BUSINESS ; sk CARs Castlegar News October 16, 1985 — ‘Canada’s forest industry in rough shape VANCOUVER (CP) — To a working man, the prospect of not having to’pay taxes until 1995 would be better than a hefty pay raise. To Canada’s forest industry, it is stark evidence of the dismal state of its corporate finances.» * One analyst that i forest p. “earnings will have to approach $10 billion before all tax losses arg wiped out and earnings’ are again subject to tax. All this at a time when the industry’ needs billions to” revamp and modernize. Jaak Puusep... vice-president and forestry ‘analyst with Pemberton Houston Willoughby, has specialized lately’ in dissecting the balance sheets of Canada's, and British Columbia’s forest products companies. Puusepp estimates that the industry as a whole is unlikely to have a taxable income until well into the 1990s. {.Gomipanies borrowed so much money, and now earn so little, he says, they cah barely afford to repair existing machines, and without help, “the industry could well face a calamity of major proportions.” In a number of papers over the last couple of years, Puusepp says the industry needs$3.4 billion annually to pay off existing debt, repair and maintain existing machinery, and buy new machinery. But based on estimates of commodity. prices, it can't really expect to earn more than $650 million a year. That means the industry)needs to find $2.8 billion, or 37 _ per cent of the industrial capital available in Canada annually. f Is SYMPATHETIC Provincial Forests Minister Tom Waterland is sympa- thetic, but says that “if the industry can't do the job then perhaps they should look/at the ownership patterns and structure of the industry/ itself. “They should admit that if they've screwed it up to that extent then it’s time for} some other players to enter the arena.” Where will the money come from? “I don't know,” says Bruce Howe, chairman of B.C. Resources Investment Corp. “There's a lot of enterprises with difficulty raising equity. 2 Any help at all will be necessary for survival. .I don’t see how the B.C. industry will avoid casualties if new equity money can't be found.” Ray Smith, president of MacMillan Bloedel Ltd., says that in past downturns, the industry has always beet, able to MUSEUM DISPLAY . . . Patron examines set up last week at Nelson’s Chahko Mika Mall. play at Canada museum m piece NT Daniel B. Vo kin REGISTERED. MASSAGE PRACTITION Is now accepting patients at. No. 8-306:11th Ave ‘Castlegar | BY APPOINTMENT | CALL 365-2700 | : EMERGENCY | "CALL 365-2747 (after hours) ber of the of P py and Massage Practitioners ofB.C. Covered under Medical Plan when referred by Dr. CosNews Photo CEOs earn big bucks TORONTO (CP) — Chief executive officers in large Canadian companies earned an average of $199,600. in 1985, says a survey of cor- porate salaries by Thorne, Stevenson and Kellogg.man- ith sharp price i OH thE: sitotioe ‘Biving~~-~-Ht-also showed that CEO's in medium-sized firms earned and his colleagues are spurning the prospect of 4n average of $144,600. borrowing now because that’s what got them in trouble. Between 1980 and 1983 the industry borrowed $6.3 billion, |The survey covered 1,800 executive positions in 250 ions- and: public or- for. 81 percent. of its. siete re many where have been across Canada. forced to borrow in order to pay interest expenses,” e quickest, way to bankruptcy is to borrow Thorne, Stevenson and Kel- logg defined large companies —to-pay-interes' Selling shares, another commonly-used method to raise money, also has some serious problems. Puusepp says that over the past 23 years the forest industry's return on invested capital has been barely adequate, and by, no means sufficient to justify the risk involved. Ron L ff vice pi at Canfor Corp., says that “when you come into a weak period you don’t have the financial strength to as those with more than $100 million in sales and medium- sized firms as those with sales of $20 million to $100 million: clude salaries and bonuses. “ The survey also concluded. that public-sector executives Interest becomes such a high-burden that you don't have capital to renew or replenish.” The industry does have one major asset — unused capital cost allowances — that could go a long way toward generating the billions needed for capital improvements. But so far no way has been found to use them in a manner acceptable to the government. Capital cost allowances are tax credits generated by spending money on plant and machinery. A company’s taxable income can be reduced by applying these credits. But forest industry earnings have been so low that these allowances are unused. “One of'our biggest assets is accumulated tax losses,” aye Smith. “And it isn’t something given to us, we earned trail privat tor counter- parts. by a wide margin. Public-sector , executives earned, an. dverage of $103,800. The survey showed that about one-third of executives _ in Western Canada received no salary increase in 1985. But raises in other parts of Canada brought the national average salary increase to6.7 per cent. On top of this, bonuses en- ri¢hed Canadian executives by an additional three to four The earnings figures in-_ per cent, said Thorne, Ste- venson and Kellogg. B.C. SLUMPS Scott MacCrimmon, a se- nior consultant- at Thorne, Stevenson and Kellogg, said in an interview the con- tinuing slump in the British Columbia resource sector meant 36 per cent of all ex- ecutives in Western Canada received no pay increases. This compares with 12 per cent of Eastern Canadian ex- ecutives who received no pay increase. : There is a new attitude emerging among companies about pay bonuses, MacRim- mon added. “A lot of companies seem to have realized that re- cen HELPER ” Castlesit News Clip and Save! CHECK EVERY PAGE! CHECK EVERY COUPON! Save! ___.__AND_YOU Make out your-list a: Save! ive! | COULD BEA Andee A popular year-round’ Conoda. The Mar mot Bonin Sk area only 19 km trom from December through April. Spring. summer ond rofing. alls ond Mabe eligible for this Grend prize! “Special Prize | You sould wina fantastic $500 : at either the Andrew Motor pone or the Astoria Motor Inn in Jasper, one of the Rockies’ most populor vacation resorts. of the mott spectacular sceneiy in searern fall octvities include golling, lishing: hiking. Nearby o1 ude the HOW TO IEDETER: mo ro vee od ics every coe ron won end ene ite, offers high-country skiing SSS SIE SSS => PREVENTS FREEZE UD AND BOIL ae FIGHTS QUST AND ae 783. UP NOW" 89 Spe (Retund coupon ‘Witn manufocturerS rebate “you pay as low as (SJeumren TOBUMPER . ‘warding executives for spec- tacular quarterly or even an- nual results worked against them in the longer term,” Ke said. He added that many com- panies are giving bonuses for better long-term planning,” productivity improvement and steady pr We Will Save You Money! * 1.C.B.C. Claims _% Glass Claims * Custom Painting % Free Courtesy. Car (FREE ESTIMATES) MALONEY PONTIAC BUICK AUTO BODY SHOP 365-2155 or Trail Customers 364-0213 1 S 16'in Tier other sizes available. Now at introductory prices! Henne's Marina On the Arrow Lakes, 2% miles from Castlegar. 365-3219 fi di. deliver 365-6693. * PROVINCE-WIDE CLASSIFIED for detoilst Classified Ads 365-2212 Castlégar News MAC APPLES: cheap. 1972 302 FORD MOTOR. C-4 tran- _ 5mission and headers. 399-4396 SHELVES AND COUNTER suitable for small retail business. Al console stereo, Zenith VCR, color TV. 365-5640. 183 PIONEER chainsaw 24” bar $80, 14° fiberglass boat with 40 H.| Johnson motor, $1,400. 399- /83 CABINET color TV, 26 solid state. W. ‘evening gown: wom ‘once, si 11. 365-5071 8/83 LADIES: black fui coat, size 14, 5, good condition. 365-7382. 3/81 Clemeni ° Soscerd Creston erickson). 4 18-9669. “For w71y CHAIN SAWS Parts — Sales — Service SNOW TRAILS SALES & SERVICE 502-12th Ave., Genolle | | 693-2382, - | For Better or For Worse® by Lynn Johnston October 16, 1985 lable Nov. x 3/8) FOR ALTER TUE ONY We: a for senior Citizens, 65 and over, for o one er two bdrm. | apartment. jacilties lable. STATIONERY SUPPLIES— PHOTOCOPYING WEDDING STATIONERY a PRINTING MIDWAY GLASS & MIRROR Glass Replacements Sealed Units * ICBC Claims FREE PICKUP & DELIVERY _ CASTLEGAR & TRAIL AREA 604 - 200th Ave., Fairview Sub. Castlegar — 365-2394 st SO5K, el PrinbhS 623 Columbia Avenie 365-6385 FREE ESTIMATES Call George Ross Shop Manager bedroom apts. starting at Quiet, ‘well. cored tor clin Fridge. 365.3204, 3 ISHED vtilies. Tclodad, ‘SEAMLESS 5” ge aluminum, tee. Free estimates. Gutter. 365-3240. APPLES FOR SALE © ‘Spartan Golden Delicious Jonathon 20g. 7 Per Box &Up Also Winter Pears 3225 Broadwater Road FLUSH AND FILL KIT The way fo bock flush your coon system. Replacement sealed beam neagtamps to in Sy; 4652", Rectanguior ios ton & 4000", 4001", 6014 Round Jamps from and details in-store) tw emp. REPLACEMENT THERMOSTATS 12 volt maintenance free battery, 48 mont warranty) Group. size 24. Moke sure yourre ready for winter driving conditions check yout you replace antifreeze S650HT.S652HT. S6S9HT thermostat ‘when (OVER 200 BUMPER TO BUMPER LOCATIONS ACROSS CANADA.TO SERVE YOU! R&B AUTO SUPPLY 1507 Columbft Avenue, Castlegar—-—-—.. 365-7787 yusatiner last, Free rata checks it Shore tale quasitves ore limited. LIQUIDATION — equi ip: suits, “tanks ‘regulator, - 365-8358. coniage cheese, 5h Ov. "726-7492. 3/81 BOOKS OF CAROLS designed for Mi urse or pock jokes delight ul inexpensi $2, with nar Christmas and address: No. 2. Copperside, TortSce, Be, VEG 329. 3/81 AUCTION HOUSE RUSSELL New & Used Furniture for Sale Phone 399-4793 FILTER QUEEN VACUUM = Parts and se: 10/79 ron Guns 28.08 More — S0¢ Each CASTLEGAR NEWS 197 Columbia Avenue » issues of the Castl first two ads . . CHARGE. - newspaper's membership in the B.C” Yukon is place vont ies ord "Solon " Classilied ad 700, 3 Insertions for Price of 2 7 Insertions for Price of 4 Special Reduced Rates for 26x, 52x, 104x 0 Available Attention Getters 25¢ for each time ad appears (Minimum charge 75¢.) Legal Ads Word ads: 20€ per word tor tions. Payment Policy Payment may be made by cash, cheque or Visa and MasterCard credit cards. It is not advisable to send cash through the mail. Classified Ads may be charged, but a $1 billing charge-will be made if ead is not paid.for seven days alter it tirst oppears. (This $1 charge does NOT ap- ply to Visa and MasterCard charges,) a= wey p vessmorsy Action J Ads Deadline jord Ads” WEDNESDAY CASNEWS 12 Noon Tuesday SUNDAY CASNEWS 11 a.m. Friday _ Classified Display Ads Deadlin “Boxed Ads” WEDNESDAY CASNEWS 11. a.m. Tuesday SUNDAY CASNEWS 100.m. Friday Order by Mail Print your Action Ad on a separate piece of paper and mail to: Action Ads The Castlegar Ni fight to clossily ods unde tppropriate headings ond to determine page location. Humen Rights Act All advertisements such as Help Wanted must comply with the British Columbia Human Rights Act. This Act statds no advertisement may state or imply a preference, limitation, or specification, on the basis of on applicant's race, religion. colour, marital ancestry, place of ( D prior approval has ained through the Human COW MANURE, 6-yard toods $160. 12-yard loads: $225. 359 926. Paul tegebokoil. TOPEOIS Se I ars, ttn/75, Paul Legebokoff. 359-7926. tfn/63 RENT THIS FIREWOOD FOR SALE . PHONE 365-3287 SPACE 365-5210 APPLES— Twice as good at half price ot siete. produced. Palmers ae, INCLUDE THE PRICE: When ad- vertising items for sa always advisable to ore t y Fea SURPLUS SALES We Buy & Sell New & Used OPEN 7 DAYS A WEEK 357-2118 Broadwater 5/82 Sat. & Sun. all cars $8.95 (min. 2 days) free km. wit THIS COUPON CASTLEGAR TURBO 335, 345-2711 SYNTHESIZER — = — Gomputer based 1/78, rumpet, ‘speal Cellos table, 120 shess, Hohner : 3/82 occordian. ONE Pair boys Ba cellent condition. ' 365-3526. BAUER SKATES. 3 ew, $20. 365: Two-Gallon PAILS ONLY *1.50 EACH Heavy duty all-purpose plastic pails with tight-fitting covers and handles. Need cleaning. $1.50 each * CASTLEGAR NEWS" focllities: availa! de i aan HOUSED venue, South Castlegar. 7329. wee 2 BDRM. APARTMENTS. - nished or unfurnished. Utilities cable included. Lou: 365-; 364 evenings. tin/81 Columbia bdrm. mobile home on 36. - HOUSE: Urlyrahed. nth, -6213 le HOUSES ‘Robson, heat, no pets. 365-7388 atte 5 WOODLAND PARK HOUSING CO-OP Olters ottoldable tomily wns. Lorge 2 ‘and 3 bedr ‘suites; newly For more information ne 365-2677 aes IDRM. furnished suite in 3 BDRM. HOUSE on acreage in Thrums. Fridge and stove. $325/ yaveoth Call Brad 365-3347 days, 365-8054 evenings. _7/81 Set suite: ‘Available Nov. 1, 550- 7th Ave: “Castlegar. 352-3290. Clean Furnished jor Cable T.V. Allutilities included. 365-5613 CASTLEGAR 3-bdrm., split-level. Iry Close to schools and shopping: 6 1 days. Call Ray 365-211 RENTAL PURCHASE or Tor a = ‘e-acre riverfront lot. Near D-Bar-D. 365- 7007. 2 BDRM. DUPLEX, Shoreacres, $250/month. 359-7044 evenings. 5 ‘a7 FOR APPOINTMENT CALL 365-2633 KG. Pet Mart Ltd. f Ving! Beater Repairs SPECTRUM V VINYL RE REPAIR 7 & UPHOLSTERY 2181 Columbia Ave. {Dining ond kitchen chawe are ior Vers ond Compare Material for * ‘Do- it-Yourselfers” NOW LOCATED IN RASPBERRY VILLAGE Sass Ne re NS ONE BEDROOM house for rent in 359-7740. ~~~ _ 7/77 Cc Ave Castlegar - tch cord 1: jour voices. 365-5064 after 5 ¢ g. mn 3/82 O HP riding mower, years old. Tokes attachments. $1200. 693 5566. 3/82 Ph. 365-8336} 365-8336 Call today! 36"x24" BRASS fireplace doors th automatic damper. 365- E 3/82 CONCENTRATE & ORE HAULAGE - New Denver, B.C. Tenders Due 5 p.m., Friday, October 18, 1985 * Description: Concentrate 250 to 450 S.W.T. per month from Sandon, B.C. to Trail, B.C. Ore Haul 2000 to 2500 S.W.T. per month 5 days per week. Lowest bid not necessarily accepted. OPERATOR: DICKENSON MINES LTD. =—=====Box 189, New Denver, B.C., VOG 1S0 Phone: 358-7922 SHAKLEE OPEN HOUSE Nutrition, Skin Care & Household Products Sat. 11-5; Sun. 1-5 p.m. Nutrition Videos ot No. 18, 1101 Columbia (Sandpiper Trailer Court) Info: 365-3295 (Katie) “SLENDERLINE” ‘exercise. bike, $100. Bi-fold closet doors, $100. 365-7840. 3/82 PUBLIC NOTICE is hereby given to the electors of the “Municipality ol Castlegar that A fequice 4 the presence of the said electors at the City Office, —~ bi: day, the 28th day of October, 1985, Between the hoon of ‘on 00 a.m. Fs 12: 00 noon to elect: One+1) May Three (3) Aldermen : P\One (1) Alderman ‘© (2) School Trustees NOMINATIONS CHILD'S red wool winter coat. Like new, $15. Size 3. 365-8145. You may odvi =n this column free of charg: 0 two items may be adveriised, but the or- ticles must not total over $20 and each item must have its price stated. We will run your od for three issues. ‘Nope. Oil fit alt fit c'82 dresel: sold seperereiy $3.00. 365-5209. 3/82 15 EN everbearing rowberry plants. $1 per dozen, 365-37: 82 docs "BOARDED. Salmo. 357-9984 tin/27 WILL HAUL away livestock cor- casses. Phone 357-9964 alter 6 Zales Kennels. 998: shall be Two (2) Year Term Two (2) Year Term One (1) Year Term Two (2) Year Term d in writing by two qualified electors of the ion paper and Public Officials Document Disclosure shall be delivered to the Returning Officer at any time between the date ‘of this notice and 12:00 noon of the day of nomination. The nomination paper may be in the form prescribed in the Municipal Act, ond shall state the name, of the person and 9 such manner as to sufficiently “identity such candidate. The nomination paper shall be signed by the candidate. In the event of a POLL being necessary, the Poll will be opén at the Castlegar Community Complex, 2101 - 6th Avenue, on Saturday; the.16th day of November, 1985 between the hours of 8:00 a.m. and 8:00 p.m. of which every person is required to take notice and govern himself accor- dingly. An ADVANCE POLL will be open at the City Hall on the Bth- day of Novem- ber, 1985 between the hours of 9:00 a.m. and 8:00 p.m. to permit duly qualified electors that expect to be absent from the City on Polling Day to vote. “Dated at Castlegar this 18th day of Oct R.J. SKILLINGS Returning Officer p.m.