PENSIONS, FAMILY ALLOWANCE
Cheques ready next week
   Pension and family allowance and other federal assistance cheques will be delivered or available to about 20.000 residents here July 29, 30 and 31.
    The cheques will be delivered from a neutral location at St. Michael’s Anglican Church, 1505 Fifth Ave., Warren Cory, zone manager of the Prince George post office, said today.
   The Letter Carriers Union of Canada agreed earlier to deliver cheques the week of the 27th from neutral locations providing there were no objections from other unions.
    Cory said he had official confirmation of the deliveries Thursday. He said cheques had to be processed July 27 and 28 before being delivered.
    In a Citizen story earlier this week several pensioners said they were suffering financially because of delays in
  cheque delivery because of the postal strike, which began three weeks ago.
  Two said they were down to less than $50 because cheques hadn’t arrived before the strike began June 29.
  Pensioners who normally receive their mail by letter carrier will have their cheques delivered to their homes July 29.
  Those who normally get mail through postal lock boxes or general delivery must come in person to the church July 29 from 1 to 4:30 p.m. and July 30 and 31 from 8:30 a.m. to 4:30 p.m.
  Cory said anyone picking up cheques must have appropriate identification.
  Pensioners in the Vanderhoof area will have their cheques delivered July 29 from 1911 First Ave.
  Pensioners in Mackenzie will have theirs delivered the same day from city council chambers.
The
Citizen V
 Friday, July 24, 1981	Prinpp flpnrap Rritish fnlnmhin
 Prince George. British Columbia
INFLATION ADJUSTMENT'
MPs get second 'retroactive' hike
More fires feared
   With rising temperatures and dropping humidity in the Prince George forest region, the B.C. forest service is concerned more forest fires could flare up during the weekend.
   Five new fires started during the past 24 hours, but “we’re expecting more ‘sleepers’ to show up during the next day or so,” said Larry Espeuant, protection planning co-ordinator.
   Small areas that have been struck by lightning are smouldering now, but
 the ground is drying out quickly, he said.
   The fire hazard is already high throughout the region and it will climb further during the weekend.
   For instance, a small area of smoke at the Niven River in Spatsizi Plateau Wilderness Park spotted Thursday grew to 10-hectare fire within four hours. It is the third fire to hit the area west of Ingenika, during the past week.
   OTTAWA (CP) - A veteran New Democrat says Parliament’s accountants are overstepping the law in calculating adjustments for cost of living that will give MPs even more than the 23-per-cent salary increase they voted themselves this month.
    MPs will get at least nine per cent more than the retroactive increase they gave themselves July 9. a government official also said today.
    Stanley Knowles of the New Democratic party says Commons staffers are calculating the latest increases in a way that will give MPs double adjustments - more than allowed by the law they approved with a minimum of debate.
    The inflation-adjusted increase will bring an MP’s annual salary to $43,800. Parliament had increased it to $40,200 from $32,700, dated back to Jan. 1. The new increase also goes back to the start of the year.
    The tax-free allowance rises to $14,730 from the $14,400 for Jan. 1. It had been $13,500 last year.
    Taken together, MPs now get $58,530 a year.
    The extra pay to cabinet ministers and other MPs with special positions will also increase by at least nine per cent as will the salaries of senators.
    Knowles opposed the whole pay package for taking salaries for MPs and senators too far beyond the level the average Canadian enjoys.
    He said in Winnipeg the tax-free allowance is being double indexed, apparently because those calculating it forgot it was raised seven per cent Jan.
  1 under the previous salary regime.
    Bob Bergeron of the Privy Council Office explained today the cost-of-living adjustments are based on a provision in the salary package which increases it by one per cent less than the increase in the consumer price index or the industrial composite index, whichever Ls less.
    Knowles said MPs got their retroactive pay cheques a scant seven days after the new pay bill was given royal assent.
    "I was horrified to discover the tax-free expense allowance had been indexed twice,” Knowles said.
    Instead of subtracting the seven per cent already applied to the expense allowance. ’’they re-indexed, they double-indexed, they exceeded the indexed amount by 9.106 per cent.”
    He also questioned the calculations increasing salaries by the cost-of-living adjustment. Knowles has contacted Commons administrator Art Silverman about the pay slips.
    i think the tax-free expense allowance is being paid to us this year at a rate $1,000 higher than the bill permits.”
  Leaving aside his opposition to the whole package, Knowles argued that in any case it does not provide for double indexing of expense allowances.
BANKS START AT 21 PER CENT
es in year
  TORONTO (CP) - Canada’s major chartered banks pushed their prime rates up a full percentage point to a record 21 per cent Thursday - almost double the rate of a year ago - after the Bank of Canada moved its trend-setting bank rate to 19.89 per cent.
   The increases in the prime, the rate chartered banks charge their most credit-worthy commercial customers, came after a clear signal from the
 central bank that rates must be increased to help shore up the sagging dollar, which closed Thursday at 82.18 cents U.S. on international money markets — its lowest level in 50 years.
   The increase in the central bank rate, which jumped more than three-quarters of a percentage point from 19.04 after the regular auction of treasury bills, means still higher rates for consumer loans.
AAideast fighting en ds
       by Associated Press The United States announced an end to ••all hostile military action between Lebanese and Israeli territory” today after two weeks of bloodshed that left at least six Israelis and hundreds of Lebanese and Palestinians dead
    The truce took hold after an Israeli night raid into Lebanon which the Tel Aviv command said killed three guerrillas in a jeep. The Palestinians replied with a rocket barrage that killed a 65-year-old Israeli and wounded 14 in the northern Israeli town of Kiryat Shniona.
   Israel’s deputy defence minister, Mordechai Zippori, told Israel Radio
 he was optimistic that the U.S. embargo on delivery of F-16 jet fighters to Israel would be lifted soon. But the Reagan administration said it was not yet prepared to resume the shipments.
   A White House spokesman said President Reagan welcomed U.S. special envoy Philip Habib’s announcement of the truce.
   In Beirut, Yasser Arafat’s Palestine Liberation Organization made no comment other than to say it would abide by a United Nations-endorsed truce urged for today if Israel adhered to it. The PLO said this position was communicated to UN Secretary-General Kurt Waldheim Thursday.
See also page 5
   Before the jump, consumer loans cost in the 22-per-cent range and mortgages were about 19 per cent.
   The jump, coming as inflation has hit a 30-year high of 12.8percent andas the dollar takes a battering, also significantly increases pressure on the government to take action.
   Finance Minister Allan MacEachen said in an interview the situation is • particularly worrying because of the very significant increase in the bank rate and the very significant pressure on the Canadian dollar.”
   “You ask me whether I’m going to take economic action before the budget, and the answer is that the major option that is open and I have mentioned already is a stronger fiscal policy (higher taxes and-or lower government spending).”
   He laid the blame for the latest rise in Canadian interest rates firmly at the doorstep of the United States.
   ••We’ve had this . . . significant increase (in the bank rate) mainly because of market reaction in the U.S. to the money supply figures.
   “ ... But even with a stronger fiscal policy, (while) it might over time ease the situation, it’s not going to remove the pressure that is being exerted on every industrialized country by the situation in the United States.”
HERMAN
FEATURED TODAY
 Campaign launched
 Poland has launched a campaign designed to head olf the explosive unrest that always seems to follow food price hikes. Page 5.
‘Who left the stereo switched on?'
 Index
Bridge............................28
Business.......................8,9
 City, B.C'....................2,3.«
 Classified.................25-3 I
Crossword....................27
Editorial..........................-I
 Entertainment........ 19-21
Family...........................23
Horoscopes...................22
International..................5
Movies......................20,21
National..........................7
 Real Estate section 32*35
Religion......................... IH
Sports....................... 13-17
THE WEATHER
Sadrack says . . .
  Summer’s back and we’ve got it! The outlook for today and during the weekend calls for sunny skies with a chance of isolated showers and a high of 23 today and Saturday. The forecast low today is 9. The high Thursday was 23, the low 9. On this date last year the high was 21, the low 5.
   Sunset tonight is 9:22 p.m. Sunrise Saturday is 5:13 a.m., sunset is 9:20 p.m.
NOW HEAR THIS
 • The two architect aldermen on city council have suggested an inexpensive solution to the problem of what to plant in the inaccessible second storey exterior planter on the new library. Plastic plants.
 • Alderman Alan Greenwell was complaining about a bump on 15th Avenue, it’s so bad that even going slowly my car grounds,” he said. ‘ But that’s not bad, answered city engineer Ernie Obst, “most North American cars have better clearance.” Greenwell drives a sleek and low British sports car.
 Got a news tip? Call The Citizen’s 24-hour news line at 562*2441.
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Citizen photo by IIrook Gable
 Signs tell the story for IWA members Jackie Fox (left) and Chris Sacco.
VOTE ON OFFER SOUGHT
IWA office picketed
by BOB MILLER Citizen Staff Reporter
   Two members of the International Woodworkers of America (IWA) demonstrated in front of their union’s regional office on Third Avenue today to protest not being given a chance to vote on the forest industry’s final wage offer:
   The demonstrators, two female employees of West Fraser Sawmill in Fraser Lake, say they have had a lot of feedback from members who want to go back to work.
    “We want the union to go to the membership for a vote on the final offer. A lot of our members felt they would be given a chance to vote on the offer, but they weren’t," Chris Sacco and Jackie Fox said.
   The women said when the union took its strike vote the membership gave the executive the right to take any action on behalf of the members, and that a vote on the final
 offer is not mandatory.
   But at the same time they feel a lot of union members would accept it if given the chance to vote on it. The industry has offered a 26-per-cent pay increase over two years, fringe benefits and a 40-cent premium for tradesmen.
   The women said they hadn't approached the union executive before today’s demonstration because they wanted to take people by surprise to see what kind of support they could muster.
   “We’re asking members to phone the IWA, or radio stations to see what kind of support we get. If we get support we’ll keep going and if not, we’ll know it’s a dead loss."
   Jack Higgins, first vice-president of IWA Local 1-424, said some union members have questioned the negotiating committee's action in rejecting the offer and going out, but most members support the strike.
Cltlun photo by Brock Giblc
“How amusing. Lance, these common little people want to take our photograph.” When you’re a Russian Borzoi (right) and a Great Dane, named Morgan, you can afford to be superior. About 400 dogs will show their canine prowess today until Sunday at the 14th annual Northern Interior Kennel Club dog show at Exhibition Park. The dogs, from all over western North America, are judged on obedience and appearance and shows are from 9 to 5 p.m.
High class
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