A2- The Terrace Standard, Wednesday, July 23, 2003

Double shutdowns push forest |

industry here to new low point

By JEFF NAGEL
TERRACE'’s forest industry is now
mired in what loggers are calling
the worst downturn in more than
two decades.

And for perhaps the first time
it's reached the point where both

Terrace sawmills are down simul-

taneously and almost no loggers
are working.

"It's not completely stopped.
But it’s definitely at the lowest
point-we'’ve seen in a number of

years,” says Northwest. Loggers _

Association president John Nester.

““Tt's as quiet as it’s been since
1981.”

That date, 22 years ago, used
to be: the benchmark that mea-
sured despair in the woods - a
time when every logger or mill
worker here was idle unless they
were. part of a government make-
work project.

While the early 80s downturn
may have been more intense, it
pales in. comparison to the dura-
tion of this one.

This city is now in its seventh
year of industry turmoil since ow-
ners abandoned debt-laden Skee-

From front

Open up access to
timber, gov’t urged

na Cellulose in early 1997.

George Petty, then owner of
the company, now chairs the lat-
est incarnation, New Skeena For-
est Products.

It’s now been almost two years
since the company — under gov-
ernment control ~ ended all log-
ging and shut the Terrace sawmill.

Petty and president Dan Ve-
niez have scored major victories ~
a series of labour agreements to
cul. costs: in- Terrace -and- Prince
Rupert, a stripped-down operation
with marketing farmed out to
other firms, and a referendum yes
vote in Prince Rupert on providing
$20 million to start up.

But few are convinced the
Prince Rupert deal will be fina-
lized or that New Skeena will find
another $30 million in other nee-
ded investment.

- Nester says the latest blow is

the strike at West Fraser's Euro-
can pulp mill in Kitimat,

That also knocked mill workers
at West Fraser’s Terrace sawmill
off the job as well as contract
truckers,

A few small business timber

sales continue to keep some log-
gers in the bush. But most have
shut down,

Prices for exported logs had
weakened, Nester says. The main
thing that kept some operators
afloat was their ability to sell
lower-grade sawlogs to West Fra-
ser’s sawmill,

“With that going down it was a
bit of a nail in the coffin,” Nester
said.

New Skeena hasn't opted to
sell any standing timber since last

“It’s as quiet as it’s
been since 1981.”

year, choosing to keep it in re-
serve for an eventual startup.

But delays in the startup effort
have the loggers doubting there
will be any logging or road con-
struction this year,

Nester says there’s plenty of
pulp wood available and pulp
chips in the system ~ thanks to
the Burocan shutdown — for New
Skeena to run its pulp mill with-

markets will then provide
security to smaller mills.

Backing up Harris’ calls
is the Northwest Loggers
Association,

President John Nester
says a growing small saw-
mill: community in Terrace
is poised to fluorish once
Victoria breaks the major
licensees’ stranglehold
over the timber.

“We've got some inge-
nious' people,” Nester said.
“They'll find a way to take
advantage of opportuni-
ties.”

He says the forests
ministry could also help
out in other ways.

Demand for puip wood

iis improving; meaning: thats.-
ostryuto work on-an.inven-

iindependent loggers:could,
start selling pulp logs on
the open market.

The only problem,

Nester says, is that with
both sawmills down,
there’s no weigh scale
open to measure the tim-
ber and charge stumpage.
As a resull the loggers stay
home.

The NWLA’s solution?
Hand-scale every 10th
load and simply approx-
imate the stumpage pay-
ments owed to Victoria.

“More could be done if
there was more of an en-
trepreneurial bent within
the ministry,” Nester says.

Harris is also pressing
the ministry for more ac-
tion to make salvage tim-
ber available in blowdown
areas.

: aAnd he.wants the mini-

tory of hardwoods like cot-
tonwood and alder in the
region that are increasing-

ly marketable.

“It’s all part of the new
future,” Harris said.

ana

Although Harris doesn’t
want the region as reliant
on New Skeena Forest
Products, his hopes for the
company remain high.

He says the new owners
have given the operations
their best shot at success
in Skeena’s histary.

Harris said the combi-
nation of labour agree-
ments, no debt, forest re-
forms, and contracting out
all will reduce the drain on
operating cash that histor-
ically plagued Skeena.

“Every one of the com-

‘ponents in place is a huge |
improvement from the past

and gives the company a
tremendous opportunity to
be successful,” he said.

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out logging.

And he says many loggers fear
New Skeena — if it does start up —
could easily run into unforeseen
problems with the pulp mill.

“In a pulp mill something
wrong can cost you $10 million
very quickly,” he said, “If you
don't have the kind of cash re-
serves necessary, what happens?”

Meanwhile, he says it’s be-
coming harder and harder for the
city’s approximately 350 loggers
to wait it out,

“It?s particularly hard on
people and families trying to stay
afloat and make mortgage
payments,” he said.

Owners have increasingly had
to liquidate equipment, he added.

Terrace was home to more than
100 logging trucks about five
years ago, That, by NWLA esti-
mates, has dwindled to perhaps 55
with most of those idle.

The dozen or so trucks that are
running tend to be hauling gravel
or doing road work, Nestor says.

“Our guys are nervous, They
certainly can’t afford to take an-
other hit.”

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A pact on the economy, union officials said last week,

7 Union told council the disappearance of higher pay-

ard Annual CANADIAN TIRE

Street Hockey Fest

Saturday, August 2, 1 -6pm &
Sunday, August 3, 8 a.m. - 1 p.m.

REGISTRATION FORM

Under Age 14 ~ 4 on 4 Hockey

~ HISTORY AT A-GLANCE-

5 YEARS AGO

THE NISGA’A final treaty is finally concluded July
16 making it the first modern treaty in B.C.’s history. J

The agreement ends 22 years at the treaty table |
and more than 100 years since the Nisga’a first re-
quested a treaty in 1887.

“I think the message that will go forth from this
place today, not only to aboriginal people in British §
Columbia but to the business community’as well,
that yes differences that exist between people can
be resolved across the negotiation table,” said
Nisga’a Tribal Council president Joe Gosnell.

The deal promises the Nisga’a $190 million, self-
government, resource control, shares of fish and
wildlife and some 1,930 square kilometres of land. -
duly 22, 1998

10 YEARS AGO

THE CITY could save the green belt adjacent to J
Howe Creck by trading some of its own land for the
property Howe Creek Investments wants to develop.
The suggestion came from resident John Camp-
bell at a recent council meeting. Preventing deve-
lopment at the foot of the bench escarpment could
also avoid erosion problems seen elsewhere along
the hill, he said. Howe Creek investments wants to §
develop a 10 acre parcel extending from Eby St.
east to the foct of Skeenaview Drive. It’s asked
council to rezone the plot from rural to residential.
Though the development is supported by the
city's planning technician and committee, it has
drawn fire from local residents, - July 21, 1993

15 YEARS AGO

COUNCIL should be aware of plans by large com-

Members of the Telecommunications Workers’ §

ing jobs is felt in the local economy as it reduces
the employment base. Union officials estimate 50
provincial government jobs have been lost in Ter-
race since 1984 and 150 woodworkers jobs have dis-
appeared since 1980. - July 20, 1988

From the archives of the Terrace Standard — your
local newspaper of record since 1988.

. Construction, Terrace
- Your Local Highway & Bridge Maintenance Contractor
Ph: (250) 638-188] _

Players’ Names/Ages [including any spares)

Contact name.

& phone number:

The entrance fee is $25.00 per team. We need the entrance fee in
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The games will be 4 on 4 plus goalies and will be 25 minutes long,
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tournament. Jerseys will be provided for each game. The tournament fi
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pm Sunday. Prizes will be

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TEL.: (250) 635-7178 FAX: (250) 635-6964