: a. Aa Castlégar News Janvary 13, 1988

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Lumber industry declines

VANCOUVER (CP) — Canada’s forest industry faces a reduction in demand this year, mainly because of potentially fewer orders from its prime customer, the United States, says a report by Widman Management Ltd.

However pulp and paper producers can look forward to continued strong demand over the next two years, the report said.

Widman, which specializes in analysing’ the forest industry, noted more than 60 per cent of the Canadian lumber sector's sales are into the U.S. market. However the October stock market crisis signalled the U.S. economy is suffering from serious problems-which could lead to a rise in interest rates and inflation later this year.

The U.S. economy could face a slowdown or recession next year before a new upward cycle begins in 1990 brings renewed demand for forest products, the report

said. But, it stressed that this assumes the U.S.

government will address the federal budget deficit and the country's trade deficit before then.

Housing starts in the U.S. are projected to drop by nine per cent from last year’s total of 1.65 million housing units, the report said. The number is forecast to decline again in 1989,

Because of its close relationship to the U.S., Canada will experience a similar increase in interest rates and a

i in h 3 ig in an 18-per-cent drop in housing starts this year and a comparable drop in 1989, the report said.

Overall, North American lumber consumption will decline by about seven per cent in the next two years.

However, Canada's major overseas markets such as Britain, West Germany and Japan should remain strong and new markets in the Middle East, North Africa and China should increase their purchases, the report said. Overseas lumber shipments jumped 50 per cent last year, with 90 per cent of the exports tee British

Columbia. The industry, which in the last two yea: strongest demand

enjoyed its in two decades, will average

15-per-cent higher prices next year, although by late 1989 new production capacity and renewed competition may force prices down. A U.S. recession could also depress the outlook, the report said.

‘The analysis warned that increases in B.C. stumpage fees could force mill closures and unemployment this year. The provincial government imposed higher fees for the cutting of timber on Crown land. The report said the increases average 250 per cent on the coast and 400 per cent in the interior of the province.

The report also said the Canada-U.S. free trade agreement will have little direct benefit for the forest industry. Without a binding dispute mechanism, Canadian producers are still vulnerable to attacks from U.S. counterparts similar to the ones which produced a tariff omeedarshakes and shingles and a threatened duty on softwood lumber.

The B.C. softwood plywood industry could also be adversely affected by unrestricted competition from a U.S. industry many times its size, the report said.

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Woodworkers

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THE

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VANCOUVER (CP) In dependent logging contrac tors in British Columbia are in for some hard bargaining when they sit down with the International Woodworkers of America this spring to thrash out a new contract, says an industry spokesman.

Dan Hanuse, president of the Truck Loggers Associa tion, said the two sides will have to negotiate on three unresolved issues left over from the 1986 contract talks, as well as contend with a new provincial stumpage system which loggers say will cost them money

The oustanding issues deal with contracting out of work to non-union companies, flex ibility of shift schedules and alternatives to hourly-wage compensation systems Contracting out in the forest industry helped precipitate a 4'2-month woodworkers’ strike in 1986.

The provincial government appointed a one-man com mission to study the con tracting-out issue and report by March 1

ny

Higher profits in the for- rest industry will likely make bargaining tougher, said Hanuse, attending the 700- member association's annual convention.

“The pie is much bigger now than it was- in the early-1980s recession period and I imagine union members will be wanting their share of that bigger pie,” he said.

The new system for stumpage the money the province collects from comp- anies cutting timber on Crown land — will also eat into revenues, said Hanuse.

The old system compen- sated for rising labor and operating costs, while the new one does not, he said.

“The industry may not be as willing to give in to union demands this year if they come entirely out of the companies’ pockets,” he said.

The logging industry had a reasonably prosperous year in 1987 but contractors are still being paid at rates set several years ago, said Han- use.

OLYMPIC CANDLES ... . Jim Penman of the Castlegar Selkirk Lions Club displays Olymple style souvenir candles to be sold along with official olympic pins in front of Safeway and SuperValu on Saturday from 10 a.m. to 3 p.m. Proceeds will go to support amateur

sport in Castlegar. Friday is the last day to register in the Torch Light Run. Olympic souvenirs can also be pur -chased at Strand and Mosby, Anderson Insurance, Mitchel's Supply, the Arena Complex, and Petro Canada service station. CosNews Photo

HUSBAND ALIVE

Widow bilks insurance

VANCOUVER (CP) — Her aunt died three times — twice for insurance purposes — and her husband, estranged but still alive and well in Atlanta, Ga., died once.

It was all part of the fiction created by Bonnie Mae Zavitz in a meticulously planned insurance fraud that netted her more than $302,000, Vancouver county court Judge Harry Boyle heard Tuesday.

Zavitz, 45, waived a preliminary hearing in provincial court and pleaded guilty Tuesday to three charges. Boyle

policy as late as Jan. 18, 1985, for a total of $233,000.

Pettenuzzo said Zavitz was afraid she would attract suspicion is she did not claim against Smith's policy but also realized “she would have to file a false death certificate or she would be found out” for the false medical.

“Once the taboo of dishonesty was broken, it became easier,” he said.

DIED AGAIN So the aunt died again — on a forged doctor's certificate

B.C. LACKS HAZARDOUS . WASTE SITE

VANCOUVER (CP) — Five years after former environment minister Tony Brummet promised “decisive ‘and immediate action,” British Columbia still has no provincial system to safely dispose of its own hazardous wastes.

The wastes — pesticides, chemicals, solvents, oils — ‘may be poisonous, chemically reactive, corrosive or lammable; or they may cause cancer, birth defects and changes in the cellular makeup of our bodies,” says the provincial Environment Ministry.

“And once loose in the environment, they may accumulate in the food chain.”

While neighboring Alberta recently opened a $50-million facility designed to safely neutralize or burn hazardous wastes, an unknown quantity of toxic sub- stances are being routinely dumped into B.C. landfills only to be returned to rivers and lakes.

Some B.C. industries safely recycle, re-process or dispose of their hazardous waste. And some people take their household waste to i Ministry ware- houses to be shipped as far away as Ontario for proper disposal.

Last year, Environment Minister Bruce Strachan proposed regulations for safe storage, treatment and disposal of hazardous waste.

ACCEPT FACILITY

The regulations have fines as high as $50,000 and will become law sometime this year after a government-ap- pointed special waste advisory committee finds a community willing to accept a disposal facility.

“Once these regulations are in place, we can be sure that frog generating source to final disposal or treat- ment, spect wastes (the government term for hazardous materials) will be dealt with in the safest possible manner,” Strachan said.

The advisory committee hopes to disarm the toxic timebombs by finding the best technology and company to build a waste disposal facility — most likely a high-temperature incinerator and a specially-designed landfill.

The committee is headed by Dr. David Boyes, retired director df the Cancer Control Agency of B.C.

“T'm interested in reducing the incidence of cancer,” he said in an interview. “Most cancers appear in people over the age of 60, so the longer you're exposed to carcinogens (cancer-causing agents), the more cancers we're going to see.

“With our aging population, we have more and more people that are going to be exposed to carcinogens for longer and longer times.”

FIND HOT SPOTS

Boyes pointed to a project by the B.C. Cancer Re- search Foundation which is using mortality rates to map B.C.'s cancer hot spots. The exercise has shown that higher than average numbers of people are dying in such places as Greater Vancouver, Howe Sound, Campbell River and Prince Rupert.

The cancer specialist said scientists cannot prove certain carcinogens are creating these hot spots, or that improperly disposed hazardous waste is to blame.

“But I think it’s worthwhile to clean these things up, even though we don't yet know what the damage is.”

The committee will begin community hearings after Strachan discloses the chosen company. It must submit its final report at the end of February.

This will be the second time Victoria has had an advisory committee and the second time government has unveiled a solution for the problem.

Five years ago Brummet endorsed a private sector proposal for a high-temperature incinerator near the Vancouver area and two secure Interior landfill sites near Spences Bridge and Cache Creek.

But the plan triggered protests from Interior residents, native Indians and environmental groups and in 1984, the consortium pulled out.

Stephen Rogers, appointed environment minister a second time last year, appointed the Boyes committee. Rogers has since been shuffled to another ministry,

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leaving the fate of the committee's recommendations

sentenced her to three years on each count, to be served with Strachan.

concurrently.

Boyle said he felt “a sense of astonishment” at the circumstances that would bring a woman of Zavitz's age, a mother of two grown daughters, a person with no prior convictions “into a criminal life.”

According to accounts by Crown counsel Bruce Johnstone and defence lawyer Jerry Pettenuzzo, Zavitz started the scheme to help prop up her husband's shaky construction consulting business.

After Bryant Zavitz's first business venture failed,

of death — on March 29, 1985, and Zavitz collected $124,027.

The aunt was resurrected in June, 1985, to pass a medical for $100,000 insurance with Sun Life. The bene- ficiary was to be Bryant Zavitz, represented as a nephew.

In April, 1987, Zavitz claimed her husband's policy. She received $120,000 and left the rest on deposit, but had succeéded in withdrawing all but $55,000 by the time of her arrest last August.

On Aug. 5, two years and two months after the Sun Life medical, Hazel Smith had another death certificate — “the third time she died,” said Johnstone.

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Bonnie Zavitz began work selling insurance for London LIfe, a job that lasted from Oct. 17, 1983, to June 8, 1984. In late 1983, she arranged to borrow money from an aunt, Helen Hazel Smith, to finante her husband's participation in the

The “widow's” husband appeared to revive, as a man representing himself as Bryant Zavitz, the beneficiary, accompanied her to Sun Life to sign a power of attorney. A

VANCOUVER (CP) — The University of B.C. plans a major public fund-raising campaign to supplement the

to donate money, Strangway said, and “fundamentally, the news is pretty good. There's

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$100,000 cheque was issued Aug. 20, but $97,000 remains tied up in a bank account. TOOK POLICIES Despite meticulous planning she was tripped up when a

To protect the investment, she took out “partnership” clerk at the provincial Department of Vital Statistics, policies on her aunt and her husband with London Life, Patricia Chan, noticed an inconsistency in the stated cause of acting as the sales agent. death — the third one — of the aunt.

Because her aunt had suffered strokes in the past, and Chan realized it would have been a “sudden death” and therefore would be considered a high risk, Zavitz posed as therefore a coroner's case. But the coroner didn't know her aunt for the medical examination. about it, the hospital had no record of admission, the doctor

“She had no intention for fraud at the time, but sought said it wasn't his signature. to reduce the premiums,” said Pettenuzzo. “For some time they were running around town trying

Smith died a few months later on may 25, 1984. to find a body that they thought someone was trying to

Zavitz's family separated when the bridge contract dispose of,” said Johnstone, “but there was none.” failed and her husband moved to the United States to look When North Vancouver RCMP took Zavitz to the for work. station to ask her what it was all about and ‘who was

But Zavitz added riders to her husband's life insurance involved, she said: “Just me — no one else.”

Vander Zalm brings back cut prison work programs

VANCOUVER (CP) — ployees Union. cuts which I had to institute ciety for their acts. Prison work programs pro- “There have been work in September,” Gillingham “I don't think we need to posed recently by Premier programs in progress that ‘said. “I would hope that in have any unsight!iness Bill Vander Zalm were have been cancelled because the new fiscal year, in April, whether it’s litter or growth

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money it gets from the pro- vineial government, student Strangway said the uni- tuition fees and other versity is still trying to re- sources, says president Dav- cover from provincial cuts in id Strangway. the early 1980s that Strangway would not give amounted to 20 per cent of details of the campaign, operating funds. UBC raised which he said might be tuition fees “substantially” announced in a few weeks. for several years following The university has been the cuts, and since then has conducting market surveys raised them annually at to measure public willingness roughly the rate of inflation.

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among services cut by his government's restraint pro- gram, says a k for

of restraint,” said union spokesman Sheila. Fruman. John Gillingham, director

the B.C. Government Em-

RUBBER STAMPS Made to Order CASTLEGAR NEWS 197 Cotumbie Ave. Phone 365-7266

of the Vancouver Island Reg- iynal Correctional Centre, said Tuesday he did not want to comment specifically on Vander Zalm's remarks. But he confirmed that he had a seven-man work gang that was cut last September. “That gang was among

that we would be able to bring it back.

“It left every day and was able to assist in the main. tenance of parks or do com. munity services such as clearing boy scouts’ camps,” Gillingham said.

Vander Zalm said on the weekend that prisoners should be working in the community to pay back so-

of brambles as long as we have people that are perhaps in some way required to repay in part for the damage they caused,” Vander Zalm said.

Fruman, whose union rep- resents the guards, said the work gangs used to do ser- viees such as clear scrub from parks and chop wood for pro- vincial campsites.

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