“stands” to benefit from new
"| sgovernment ‘regulations on the
“export of whole logs.

Wedeene’ River Contracting
td. «which has the only

lof September,

“At the time,’ company of-

-<ficials ‘said government refusal
“to ‘allow it to export cut

-yevenues it

to subsidize its
ill and causéd losses.
But that could change Feb. 1,

y

“f991. when new government ex-
~ “port

regulations come into

. Place. =.

The new regulations under a
; ‘provincial ‘cabinet order-in-
“council: will allow logging com-
“panies On:the north coast to ex-

: “port up to 20,000 cubic metres

‘of whole logs a year for two ~
years. : ,

‘That's four times the amount

: logging companies can now ex-
‘port under an existing order-in-

sounell.

And. there’s a change from
the ‘old order to the new. one in

‘what’ kind of companies can ap-

‘ply for export permits.

* ‘The old order said a company
could export only if it ‘does not

directly or indirectly own (a)

‘timber ‘manufacturing facility
Doe on ;

a The new order: changes that

“ ‘to acompany which ‘‘does not

THRE:

directly or indirectly operate a

timber.. manufacturing _ facility
ne | eee

- This change, said forest ser-
vice official Verne Strain last
week, is meant for Wedeene as a

way of supplying income to help

sill on: the. north © coast, °
erit ‘into receivership the end»

it become more financially
Stable.

“Tes a chance for Wedeene to
bring its debt load down and for
it to do something,’’ said
Strain,

This change follows a

November statement from pro-
vineial forests minister Claude ~
Richmond in which he turned |

down a Wedeene request for

Specific permission to . export

and for financial help in restruc-
turing its debts.

But Richmond did say he

would give Wedeene a two-year

deene officials said the com-

-pany was exporting until earlier

this year when government
regulations changed.

That export consisted of logs
of more than 30 inches in
diameter, @ size too big for We-

_deerie to cut at its mill. :

“At the time of receivership i in
September and last month when
Wedeene said it will ‘close its

- mill,; company officials:'Kelly

and Clayton Williams said ex-
port revenue helped pay for the
costs of logging and helped buy
smaller logs from other -com-

Company officials have said they want permission
to export logs they can’t cut for one year. That'll pro-
vide revenue to buy other logs they can run through
the mill and to stabilize its financial situation.

_ of government
-available to other logging com-

exemption — the time period
matches that of export provi-
sions in the new order-in-
council — from the obligation it
has to operate a sawmill.

That obligation was a condi-
tion of Wedeene receiving a
forest licence to cut 172,000
cubic metres of wood a year on
the north coast,

~ As well, Richmond said that
while Wedeene wouldn’t receive
special export concessions, it
would be able to take advantage
regulations

panies.

‘ The 20,000 cubic metres com-
panies can export under the new
order-in-council is approx-

imately the same amount We-

panies to run through its mill.

Although Wedeene does have
a forest licence, the amount of
smaller logs it cut wasn’t suffi-
cient to provide a profit and so
it needed to purchase additional
wood,

Kelly and Clayton Williams

also said they had perhaps built.

the wrong kind of mill for the
north coast and that they
couldn’t trust government
policy decisions.

And, they said they only
wanted permission to export for
one year to clear up some debts,
seek an equity partner and help
provide money to put in equip-
ment so they could mill the large
logs.

Company receiver Colin

New export logging limits
could help troubled mill

“TERRACE ~ A financially-
“troubled - logging and sawmill

; Rogers said last- week there hai
; » company . in Prince Rupert

been no determination from the* |

creditors yet to sell the mill.

He said that while export .

revenues could help, the com-
pany suffers from a very large
debt load and a lack of a secure

t,

“Our objective is to make
money at logging and to look
for potential purchasers,” said
Rogers.

He estimated that equipment
to mill large logs would cost bet-
ween $3 and $4 million and that
export revenues alone couldn't
provide enough for that invest-
ment and to batity the other
debts,

The company owes more. than
$15 million to creditors, chiefly
the Canadian Imperial Bank of
Commerce and the federal
government's Federal. Business
Development Bank, back stum-
page to the provincial govern-
ment and money to a provincial
crown corporation from which
it bought land at Prince Rupert
for its mill site.

Wedeene opened its sawmill
in 1988, five years after receiv-
ing its forest licence.

The company started as a log-
ging venture in the Terrace area
under the ownership of John
Williams, father to Kelly and

- Clayton. It employs about 150

people in its logging and mill
operation.

The company estimates its
ecoromic impact to Terrace last
year was $4.3 million based on
employees living here and on
purchases of goods. and ser-
vices.

" FRIDAY, DECEMBER 21 ONLY! STORES OPEN ‘TIL 11:00 pm

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6 PC. CORNING
| COOKWARE

4797

+ Sat. Sa.m- 11 p.m.

Terrace Standard, Wednesday, December 19, 1990 ~ Paga A7

4990 Chev 4X4

mood supply. to Provide’ a pro; -

. Service

Year End 1990
Model Finat

Clearout!

Pickup

No. 90540

1990 Pontiac
Grand Am

No. 90171

*14,995

=m+90,995

No. 90146

This is just a sample of some of the
saving to be had on 1990 inventory
Still in stock Prices in effect until Dec. 31/90

The year is coming to an end and so are the great savings of

10.9% financing and up to
$1,000 cash back. Ask one of
our sales consultants for details

TIME

D)

TIME MAGAZINE
QUALITY DEALER
AWARD WINNER

GET ML

FREE thermal
mug with any
Parts or

purchase or
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So come on in to McEwan GM
and pick: ‘up.on.this offer: that's

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Offer expires December 31/90 or while quantities ast

guaranteed to

GGED

Vere ee

McEwan’ iS Weekly

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e 2 door

* Front wheel eG

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* Fully loaded

299995

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McEwan

Terrace

“The Bright Spot on Highway 16W"

Out af Town Customers
Please Call Collect «

635-4941

topminth si ge ee gt gut yt

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