today in brief
THE B.C. government has approved plans that would have supertankers hauling billions of litres of “surplus” fresh mountain water to parched countries. Page
SECOND PLACE was the best Brian Orser could do at the world figure skating championships. Page
WARDAIR has become Canada’s third national scheduled airline. The company is promising fares one-third below regular economy rates. Page
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The
‘D'you think you could play a little louder? I keep falling asleep."
Index
Ann Landers...
City, B.C...... .3,6,9,10,12
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We're No. 1 Page 15
Prince George
Citizen
Sadrack says
Today will be sunny with cloudy periods and scattered showers in the afternoon, while Saturday will be sunny with cloudy periods.
Temperatures should reach highs near 9 today, near 10 on Saturday with an overnight low tonight near -3.
There is a 50-per-cent chance of precipitation today, dropping to 10 per cent tonight and 20 per cent Saturday.
Thursday’s high was was 12, the low was 1, there was no precipita-
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Details pa^e 9
tion and 20 minutes of sunshine.
Sunset today is at 6:25 p.m. and sunrise Saturday is at 0:08 a-, m.
50c Including
Friday, March 21, 1986
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SOCREDS PRESENT BUDGET
School, health spending
by PA! L LOONG Canadian Press
VICTORIA — British Columbians got a painless provincial budget Thursday that contained no personal tax increases and improved the prospects for cheaper fuel.
The $9.64-billion budget reduced the income tax burden of businesses and promised more money for health and education in the fiscal year beginning April 1, during which a provincial election is widely expected to bo called by the Social Credit government
Finance Minister Hugh Curtis’s budget declared that priority must be given to racklir.g high unemployment, but rejected direct government make-work projects as unacceptable shortcuts. “The only permanent way to increase employment is through investment,” he said.
The budget predicted the unemployment rate will remain around
the current 12.9-per-cent mark for the coming year, about three percentage points higher than the national average.
The government will spend $10 million to help unemployed people find jobs, and another $5 million to train young people with no work experience.
The budget reduces the general corporation income tax paid by business from the current 16 per cent to 15 per cent next year and 14 per cent in 1988. The reduction will cost the government $98 million over tlu next three years and benefit som. 2,000 businesses, Curtis said.
There will be no change in the provincial personal income tax rate, which at 44 per cent of the federal tax is the second lowest in Canada behind Alberta.
The provincial fuel tax, which influences the price of gasoline and other petroleum products, will be capped at the Jan. 1 level of 8.64 cents a litre. The measure
iBUDGEf HIGHLIGHTS §
■ There will be no increase in personal income taxes or sales tax rates.
■ At least $720 million will be spent over the next three years through a health improvement fund to finance hospital beds, organ transplants, new drugs, advanced cancer treatment and AIDS therapy.
■The general corporation income tax rate will be reduced to 15 per cent from 16 per cent Jan. 1,1987, and to 14 per cent Jan. 1,19SS, resulting in savings of $64 million for some 2,000 medium and large businesses.
■ Motor fuel tax rates will be set at the Jan/1, 1986, level, eliminating a small tax increase scheduled for April I.
■ The deficit for 1986*87 is estimated at $875 million, down $73 million from the revised deficit of $948 million for 1985-86;
appeared to be in response to the public outcry against higher taxes at a time of falling oil prices.
The drop in world oil prices has
prompted the government to predict a decline of about $50-million in oil and gas royalties and taxes in the coming year.
Bike season
Dennis Hanson, 12, breaks out of his Grade 6 class at Malaspina elementary and hurdles the bike rack to grab his wheels. Spring and kids on bicycles go
together, and motorists are advised to take extra care as the young bikers take to the streets.
Citizen photo by Lisa Murdoch
YOUTH PROGRAM HIT
'Way out of control'
by MALCOLM CURTIS Staff reporter Senator Jacques Hebert may have touched hearts across the country with his fast to bring back Katimavik, the recently-dropped federal youth program, but he hasn't cut any ice with Lome McCuish, Prince George-Bulkley Valley MP or Fraser-Fort George Regional District board members.
The board defeated a motion at Thursday’s meeting to write the government asking the program be replaced. The district had planned to get regional park improvements done through the program and had earlier sent a letter complaining of Katimavik s deni e to Youth Minister Andree Champagne.
However, the majority of board members bowed > the logic contained in a letter ent to the district by McCuish in which he suggested the program "as a waste of taxpayer’s money “The administration of this pro-
gram has always been excessive and was becoming progressively worse,” McCuish wrote.
Although participants, who gained work experience in various parts of the country, were only paid $1 a day plus $1,000 in severance pay, the actual costs amounted to $20 million a year for just 2,000 youth put through the program each year.
“While it is certainly an integral part of the education of any young person to travel to another area of Canada, I will never accept a position that it is the responsibility of any government to be sponsors,” McCuish argued.
The MP added that he thought $20 million could “go a long way toward community work” but that travel costs should be paid by individuals or their families.
“Katimavik wasn’t the only program funding youth by any stretch of the imagination.” said Prince George Mayor Elmer Mercier.
“Katimavik was, I think, way out of control.”
Hebert got a tongue-lashing for his hunger strike from board director Jim Scott (Crooked River-Pars-nip).
“I’m ashamed that a senator of that stature would resort to those means,” said Scott. “I’m ashamed of him as a politician.”
Aid. Colin Kinsley said asking the government to replace Katimavik was “redundant” because Ottawa has indicated it is replacing the program. In fact, the federal government has not made such an indication, although it has been speculated that a new youth program will be introduced.
Marilyn Wheeler, director for Robson Valley-Canoe, was a lone voice in support of Katimavik.
“I think Katimavik did a great deal of work for McBride,” said Wheeler. “If something comparable to it were put in place, fine, but I don’t see anything happening.”
Inflation rate down slightly
OTTAWA (CP) — Lower food prices, especially for fresh vegetables, pushed the annual inflation rate down to 4.1 per cent in February from 4.4 per cent in January, Statistics Canada said today.
What this means is that while prices were still rising in February, they were not rising at as fast a rate as they were in January.
News of the slowdown in the year-over-year rise in the consumer price index comes only two days after Gerald Bouey, governor of the Bank of Canada, issued a stern warning that Canadians cannot afford to become complacent about inflation.
“We do have to be concerned about inflation because if we’re not it’s liable to take off again,” Bouey said following the release of his annual report.
Four per cent inflation is not good enough because many of Canada’s competitors have even lower inflation rates, he said.
Despite the lack of tax increases, a continuation of tax breaks announced last year and promises of an extra $500 million in spending, the provincial deficit is predicted to be $875 million for 1986-87. The figure is $73 million lower than the current year’s projected deficit of $948 million.
Both revenue and expenditures are expected to be higher.
In the coming year, the government will spend $9,643 billion, 5.7 er cent more than this year’s 9.123 billion.
The government expects to earn $8,768 billion in 1986-87, 7.3 per cent more than this year’s $8,175 billion.
The budget optimistically predicted that revenue from personal income tax will increase 13.4 per cent to $2.35 billion, and corporate income tax revenue will rise even higher — by 28.5 per cent to $406 million.
The budget announced an extra $490 million for the second and third years of a special fund to im-
ANALYSIS, PAGE 7
prove education. Together with $110 million already announced for 1986-87, the Fund for Excellence in Education will have a total of $600 million for education projects judged worth while by the government.
The fund is in adaition to the Education Ministry budget of $1,185 billion an increase o ’8.5 per cent over th;s year.
A three-year health improvement fund will make available $120 million in the coming year and at least a total of $720 million over its lifespan for neec’jd services like organ transplants, new dri'gs. better cancer treatment. AIDS therapy and new hospital beds.
The fund forms part of the Health Ministry’s $2.75 billion budget — the largest in the government.
forestry
by KEN BERNSOHN Staff reporter
A $70-million intensive forest management fund is being welcomed with cautious optimism by those it would benefit most.
The new fund, which includes a provision to raise stumpage rates, was part of Thursday’s provincial budget which also raised the Ministry of Forests budget by 21 per cent, largely for reforestation.
Forests Minister Jack Heinrich, who was in Prince George today to speak about the budget, says the fund’s money would come from sources other than just the government.
Heinrich said the new “Forest Stand Management Fund” would include:
■ $20 million from the government, which may corne from a surchage on stumpage fees.
■ $20 million from the forest industry.
■ $20 million from the federal government.
■ $5 million from forest industry unions.
■ $5 million from municipalities.
About three years ago, Doug Little, senior vice-president of North-wood Pulp and Timber, and six other foresters formally suggested this type of fund to the provincial government. Their main concern was to have money for reforestation which could not be appropriated for other uses at government whim.
“The principle of a fund with money coming from different groups is a good one,” Little said.
“My concern at this time is whether this new fund is really secure from other government requirements. I’ll be very interested in seeing the details on how the fund is set up and what safeguards are included to make sure money contributed by others gets used in appropriate forest renewal projects.”
Heinrich says the objective is to have a fund which is untouchable once money from other contributors is received.
“The fund does not belong to the government alone so it can not be encroached upon,” Heinrich said.
However, legislation governing the fund does not include any safeguards. According to the bill, the fund “is established as an account in the consolidated revenue fund.”
“1 have no intention of ever breaking faith with those who contribute to that fund,” Heinrich said.
When asked if he would resign his seat if the government took money from the fund and used it for other purposes, Heinrich replied. “Ii the fund were en-
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an extraordinarily difficult position and I’d have to address my position at ihat time.”
When asked about the chonces of the federal government contributing $20 million toward tie fund, Heinrich said, “1 want to remain optimistic. There should b( serious consideration by the fede. al government of this.”
He also declined to say whether he felt forest unions would indeed agree to contribute $5 million toward the fund.
“The question is where’s the money to come from” commented Ray Aro, chief forester of the Takla division of Canfor in Prince George.
“If the money is put. forth, it looks all right. I’ve sal op a number of committees and one big issue which always come- up is money. This is a step in the right direction.”
The added contribution from companies could be a bit jI a burden on individual firms, according to Prince George Chamber < \ Commerce president Tom Grifiits.
“This could mean higher employment over the long term.
Griffiths said he felt the budget in general was quite gooc although he would have liked to see more incentive for small busines: es to hire addition staff at this time. He also welcomed the increase in highway improvement funds, and hoped at least some of the money would be used to improve Highw. y 16 east to McBride.
Business,
pleasure
mixed
OTTAWA (CPI - Two delegations of MPs and senators who took taxpayer-funded tours of Mexico and the Far East in chilly February appear to have spent more time relaxing than working.
Reports of the two trips that were tabled in the Commons