I
YEAR'S INFLATION RATE NOW 9.8 PER CENT
Prices up whopping 1.5 per cent in month
OTTAWA (CP) — Consumer prices rose at tlieir fastest rate in more than three years during July as sharply higher food prices once more fuelled inflation, Statistics Canada reported today.
The consumer price index, the most widely used inflation measure, was up by IV2 per cent after rising nine-tenths of one per cent in June. The last time it rose as strongly was in June, 1975.
As a result, the 12-month inflation rate in July was 9.8 per cent, up from 9.2 per cent in June. It is the highest inflation rate since November, 1975, one month after the government imposed wage and price controls.
Fresh fruit and vegetable prices were up by 17.8 per cent in July and are about 45 per cent higher than a year ago. The monthly increase largely reflects the replacement of depleting domestic supplies of apples and potatoes by higher-priced imports, Statistics Canada says.
Beef prices, which had jumped by more than 10 per cent
The
20c CN^py
Citizen
Tuesday, August 15, 1978 Vol. 22; No. 158 Prince George, British Columbia
in each of the two previous months, were up by 3.9 per cent in July. Beef costs about 66 per cent more than a year ago.
There were also price increases for poultry products, margarine and some cereal and bakery products.
The anti-inflation board recently released its own report on food prices, saying it expected prices to level off for the
rest of this year. Its findings were based on a more current survey than the consumer price index. However, its conclusions were later challenged by supermarket spokesmen, who said they saw no reason why food prices would level off although they might rise more moderately.
Aside from food, higher costs for shelter and increased hotel
and motel charges were the other main factors in the July increase in prices. Some North American and imported autos cost more, and dental fees were increased in some regions.
The consumer price index stood at 177.7 in July, compared with 175.1 in June and 161.8 in July a year ago.
That means a standard basket of consumer goods and services that cost $177.70 in July could have been bought for $175.10 in June and for $161.80 a year ago.
The purchasing power of a 1971 dollar had dropped to 56 cents by last month.
Sinclair Stevens, Progressive Conservative finance critic, said the inflation figures make it more imperative that Prime Minister Trudeau recall Parliament and present measures to deal with the slumping economy.
If Trudeau has an economic recovery plan such as he promised on national television two weeks ago, this is the time to present it in detail, Stevens said.
City slates referendum on library
by TOM NIXON Citi/.en Stuff Reporter
Voters face another referendum on the proposed new library - even though Alderman Art Stauble says the city has money in reserve accounts to build the project.
Council decided Monday to ask taxpayers in the November civic election if they want the city to borrow money to finance any cost of the new library in addition to $1.3 million now available for the new building.
Exact wording of the referendum awaits architects’ working drawings and cost estimates due to be presented Aug. 28 by Graham Tudor.
Only Alderman Stauble voted against the referendum.
Stauble said the city has enough money in reserve and surplus accounts for the $2 million-$2.5 million project without going to referendum.
“Why borrow funds (from outside sources) when we still have the money in the sock? It’s no good to borrow even $700,000 (the least amount needed 1 when we know we have reserves and surpluses,” Stauble said.
Mayor Harold Moffat said those funds are like savings accounts and shouldn’t be used unless everyone benefits. Surpluses and reserves have been saved from taxes, government grants and profit from land development.
He said the city will likely borrow for the library from its own funds but will pay interest. Nonetheless, taxpayers should approve any borrowing, he said.
Taxpayers last November voted two-to-one in favor of building a new library on the cultural centre site near 10th Avenue and Patricia Boulevard.
* Contest design used
The referendum included reference to the Graham Tudor design, which won the cultural centre design contest in 1977, but avoided mention of the cost of the building or where the money was to come from.
The city in 1975 earmarked $1 million of $5.4 million amalgamation grant to cultural facilities and $900,000 of that remains. Another $400,000 should be available from the provincial recreational facilities grant program.
A motion by Alderman Jack Sieb to use all the $900,000 for the library, however, was tabled until Sept. 5 when council will again debate the library financing.
At that debate the estimated cost of the new building will be available from the architect and city administrators will brief council on what federal and provincial grants can be expected to help pay for the building.
Recently the distribution of federal grants for a number of uses has been turned over to the provincial governments and council is not sure whether it will mean a cut in total grants available to communities.
“Is the province going to use that federal grant to help pay for the one-third recreational facilities grant?” asked Alderman Elmer Mercier.
“We know that if it’s a choice of grants between services and cultural facilities, then we have to give it to the services,” said Alderman Vic Litnosky.
Alderman Brian Brown-ridge said he thinks all the cost of the new library should be borne uy residential taxpayers.
“After some of the tax
notices the businessmen received this whole cost should be paid for by homeowners, not by business at all,” he said.
Alderman Sieb, however, said businessmen get the same chance to vote as homeowners.
Mayor Harold Moffat agreed with Brownridge, however, that the tax load on business is heavy.
“Maybe we should tell people they won’t get a tax increase (if the library is approved) but a utilities rate increase,” he said.
"We have a lot of money to put into getting rid of (sewer) sludge and where do we put the money we get in grants 1 in the library or in improving utilities)?”
Litnosky said that’s why the taxpayers must decide by voting in a referendum.
Under the highway
Storm sewer tunnel which will pass under Highway 16 near Peden Hill is at the half-way point. Workers are making about six feet a day on the tunnel, which will be
about 500 feet long. The tunnel was scheduled to take a month to complete; but will not be completed until autumn. Work started in early spring.
Citi/en photo by l)u\r Milne
Baby's
death
probed
Slowdown in U.K. hits phone system
Labor
unrest
predicted
Hydro chief raps nuclear opponents
Stock up on shoes
MONTREAL (CPi - The price of children’s footwear will go up by at least $2 a pair and that of adult footwear by $3 a pair at the end of this year because of a shortage of hides, the chairman of the Shoe Manufacturers’ Association of Canada said Monday.
Don MacLeod told a news conference that manufacturers requiring hides bid for them on a world market so that currency fluctuations have meant Japan is able to buy hides for 60 per cent less while the U.S. and Canada buy at between 60 per cent and 80 per cent more.
“There’s a lot of bidding going on now in the hide market, especially by Far Eastern countries,” he said.
VANCOUVER (CP) - The Sun says a charge may be laid against a Richmond doctor in the case of a severely-deformed baby which died in hospital.
The newspaper says sources claim the baby, born May 7, was left in a bassinet in Richmond General Hospital in this Vancouver suburb and was neither fed nor given water during the 17 days it took to die.
Al Hoem, chief Crown counsel for the South Fraser region, said a first-degree murder charge may be laid against a family doctor who allegedly decided to withhold all attention from the grossly-deformed child.
The baby was born with massive cranial deformation and only the brain stem was present.
The parents were initially told the child had died during birth, the newspaper says.
When told several days later that the child was alive but deformed, they agreed that “no artificial or heroic means” should be used to keep the child alive, Hoem said.
LONDON (AP) - A work slowdown by technicians has a stranglehold on Britain’s telephone service. Pay phones take the money and do not work. Phones do not ring when numbers are dialed. Wrong numbers are common, and it is difficult to make international calls.
Communications experts say only about one international call in 20 from London is being completed, and busines-
ses dependent on fast exchange of information are feeling the pinch.
About t'50 million ($108 million 1 worth of new telephone equipment is lying idle because no one is available to install it, said a spokesman for the Post Office, which runs the telephone service. That means more and more phone booths are taking in coins but not working.
Gun law dumped
There’s no way the city can limit the use of firearms in the new areas of the city, council decided Monday.
After more than two weeks trying to carefully detail exactly how ;md where a gun control bylaw would be used, council killed it 7-4.
“Let’s forget this,” Alderman Don Wagner said during debate. “All we’re doing is getting llacock (John Hacock, bylaw control officer) to do what the police already have the power to do.”
“How can you stop a farmer
in Blackburn from killing his cattle?” asked Mayor Harold Moffat.
"1 disagree,” argued Jack Sieb. “I can’t stop people from shooting across the (Nechako 1 river.”
“Call the cops,” answered Wagner, “and get them charged with dangerous use of a gun.”
Currently the only area of the city which bans the use of guns is the old city area of the bowl. In the outlying areas there is no law against .discharging a gun.
TORONTO (CP) - Canada can expect considerable labor unrest in the next 12 months as a result of the economy’s poor performance, a Toronto brokerage firm says.
Wood Gundy Ltd. says in its quarterly assessment of the Canadian economy that recent wage settlements have been running in the range of 6.5 per cent a year. However, in the second quarter, inflation as measured by the consumer price index was closer to 10 per cent.
The firm adds it expects an even higher rate for the rest of 1978, assuming that the federally-sponsored sales-tax reduction ends in October.
“Even current high unemployment cannot enforce such a sharp decline in real wages and we therefore expect a gradual acceleration in wage increases, starting very soon.
“But businessmen are facing slack markets and governments are fixated on wage restraint in the public sector, so the collision of demands and offers will undoubtedly be acrimonious.”
VANCOUVER (CP) -Major nuclear development is unavoidable in Canada, Robert Bonner, British Columbia Hydro chairman, said Monday.
“Whether we like it or not, nuclear development will be
BONNER
widespread in the country by the year 2000,” he told the Canadian Community Newspapers Association annual meeting. “It is already well begun in Ontario, Quebec and New Brunswick.”
Bonner also said energy production must take prece-
dence over project prevention by environmentalists if Canada is to meet its energy needs.
"The lead time to production has doubled in the last decade as a result of the environmental revolution.”
Canada, which now imports some 630,000 barrels of oil per day, will have to import two million barrels a day by 1990, he said.
"And the exotic alternatives so dear to the hearts of protesters and writers of popular articles cannot make a serious impact upon the energy supply problems for at least 10 years.”-
He defined exotic alternatives as wind power, tidal power, solar collectors, geothermal power, photovoltaic cells and fusion.
It also takes years to realize net energy gains from conservation, he said.
"Even if all Canadian homes were properly insulated, it would take 10 years to achieve net energy gains because of the energy required to install the insulation in the first place."
TODAY
'Has the vacancy for Pope been filled yet?"
FEATURED INSIDE
Soccer coach of year
Tony Waiters, coach of the Vancouver Whitecaps. has been named North American Soccer League coach of the year. The league also had a stunning upset in the playolfs Monday. Page 7.
Some like it hot . . .
A significant step toward the long-term goal of fusion power has been claimed by U.S. energy officials following an experiment in which a fusion device was heated to 3 temperature 10,000 times hotter than the surface of the sun, Page 5.
Index
THE WEATHER
Family ....;.................. ..2fi, 27
Business............... .............11 (iardcnin^ column..
City, H.C............... .....2,U, I,'! Horoscopes............... ........12
Classified............. ........15-21 International............ ..........5
M t\t Hit Ii 1 m n
Crossword........... ..........7
Editorial...............
Entertainment.... .......11, 12 ........12
The forecast for Prince George today is for cloudy skies and isolated showers or thunder showers. Wednesday is expected to be sunny with cloudy periods and isolated showers or thunder showers.
The forecast high both days is 19. Today’s expected low Is 8.
The high Monday was 18, the low last nigh! was 8, with 8.4 mm of precipitation. On this date last year the high was 24, the low 3.
NOW HEAR THIS)
• Martha Alin wasn’t sure whether her friends in Vancouver were mailing Christmas cards early, or whether the mails were just slow, when she got a card in the mail Monday. However a little investigation showed the card was mailed in time for delivery last December.
0 “Can we talk about this problem now?” asked Alderman Ed Bodner at council Monday, seeking advice on procedure from Mayor Harold Moffat. "No,” answered always vocal Aid. Vic Litnosky, “that comes up under new business.” "Thank you — your worship,” replied Bodner to the red-faced Litnosky.
• The proof that music is a universal language may be seen by looking at a recent disco night sponsored by the French-Canadian Club. About 100 teen-agers turned out at Studio 2880 to dance to disco music from France and Quebec, yet only about 20 were French-speaking. The rest were English.