NEW BUDGET 'BEFORE END OF YEAR‘
Provinces lose out as Gov't continues cutbacks
OTTAWA (CP) - Revised federal spending plans for the next 18 months, including cuts in payments to provinces for shared-cost programs, were announced by the government today.
But Finance Minister Jean Chretien said at a news conference taxpayers will have to wait for a new budget to be presented “before the end of the year” to see whether promised federal tax cuts are coming.
Robert Andras, treasury board president, who held a news conference with the finance minister, said the government was wrapping up the economic-recovery program promised by Prime Minister Trudeau Aug. 1 with today’s statement.
In a series of statements, the government announced that $300 million is being set aside for a program to aid industry next year.
Andras presented item-byitem spending changes that he said show total expenditure reductions for the current financial year that started April 1 and for next year of $2.5 billion. Most of the reductions—about $2 billion of the total —are reductions from next year’s plans.
But Andras insisted “the cuts are real” and said he and Chretien were presenting "an exercise in open government” by revealing the spending changes each department has been asked to make.
The statements show spending will total $48.3 billion this
The
20* Copy F^kiay, September 8,1978
Citizen
Vol. 22; No. 175
Prince George. British Columbia
financial year and rise by nine per cent to an estimated $52.6 billion in the financial year starting April 1.
Deficits to be covered by borrowing from the public will amount to about $11.8 billion this year—more than originally forecast-and to $9.7 billion in the 1979-80 fiscal year.
But the government said these totals could change with a new budget to be presented to Parliament before the end of this year. The statement said tax cuts, if they take place, could change the deficit and borrowing requirements.
The government said productive activity will have to expand at a greater pace for the rest of this year to achieve hoped-for real growth of four per cent for the full year.
Officials project growth in the value of production next year at around 11 per cent, including price inflation, saying “most forecasts” call for a real growth rate of four per cent. The government said it would be pleased if the growth rate reached five per cent—a target set at a July economic summit meetng in Bonn by Prime Minister Trudeau.
"Our objectives are to achieve a continuing decline in the rate of inflation and to achieve a real rate of growth which will bring down the rate of unemployment,” says a joint statement by Finance Minister Jean Chretien and Robert Andras, minister in charge of the federal treasury.
The ministers outlined some changes in spending plans,
many of them previously announced in a series of economic statements during the last 5*^ weeks, and described the impact on over-all spending plans and borrowing needs. They said further financial details, with an assessment of the impact on the national economy, will come in a formal budget after Parliament resumes Oct. 10.
The revised "spending ceiling" of $48.3 billion for this fiscal year compares with I he project ion of $48 8 billion in the budget of last April —a reduction of $500 million. But other demands will increase the deficit by $300 million to $11.8 billion.
Andras said promised economies will be concentrated in the next fiscal year, cutting $2 billion from a projected total of $54.6 billion which the government had calculated privately it would have spent under existing programs if there had been no changes.
The minister, who had announced cuts of about $1.5 billion over two years in an Aug. 16 statement, outlined what he described as further reductions of about $1 billion—$170 million this year and $910 million next.
The additional cuts are made up of projected reductions in payments to the provinces and previously-announced plans to reduce family allowance payments next year to $20a month from about $28.
LOCAL EFFECTS
Forestry lab hurt by cuts
by ELI SOPOW
Citizen Staff Reporter
The federal government plans to cut funds to its Canadian Forest Service laboratory in Vancouver, responsible for major forestry research in B.C.
The Western Forest Products Laboratory is responsible for large-scale timber research on the west coast and in the Interior.
It also has patented a shat-terless tree shearer currently being built by Q.M. Industries in Prince George and a wood joining machine scheduled for installation in at least one local mill.
Dr. Robert Kennedy, director of the research laboratory, said in a telephone interview from Vancouver today the federal government is cutting $3.3 million from the centre, effective April 1,1979.
He said the government doesn’t term the withdrawal of funds a "cut” but instead the "privatizing” of the laboratory.
Kennedy said that means private industry is expected to take over operations of the research and development centre with only six months notice.
The cutback is part of a $7.4 million withdrawal of funds from both the Vancouver lab and a similar centre in Ottawa.
Kennedy said there as "utter lack of prior consultation” by the federal government and he ★
iar gains slightly. . .
MONTREAL (CP) - The Canadian dollar today gained against its American counterpart for the first time this week in the wake of announcements of further federal spending cutbacks.
By noon it was trading at 86.47 U.S. cents on the interbank wholesale market, up 7-100 of a cent from Thursday’s closing rate of 86.40 cents.
The weakened currency, which has been at its lowest in 45 years this week, made a "moderate” upturn soon after Ottawa announced revised spending plans for the next 18 months.
Doll>
had to learn of the move from a Toronto newspaper late in August.
He also said the private sector and the B.C. government was not consulted before the cut was announced.
The provincial government has representatives on a number of committees at the laboratory and the centre also does research work for the B.C. forest ministry.
Meanwhile, Frank Oberle, Conservative MP for Prince George-Peace River, said in an interview here Thursday ‘‘there is nothing of greater value to the timber industry” then work being done by the lab.
He pointed out federal Environment Minister Len Marchand said in December the Canadian Forest Service would not have any further spending cuts.
Levesque's
alimony
$27,800
MONTREAL (CP) -Premier Rene Levesque and his wife Louise L’Heureux were divorced today, with Levesque agreeing to pay $27,800 a year in alimony.
Associate Chief Justice James Hugessen read the agreement aloud in Quebec Superior Court shortly after Levesque, who originally filed for divorce in July, 1977, signed it.
The premier, looking calm but rushed, was surrounded by several bodyguards and six uniformed courthouse guards as he was quickly ushered into a small meeting room while lawyers ironed out details of the settlement in another room.
The divorce, granted on grounds of permanent marriage breakdown, was not contested by Ms. L’Heureux, who did not appear. Her presence in court was not required because Levesque was the one who initiated proceedings.
Besides the alimony payments, which amount to 52,316.66 a month, the agreement requires Levesque to pay $2,500 to his former wife to help defray her court expenses.
BULLETIN
A 14-yuar-old Prince (jeorge hoy, an epileptic, was found sufe at 1:05 p.m. today after being missing from his home since Wednesday.
Police said Hrian Cox was found in the Hudson’s Bay Slough area of South Fort George. He is in fair condition, suffering from exposure.
A full-scale search had heen launched Thursday.
Police said the hoy was found lying beside Queensway Street hy a woman who was not a member of the search party.
Citizen photo hy Dute Milnr
First day.
It was the first day of school ever for Hardip Rarru and Carrie Williams today. The youngsters were among some 22,000 students who registered today at all schools in the district. Teacher Vera Buchanan reassures Hardip that all is well and that she’ll get used to it. Today’s registrations should have taken place last Tuesday, but a labor dispute delayed opening of schools until today.
U.S. BREW BACKLOG
Beer bargains offered
The price of American beer sold in B.C. liquor stores was dropped today to the same level as the price of Canadian beer as the government tries to get rid of about two million dozen imported because of the recent brewery dispute.
The price reduction was announced in Victoria Thursday by Tex Enemark, deputy minister of consumer and corporate affairs.
Local liquor stores have received new shipments of
U.S. beer, but the only Canadian beer available is Pacific Gold, brewed in Prince George.
While American beer normally sells for $5.79 to $6.70 a dozen in B.C., it will now sell for $4.85.
Enemark said the province will lose about $2 million in revenue, but the government would still make a profit at the reduced price.
The deputy minister said the
order for the huge amount of U.S. beer was placed in mid-August when the chances for the settlement of a labor dispute in the brewing industry were slim.
Last week, however, the three-month strike-lockout at Carling-O’Keege, Molson’s, Labatt’s and Columbia Brewing Co. ended with a new contract and the government, as% well as a number of hotels, got stuck with the U.S. beer.
Police probe AAunro affair
TORONTO (CP) - Ontario Provincial Police have been asked to investigate a phone call made by John Munro. federal labor minister, to a provincial court judge, a spokesman for the Ontario attorney-general’s office said today.
David Allen, communications director, said John Takach, the director of Ontario Crown attorneys, has asked police to give the matter priority and resolve the case as soon as possible.
See also page 6.
Teachers take aim at 12 pet.
VANCOUVER (CP) - The British Columbia Teachers’ Federation has recommended that teachers ask for wage increases of between 10 and 12 per cent for 1979, BCTF president Pat Brady said Thursday.
Brady told a news conference that the figure is based on inflation plus real growth in the economy during the last year.
This holds to the principles of the old federal anti-inflation guidelines, he said, noting that the coming round of negotiations will be the first in three years not conducted under the antiinflation board.
The 10 to 12 per cent figure is the recommendation of the BCTF provincial executive, representing 30,000 teachers. The 78 individual teachers’ bargaining units throughout B.C. will decide whether to adopt that figure in negotiations with local school districts.
Brady said that most will accept the recommendations.
They will also ask for sick leave improvements, protection from punitive action in cases where teachers respect picket lines of other school employees and improved leave-of-absence clauses, he said.
Merchants 'complacent fat cats'
Frank Oberle, Conservative MP for Prince George-Peace River, says people in the northeast of B.C. see Prince George merchants as “complacent fat cats” not willing to service a boom in the north.
Oberle said natural gas and oil development in the northeast is creating an economic boom serviced not by B.C. but by Alberta.
“They’re too fat and complacent here,” he said in an interview here Thursday.
Oberle said some Prince George merchants are capitalizing on lucrative markets in the northeast but many city businessmen are not willing to hustle for the extra trade.
"1 recommend the chamber of commerce here read an economic report put out by the Peace River-Liard Regional District."
Oberle also said people in the northeast can’t understand the country’s big concern with unemployment when not enough workers can be found for the north.
‘‘They can’t find enough people to work there and the unemployed are standing around on street corners in Prince George.” he said.
Oberle also slammed the provincial government for not paying enough attention to the north.
He admitted the government has spent money reconstructing highways to the area and has said the Fort Nelson, B.C. Railway extension will stay open, but still views the region as an access to resources.
‘‘There’s no incentive for people to move north," he said.
Teathers are prohibited under the Public Schools Act from bargaining on nonmonetary issues, Brady said.
B.C. teachers are also prohibited from striking. If an agreement cannot be reached with a local school district, the minister of education appoints conciliators, who attempt to help negotiate an agreement.
If they fail, the matter goes to binding arbitration.
Negotiations must open by Sept. 20 this year. Brady ssaid.
B.C. teachers were awarded a 10.2-per-cent increase in 1976. In 1977 they gained 7.8-per-cent and last year were given six per cent.
BCTF officials estimate the average teacher’s salary this year at about $21,600.
50 killed in rioting
TEHRAN (AP) - Several thousand anti-goverment demonstrators clashed with police and soldiers in Tehran today, only four hours after the Iranian government imposed martial law in the capital and 11 other cities. Unoffical reports said at least 50 demonstrators were killed.
The martial-law order, which bans gatherings by more than three persons and imposes a curfew, is an effort to end rioting by opponents of the shah of Iran's liberalization program. An estimated 1,000 persons have died in the disturbances in the last eight months.
The angry protestors shouted down religious leader Ayatullh Noori, who appealed to them to disperse.
Led by teen-agers and followed by women in their traditional Moslem veils, the demonstrators marched toward a line of soldiers and began throwing bricks and rocks, witnesses said.
TODAY
our
WITH
Thin week:
Killed: 0
Injured: 2(1
Arrented its impaired: US
Thin year:
Killed: 11
Injured: 571
To same date, 11)77:
Killed: 2.‘i
Injured: r>«o
FEATURED INSIDe) ( THE WEATHER ) ( NOW HEAR THIs)
How about Channel 51?
If you’ve got $15,000 to throw around and you don’t mind breaking the law you could set up special equipment in your backyard and receive 51 T.V channels in Prince George. Page 3.
Record gate for fight
A record gate is already assured for the Muhammad Ali-Leon Spinks title fight next week. Page 8.
Index
Family.................... ......22, 211
.........i.i ............11
City, H.C..............2,: i, i:t, IS International......... ..............5
Classified.................. ,...25-;$0 National................. ..............6
Crossword...............
Kntertainment........,
The forecast for Prince George today is for sunny skies with a chance of showers. Saturday should be mainly sunny with some cloudy periods and warm temperatures. Sunday is expected to be cloudy with showers.
The forecast high today is 17. the low 5. Saturday’s forecast high is 20.
The high Thursday was 16, the low 4 with 3.6 mm of precipitation. On this date last year the high was 14, the low 3.
• A local man’s quick reaction to some winged ants on the wall of his house proved to be a little too quick. After grabbing the nearest insect repellent, he ran out to thoroughly spray the walls, windows and door jambs. The next day lie noticed lie had also sprayed the whole area with a chemical harder to get off than paint. The only remedy was to paint the house.
• A local elementary school teacher explained to her class what her definition of capital punishment is. "It’s when you error with the alphabet or with your pronouncia-tion and 1 sentence you to the elocution chair."
• Drivers who ignore the recently-installed traffic light at Ferry Avenue and Landsdowne may be in for a rude shock. Angry parents, concerned about the safety of children en route to school, are taking down licence numbers and plan to charge motorists going through the red light.