lsSfeiiCas I .BBBKfci1 .. WCiV jj Cl(bn photo by Im TIkI Technician Brian Self seta new tax rate on cash register here. See story, page 3. PROVINCIAL TAX RATES SOAR There's a Wolfe at our door by NICK HILLS Southnm New Services VICTORIA-British Col-umbians were hit with tax increases totalling $267-million Friday as the Social Credit government introduced a self-styled recovery budget totalling $3.615-blllion. Finance Minister Evan Wolfe struck at almost every level of wage earner, raising provincial income tax, the sales tax, and cigarette and tobacco tax. On top of this, medicare premiums will go up July 1 by 50 per cent. In bringing in these Draconian measures, Wolfe launched a bitter attack on the former NDP admistra-tion, blaming it for most of the provnce's current economic woes. Mr. Wolfe said: "Never again must the people's money be wasted so carelessly; never again must political expediency replace sound management; never again must government be allowed to engage in such a disgraceful financial coverup." The British Columbia business community did not escape the tax blows either, even though the province's economy is only very slowly coming out of a recession. Corporation taxes will rise two percentage points to 15 per cent, bringing in an extra $31' million in revenue. This change is retroactive to January 1. Small business is exempted, its tax rate will remain at 12 per cent. The personal income tax rate goes up two percentage points to 32.5 per cent on July 1, yielding an extra $23.5 million in revenue. The provincial sales tax goes to seven per cent from five per cent today, bringing in another $200 million. This Increase brings B.C.'s Hospital left in Local hospital officials are unsure what affect the new hospital daily rates might have on Prince George Regional Hospital. Whether the additional revenue from the increased rates will be given to the hospital or absorbed into general government ret venue is not known here. The additional revenue 'You spend more VICTORIA (CP) - Finance Minister Evan Wolfe said Friday the reason the provincial government increased the sales tax is because it is a fair tax and brings in more revenue than other taxes. The sales tax "is right up front where everybody can see it," he told a news conference after announcing the 1976-77 budget in the legislature. "You spend more money, you pay more taxes." He was replying to a ques THE BUDGET sales tax to the level of Ontario's. Sales tax Is considered by many economists to be the most progressive form of revenue collecting because it tends to hit at lower income earners. Finance Minister Wolfe estimates that the increase here will take $110-million from individual consumers and $90 million from the business sector. The four cents added to a package of 25 cigarettes will yield another $10-million. The medicare Increases mean that a family of three Mayor says gov't move "faces the facts of life" by GORDON POLLARD Citizen Staff Reporter Prince George Mayor Harold Moffat says the belt-tightening budget brought down by the provincial government Friday "simply faces the facts of life." But Prince George Chamber of Commerce president Bob McFarlane feels the tax increases in the budget "go a bit too far." And Don Muirhead, spokesman for the Prince George and District Labor Council, says the budget will deal "a severe blow" to people on low and fixed incomes. Moffat says he sees "no reason to get too excited" about the hikes in the sales tax and personal and corporation income tax. "The provincial government is simply facing the facts of life. We've got to from the new $4 a day acute care rate and the $7 a day extended care rate will amount to more than $300,000 locally. Aid. Bob Martin, city appointee to the hospital board, said today there are too many unanswered questions In the budget announcement to say what effect it will have on the hospital. tion as to why the government chose to increase the sales tax which many financial experts feel is regressive. Mr. Wolfe said the primary consideration is the revenue the tax brings in. Increasing the sales tax brings in $100 million for every percentage point increase, whereas for example, the personal Income tax brings in only $20 million per point. Effective midnight Friday night, B.C.'s sales tax j will have their monthly premiums increased from $12.50 to $18.75. There are also large jumps In certain hospital-care rates. The per diem rate for patients in ex-tendedqcare units shoots up from $1 to $7, and acute-care rates from $1 to $4. To set their own example to the taxpayers so badly hit, the government is going to cut salaries and alio-' wances to cabinet ministers and MLAs by 10 per cent. The former NDP administration got Itself into trouble and is now reaping the political whirlwind because it pay for everything we get." He said he doesn't agree with critics who claim the boost in the sales tax is regressive. "I've never regarded the sales tax as regressive. I think it's a fair, equitable form of taxation, particularly when basic needs such as food and children's clothing are exempt." Moffat said it would be unrealistic to expect the provincial government to meet its obligations without some tax increases this year. "Our city council has been forced to raise the local mill rate. So we can hardly expect the province not to do the same." The mayor added he is pleased provincial revenue-sharing with municipalities will increase by $10-million to $30-million, though he noted dark "It depends if we're going to keep it," he said, "and whether we're going to have to collect it if someone refuses to pay." "If we have to collect it and then' it's subtracted from our patient rates (the B.C. Hospital Programs grant), then we don't benefit at all." - you pay more' went up two percentage points to seven per cent. Mr, Wolfe said in the budget that part of the foundation for the government's revenue forecast for the coming fiscal year is an expectation of a 14-percent growth in the economy. He told the news conference that figure was settled on primarily because of the United States' economic climate as well as input from the provincial departments of finance and economic development. badly over-estimated the economic recovery for the past year. It had calculated revenues for the 1975-76 at some $3.22 billion, but revised estimates placed them at only $2.918-billion. In giving the province this bad news, Finance Minister Wolfe said: "As I look at the last, sad remnants of the former government sitting across from me, I believe that when the people read this tragic story of how their money went down the drain they will never again return that party to power. "The people have thrown the socialists out in Australia. They have been thrown out in New Zealand. They are hanging on the ropes in Britain and their leader has quit. And they have been thrown out here. "$10-million isn't really very much when it's spread among all of B.C.'s municipalities." Chamber president McFralane was more critical of the budget, saying he is "disappointed the government chose to increaes taxes across the board at this time." McFarlane said he agrees in principle with Finance Minister Evan Wolfe's assertion that B.C. should have a balanced budget. But he said he feels the minister has "gone a bit too far" In boosting the sales tax and personal and corporation income tax. "When we are still experiencing some problems with our economy, it is not the time for tax increases of this kind." McFarlane said he had hoped the government would put more emphasis on cutting back its expenditures rather than on increasing taxes. Muirhead, president of IWA Local 1-424, said the budget "comes down hardest on those least able to pay. "It will be a severe blow to people on low and fixed incomes. They're going to find it extremely difficult to pay the higher personal income taxes and higher hospital fees." In the budget, Mr. Wolfe said it appears the United States will emerge from the latest recession slowly and avoid the inflationary boom that followed the previous one. In particular, he said, it appears there will be some improvement in the American housing market, on which the province's lumber supply depends so heavily. More on budget, pages 3, 9. K Monday, March 29, 1976 .MV11. 20; No.; 62 M1 Prince George, British Columbia TEAMSTER PICKETS DOWN Second union seeks strike against BCR by JAN-UDO WENZEL Citizen staff reporter The Teamsters have" removed their pickets from the B.C. Railway, but members of the United Transportation Union are ready to go on strike Inter this week. UTU northern chairman Noel Hubbard said today strike notice will be served on the railway as soon as possible. That gives the union the right to go on strike after 72 hours. Teamsters withdrew their plcketlines at BCR operations and agreed to have their dispute settled by binding arbitration. The UTU represents about 280 employees In Prince George, while the Teamsters number 70 who are employed as warehouse and office personnel as well as truck drivers. The strike threatens the economy of the north, since the BCR is one of the main transportation methods for goods and products. The Prince George area pulp mills had to close down operations because of the lack of chlorine, usually shipped in by BCR. The pulp mills engaged in their spring maintenance work earlier than usual because of the railway strike. Railway employees are represented by the Teamsters, the International Union of Operating Engineers, Brotherhood of Maintenance of Way Employees, Brotherhood of Railway Carmen, Brotherhood of Railway, Airline and Steamship Clerks, United Association of Journeymen and Apprentices of the Plumbers and Pipefitters Union, and the UTU. All others agree With the exception of the UTU, all other BCR unions have either reached new contracts or have agreed to be part of the binding arbitration agreed to by the Teamsters. While the Teamster dispute centered around wages, the UTU is seeking overtime pay at the rate of time and one half on a daily basis. "That's the Issue right there," Hubbard said. The union is also seeking a shortening of the unpaid layover time from the current 16 hours to 10 hours. The UTU has been negotiating with the BCR since May and its contract expired at the end of July. Meanwhile the railway is trying to get back into business. A BCR spokesman in Vancouver said some yard crews are operating and two trains are running between Vancouver and Lilloet. Hubbard said the majority of UTU members here have decided to use a clause In their contract which allows them to take up to 15 days to return to work after a lay-off. "This decision is being checked out by our legal department," a railway spokesman in Vancouver said. He said the railway does not agree with the union's interpretation of the clause. Teamster Local 31 business agent John Page said in Prince George the company is committed to have all. Teamsters back at work within five days. The decision to take the dispute to binding arbitration was made Friday. But the Teamsters had offered to submit to arbitration earlier during the strike. The offer had been turned down by the BCR. The Teamsters went on strike March 2, after they failed to reach an agreement on wages. The union asked an increase of $2.20 an hour over two years, the same pay increase as the BCR locomotive Sadat courts West BONN (AP) - Egyptian President Anwar Sadat arrived in West Germany today to begin a five-country European tour in search of Western arms, money and political support after burning his bridges with the Soviet Union. Four Phantom jet fighters of the Luftwaffe escorted Sadat's Egyptair jetliner from the German border to its landing at Cologne-Bonn Airport, where West German President Walter Scheel greeted the Sadat party. A 21-gun salute thundered and a military guard of honor presented arms for the first Egyptian leader to pay a state visit here since King Fuad's trip half a century ago. As Sadat left Egypt, the ruling Arab Socialist Union again assailed the Russians. It said the 15-year Soviet-Egyptian treaty of friendship and co-operation which Sadat abrogated two weeks ago had lost all meaning following Moscow's refusal to provide Egypt with military equipment and refusal to postpone repayment of the $4 billion Egypt owes the Soviet Union. enginemen received earlier teamster base rates range from $4.42 to $5.55 an hour. There was no activity in the Prince George BCR yards this morning, according to a railway spokesman. Meanwhile, Teamster Local 31 members are still locked out at cartage companies throughout the province. The lockout started Wednesday when the Transport Labor Relations Association was unable to reach a contract agreement with the Teamsten and the union struck 11 of tht TLRA member firms. The association respondec by the lockout, which is hon ored by most of the 97 mem bers. However, 31 member firms are operating. One, Lomack Contracting Ltd. is in Prince George. The other Prince George TLRA members, Trlmack Transport, Westland Carriers and Ninety-Seven Transfer locked out their employees last week. Talks between the parties were suspended Sunday and no date was set for another meeting. Miners buried 24 days MANILA (AP) - Two Filipino gold miners rescued 24 days after a cave-in trapped them 165 feet below the surface were describe as "fit as a fiddle" today and said they want to go back to work in the shafts. But doctors ordered rest for Manuel (Nilo) Chatto, 22, and Geronimo Acot, 28, who hid their eyes behind dark glasses as they saw the sunlight today for the first time since March 4. The doctors said they found some skin rash but no other evidence of ailments during initial examinations. "The problem is the rescue workers," said Dr. Josefina Miranda of the Surigao Medical Centre. "They will have to be given some sort of layoff to give them enough rest." Chatto and Acot who said they would be ready to go back to work Tuesday were removed late Sunday from the Lepanto mine on Mindanao island, 450 miles south of Manila. The bodies of three other men who hH been trapped with them were also taken out, and the rescue crew sealed the tunnel because they feared another cave-in. "I am still handsome," said Chatto, a bachelor, in a brief conversation with reporters. "Me, too," said Acot. They spoke in Visayan, the language of the central Smithers fire destroys store, SMITHERS, B.C. (CP) A fire Saturday caused $140,000 damage and destroyed a former church and a store in this community 450 miles north of Vancouver. Cause of the blaze, which started in the vacant church building, was not known. Flames then spread to an adjoining warehouse. No injuries were reported. TODAY suites 'Are you sure your name Isn 't Jones?' FEATURED INSIDE J Council behind closed doors ponders the shape of things to come in Prince George. Page 3. John Diefenbaker has arrived in London where he will receive the Companion of Honor award from Queen Elizabeth. Page 2. Don't be surprised If a visiting rink wins the world's largest curling trophy today. Pages 13.14. Business, 8; Classified, 17-24; Comics, 6; Editorial, 4; Entertainment, 6-7; Home and Family, 26, 27; Horoscope, 7; International, 5; Local and Provincial, 3, 9; National, 2; Sports, 13-16; Television, 6. THE WEATHERj Snow and cloud were expected to last all today as a low pressure area and warm moist air move across the interior of B.C. The weatherman predicted clouds with sunny periods and a few wet snow showers for Tuesday, The high today, 4C; the low tonight, -2C. The high Tuesday was 5C, Sunday's high was 4C; the low was -4C. The high for March 29. 1975 was IOC; the low was 1C. ( NOW HEAR THIS ) Newcomers to Prince George will find The Citizen's Growth and Development Edition, published last Friday, an excellent way to show their new city to relatives. Extra copies of the edition are available at The Citizen office for 25 cents. We'll mail one anywhere In Canada for 50 cents, or to any foreign country for $1. Downtown Businessmen's Association director Wally West says that in cities which opened up shopping hours, the only beneficiary was the news media which gained 400 per cent in advertising. A quick calculation shows that if shopping hours were opened up here, The Citizen would gain about 500 pages of solid advertising according to West. Wowl A Prince George car is missing its owner. The car was brought to a party on the weekend and its CARnage conscious owner took a cab home. The owner, however, forgot where the party was held and is still looking for his vehicle. Famed researcher backs vaccine plan SAN DIEGO, Calif, (AP) -Dr. Jonas Salk says it Is imperative that Americans be vaccinated without delay against a predicted outbreak of a deadly Influenza strain expected in the fall, "If you were to wait until September and wait for early signs, then it would be too late," said the famed medical researcher, Salk, developer of the first polio vaccine and founder of the Salk Institute for Biological Studies here, supports President Ford's plan to inoculate the entire United States population against the swine flu strain, which killed 548,000 people in the United States and millions around the world in 1918-19. In tin interview, Salk said the nf- proposed program should have been undertaken years ago, "It will always be beneficial because we know that when a virus begins to recycle it becomes a prevalent virus for several years. Therefore, we can't lose." Salk helped develop the first influenza vaccine while he was assigned to the Epidemiology Board of the U.S. armed forces during the Second World War. Preparations for the vaccinations should proceed, he said, without guessing about the extent or time of the possible outbreak, "We should anticipate it and provide whatever is necessary to prevent even a beginning since this is a virus that spreads from person to person rapidly with a short incubation period of any-where from 12 to 36 hours,"