TAX INCENTIVES Go Go B I BILLION S DOLLARS V lZ 51 I I SS I 59 fa FEDERAL budgetary spend spending � ing has nearly tripled since 1047 Graph shows trend In federal budgetary spending as given annually in the main estimates Old age pensions and supplementary expendi expenditures � tures arc not included CP Ncwsmap Highlights By The Canadian Press 1ersonal and corporation in income � come tax rates remain un unchanged � changed Incentive rebates cs high as 50 per ceni u resulting from increased sales by man manufacturing � ufacturing and procecssing firms Income tax deductions for dependents increased by 50 to 300 for children receiving family allowances and 550 for other dependents removing 80000 from income tax lists Tax deduction of 150 per cent allowed on increased expendi expenditure � ture for scientific research in industry Deduction of all pre-production expenses allowed oil com companies � panies Double depreciation for in vestment in new products ex tcridecj for one -year to Jan 1 4JGt No change in taxes on liquor and tobacco Budget deficit of 7 15000000 for 19G2 G3 on expenditures of 0525000000 revenues of 5 780000000 Deficit designed to provide economic stimulus but not to endanger price levels Non resident iron ore com companies � panies exempted from special 15-per-ccnt tax on income of branches of non resident cor corporations � porations Federal tax credit for On Ontario � tario and BC logging com companies � panies equal to two thirds of provincial tax up to 10 per cent Various sales tax exemptions costing treasury 2000000 a j car usinesses Gets Budget Boost OTTAWA CP A blue plate special for the go go businessman was served up Tuesday night by Finance Minister Fleming in a pre election budget speech last- ESHow Federal Spending Has Risen Since 1947 6 ing an hour and 45 minutes Main feature of a budget fore forecasting � casting a 1962 63 deficit of 745000000 and reducing the tax take by 130000000 was a rebate as high as 50 per cent on taxes due on profits from in increased � creased sales by manufacturing and processing firms Personal and corporate in income � come tax rates remain un unchanged � changed MODEST BOW If the budget was designed as a vote gatherer in advance of the general election expected in June it wasnt blazingly appar apparent � ent Mr Fleming made a modest bow in the direction of the in individual � dividual taxpayer by lopping 35000000 from revenue in the personal income tax field He accomplished this by rais ing deductions from taxable in income � come for dependents by 50-to-300 for children 1G and under and to 550 for other depend cnts whether children or adults Opposition Leader Pearson referring to the sixth deficit in a row since the Conservatives took office said Mr Flemings deficits now totalled nearly 3 000000000 lie said the budget could be described as vole now pay later FOUR PER CENT Mr Fleming said the tax in incentive � centive for increasing sales should result in cancellation of at least 50000000 in taxes in a full year This is about four per cent of all corporation in income � come taxes which will be paid this year The businessmans budget also provided for another 35 000000 worth of incentives to the petroleum industry and companies increasing invest investment � ment in scientific research for industrial purposes Mr Fleming forecast a seven-per-cent increase in the gross national product compared with last years 25-per-cent rise and said the central purpose of his budget was the encour encouragement � agement of economic growth The tax incentives were de designed � signed to spur increased pro production � duction and employment In brief these incentives are 9 Cancellation of 50 per cent of the tax on the first 50000 of taxable income arising from increased sales by manufacture ers and processors and cancel lation of 25 per cent of the tax on any additional income aris arising � ing from increased sales The increased sales will be calcu lated on the dollar value of gross sales this year against those in 19G1 O Deduction of 150 per cent of increased expenditures on scientific research for industrial purposes when computing in come for tax purposes Petroleum companies may deduct all pre production ex penses including costs of rights exploration and drilling in computing income tax Mr Fleming said the business incentives will cost the treas treasury � ury about 22000000 in the 1962 63 fiscal year which began April 1 and 85000000 in a full year Sales tax reductions would amount to about 2000000 Mr Pearson made the most Continued on Page S SIXTH DEFICIT FORECAST FOR FLEMING nif I III Phone tOgan 4 2441 Vol 6 No 72 Vote Now Pay Later Pearson OTTAWA ICP The budget delivered by Finance Minister Fleming Tuesday night on the eve of an election should per perhaps � haps be described as vote now pay later Opposition Leader Pearson said in the Commons weeks meeting would be switch The sixth deficit forecast since Mr Fleming assumed the min ministry � istry means a total deficit over five years of 3000000000 the Liberal chief said in the first opposition reply to the budget address Now Hear This Smokers douse those butts group So anybody at the course and look sheepish Robert Lud wig secretary of the Non-Smokers Association of Canada formerly the Never Touch m Club will bo in PG next week fur the purpose of meeting with heads of Fight Cancer and other health groups senior educators and some medical people Bob wants to discuss cigarct ugh control and getting PGians geared to take part in the second annual Non Smokers Day which will be May 31 PG being the heart of BC is the natural place for an organiza organizational � tional effort sez Robert As the drive for new members continues its chief reason be being � ing the rallying cry New Build Building � ing Next Fall Canadian Legion officials repoit a success rate of G5 a month or three a day and a new total of G85 The fire control course scheduled to be held in the Simon Fraser Fri day is apt to have a few un unexpected � expected visitors Regular Ro Rotary � tary Club luncheon is held in the hotel Fridays and the club for forgot � got to notify members that this who sees a hungry looking busi nessman with a bewildered look in his eye is asked to take said gentleman by the hand aim him in the direction of the PG Hotel and give him a lusty slune PG chamber of com commerce � merce representation at the Hazelton Highway 16 confab with Gaglardl Co is building up Perhaps after all there will be enough types from the oast em end of the highway to con convince � vince both the minister and the western chamber people that completion of the road to Mc Bride and Jasper is every bit as impoitant as finishing the western section Nq question about it sez de department � partment of agriculture veterin arian Dr Ken Thompson 125 pounds of newborn calf all in one piece adds up to quite a chunk of calf So it was quite an event when Coacoa est wgt 125 lbs was born recently on the farm of Floyd George in the Six Mile Lake area Get of a Charlais sire and a Hereford Guernsey dam Coacoa seems to He called the forecast of a seven-per-cent rise in the gross national product exaggerated Even on such a shaky assump assumption � tion by Mr Fleming the defi deficit � cit in the current fiscal year was estimated at 745000000 and might well be higher Not long ago the minister had had a song dedicated to him called Brother Can You Sparc a Dime Dimes will be scarce in Can Canada � ada at this rate Mr Pearson said Nothing that Mr Fleming had estimated individual tax bene benefits � fits to Canadians would amount to some 40000000 Mr Pear Pearson � son said there are about 18000 000 people in Canada and that meant you get 222 per per person � son 2-2-2 is the name of a well known headache pill Mr Pearson said The taxpayers of Canada were going to need a headache tablet to offset the ef effect � fect of a deficit of 745000000 in the 19G2 G3 fiscal year Mr Pearson said the goals Mr Fleming claims the gov eminent has reached since it was elected hac not been achieved OTTAWA Pi Social Credit leader Robert Thompson said Tuesday night Finance Minister Fleming will go down in history as Canadas greatest debt maker OTTAWA CP - H w Her- ridge parliamentary leader of HE CITI PRINCE GEORGE BRITISH COLUMBIA WEDNESDAY APRIL 11 1962 WSm tki life hK THREE of the more distinguished of the 74 delegates attending the current fire control course in Prince George look over some of the equipment on display Left to right are Gerry Wilmot vice president of the NILA Al Dixon district for forester � ester and R II Lyster assistant manager of the Canadian Forestry Association at Vancouver THREE DAYS OF INSTRUCTION Mnrp thnn 70 dolnentps frnm rliin Fnrnstrv Assnri a t i n n throughout North Central BC branch here and Fred Wade registered this morning for the second Northern Interior fire control course being held today Thursday and Friday at the Hotel Simon Fraser About 50 had beer expected Delegates were welcomed by Gerry Wilmot vice prcsidsnt of the Northern Interior Lumber- mens Association Tom Dil worth chairman of the Cana- Impaired Drivers Fingerprinted Persons charged with serious traffic offences which come under the criminal code are now subject to fingerprinting and photographing for police records as are those accused of felonies The practice has been adopt adopted � ed in Prince George following a recent directive from the at attorney � torney - generals department Offences include hit and run and impaired and drunk driv driving � ing where the crown may proceed either summarily or by indictment Previously persons accused of these offences were not required to submit to finger printing or to having their pic tures taker Similarly to other criminal charges the action can be taken while the accused is in custody regardless of whether he is con convicted � victed of the offence with which he is charged chairman of the morning ses sion The three day course design designed � ed to update forest industry supervisory and fire fighting personnel on latest fire preven prevention � tion and suppression techniques is being jointly sponsored by the two associations with the co cooperation � operation of the BC Forest Service Todays sessions began with addresses by forest servicepcr sonncl on forest service regula regulations � tions and an analysis of 19G1 fires followed by a discussion of weather forecasting until noon when delegates dispersed for lunch The afternoon session will sec Deductions Up 50 Per Child OTTAWA CP A 50 increase in income tax deductions for dependent children was an announced � nounced in the budget Deductions for children under 1G receiving family allowances will be increased to 300 from 250 and for other dependents such as children over 1G attend attending � ing school or university to 550 from 500 Finance M i n i s t cr Fleming said the increase effective next year in filing 1962 tax returns will free about 80000 taxpayers fron paying income tax budget is good for one per cent of the population only Speaking outside the Com Commons � mons the member for Kootenay West labelled the budget Flem Flemings � ings flop Corporations rather than indi individuals � viduals would benefit and we all know there are more indi individuals � viduals than corporations Mr Herridge deplored lack of action on portable pensions and said farmers and industrial workers were not considered He said farmers like corpora corporations � tions should have been offered depieciation allowances for in increasing � creasing production Vandervoort photo oyrse discussions of detection and communication o r g a nization employee education in fire pre prevention � vention pre - suppression or organization � ganization and a panel on safe ty on the fire lines Certificates will be presented during a closing banquet Friday to those who complete the course successfully Bob Gal Gallagher � lagher manager of the NILA has said R G McKec deputy minister of lands and forests will be guest speaker at the closing banquet Friday Starvation Story W rong Monteith OTTAWA ICP Health Minis Minister � ter Monteith said Tuesday charges of starvation levelled in connection with sickness at the Prophet River Indian reserva reservation � tion in northeastern BC were not justified Mr Monteith speaking as acting citizenship minister said a report Tuesday from the BC Indian commissioner said there was no sickness or starvation at the reservation as of March 30 and that only two of the 59 Indians were in Fort Nelson Hospital Dr Ray March who treated members of the band said 10 days ago that they suffered from hepatitis and were emaci emaciated � ated from hunger CBC Team to Do Show on College Producer Tom Conachie and a television team from the CBC documentaries depart department � ment in Vancouver are due in tomorrow to film a half hour story on Prince George Col College � lege and its founder Bishop Fergus OGrady Results are due to be shown on the 7 Oclock Show on Vancouvers CBUT April 19 and arrangements are being made for it to be shown here at a later date There will be some footage on the 2000 acrc development at Peden Hill plus interviews with local citizens association and the teachers of the aiea concerned DECISION REVERSED A decision to co operate with the Quesnel school district in a workshop to prepare teachers for the new Mathematics 8 course was reversed by trustees Superintendent J M Phillip son said the Quesnel workshop would be held partly during school time and would dupli duplicate � cate a workshop held in Prince George last fall to prepare teachers However the board decided to send three teachers to the workshop being sponsored by the BC Teachers Federation in Vancouver starting April 30 for Grade 8 and Grade 3 mathe matics teachers Miss C Lavoic consultant will attend sessions on the new Grade 3 course while Miss C Kelly of Duchess Park and Glen Horning of Connaught will at attend � tend sessions on the new Grade 8 course HEALTH MEET School District 57 is to be rep represented � resented by two trustees at an organizational meeting of the union board of health for the proposed new health unit to be centred in Prince George The school board had ques questioned � tioned the need for two repre representatives � sentatives when they were re requested � quested by Dr G II Bonham director of the present Cariboo Health Unit However according to infor information � mation received at a regular meeting Tuesday Prince George is the largest centre in the new unit and it was felt it should have a large representation Cariboo Health Unit is to be split in two with the city being the centre of the new northern unit TENDERS TABLED Tenders for electric welding and acctylete equipment for the senior high school tabled at the last meeting of the board have been tabled again pending study by Propel ty Manager W C Ditmars Reason for tabling at the last meeting was to allow a study to ensure that present wiring in the high school industrial arts area is sufficient to support the proposed new equipment which would cost about 550 Logging Firms to Get Tax Benefit More to Come If Victoria Agrees OTTAWA CP The fed oral government will go two thirds of the way toward re removing � moving double corporation in income � come tax on Ontario and BC logging firms Finance Minister Fleming said Tuesday night He invited the two provinces to go the rest of the way The federal step a tax credit of two thirds or the provincial tax on logging income up to a maximum tax rate of 10 per cent was offered conditionally last year It depended then on BC and Ontario granting the other third Companies in the two prov provinces � inces have been the only ones subjected both to the federal be keeping her unusuallv lartc the CCF New Democratic lnrtv and nrnvincial comoration in rd to the Prince George Hotel i size as she grows older Mr group said Tuesday night Fi j come taxes and a provincial tax to make room for the forestry 1 George reports 14 nunc Minister Flemings on logins incomci I Mr F 1 e m in g unique federal said the carried a heavier tax load than concession other industries may cost about 3000000 oer a full year and perhaps 1500- 000 in the current fiscal year ue reviewed the aackground of the situation and efforts to reach a solution He had tried earlier this year to arrange a meeting among the three gov governments � ernments and the industry but owing to the position taken by BC it was not possible to choose a date satisfactory to all the parties concerned The double taxation situation became possible first in 1947 un under � der the federal provincial tax sharing agreements While On Ontario � tario and B C logging firms could claim their provincial tax as an expense in calculating Mr Fleming said the federal step will go a long way toward removing the existing tax dis discrimination � crimination of forestry indus industry � try corporations irrespective of any action which the provinces may take Moreover if the provinces imposing a logging tax supple supplementing � menting our tax credit with a credit of their own as it is to be hoped they will the discrimin discrimination � ation will be removed complet completely � ely He said the reason he pro poses a two thirds tax credit is that the federal corporation in income � come tax is about twice as large as the provincial logging and income taxes combined in On- federal income tax Uiey still tario and B C ZEN The Only Daily Newspaper Serving North Central British Columbia FOR TEACHERS 7e a Copy oSjy Ml par MontV Talks Proposed The possibility of regional contract negotiations be between � tween teachers and school districts of North Central BC was raised at a regu regular � lar meeting of the board of School District 57 Tuesday night Trustees ore not interested in a proposal from the teach teachers � ers of School Districts 27 28 I 55 56 57 and 58 for preliminary meetings embracing the whole area These meetings as outlined to the board in a letter from the agreements committee of the local teachers association would result in recommenda recommendations � tions to individual board and j associations A waste of time said Trus Trustee � tee Bob Range Trustee Jack Rhodes apparently felt the same way as he commented the teachers plan was not con concrete � crete enough However the trustees agreed there was merit in the idea of regional negotiations and said they would go along with agree ments between the Northern In i SPORTS HIGHLIGHTS Leafs grab first game of Stanley Cup final from Hawks Houston Colts get results from National League grab bag London Fredericks bounce back to take Lcth bridge Broders 94 82 See Pages G and 15 NOT ENOUGH MEMBERS oi U ber of Commerce Tuesday Willi every city and every region competing fiercely for the tourist dollar an increasing amount of money will have to be spent on promotion by the tcrior branch of the trustees senior chamber Service stations restaurants hotels and other firms which benefit most from the tourist dollar should be first to support the chamber by becoming mem members � bers he said Although 27 cents of each tourist dollar goes to service stations and garages 28 service stations in Prince George and area do not belong to the cham chamber � ber Although 28 cents of the dol- VANCOUVLR CP At the policy conference oi the Cana dian Labor Congress here the 1000 or so delegates voted Tues Tuesday � day for a declaration that CLC unions make every effort to secure shorter work weeks with the same or higher take home pay and more holidays in their next agreements The reduction in working time is aimed at meeting tech technological � nological changes that make it possible for fewer and fewer workers to produce the s mc amount of goods Labor Minister Starr in a speech Tuesday to tha CLCs policy convention called en la labor � bor and management to tackle the problems stemming from automation Automation is not merely technological advancement it is a revolution said Mr Starr We must show oui selves to be the masters of automation and its human and social con consequences � sequences He promised government sup support � port for labor industry efforts to upgrade the skills of Can Canadas � adas labor force retraining blue collar workers for white collar jobs Hours before the presentation of Finance Minister Flemings budget the CLC called for a major overhaul of Canadas in income � come tax structure and big in increases � creases in exemptions The CLC urged an increase in the married exemption by 1000 to 3000 and an increase in the basic exemption for un unmarried � married persons to 1500 from the present 250 The budget got little support from those who would comment at the convention Tuesday 52 CANDIDATES FOR 22 SEATS VANCOUVER CP There are 52 candidates eyeing BCs 22 federal scats in the expected general election By nomination day there could be 40 more A tabulation Tuesday show showed � ed the NDP has already nam ed 18 candidates the Liberals 15 the Progressive Conserva Conservatives � tives Jl Social Creditors five and the Communist party three Scats now are held by 18 Progressive Conservatives and four CCFers er Prexy Prince George Chamber of Commerce President Alex Clark called for more support for the chamber in an address before the local unit of the Junior Cham Bennett to Attend Whitehorse Talks VICTORIA ICP Premier Ben Bennett � nett will attend the third Alaska-Yukon-BC conference to be held at Whitehorse next month He will be accompanied by four BC cabinet ministers Lands and Forests Minister Williston Highways Minister Gaglardi Provincial Secretary Black and Transport Minister West wood The conference will be held May 17 and 18 Officials here said Tuesday the agenda would broadly cover matters of mutual concern Subjects to be discussed will lar are spent on food 18 local be Highway 16 which will have restaurants do not belong to to bear heavy traffic for the the chamber Although 22 cents now Alaska - Prince Rupert is spent for accommodation f ferry service this fall and nine hotels and six motels are I blacktopping of the Alaska not members Highway For Canadian kers William Jcnoves of Toronto a vice president of the CLC said it offered very little im improvement � provement for the vornint man of Canada Pylon Bombing Case Underway CRESTON CP Preliminary hearing of seven Sons of Free Freedom � dom in connection with a March 6 blast which toppled a giant power pylon was continuing to today � day They arc charged with con conspiracy � spiracy to place bombs and also arc charged with placing bombs A guard of the Consolidated Mining and Smelling Co trans transmission � mission tower said he checked the tower about 1120 pm March G and as he drove to his home he heard a blast and diovc back to the tower which had been felled He said everything was in order when he checked the pylon 111 the first 10 days of April there has been no measurable precipitation at the airport ac according � cording to the meteorological department Mostly cioiuiy weather is fore forecast � cast for Thursday in the Cari Cariboo � boo Prince Gcorgo and Bulk ley Valley regions with little change in temperature A few showers are lorccasi for the eastern valleys of the Prince George area only Winds will bo light occasionally reaching southerly 15 Low tonight and high tomorrow at P r i n c o George Quesnel and Smithcrs 30 and 50 Peace River Cloudy Thurs Thursday � day morning otherwise mostly sunny A little milder Winds westerly 20 Low tonight and high Thursday at Grande Prai Prairie � rie 30 and 50 Last 24 hours Hi Lo Prec Prince George Terrace Smithcrs Quesnel Williams Lake Kamloops Whitehorse Fort Nelson Fort St John 33 33 1 ia 03 Dawson Creek 4t 22 49 35 47 28 51 21 47 24 63 29 29 15 27 13 33 10