In his interim report filed with Premier Glen Clark, Ralph Torney says immediate decisions have to be made to avert financial catastrophe for many businesses here.
Time is of the essence in implementing assistance programs.
In the aftermath of Skeena's insolvency and crystallizing of financial losses there is significant likelihood of lawsuits among Skeena's contractors and subcontractors. Additionally, concerned by the losses sustained by some under Skeena's restructuring plan, lenders may be considering calling loans on small to medium size businesses. The fear is that a series of lawsuits, foreclosures, repossessions and loan calls in the area will bury individual businesses, ravage community economies and threaten the operating capability of the company. Torney urges the government to start the loan program within 30 days to block a flood of economic troubles. Some of SCI's creditors suffered particular hardship because they felt obligated, or were compelled by circumstances, to continue supplying the company well past the point at which, under normal business practices, they would have broken off further relationship and cut their losses.