Shooting chutes Professional kayakers and filmmakers take on the white water around Terrace\SPORTS B5 Giving love A local woman tells her story of providing relief to Afghan refugees\NEWS A3 Tough calls A TVAP volunteer says - 'y it's the hardest job $1.00 pLus-7¢ GST. ($1.10 plus 8¢ GST outside of the Terrace area) ‘VOL: 14.NO, 25. ANDARD “Terrace id B.C.'s 2003 Forestry Capital” Council mulls over tax decreases By JEFF NAGEL BUDGET KNIVES are being shar- pened in anticipation city council will deliver a property tax cut next year. Several councillors want to cut local taxes in light of the economic downturn hitting local businesses and homeowners ~ one they said may wor- sen because of sofiwood lumber tariffs and the Skeena Cellulose crisis. “T certainly think we have to look at some reductions this year,” said councillor Val Gearge. “We've got to set an example.” Councillors Sept. 2! debated the merits of property tax decreases of anywhere from 1.5 per cent to more than four per cent. George prefers a cut on the low end of that scale, perhaps targeting most of the tax reduction for businesses. Councillor Ron Vanderlee favoured a four per cent tax decrease, delaying major projects if necessary. But mayor Jack Talstra urged cau- tion in contemplating tax reductions. “It's four times as hard or more to get back to the standard level where you were before,” Talstra said. “Let’s be really careful,” Vanderlee reminded Talstra that people in town are losing their liveli- hoods and can’t afford current tax le- vels. But Talstra said most of the pain so far is being felt by independent loggers and 10 a degree small business people. People in government and many service industry jobs are unaffected, he said. ; “Maybe 30 per cent of our com- munity is affected,” Talstra said. “Half of them don’t live within our boundar- ies. Is the province going to reduce rural taxation? I doubt it.” Talstra also said the city should prepare to live without the $800,000 in annual property taxes Skeena Cellu- lose pays here, “I have no idea what the economic climate in this town will be in March,” Talstra said, referring to the city’s budget deadline. Councillor Rich McDaniel went even further than the mayor, saying the time might be appropriate for a tax increase to accelerate road rebuilding projects and create work in the city. “Maybe we should be doing some of these capital projects and increase taxes a littie bit to create employ- ment,” he said. Councillor David Hull said a 1.5 per cent tax decrease would amount to no more than $15 a year for a typical hameowner. That amount of money isn’t going to save any family or busi- ness truly hit hard by the forestry cri- sis, he said. Rather than make a token pesture, Hull said, council should either main- tain service levels or else find a way to deliver a more significant tax cut, New councillor Marylin Davies said she favours a small tax decrease, but wants to achieve it by trimming city services rather than road construction or other needed capital projects. “¥ think they need to look al the 1.5 to 2 (per cent range),” she said. “When people are hurting they would probably be willing to accept a little less services.” An increase of four per cent or more would force the city to cut services and to axe much road reconstruction, effectively pushing major capital pro- jects ahead indefinitely, said chief ad- ministrative officer Ron Poole, “In order to get back on track, it would mean a large increase in future taxes,” Poole warned. A 1.5 per cent tax cut, amounting to a $112,000 overall budget reduction, would be “most feasible” to deliver, Poole said. That would effectively roll back the 1.5 per cent tax increase council put in place last year after surprise increases in policing and natural gas costs. A property lax decrease would put more money in hands of local tax- payers next summer — just’ a few months before the next city council election in November, 2002. Loggers take aim at bank Contractors end blockade, will meet minister Friday By JEFF NAGEL LOGGING contractors have ended their five-day blockade of Skeena Cellulose’s sawmill here in exchange for a meeting this Friday with enter- prise minister Rick Thorpe. Contractors voluntarily removed heavy equip- ment blocking the front gates of the sawmill Sept. 21. That allowed SCI to resume sales and ship- ments of lumber early this week, a factor crucial to maintaining its cash flow. It’s expected the company, if it can prove in- solvency is not imminent, will go to court Oct, 5 and seek an extension of creditor protection to allow it more time to seek a buyer. Contractors spokesman Ken Houlden said continuing the blockade would have triggered layoffs of mill employees working the kilns and planers here by Sunday. “That's not our intent,” he said. “We want to keep as many people working right now as possible.” Houlden said Thorpe has pledged to do what he can to get the contractors paid. Skeena Cellulose sought and obtained an in- junction Sept. 18 to remove the blockade, which sprang up the day before, Company officials served the injunction Sept. 19 but never asked RCMP to enforce it and re- move the blockaders. Contractors continue to crowd the TD bank parking Jot with heavy machinery draped with . anti-bank slogans. The contractors are owed millions since Skee- na Cellulose got protection from its creditors Sept. 5. Cheques issued by SC] would have cleared had the bank not begun bouncing those cheques as early as Aug. 31, say contractors, Government officials say creditor protection was necessary to prevent the company from fall- ing into bankruptey after the bank demanded payment of outstanding loans. But it also froze all SCI debts and amounts owing for 30 days. SCI can’t selectively pay those bills without the court’s sanction. ' Thorpe said he has tried but failed to persuade the TD to jointly ask the court to allow the com- Shipping delays bus arrival time By JENNIFER LANG TWO NEW wheelchair accessible buses won't arrive in Terrace until later next month. The low-riding Dennis Dart buses that will replace the Terrace Regional Transit System's existing bus. fleet were supposed to arrive in August. Jerry Peltier, manager of Coastal Bus Lines, the com- pany operating the transit system, sald the British- -made buses were delayed because of shipping problems, ares Terrace's new ‘buses have now arrived in Vancouver, . - where they’re being painted and inspected: by B.C. Transit, which is in the midst of a major fleet replace- TON aa ome mann CONTRACTORS maintained a blockade of the Skeena Cellulose sawmill here for five a days last week. They ended the blockade, which Kept SCI from shipping lumber, on Friday amid fears it would trigger mill layoffs and possible bankruptcy of the company. JEFF NAGEL PHOTO pany to pay the outstanding bills. “They chose not to do that, therefore we're tied up by the courts,” Thorpe told The Standard Sept. 20. “Myself and my staff have tried very, very hard with the bank officials to have the cheques issued up to Aug. 31 honoured,” Thorpe said. “We're unable to get the bank to do that.” The next most promising scenario to deliver payment is if the province sells the company to a buyer and. payment of the contractors is either a condition of purchase or built into the purchase price. That option, advanced by Skeena MLA Roger Harris, isn’t being ruled out by Thorpe. ' But the minister is cautious about raising hopes. “I can’t even say maybe right now,” Thorpe said, “If I say maybe right now everybody's going . to interpret that as a yes,” The first step, he said, is to get a buyer. ment program. them by the third week in October.” gone ahead as planned, all, Peltier said.. “They are on the way,” Peltier said. “We should have Before that, transit drivers here wil] be given orienta- tion training on a Dennis Dart from Kitimat, a move that will eliminate further delay once the new buses are here. Meanwhile, a major transit expansion that’s increased the number of bus trips in Terrace and Thornhill has - The response froin the public has been positive, over- The transit system is now making smail adjustments. If efforts to sell the company fail, or it falls ’ from creditor protection into bankruptcy, contrac- tors plan ta press the government, as SCI’s ma- jority owner, to pay the company’s bills. “The provincial government is the owner and should come clean with the monies promised,” Houlden said. More inside: M@ Skeena Cellulose’s losses may be biggest selling feature, A5 M Victoria hits pause on stumpage double whammy, A5 Houlden said Thorpe has promised his support on that if necessary, “If it goes to bankruptcy, his admission is there’s a moral responsibility of government to do something for us,” Houlden said, “But that re- For example, a city shuttle route that doubles as a school special for Birch Hill students has been slightly altered to meet demand from an unexpected ridership base: elementary school students. taking that bus, too, He offered. a final note for passengers with mobility problems ‘who plan to take the new Dennis Darts once Routes. served’ by: low-riding buses are high- lighted in blue on the transit schedule. _ they arrive, R Peltier said the route was initially changed with ju- nior and senior high school students in mind, But il’s turned out a number of younger students are quires all of cabinet to agree with him.” The political uncertainty connected to that idea brings Houlden back to the need for a deal that doesn’t depend on a sale of SCI or broad B.C. Liberal support for what might be seen in the south as more money for Skeena Cellulose. “If we don't get something now we're headed into a black hole of unknown,” he said. Therefore, Houlden said, contractors who have ended their blockade of the sawmill here will ' likely look for ways to increase pressure on the TD bank. Contractors believe money was in SCI ac- counts to pay them at the end of August but was effectively seized by the bank. “It's becoming very clear to us the bad guy is the TD,” Houlden said, “I think we're going to step up and try to force some conscience upon them,” Continued Page A5 Jerry Poltier