Point of view
New cedar shrubs help
Spruce up a-view point

Eye on the prize

Terrace’s MacDougall
rink aims for a spot In
the top three in =

Trying tosell? = =| | —"
Real estate prices | ee
have fallen so low,

B.C.\SPORTS B10

some people can't.
leave\NEWS A13

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| near a treasured land-
ie mark\COMMUNITY BA.

$1.00 pLus:7¢ GST
($1.10 plus 8¢ GST
outside of the Tarrace area)

TANDA

ednesday, October 24, 2001

Gov't won’t sever SCI

By JEFF NAGEL
MORE THAN 800 laid-off Skeena
Cellulose workers should be severed to
save more than $1 million per month
in benefits payments, court-appointed
monitors say.

“We estimate that in excess of 800
employees currently under ‘temporary
layoff’ status could be terminated,
which could result in a reduction in
monthly disbursements of in excess of
$1 million,” says the Oct. 5 report of
Arthur Andersen Inc., which has been
named to oversee company operations.

“We have suggested that Skeena’s
Management examine severing these
employees to mitigate these
payments.”

The company’s board of directors
has so far rejected the idea of cutting

benefits, which would involve workers’
medical, dental, extended health and
life insurance premiums.

Enterprise minister Rick Thorpe
said he supports that decision but also
warns extreme measures may yet be

fecessary as SCI cash reserves dec-

line.

“One of the last things we’re going
to do is take people’s health care and
health benefits away from their fami-
lies,” Thorpe told the Standard.

“Such ‘a major decision to do that
would be only done by the board as a
last ditch effort ta keep the company

. afloat as we try to bring a deal to a

conclusion.”

- Thorpe said half the estimated $1
million in savings consists of $500,000
worth of accrued vacation pay.

“Quite frankly I see that as the
same as payroll and those amounts ci-
ther have or are being paid out to em-
ployees,” he said.

Benefits consist of the remaining
$500,000 per month, he estimated.

Thorpe admilted the treatment of
the hourly unionized workers is so far
different than more than 150 manage-
ment employees, who were not just
laid off, but severed to save benefits.

“As our cash resources dwindle it
does call for some very, very tough,
gut-wrenching decisions,” he said.

IWA tep Surinder Malhotra said the
idea would breach the workers’ em-
ployment contract.

“We have a signed contract with
these employers,” Malhotra said.
“They're obligated under the labour

board to comply with the terms of the
contract.”

He also suggested the monitors
aren’t aware of the full consequences
of such an action.

“Lf they terminate the employment
of 800 people they're obligated to pay
Severance pay for 800 people,” -he
said. “That could come into the mil-
lions of dollars.”

Malhotra said the company makes
its payments for the benefits around
the end of each month.

The monitor’s report also indicates
just over a third of managers and sal-
aried staff remain at the Terrace saw-
mill after terminations directed by the
monitors.

Thirty staff here were cut, leaving
17 of the previous 47 people working.

workers

The savings here were worth nearly
$200,000 per month, the report-said. -

A higher proportion of cuts came at
the Prince Rupert pulp milf and Car-
naby sawmill, where 50 and 11° staff
were cut respectively.

In all SCI terminated 98 people at
ihe beginning of the month in a move
expected to save $659,000 per month.

Itieaves 59 salaried staff still work-
ing. Besides managers, they include
secretarial, technical and other staff.

Other austerity measures are also
underway.

“Skeena has reduced its silviculture

_and road maintenance/deactivation

activities to the minimum level they
consider necessary without breaching
the Forest Practices Code,” the report
said.

g Answering the call

PEE WEE rep players Kelly McColl, Dana Young and Kenny
McColl hoist three 50-pound bags of potatoes to deliver them
to the food bank. tn all, Terrace Minor Hockey donated 1,500
pounds of potatoes to the Terrace Churches Food Bank last

week. Teams are selling potatoes to support travel expenses,
Many people have opted ta donate their purchase this year.
The food bank recently urged local residents to help restock
the shelves to meet demand. JENNIFER LANG PHOTO

Kidney dialysis confirmed for here

NOR THWESTERNERS
necding kidney dialysis
will soon be able to stay in
the area.

Health care officials are -

confirming that a six-sta-
tion dialysis unit will be in
place at Mills Memorial,
Hospital by next spring, :

It marks the end of sev-
eral years of planning and
‘recognizes the prowing
need for the service in the
northwest, says Joanne
Cozac who -runs the main
regional dialysis program
through the Northern Inter-
ior Health Board in Prince
George.

“It’s good for patient
care and it’s good for the
community,” she said...

The one at Mills will be
a satellite to the one in

Prince George, just as is -
the case with an existing .

dialysis unit in
John. : :
Without a dialysis unit
in the northwest, : people

Fort St.

have had to move to”.
Prince George. or other

‘

places where the service is
available,

It’s meant dislocating
lives and separated fami-
lies.

Some people are, how-
ever, able to stay in the
area thanks to home dialy-
sis,

The unit will be going
into a section of the sec-
ond floor at Mills that has
never been used, save for

storage.

Cozac said the dialysis
equipment itself won't be
bought until a firm opening
date has been set.

“What we want is the’

latest and the best,” she
said.

As for the renovations
lo the unit space itself,
other Northern Interior
Health Board officials are
having estimates checked,

And they're in contact
with B.C. Buildings Cor-
poration officials as that
Crown company has the
responsibility of provincial
construction works,

“We each have our own
piece to do,” said Cozac
of the number of people
invalved,

Each station can handle
two patients over the
course of one day, so there

is a potential for 12 pa-
tients a day.

“Right now we don’t
have 12 patients,” said
Cozac in adding that the
unit's placement: in the
northwest is also based on
the anticipated need as the
population graduaily ages.

Cozac isn’t anticipating
a problem in finding quali-
fied nurses to work at the
unit.

Modest health care increase given

LOCAL HEALTH officials are busy figuring out if their
new budget from the health ministry fully covers wage
increases given to their employces this year. .

On the surface, the $17.268 million given this year for
operating costs for Mills Memorial Hospital and Terra-

‘ceview Lodge represents an increase of about 3.6 per

cent —or nearly $600,000 ~ over last year's total.

’ “That*s the question we need to answer,” said Ter-
race and Area Health Council finance director. when

asked {f the increase will fully cover new wage con-

tracts.

_:. Registered nurses in particular received a substantial
_faise in a three-year contract imposed as of April 1 after
“a bitter dispute with the provincial government. Also im-
-posed.was.a contract for medical professionals.

‘>A final answer on the.wage increase issue will affect

the heaith council’s abilily to spend new monies on
health care improvements, said Manhas. “That would
lead to another series of decisions,” he said,

The health council also received a capital allocation
of $201,500. This is broken down into two parts -
$166,500 for general improvements and $35,000 for
electric beds and patient lifting devices, The latter
money is part of a province-wide effort to improve the
working conditions of nurses and reduce workplace injur-

ies, .

The 3.6 per cent operating budget increase is about
half of the. average boost for health care “authorities.”
In any event, this appears to be the last-year health

care facilities can expect any kind of budget ‘increase.
That's because the province has ordered‘a freeze on:

health care budges for the next three years. -

Third bidder
is from B.C.

By JEFF NAGEL
A THIRD BIDDER - this time a B.C, company — is
looking seriously at buying Skeena Cellulose.

Enterprise minister Rick Thorpe refused to identify
the new bidder, but said the B.C. firm has signed a con-
fidentiality agreement and been given access to detailed
SCI data,

Thorpe said the clock is ticking down toward Nov. 5 —
the date the company must next appear in court to de-
fend itself from bankruptey.

“We're running against the clock, but we seem to be

. getting pretty accustomed to doing that,” he said.
_ He said he hopes to get a solid offer from both the
. B.C, firm and a Montreal-based consortium that includes

former Repap officials,

Thorpe’s also looking for a revamped offer from
Swiss-based Mercer International.

“We have to get something firm on the table this
lime,” Thorpe said. “Our cash resources are getting very
thin.” ,

Both Mercer and the Montreal group were offering
less than $20 million for SCI, court documents show.

The Oct. 5 report of court-appointed monitors says
both proposed to pay less than the $20 to $25 million es-
timated realizable value of SCI’s working capital assets
at Sept, 30.

That's what the monitor predicts could realistically be
raised from the liquidation sale of SCI’s unsold lumber
and pulp, raw materials, supplies and other inventory.

Both Mercer and the Montreal group also want the
province to relax forest practices requirements in the re-
gion, the report says,

They also insist on indemnities from the province for
certain potential Liabilities.

Thorpe won’t say what that involves, but large future
bills would likely include environmental liability for any
pollution at the pulp mill and SCI’s requirement to re-
plant trees in areas it has logged,

“We will only deal with those issues when they be-
come issues, when we have a firm offer on the table.”

He noted the new government has sworn to reject cor-

porate subsidies.
Cont'd Page A2

Scientists named to
probe offshore oil

A SCIENTIFIC review panel has been named by
Victoria to determine whether offshore oil and gas
reserves can be safely extracted.

The appointment of the panel adds further mo-
mentum to the province’s move toward lifting its
moratorium on offshore drilling.

{t comes as a group of northern MLAs plans
public forums in several towns including Terrace.

Pane) members are:

W@ Chairman David Strong, former president of
the University of Victoria and a professor ‘of earth
and ocean sciences there. :

M Derek Muggeridge, Okanagan University
College's dean of science and associate vice-pre-
sident of research.

MM Patricia Gallaugher, director of Simon Fraser
University’s Centre for Constal Studies and direc-
tor of continuing studies in science there.

The scientific panel is to report by Jan. 15. Ca-
binet would then decide whether to lift the ban.

The panel is to advise Victoria on all scientific
and technical issues and whether further studies
should be done, They'll also advise. what should be

“Gone prior to lifting the moratorium and of any spe-
cific, conditions or parameters lo put in place as
part of uny decision to tift the moratorium.

This week the Standard begins a two-part series

. on the offshore ail and gas issue, See page AS,
. . “4