14 Terrace Review. —- Wednesday, September 25, 1991 - Financial expert cautiously optimistic — about direction of Northwest economy ‘We've had some warnings. around here...’ by Tod Strachan Free Trade. GST. The recession... Skeena Cellulose announces a two week closure. Westar says they’re selling out. Is the free world as we know it coming to an end? If you're a local businessman hiding secret concems, a talk with someone like Sandy Highet just might renew your faith in the system. Highet is the vice-presi- dent of the Federal Business Development Bank’s B.C./Yukon region, and his view of the world is not all that bleak. _In general, things seem to be going-quite well in the west, says Highet. But, he admits: "Obviously ihere are some problems when you hear of Fletcher Challenge selling out. When you hear of some of the temporary mill closures... Obvious- ly these are not very good signs. "For every big operator like that, there are dozens and scores of’ small operators who are dependent on these guys operating. So we’ve had some warnings around here... And in the north in particular, we've been so dependent on the forest industry that these are very real warnings." This may not sound like opti- mism to you, but according to Highet, there’s another side to the coin. "The mills are efficient, " says . Highet. "They're well-run, and we're just waiting for a return of the market." And just when might that be? "Nobody seems to know that," he says. But he adds that “bad times" do not appear to be headed our way. Even though our economy scems to lag two years behind that of Ontario, and the recession there still isn’t quite over, there is a big difference between what might come tomorrow and the recession of the early 1970's. "The last recession followed upon a decade of really wild growth and a lot of lending by the banks," explains Highet. everybody learned a few lessons. There hasn’t been such wild growth. There hasn’t been such irresponsible lending. So I think that we are in a position to "But everybody got burned so badly after the Jast one that ] think weather it through this time better than we were the last time." . So we might weather the recession. But what about free trade and the GST? How are the business community and their employees going to weather those concerns? For the answer, says Highet, you have to ask decide if you want to look at the short-term or long-term effects. According to Highet: “If your view is for the next decade, Redeem only at: Comic ENCOUNTERS - 4609 Lazelle Ave. they’re probably very necessary things... Necessary for the future growth of Canada." But, "In the next 12 to 24 months, they could be very painful." Highet admits that 12 to, 24 months of "pain" is of great con- cern to any business trying to keep up with payables, receivables and the payroll. "You’re not worried about the next 50 years," he says. "You're worried about, "what happens to me and my company today?’ Especially if you're a businessman who’s borrowed a lot of money. Your concem is... I going to survive the next io months?’ "Given the fact you want to be in business," says Highet, “it behooves you to learn how to cope with these things and to think hard about what it means for you. "Pve been talking to two or three businesses in town today," Highet explains, "who say, "Well, I’ve got plans for expansion but I’m going to wait for a few months.’ And I think that’s the only sensible atti- Se | — MacKay’ s Funeral Services & Crematorium Ltd, DL No. 7560 EC #1051 4626 Davis Avenue Terrace, B.C. V8G 1X7 Phone: 604-635-2444 Jeanette Schulmeister Serving Northwestern B.C. 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