No more music: ‘Students\NEWS A14 Cutting school music programs ‘upsets parents, teachers. and Teacher retires: Knocking them off NWCC welding instructor Emile Marchand says goodbye\COMMUNITY BL Skeena’ s track records fell in the face of competition from northwest athletes\SPORTS B6 WEDNESDAY May 12, 1999 TANDARD Skeena Cel records profit Firm still needs pulp mill upgrade — MLA By JEFF NAGEL SKEENA CELLULOSE and government officials are now confirming what had only been rumoured in recent weeks — that the company is now making a profit, ‘I’m pleased to report that in fact Skeena Cellulose made a very modest profit, start- ing in February,” depuly premier Dan Mil- ler told the legislature Thursday. “The management and the employees have dramatically reduced the operating costs,’ Miller said, adding the company capital expenditure money needed to restart the pulp mill’s second line. “IVs still very difficult going, but we will go forward to treasury beard,’’ Miller said, We will present a business case. Hopeful- ly if that passes the test of treasury board, we can get on with making further invest- mnenis and strengihening the economy of northwestern British Columbia.” A company official who spoke on condi- tion of anonymity said the company made a profit in both February and March. April results were not yet known, “The company is profitable across all op- erations,” he said. “The pulp mill is profitable, the sawmills are profitable.’ tion of strengthening pulp and lumber prices, and reduced costs and improved cf- ficiencies under the leadership of Skeena Cellulose president Bill Steele. The official said the profit now being re- corded is ‘‘significant’’ and is not simply a matter of shifting expenses from one month to the next or other methods of producing an unsustainable, paper profit. "This is not an accounting profit, this is an operating profit,’’ the official said, Further, he said, the profit is over and above the company’s requirements to ser- vice its debt charges and set aside money for taxes, stumpage and depreciation. Operating resulis for the first 15 months ownership of the company are expected to be ready by late this month or early June. They’ ll likely still show a loss over that period, the official added, because the com- pany only reached profitability early this year. The main threat to the present profit pic- ture, he said, is the possibility of a con- tinued rise of the Canadian dollar against the U.S. dollar. That's cutting into profits of all B.C. forest companies right mow as they essen- tially get fewer Canadian dollars for the same sale priced in U.S, dollars. Continued Page A2 will seek approval for release of promised The turnaround is credited to a combina- since the province assumed majority KITSUMKALUM band elder Orlando Bolton says goodbye to from the Norwegian Wind who took a VIA Rail charter up the Maryland tourist Arnie Nygaard, one of 180 cruise ship passengers Skeenato Terrace last week. Cruise fans tourism hope Train ride to Terrace proves popular side trip THE FIRST big cruise ship to arrive in Prince Rupert in 20 years sailed into the harbour like a gleaming white beacon of hope last Tuesday. The Norwegian Wind blew money into Prince Rupert stores, propelled passengers up the rail- way to Terrace and puta flush of pride on the faces of northwesterners who caught a glimpse of the tourism big league. The trip was just a test —- an initial visit by ‘ reps of several cruise lines to sec if the stop of- fers enough to be a regular part of the million- passsenger-a-year Alaskan cruise ship industry. “They were impressed — they said that a number of times,’’ said Prince Rupert Port Cor- ’ filled them too,’’ said Terrace economic devel- ‘poration CEO Don Krusel. “Clearly Prince Rupert and this region is going to be on the ‘agenda for very serious consideration and that is ‘the best we can hope for,” - He estimates 80 per cent of the vessel’s 1,800 passengers and 600 crew were lured away from the many onboard restaurants, bars and casino to either shop or take tours ashore. The Museum of Northem B.C. had 600 visitors — shattering its previous one-day record of 250, Passengers signed up in advance for Lightsce- " ing trips, tours of North Pacific Cannery Muse- um, and the Pike Island archaelogical digs, And some 180 passengers paid US $110 to lake a VIA rail train charter to Terrace and back. The train ride was so popular it sold out quickly — despite being a late entry to the array of excursions available — and as many as 100 passtngers were turtied away. “If they bad two more cars they could have opment officer Ken Veldman. ‘‘There was " certainly a lot of demand for it.’ Veldman said il proved that the benefits of ., cruises can extend into the region. The rail excursion was also important because the cruise linc was able to sell it to passengers at a substantial profit above the cost of the charter from VIA Rail. Being able to sell excursions to passengers on the vessel -— at a markup — is a big factor in deciding on ports-of-call, said Terrace businessman Glen Saunders who toured the ves- se] and met with a Princess Cruise lines rep. ‘What they want are tours that they can sell on the beat and actually make moncy on,”’ he said. “It’s not just whether you’re pretty or not, It's whether you have things that they can gen- erate revenue from.” He credited Port Corporation officials with lining up the rail charter and then handing it off to Norwegian Cruise Lines. Businesses in Prince Rupert — including Saunders’ Cow Bay Gift Galley — rang up big sales as the largely American tourists roamed Continued Page A2 Cruise passengers loved Mounties, train trip PASSENGERS from the cruise ‘ship Norwegian Wind arrived here ‘dazzled by a scenic train ride up the ‘Skeena valley and pronsptly fell in Jove with the classic image of a Ca- ‘nadian Mountie. : RCMP Const. Kurt Grabinsky — decked out in his red serge dress uniform and Stclson — actually ‘caused a traffic Jam at the VIA Rail. ‘station as tourisis reached for. their ‘cameras even before they could ‘climb off the train, . ‘He's so cute,’” one woman from + ; * 4 = ° San Diego gushed. ‘I want to get a picture with the Mountie.”’ The 180 visitors were whisked up to Heritage Park Museum where they were piped in by Terrace Pipes and Drums and then welcomed by the Kitselas Elders and Dancers. Salmon and traditional native foods awaited, as did nalive artists, carvers, local pioneers, and more RCMP officers in dress red — complete with a horse, Reviews. from.’ the . passengers were universally favourable. | travelling,” “This is the most welcome we have ever felt when we have been said Pat Huntington Beach, California. She and her husband said the train ride was astonishing for its natural beauty and wildlife. “This is something no one else that we know has seen before,”’ she said, ‘It’s an amazing trip.” “It was a superb ride,’’ added . Don Downs, a New Orleans tour - operator specializing in rail trips. He. said the passengers were Gee of thrilled 1o see about seven eagles from the train and a bear. Most of the visitors said they needed more time to shop and some said they would have spent more {f they could have used their credit cards or bank cards. The tain’s arrival had been delayed about 10 minutes by rail- way track maintenance, In the end the visit to Terrace was just over an hour long, and the train pulled out of the station'at about 5 p.m. for Prince Rupert. : - said, Skeena $1.00 PLUS 7¢GST _ ($1.40 plus 8¢ GST outside of the: Terrace aroa}: © VOL: 12 NO. 5 Dan Miller . Chip deal to avert layoffs WEST FRASER has agreed to a deal to custom chip logs for Skeena Cellulose here. The agreement means the Poirier log yard chipper — operated for less than a year by Don Hull and Sons Con- tracting Ltd. — will be shut down by the end of May, Cellulose woodlands vice-president Dan Tuomi. More than a dozen jobs there will be eliminated, but transferring the chipping work to West Fraser’s Skeena Sawmills plant will reduce the need for layofis there when a work-sharing program runs out in June, At least 80 of the nearly 140 sawmill workers were expected to get layoffs in the absence of a chipping deal, West Fraser manager Lou Poulin said. “Now its only going to be about 40 to 45 people,” he said. “We'll probably be able to reduce the number of layoffs by about half.”’ Tuomi said Skeena Cel- lulose will save money by transferring the chipping work to West Fraser. He noted it’s also a “somewhal drastic?’ solu- tion to complaints of nearby residents who found the Poirier chipper too noisy. West Fraser benefits by being able to extract lumber from the better-quality pulp logs that had been simply chipped at the Poirier yard. ‘We've reached a deal that we think is bencficial to both parties,’ Tuomi added. Tuomi said Don Hull and Sons” officials characteriza- tion of the deat as moving jobs from one side of the highway to the other — rather than creating new ones — is basically correct. ““When you stand back and look at it there shouldn't be a net change in jobs,” he said. Tuomi said West Fraser’s move to reduce production at the sawmill from two shifts to just one shift Last September created the potential for a chipping deal between the two major northwest forest companies, “With West Fraser opera- ting one shift it made this opportunity available,’ he said, ‘If they were running their sawmill on two shifts this opportunity wouldn’t be- available.’’ Poulin said the deal will be reviewed after three months, but expected a more permanent deal would be signed at that time. Skeena Cellulose was to begin delivering fogs to West Fraser today, with one chipping shift set to start May 17th, Poulin said. “Hopefully we'll ramp up to a second chipping shift, which is a graveyard shift, by May 3 ist — no later than June 7th,’? he added, Poulin said he wants both chipping shifts operating in time to avert layoffs when the work-sharing program ends on June 11. Skeena Cellulose’s Poirier yard will continue ta be used for merchandising and log sorting operations. Lawsuit threatened over chip change DON HULL and Sons Contracting wants millions of dol- lars in compensation from Skeena Cellulose for its deci- sion ta shift chipping opcrations to West Fraser, Lloyd Hull says his company spent $2.25 million ta buy and set up the chipper and assorted equipment in SCI?s Poirier yard on the basis that a long-term chipping contract would result. And he says his lawyer is preparing to suc SCI if it doesn’t agree to cover both the lost investment and lost profits resulting from the new chipping agreement with West Fraser. ‘They hung me once for 2.447 {million),”” Hull said, referring to the unpaid debt he was stuck with by SCI’s predecessor, Repap B.C. ‘'They’re not going to hang me again without a real, real good fight.’ He still hopes lo negoliate a settlement but isn't op- timistic the issue will be resolved out of court. Hull said the move means layoffs for 12 to 15 workers —— nine of them at the chipper itself plus more operating loaders and other equipment. Those employees are the ofies who will be bit hardest, he added, ‘I’ve lost a job with SCI — some of them are about to lose their livelilood,’’ he said, Hull said his firm will try to sell the chipper, but said he'd prefer to keep it operating somewhere. - ‘Tf we can find work for that machine it sure beats sell- ing it or having It parked in a yard someplace,” he added.