B4 - The Terrace Standard, Wednesday, March 19, 2003 MAYOR JACK Talstra wants Victoria to start sharing the stumpage reve- nue it collects from forest companies with forest-de- pendent towns, He said that would be a way to aid towns where sawmills or pulp mills are being mothballed or clos- ing. slarving them of prop- erty taxes. Terrace is losing about $800,000 a year while it waits for New Skeena For- est Products to start paying its taxes, When large amounts of property tax disappear, he said, the towns still have to maintain services and infrastructure, “Some people have left town but by and large the loggers are still here,” Talstra said, “Rather than tax the From Page B3 Massive rule shift De Jong predicts log exports will decline over time, adding they are a symptom of a sick indu- stry. Market-based stumpage A significant amount of timber is to be sold through auctions run by B.C, Timber Sales. Stump- age charges elsewhere in B.C. will be pegged to. prices generated*in the auctions. This is the reform most key to dealing with oe U.S. subsidy complaints. And there’s more De Jong says the pro- vince will directly award timber to natives when it wants to put wood in abor- iginal hands, rather than the past practice of some- times staging competitive bids that were geared to deliver a desired result. He also says value- added producers like -Mo Takhar’s Terrace Precut won't have to compete dir- ectly against major licen- sees like Canfor for their wood, That's a significant change from what had. been envisioned. But De Jong says those mills will have to compete with si- milar operators. He says they'll elimi- nate the past practice of awarding timber based on promises to increase jobs at a plant. De Jong says the government rarely if steel in town, maybe you tax the wood outside of town.” The surrounding forests are in a sense a workplace in the same way as a local shoe store or department store, Talstra continued, “I think the province has to rethink how com- munities raise their reve- nues,” he added. Talstra said time is tight because of the pro- vince’s plans to radically reform the forest industry, allowing. companies to _ TERRACE STANDARD ~ Business REvIEw Terrace mayor wants piece of the forest stumpage pie send timber anywhere, ra- ther than just to one mill. That’s expected to trig- ger a major shakeup of the industry, including more mill closures. “LT say put a charge on every cubic metre taken out of the bush for munici- pal purposes,” he said. The province is already sharing resource revenues in some areas — notably with oil and gas royalties in the northeast. _ “It’s not-that farfetched a concept,” Talstra noted. 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