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$1.00 PLUS 7¢ GST «. ($1.10 plusae GST outside of the ® Terrace area) Ste

Wedinesday, December 15, 2004

Skeena tax future known tomorrow ©

By J EFF NAGEL

THE CITY should: learn ata court hearing tomorrow how much money it can expect to recover from-New. Skeena,

Forest Products’ oldest unpaid taxes.» ~ a _ That covers. $585,000 of -the roughly oo

$3 million the cily says itisowed. 2. The old taxes, which pre- -date the 2002°

purchase: of. the: company: by. Dan’ Veniez, = ‘and George- Petty, vere rolled into‘a‘nine-

year repayment: agreement = = against Ter: : race's wishes. : a ‘

— At issue ih court: ‘be ‘hethér the

money’ is. still-treated” like more current: . "properly faxes, or “whether the: money fas "| the lesser status of unsecured: debt: that :

_ likely will never-be repaid.

-There’s also ‘a tussle :going onsc over : how. much, of the Terrace sawmill andi its

i contents will, be counted as equipment or

: ~ improvements.

The outcome.will help determine how

mutch lax’ money the city eventually. re

covers, depending « on: how much’ money

purchasers pay for the assets liere, . Roughly.$2. million of the totat $8 mile ‘lion in’cosis rung up bythe receivers and:

court-appointed ‘monitors: before. them, will haye‘to come-.out of the” proceeds af. .

the Terrace operations, “ahead of all bother = " creditors. a | After. that money is 5 Gilt; “the: city will: “pel whatever: proceeds remain. From the. ‘saivinill’s land and. ‘improvements, “for

which the city: has a priority charge. -: _CellMark, a: Swedish pulp: marketing

‘ © in with. which: ‘New Skeena:had struck ‘a deal; ‘has a priority: chargé against the: - sawmill’s- equipment, ‘getting «. whalever “

owed $6 million.

“The .city and CellMark have drasti- °

cally. differing interpretations .of what

_parts;of the mill should be cotinted-as im- - provements ~ in the city’s, column — of as.”

quipment in CellMark's-category..”

“provemientsis only $1.6 million:

ing, he said:

“Much of the ill is jnstead listed: ‘on

“the? equipment side, which totals. an esi mated $3.4 million; on

= Poole said city” lawyeis argiie. tha’ ae “unreasonable, drawing the parallel ‘that : “wien someone buys a house,’ basic. fix- ~

(ures aré supposed to be, left behitid.

“ “When. you go into your new: house,

“It doesn’t Anelude: much of. a build” “

and the toilets lifted out,” he said. Terrace mayor Jack Talstra said the

‘city’ stands to lose several hundred thou- ‘sand dol lars if CellMark: succeeds in’ hav- .:- ing ‘as much as Possible. declared ehat- oe telse :

“City administrator Ron Poole-said. the. .- “initial estimated value of the land andi im-~

thal may’ be unbolted and hauled away,”

initial: estimates, Some’ $600, 000 in cosis

Something footed to the foundation 1s clearly an improvement, itstays-there,” = = »Talstra said,-explaining the dispute. <-° 2" “A vehicle with tires and: a motor.that :- gan be driven ‘away is” “clearly equipment’ a and belongs to CellMark;? Ke said. “Then ae get into a whole grey-area ‘of things.

Ww ould then be deducted, leaving Terrace . with around $1 million ~about a third of what the-city is owed. | pets ~ Under the same scenario, : more. ‘than

leaving CellMark: with around $21 mil: — -Jien, ” - -The net! proceeds conliniie to “drop 3 as more. costs are incurred. --

and Young. is optimistic:a deal could. ‘be

"’.* reached as early as’ ‘this week. to'seitle the | “(Ifa buyer paid full value-of around'$5 . million for-the:sawmill here, $1.6 million. Of the proceeds. would bé counted on.the” land andi improvements side, based on the.

dispute: svithout requiring-a new. round of arguments, in frontof the judge. , 7 ‘He said clarily’ on both ‘that i issue and -

-the fate-of the ‘older property taxes are,

‘inpornt to-jron out first before the re Cy ;

$1.2 million of costs would come-outof -the™$3,4 million in equipment proceéds,

long as ‘the. receivership continues « ‘and.

“ Receiver’ Larry: Prenti of. Emst”

money: that. _Benerates “after costs, Ii's

you don’ t find the cupboards sipped out

~ rung. up by: receivers. and court Monitors“

Cont'd ‘Page AB

Gov’ t very quietly | extends thumbs up

on raw. log

; : By JEFF NAGEL | ; THE PROVINCE: has ‘quietly: extended its

- order that atlows forest companies, lo export

_raw logs from-northiwestérn'B, Cc

“years...

oo :For I keeps —

PERMANENT RECORD: Fhe capable hands of Auxiliary’ RCMP Const: Kim: MacDougall guide Alrha Johnie,

until February 28, 2007. :

~. “We have .to.do it now: because: people wil be bidding of ‘timber ‘sales: today: that

they’ Il be logging in the spring and summer

of next year,” says. forestry, operations: ‘min-” _ ister Roger Harris. "You can: ‘L do it al the

~ fast minute.” °° The Skeeha MLA. ‘championed the ‘orig

nal export exemption for the three: ‘northwest en _ forest districts ;and says the region still needs:

. the flexibility. it provides:

te. forced-to'shut down...

~ down of Skeéna Cellulose...

To critics, log exports come at the cost of:

. mill Jobs't here and help. Bi Cc: ‘§ foreign, com: : . ites: for the’ wood. they. cot.

~petitors, «.

The raw log export: exemption for’ the’ : ~ northwest.survived-a- court challenge. this’ -

“year from the Sierra Legal- Defence Fund.

The ‘group: “had argued Victdrla had jnad- m : equate proof: that the. logs exported overseas,”

| weren'L néeded by B.C. mills.

Bul. the: judge hearing: the: ‘case rejected

* Cabinet passed ab ‘order Dee, 2 extending: ‘the ‘special-exemption for another lwo, years, a

exports.

“tisdiction to decide log export: policy

Government statistics show ‘that’ logging - Sede ‘firms i ib, “the region haven’ Col . . clase’ to, exporting | the: fi The controversial: policy, put.i in. place by: . policy allows:. = ‘the ‘Liberal: government in Febryary 2002, «© allowed up to 35 per cent of timber logged in 3]

~ the’ region. to-be exported ‘overseas for. three.

“Total. exports have averaged’ 180, 000. cue .

‘bic-metres: “per yea, or about IS per ‘cent, ot - “dhe timber cul?

= “Log: exporis Joday i are. trending down”

“Harris: said, adding increased fees the prov- faa ‘ince is now adding to. log. exports have been a

partly. responsible.: . ~ “That's mainly affected exports in Gther sit: we

-@as, however, because the, higher fees don't .. apply in the northwest. Here the surcharge is. only $1:per cubic metre. - a Boe “"Theidifferential huis the effect’ of. giving me a “competitive: advantage to exporters i in ‘the a

“Harris ‘said jooser raw. lo sports were: ; 7 : Jone | ‘of, the planks-< ‘of the Wes: Chéston. report ay

“He’ ‘said ‘allowing: a: thodest: amount of au on. northwest Torestry- reform, commissioned

exporting can put. some extra’ money. in. the’: ..

"hands of a logging operation, allowing crews Bo

to keep operating when they might otherwise, pushi- towards implementing other Cheston.

_ tecommendations, such as: “establishing a. “That’s been crucial in’ Keeping the north: “unique northwest forestry zone that ‘would

-. syest's logging industry i intact since the. shut: allow ‘stumpage.t to. ‘be: calculated separately .

when the NDP.was in power, - ; ‘He Said he is planning to. make a’ ‘Major

“Slumpageé is. ‘the t term: » describing What ve forest’ conipanies pay't the” ‘province’ in Foyal- .

It used to. be ‘arbitrarily. sel by: governnient ot

‘to raise money,’ but: Victoria i is bringing:in a. : market-based pricing’ system: *

“Jin: the northwest, Pulp: wood: stumpage

has always: been lower.”

“The Dec.°2. export decision Happened at - a closed cabinet mecling,. ‘rather than one of

_ the open, televised ones,’ « *-

: that argument arid ruled the province has ju. .

son, 6; through the delicate. fingerprinting: procedure at a ‘Child: Find. alinic at the | Skeena Mall Friday. The -|

clinic. was sponsored by Citizens on Patrol and local: ‘Auxiliary RCMP. “LESLIE DICKSON PHOTO.

‘Needs’ budget needs ‘ 2M

By JENNIFER LANG | _ oo In The. spring; trustees “upheld the — to put them back, ‘We. think the district . SCHOOL TRUSTEES say they would” “controversial four-day. school. week, would be better off,” said Georges. EE have needed $2 inillion-on top°of the , and: the district submited a, balanced“. Instead, “the district ‘has adopted -a ~ FW ip $49.1 million in the Coast: Mountains ° “budget of $49,13) 52 for the 2004-05 -. four-day work week fora second year, School District’s.budget this year ‘to ‘Schoo! year 20 and has cut employees in order toman- Fy

_ erasé the four-day. week and return, oa, » The “needs budget”, basic oni five-- ABC. ee

Monday to Friday schedule.’ day: week; says the district required-a-. — Georges. said the. move: 0 ‘release aie

-That additional .: -mioney’, ‘is... boi: budget cof $51, all 5730 - -a differonée of: the: information é comes after calls tothe Le, tained in a so-called.” “needs: budget”, "$2,080,278, - board for more financial details made“

"of $51,211 million-and has been-sent - “The. bottom. line is, it would cost “by ‘Terrace parent John How.

to three northwestern’ Liberal MLAs,” us an‘additional $2 million,” sectelary~ “1. Meanwhile; the district ig: still wait Bill Belsey, Dennis-McKay‘and. Roger: ‘treasurer Marcel Georges sald..‘“That's ing for the’ decision from’a recent law-: Harris, whose ‘ridings’ all fall with. the”. ‘what Would be rieeded for’ us so subinit:* suit filed agains : it by. anotlier. Terrace : district's boundaries, ~ <2" anceds budge lee ‘patent; , a

The district's teachers and some par: “: He deseribed- the information’ as “a= “Petitioner Tans: Purssell, a. Terrac ents had long called upon the. district: to. ‘snapshot ‘of whal We kriew at the time, parent. who sought td have, the four-day. release the kind of money it would. take. i's what we. anticipate,” Georges: said: week quashed. last-year, questioned the lo run the district five days: a Week. Tt s-ancever changing thing.: We ‘pro- “financial information: presented to the: -

School districts .aré Wider ihree: “MLAs with. a copy of: public. last: spring wwhen:it said a-five-- J to balance : their budget ac bar; = that, e members of the public... day... week . would: dméanm more. School . making citts when necessary 19 opetne vanted.- 0. know’ what, : aay os within the black. * shared with then 2 meee

Although ‘the board: ‘eleéted to ‘sub: mit a balanced budget, for the curtenl. :. woilld. beable 10° reinslate. ihe fve-ény ; schoal year, truslees wanted lo demion- week, restore manpovet and maintai strate what a needs. budget: “would. ia 8 a

| aL. All tuned up

OLD TIME music helped spice up the season for local seniors last Friday. Rene Therrien and Lola Kenney were among the: musicians who: -haiped keep toes - tapping at Northern Healthcare, oa 7 1, MEFF. NAGEL PHOTO

[Will wiake any ny apologies, "he _, Said; adding the distiict’s: ‘nancial pic 2 ture changes, constantly.

ite ti Ry ye Er ks i Parmar ates lars fa eS a robb Ere Cty