Gov't got best deal it could

The Terrace Standard, Wednesday, September 18, 1996 - A11

Orenda takeover threatened

REPAP WOULD have
walked from its takeover of
another company’s wood
licence if the province in-
sisted on a specific condi-
tion in return for approving
the deal, says forest minister
Dave Zirnhelt.
That condition of attach-
ing a date for $250 million
worth of improvements to
Repap’s Prince Rupert pulp
mill would have been: too
tough, he said last week.
Instead, Zirnhelt decided
to add those improvements
to a list of expectations for
Repap in order to take con-
trol of Orenda Forest Pro-
ducts and its wood licence,
“They don’t know yet if
they could aise the
finances,’’ said Zirnhelt in
adding there was no sense in
asking Repap to commit it-
self to what might be an
empty promise,
“There are half a dozen

pulp mills facing major in-
vestments to modernize for
the next generation of mills
and I have to look at the
stability of the pulp indus-
try,” he said,

Zimbelt did concede that
Repap highlighted the need
for improvements to ~ its
Prince Rupert pulp mills as
a reason for — geiting
Orenda’s wood,

It plans to use the wood as
security for financing of the
improvements,

He did note that a report
of three MLAs who exam-
ined the takeover and its im-
plications wanted - specific
dates allached as licence
conditions, ;

And while giving a com-
pany a list of expectations
doesn’t have the force of

Jaw of conditions of a

licence, the government has
to look at the bigger picture,
Zimbelt continued,

an agreenient ~ and
‘bargains back,’’ said Zira-
“helt,

That bigger picture is to
first provide mills with as
much wood as possible and
then to build on that founda-
tion by asking for value-
added and forest manage-
ment jobs aflerward, he
said, ve

“The government trics to
bargain on behalf of the
people and we try to make
they

“We try to get the best
deal we can and ‘the
downside is the deal falls
through if the conditions are
too onerous,"*

There are three main con-
ditions Repap has to now
follow in return for getting
Orenda’s licence.

It must use the wood at its
Prince Rupert pulp mill, it
must employ those who cut
wood when Orenda had the
licence and it has to offer

for three years wood to the
native-owned CGED Forest
Products mill at Gitwangak.

While there isn’t a date
demanded for the Prince
Rupert pulp mill improve-
ments, Repap has to submit
a plan for constriction by
June next year,

Zimhelt also points to the
other expectations given
Repap as part of a package
to get the most from the
wood.

He says it fits in with what
other communities wanted
from Repap in order for it to
get Orenda’s wood,

Those expectations are
that Repap develop plans for
a wood processing facility
near Stewart, find a way to
combine the operations of
the CGED mill and the
Hobenshicld milf at
Kitwanga (which Repap
partially controls) and find
forestry jobs at Gitanyow,

Wood licence deal signal
toward industry stability —

ALLOWING REPAP to take over Orenda Forest Products
and its wood licence is a signal to the province’s hard-
pressed forest industry, says forests minister Dave Zirn-

helt.

Speaking last week, Zirnhelt said the provincial govern-
ment must first slabilize the industry before it can tackle

other issues,

And giving Repap Orenda’s 327,000 cubic metres of
'. wood a year will add to the company’s stability by giving
itsecurity of supply, he continued.
“We've become.a marginal producer (of pulp),”’ said
Zirnhelt, ‘‘We're price takers, not price setters.’
"We have a premier and a government that wants more
jobs from the forest industry and for an industry, that’s

problematic."”

“To meet that we have lo stabilize the primary indus-

try,” he said.

Only then, Zimhelt added, can the government begin
demanding more value-added jobs and mare jobs from the
growing forest management sector. ,
~ “We need people to make the investments. The govern-
ment isn’t the one that’s going to do it,”’ he said.

“If we were to say ‘Sorry, Repap, You're out of luck and
we're going to retender the licence’ that would be a slap to

the forest industry.’’

r

“enhanced status quo’’ in that the company was already
buying a lot of Orenda’s wood and processing it at its

Prince Rupert pulp mill.

In its application to gain Orenda’s licence, Repap said it

ELECTION

Zimbelt called the Repap licence transfer approval ‘dn’ ‘|*'*

not only needed the wood for its Prince Rupert mill but
could use the licence as security to borrow money for im-
provements to the mill that could cost as much as $250

million.

The forests minister did concede that the communities of
Stewart, Gitwangak and Gitanyow in the area where the
wood is located wanted a processing facility nearby,

That feeling was ticd to a condition in Orenda’s licence
which stated the company bad to provide a processing fa-
cility deemed suitable by the forests minister.

Orenda’s plan was to build a pulp and paper mill first
near Meziadin but when that fell through, the location

changed to south of Terrace.

“People all over the province want processing closer to

iheir homes,” said Zimhelt.

“*Orenda was trying to build a pulp and paper mill but it

never was able to raise the money. There’s

a softening ‘in

the pulp and paper market,”’ he said,

Dave Zirnhelt

All those plans are to be
filed for examination by
June 1997,

“T think this is preity
realistic given: the market
conditions and what we ex-
pect to be developed,"’ said
Zimhelt, ,

‘He said he'll use “mor
suasion’' on Repap to fol-
low through and wants a
meeting soon to sce how

Repap is doing.

kh kkk
_ One issue that arose from
Repap’s takeover of Orenda
concemmed late payments
made to contractors Repap
already uses.

Zirubelt said that’s a pri-
vaie issue between Repip
and its contractors and one
that couldn’t be addressed
as part of the Orenda
takeover.

He does expect Repap to
begin making payments on
time and will keep an eye on
the situation.

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PUBLIC NOTICE is hereby given to the electors af the City of Terrace
that a general local election will be held on Saturday, November 16,
1996, to elect o Mayor and six Councillors for o three-yeor term, com-
mencing December, 1996 and terminating in December, 1999.

Nominations for qualified candidates will be received cig the foliow-
ing times, al the office of the City Clerk, Terrace City Hall, 3215 Eby
_Strees, Terrace, 8.C:
9:00 0.m.-4:30 p.m. Tuesday, October 1, 1994
8:30 0.m.-4:30 p.m. Wednesday, October 2, 1996 to
Thursday, October 10, 1996
B:30a.m.- 4:00 p.m. Friday, October 11, 1996

Nomination documents ore available at the City of Terrace Municipal
Hall during regulor business hours.

NO NOMINATIONS WILL BE ACCEPTED
AFTER 4:00 P.M., FRIDAY, OCTOBER 11, 1996.

_ © Timber Industry

¢ Fishing Industry

¢ Other Industries

A list of registered resident electors will be available for public inspec-
tion of the City of Terrace Municipal Office during regular business
hours from October 1 to November 14, 1996, The list of regard

electors has heen produced on the hasis of the Provincicl List of Voters,

prepared under the Provincial Election Act.

Persons qualifying as “Resident Electors” who are not currently on the
List of Electors may register af the time of voting, by completing a resi-
dent registration card.

All photos will be displayed at Universal
Workwear Stores after the judging is complete.

Call 624-6743 of toll free 1-800-663-3203.

ER Ss
oN

rN
&

A person who is net a resident of Terrace, but who hos been o regis-

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the City of Terrace Municipal Office of 635-6311, or the Chief Election
Officer of 635-2965 oe

tloine Johnson,
Chiel Elaction Officer .

Please complete and submit an entry. form.

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Winners will be natified by October 15, 1996. .

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tered owner of real propel in Terns for al ve 20 toys, may rey Photographer must be an amateur, S e onsore d by
ister as @ property elector. A non-resident property elector must apply notogr: ist be ateur, .
for a Corfe Yom tho City Clerk ot least 14 days before General 2. Photograph must be entered by the photographer. | oo
Voting Day on November 16, 1996. No Certificates may be applied for 3. Photo must have been taken in the last three years.. .
fer November 1, 1996 4, Photo must show someone at work, — 0 ee ee
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Munldpel Act until 4:00 p.m. on Friday, October 17, 1996. An Third Ave, West, Prince Rupert: Briish Columbia v8} 1Ma, | Phone Number: ft
chjection may only be made by a person entitled to he registered os Se ent NEE Super’, Ersh COlur ; h [cee eene es |
on elector of the City of Terrace, ond can only he made one basis 7. Each photo must have an entry form attached to.it, -_ Address: , —_ !
that the person whose name upp hes died or is not qual ied fo be 8. Each entrant may submit no more than three (3) photos. 7 | Category & Subject of Photo: |
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Further information on the foregoing may be obloined by contacting 10. All photos become the property of Universal Stores Inc. who 1 Date & Place Photo was Taken: !
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