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CITIZEN
Serving the Central Interior since 1916

PRINCE GEORGE

SATURDAY, JANUARY 10, 2004

80 CENTS (HOME DELIVERED: 56 CENTS A DAY)

LEGISLATURE RAID

Critics demand rail sale review
by GORDON HOEKSTRA Citizen staff The call for a halt to the $1-billion sale of B.C. Rail's freight business was renewed Friday following the revelation the RCMP is investigating whether a ministerial aide breached the public trust in his handling of the sale. The revelation was made in a Vancouver Sun report, which said the RCMP is investigating whether ministerial aide Dave Basi was involved in a crossborder drug trafficking scheme and breached the public trust in his handling of the province's privatization of B.C. Rail. On Dec. 28, RCMP and Victoria police officers raided the offices of Basi, the ministerial assistant to Finance Minister Gary Collins, and Bob Virk, assistant to Transportation Minister Judith Reid. "Our thoughts are there's enough good reason to believe there are wrongdoings with the B.C. Rail request for proposal process that it should be put on hold until the public can be informed just what is happening," Prince George Committee to Save B.C. Rail spokesman Ron East said Friday. The Council of Trade Unions said the B.C. government should simply cancel the sale due to the police investigation and because of the complaints of losing bidders. Both Canadian Pacific Railway and OmniTRAX/Burlington Northern Santa Fe had said they didn't believe the later stages of the bid process were fair. The offices of Pilothouse Public Affairs -- a lobbyist for OmniTRAX -- were also searched as part of the RCMP raid. "How can British Columbians have any confidence in this B.C. Rail privatization when we have a police investigation into drug-trafficking, moneylaundering and organized crime all being connected to search warrants at the legislature served on key officials involved in this deal?" asked Lance Yearly, vice-chair of the Council of Trade Unions. NDP leader Carole James also called for a halt to the sale. With the latest information, too many questions have been raised over the sale, she said. Prince George North Liberal MLA Pat Bell said he sees no reason to put a halt to the B.C. Rail deal, particularly since it's some months before it is finalized. The deal still needs the OK of the federal government's competition bureau, not expected until before March. The RCMP has to finish its investigation and if it finds something, the Liberal government needs to act decisively, said Bell. Until then, what will happen is pure speculation, he said. Bell also said he sees no reason why more information cannot be released on the losing bids and the contract that will be signed with CN once the transaction is complete. "I think we have nothing to hide here," he said. "The deal was the right deal." Bell questioned the motives of those calling for a moratorium, noting they've always opposed the public-private partnership. "They're just using this as a convenient venue to further their personal goals and objectives," he said. The B.C. government's fairness advisor concluded the process used to sell B.C. Rail's freight business and equipment was fair, it brought good value to the province and should increase the competitiveness of B.C. Rail shippers. Charles River Associates Inc., based in Boston, said the province and its advisors designed and managed the B.C. Rail freight business sale in a manner consistent with current best practices usually followed in similar transactions. The company was hired by the province as a fairness advisor to look into the deal. -- See related stories on pages 3,5

Citizen photo by Brent Braaten

Framer Derrik Herz of Fortwood Homes works on a new home on Otway Road on Friday.

Local housing starts NDP leader to seek Victoria seat saw increase in 2003
by BERNICE TRICK Citizen staff B.C. NDP leader Carole James announced Friday she intends to seek a nomination in the Victoria-Beacon Hill constituency for the next provincial election in May 2005. James is a former Prince George resident who left shortly after becoming NDP leader. She said as opposition leader she will work to represent every community, "but I also want to be the most effective local representative that I can." She said to do that she wants to run in her home community of Victoria. "I grew up in this community and I have lived here most of my life," she said in a news release. She had nice things to say about Prince George where she worked for the past two years as the director of child and family services for the Carrier-Sekani Tribal Council. "It has been a privilege to live and work in the community of Prince George for the past two years. I've learned much from the people of the North," she said. She said this region "has been abandoned by the Campbell government as Northern MLAs prefer to toe the premier's line -- ignoring community concerns -- at the cost of family-supporting jobs and healthy communities. "I'll continue to be a part of that community and to make sure the North has the representation it deserves." Liberal MLA Pat Bell (Prince George North), responding to James' comments said, "Let's not forget this is the same Carole James that wants a moratorium on offshore oil and gas. This is the same Carole James that refuses to do any logging in parks regardless of whether it's intended to protect forest health for the rest of the province. "On one hand she says she believes we have left rural B.C. and focused on urban, and yet, at the same time, she wants to eliminate every single job that currently exists in our forest, mining and oil and gas industry." Bell said he's disappointed James is not going to run in this area. "I'd love to have debated her on the issues of resource extraction." James was elected to the Greater Victoria School Board from 1990 to 2001, and served five terms as president of the B.C. School Trustees' Association from 1995 to 2001. by PAUL STRICKLAND Citizen staff Single-family housing starts increased more than four times last month compared to December 2002, according to the latest statistics from the Canada Mortgage and Housing Corporation (CMHC). Work started on nine single detached homes in December 2003, up from two in 2002, the CMHC said Friday. Although these numbers are too small to draw meaningful percentage comparisons, the increase is still a hopeful sign, said Cameron Muir, senior CMHC market analyst. Year-over-year starts on single-family homes in Prince George rose 7.3 per cent in 2003 over 2002. There were 103 starts on single-detached houses last year, up from 96 the year before. However, there were no starts on multiple housing units last year, while there had been four in 2002. As a result, the overall yearly total of starts in all categories was 103 in 2003 compared to 100 in 2002. "This is essentially keeping steady with last year -- just a slight gain," Muir said. "But the seven-per-cent increase for single detached houses represents fairly healthy growth." First-time homebuyers and others are responding to historically low mortgage rates, he said. "Prince George homebuilders are responding to the rise in home purchases by increasing the number of houses they're building," Muir said. Across the province as a whole there has been job growth, he added. "Prince George is still affected by the softwood lumber dispute and a high Canadian dollar in terms of export markets," Muir concluded. "Once the dispute is resolved, you'll see an even stronger performance in the housing market." -- See related story on page 27

INDEX
Annie's Mailbox . . . . . . . . .32 Bridge . . . . . . . . . . . . . . . . .23 Business . . . . . . . . . . . .16-18 City, B.C. . . . . . . . . . . .3,5,13 Classified . . . . . . . . . . .20-23 Comics . . . . . . . . . . .28,35,36 Coming Events . . . . . . . . . . .2 Crossword . . . . . . . . . . . . .28 Entertainment . . . . . . . . . .29 Horoscope . . . . . . . . . . . . .22 Lifestyles . . . . . . . . . . . . . . .32 Movies . . . . . . . . . . . . . . . . .29 Nation . . . . . . . . . . . . . . . .6,7 Sports . . . . . . . . . . . . . . .8-12 World . . . . . . . . . . . . . . .14,15

Area avalanche warning bulletins in works
by KAREN KWAN Citizen staff Avalanche warning bulletins for the Prince George region could be available for the first time this winter. The Canadian Avalanche Association is developing a network of backcountry users to provide information about conditions on area mountains, said Clair Israelson, executive director of the Revelstoke-based organizat i o n . S k i o p e r a t i o n s , r a i l w ay s , forestry companies and snowmobile clubs are being asked to report what they encounter during their outdoor forays, he said. "We need the data in order to generate and verify the bulletins," Israelson said. Public warning bulletins are currently posted for five regions of the province, but none covers the areas east and north of Prince George, which are popular backcountry spots for locals. That 's because t here haven't been enough commercial users in the past to collect information, Israelson said. "We certainly recognize the intensity of recreational use there, so it's our highest priority to build that as our next bulletin area," he said. Bulletins are available on the Internet, through a phone line, or can be faxed or e-mailed to people. Greg Redmond, president of the 300-member Prince George Snowmobile club, said novice riders will find the warnings helpful and expects t hey will be widely used. " Wit h novice riders, they don't have the experience so if they phone up and they're told the avalanche (risk) is high they'll probably stay home or just trail ride," he said. Many experienced sledders have taken avalanchesafety courses, he noted, and would take into account their own avalanche tests. The Pine Pass nor t h of Pr ince George, and Torpy and Kakwa Mountains northeast of Prince George are among the most popular spots for local riders. After one of the worst avalanche seasons in four decades last year, the snowpack is generally stronger this year, said Ilya Storm, a forecaster with the Canadian Avalanche Association. "Last year was an uncharacteristically problematic snowpack for us," he said. Regular snowfalls this year have resulted in a more stable snowpack in the Northern Rockies north and east of Prince George, Storm said. But the recent cold snap has led to the first widespread weak layer throughout the region, he said, which has since been buried by new snow. "That creates an unstable combination," he said. "We're generally advising people to stay off large slopes and try to avoid wind-affected areas," he said. In the past several days, Storm said there have been reports of small, human-triggered avalanches in the North Columbia mountains, southeast of Prince George. Thursday's death of a backcountry skier from the U.S. in a slide east of Revelstoke was the season's first avalanche fatality in B.C. Last season, 27 people were killed in slides in B.C. and Alberta -- the worst year since 1965 when 28 people died. The 1910 season, when 62 people perished in slides, is the deadliest year since records were kept.

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