ‘Summer Jobs “IMPORTANT NOTICE To Employers Human Resource Development Canad: cae Summer Career Placements is a wage subsidy program that enables employers to hire students during the summer fora period of 6 to 16 weeks. Private, public and not-for-profit employers are invited to submit their application by: . April 2, 2002* — The objective of the program is to provide students with work experience related to their field of study. Applications will be evaluated based on the quality of the experience offered, local and regional priorities as well as available budgets. To apply or to find out more about this program, please contact your nearest Human Resources Development Canada office. or call 1 800 935-5555. | | Internet: www.hrdc-drhc.gce.ca * Please note that the application deadline for the f Northwest Territories and Nunavut.is April 9,'2002.. évaloppement des *: egurces humalnas “We feel now our interests are separated from what Rupert’s would be in trying to get back taxes,” he said. Terrace is owed a relatively small amount for unpaid property atames, comparedto “the? nearly $12 ‘ ‘million outstanding for the part city. The Terrace Standard, Wednesday, January 23, 2002 - A? LOSE WEIGHT WITHOUT, With Winning Paints, you can eal what everyone else is eating. So you can stay satisfied, stick with the plan, and reach your goals. Jain now and get “Today's Special,” our new guide to satisfying meal and snack |" FREE! JOIN NOW FOR 1/2 PRIGE AND SAVE $22 CALL 1-800-682-8011 Knox United Church (Terrace) 4907 Lazelle - Tuesday 7:00 pm realfood.reallife.realresults, Vali at participating focations tor a limited lime. ©2002 Weight Watchers Internatonal, Inc. owner of the WEIGHT WATCHERS trademark, All rights reserved SOLID PINE FUTONS ON SALE STARTING FROM ONLY Double size - frame and mattress - cover sold separately ‘219 THIS WEEK ONLY- PURCHASE ANY FUTON & RECEIVE... FIREE delivery & assembly Valid only january 19* fill the 2éth TOTEM. FURNITURE: & APPLIANCES .- “4501 LAKELSE AVE., TERRACE, B.C, : 800-813-1158 This is the month for us to go through the warehouse and take care of all the inventory that doesn't have a match, it's discontinued, maybe it’s marked, il doesn’t matter - except § | - we need to clear these items out to lidy up “shop. So come on in and browse around, you may just find a buy too good to pass up. 1.9% a purchose financing for 34 months t 0% a a ereaartel 2002 MAZDA B2300 TRUCK cash purchase from ml $16,795 m $209 4135 hp, 2.3L DUHC T4 engine * Anti-lock broke system (ABS) « AM/FM/CD stereo system © Tachometer + Driver and passenger olrbags 2001 MAZDA MPY DX cash purchase from $24,695 m $289" » Convenience Package: crulse control, power mirrors ond door locks, power front and rear roll-down windows © fir conditioning « 2nd row Side-by-Slidet™ seats OADSIDE astisTance PROGRAM: Ask about the warde pene ned promise sanded oe new Nate, AIDA’ LEADERSHIP WARRANTY. tskobout our sr oteandig camp barsin and powetln waranty creeage, THORNHILL MAZDA® 3040 Hwy 16 E © Phone 250- 635- 786 GRADUATES GET AN ADDITIONAL §750 OFF PURCHASE Of LEASE. Offers evedoble on catudl/purchayenfespes en participating velicles fram danvery 2, 2007 ter a lenited tine only, Leeie end finence GAC, fr quelified custom ent 1.1% fester tle orf * an zt Hora RADUATE vakiches encepl Tribute, inonce example fer $90,000 010.0% BPR, 14 months ot 4245-99 per mwanth, €0.0. 4 $745.04 fora tated of $10,205.44. 49% frenceation wredable on | 2061 Heide Trhutes, Finance example for $10,000 al 4 CAPA, UA rmmvottes ot $194.70 per nsmith, C00 4s §772,38 for o tated of 110,275.96, OM Swerve ther evadeble en ol 2001 MPT vehicles. Nasace ¢ zenyle for $10, 000-08 6 PR, Sémenthe at 277,70 gtr rent the nts PROGRAM fu cctutal af 410,040, * Mande Persenallaese Rate: Qffers qvalable on reted leases caly. Ceosen are besed an UE manta. Clher lense termsaruiahle, Tebl Krewe ebgetien: 2007 R100 (mode! SURS2570N04) x (12,012, whch inchoder 4750, security depasit ond down popmeal of 42,708 Cinckeder fieight ond POE All 0952, 22 Enbute LX Gondel wT nA0C) ts 23,002, which includes $480 security ine cod dawn poyrnant of 44,708 ict fr st 6nd PoE of 41.009. EOL MY OX Crodal BURDYFLCACOD Is HIN DEE, which Hnchides 4350 security degetit end dawn perent of $4,085 Gnehides freight end PEE af $1,098); 18,000 km per peor madeage staleictions epphy; additional Mi/km epplitd, Ucenie, baurance, fared and ather desler chorges entice, Oester choy selrleste for leis, Offers cannal be combined, fee yaw dealer for detetts, tHostrmted models. ore for ceference any and ortuel models oy net ve azuctly mt shew, lease from permenth #4 months 2002 MAZDA TRIBUTE LX AWD 5 cash purchase from lease fro 4% on $81,295 om SEF "Best Buy far Compact Util et cagle * 200 hp, J.OLOOHE 24-valve ¥é engine © All wheel drive + 16" 5-spoke alloy wheels © AM/FM/CD stereo system Alr conditioning © Power windows, mirrors and door locks + Cruise control lease from permonth/48 months mazDe we 07041 1-800-559-7288. DLR #7041