The Prince George
Citizen
THURSDAY, NOVEMBER 9, 1989
50 CENTS
Low tonight: 2 High Friday: 6
Ann Landers..... 10
Bridge........... ?7
Business......... 12,13
City, B.C......... 2,3
Classified........ 25-29
Comics.......... .24
Crossword....... , ,26
Editorial......... 4
Entertainment ... .22-24
Family.......... . 10
Horoscope ....... ,.. ,27
International ____ 7
Lifestyles ......1C 1,11,30
Lotteries......... .....2
Movies .......... , 22
National......... , , , 6
Sports............ .17-21
Television ....... 28
Creatures in peril 5
Expensive painting 7
Wave of future
Canucks luckless
14
17
Ecological apples 32
TELEPHONE: 562-2441
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New tax on way, despite 'damage' leak
OTTAWA (CP) - Prime Minister Brian Mulroney, shaking his finger and speaking with a stern voice, said today he will deal head-on with a leaked report that says his proposed sales tax would cause devastating damage to the economy.
The report compiled by the provinces said the proposed nine-per-cent goods and services tax would throw more than 400,000 people out of work and cost provincial governments almost $7 billion in lost revenues over three years.
But the prime minister said today the existing 13.5-per-cent
federal sales tax on manufactured products must be replaced and the new goods and services tax will be imposed.
“This is another tough decision, but it’s the right decision,” Mulroney told the premiers in an opening statement at the first ministers conference.
The existing federal sales tax is an “economically destructive tax” paid by most consumers without even knowing it, he added.
“We’re going to scrap it, it’s bad for Canada, it kills jobs, it limits growth and if affects regional progress and the GST will
be implemented.”
The premiers and the prime minister started picking up the pieces today after the leaked report dropped a a bombshell Wednesday before the two-day conference on the economy began.
Perhaps the most controver-
MORE GST, PAGES 7, 8
sial issue in talks on Canada’s economy is the proposed federal sales tax. And the leaked report should strengthen provincial opposition to the new tax, said two provincial finance ministers
before the conference formally opened today.
Hubert Kitchen, Newfoundland’s finance minister, said: “Our thought is that they should withdraw the goods and services tax at this time and perhaps sit down with the provinces and discuss our mutual financial problems.”
Mel Couvelier, British Columbia’s finance minister, added that "the basic fact is the Canadian public are deeply offended by this tax.”
Both men were speaking in an interview on CTV’s Canada AM.
As well, a Gallup poll publish-
ed today showed 79 per cent of people surveyed believe taxes are too high in Canada.
The poll, the latest in a growing string showing public anger over the new tax, suggested the number of Canadians who believe taxes are too high is the highest figure recorded since the question was first posed 27 years ago.
Finance Minister Michael Wilson said he understands that Canadians are fed up with taxes, but the federal government must keep trying to slash its annual budget deficit.
The deficit is expected to in-
crease to $30.5 billion in the 1989-90 fiscal year from $28.7 billion in the last fiscal year.
“I understand, we’ve done a lot in the last five years to get the deficit down and part of that has meant increasing taxes and a larger part has meant getting government spending down,” Wilson said on Canada AM.
“But Canada is not an overtaxed nation,” Wilson added, saying Canada’s tax burden ranks in the bottom third among major industrialized countries.
“We have increased taxes. I make no bones about that and I sympathize,” he added.
HERMAr
"Joe’s my
where I've been all night."
Track costs were too low, builders say
by BERNICE TRICK Staff reporter
Construction officials in Prince George are fighting back because they feel blamed for increased costs to the new running track and stadium project.
It’s not a matter of the costs being substantially increased, but an estimate which was far too low to start with, they say.
Ron Skuggedal, vice president of Viking Construction, said, consultant Ron Davies “did a poor job to start with.”
“Anyone looking at those drawings knew the steel component in the stadium would cost about $500,000 alone.”
The original estimate for construction of the stadium-field house was about $450,000, but tendered bids from five local contractors, including Viking, each came in at more than $1 million.
What has become a $3-million project (up from an original estimate of $1.8 million) is on a fast-track schedule to be ready for the 1990 B.C. Summer games being held here July 12 to 15.
Work didn’t begin until late summer because of a long government delay in awarding the Games.
Skuggedal resents a remark made at Monday’s city council meeting.
“(Alderman) Denise Goodkey’s remark about paying $128 per square foot for ‘a hunk of cement and a couple of washrooms’ when it costs only $80 per square foot to build a house shows council members know nothing about construction,” he said.
“The two can’t be compared because there’s a big differnce between commercial and residential construction.”
He said the winning bid by Can-Form Construction at $1,038,365 is
Our dollar on upswing
TORONTO (CP) - The Canadian dollar continued to soar this morning at levels not seen for a decade.
The dollar hit almost 85.7 cents US in early North American trading — up almost one-fifth of a cent from Wednesday’s close — as the Bank of Canada’s high-interest-rate policy continued to attract foreign investors.
Traders said the latest rise follows a move Wednesday by the U.S. central bank to slice interest rates, thus widening the difference between short-term Canadian and American rates.
a “good price.”
“It’s the best they’ll ever get.”
He thinks Aid. Red Mothus showed poor thinking by suggesting the stadium project be delayed by a year or two.
“Does he expect hundreds of spectators to sit on the hill to watch events (at the B.C. Summer Games)?”
The Prince George Construction Association issued a press release Wednesday expressing its concern “over the inference tnat construction costs are to blame for additional costs to the city when, in reality, the original estimated budget would appear to have been in error.”
Both Skuggedal and PGCA admit the fast-track schedule requiring winter work to be done will incease costs slightly, but even taking that into account, believe the estimates were “far, far too low.”
They both scoff at the claim that construction firms are so much in demand they are charging more money.
“The market has been reasonable the past two years, but we’re not at capacity. All companies here could do with more work,” said Skuggedal.
Roz Thorn, general manager of PGCA, agrees.
“The industry is experiencing increased activity comapared with the past few years, but is by no means working to its capacity,” she said.
City engineer Ernie Obst, responsible for overseeing the entire $3-million project, said first estimates were no doubt low, but said there are a variety of reasons for the increased cost.
“It’s far more complex than just a low estimate from the consultant.
“There needs to be allowances for winter work because the job must be completed by mid-June. Another six months to work at this would have made a difference.
“The original prices seemed reasonable in comparison with Vancouver projects at the time,” he said.
Nor does Obst think Goodkey was way off base in her statement.
“The cost — $128 per foot for a plain concrete building — concrete floor, concrete block walls and some plumbing is definitely high. It’s almost twice as much as a house — and a pretty good house, too.
“Considering there’s no carpets, fireplaces or feature walls, it makes you think this is awfully expensive,” he said.
Davies, of Vancouver-based Arena Sports and Recreation Consultants, was not available for comment today.
Citizen photo by Dave Milne courtesy Okanagan Helicopter
These moose are part of a group of eight, four cows and four calves, which proves the species didn’t survive these past millions City dwellers years by being stupid. The local octet has shunned the hunting territories until the season’s over Nov. 15, preferring the safety of Prince George’s no-hunting territory by staying less than a mile from city centre.
BUDGET CASE ADJOURNED
Lies alleged in Small trial
by MALCOLM CURTIS Southam News
OTTAWA — Legal proceedings against TV journalist Doug Small were adjourned today after Crown prosecutor John Pearson said perjury charges may be laid against the star witness.
RCMP Staff Sgt. Richard Jordan has stunned the court this week with testimony that the Mounties may have acted to please the government when they charged Small and two others in connection with the April budget leak.
But the case took another startling turn today when Pearson suggested Jordan has not been telling the truth.
“It will be my position. . .that he has been allowed and permitted in this court to make allegations that he knows that if he is required to (prove) he’s liable to being charged with perjury,” Pearson told the court.
Pearson then withdrew from the case saying the defence may call him as a witness. Because of his withdrawal, Judge James Fontana adjourned the proceedings until May 28, although an earlier date is still being sought.
Jordan, who investigated the budget leak, testified Wednesday that a top federal Justice Department official and the RCMP’s deputy commissioner collaborated to
find ways to charge Small in last April’s budget.leak.
“The character of discussion was more toward scheming than legal advice,” Jordan told provincial court, referring tu meetings May 3 and 15, between deputy commissioner Henry Jensen and associate deputy justice minister Douglas Rutherford.
His testimony came at a pre-trial hearing to determine whether charges of possessing stolen property — the Budget in Brief pamphlet — laid against Small and two others should be thrown out because of political influence.
The 41-year-old policeman, who has a law degree, testified Monday that he was relieved as investigator when he refused to lay charges in the case because of just such influence.
Jensen, the RCMP’s second in command, showed a biased view of Small’s role in the leak by saying “journalists should be taught a lesson,” Jordan said.
He added that Rutherford gave
Bank rate
OTTAWA (CP) — The Bank of Canada rate rose slightly today to 12.49 per cent from 12.47 per cent set last week.
“bizarre” legal reasons for the charges and it was a “foregone conclusion” Small would be charged.
The Global Television reporter broadcast details of the budget the night before Finance Minister Michael Wilson was to introduce it in the Commons.
Normand Belisle, a recycling company worker, and John Appleby, a Defence Department clerk, are also charged with possessing the Budget in Brief in connection with the Global leak.
And Jordan revealed that the RCMP did not tell Belisle and Appleby they were suspects when questioned about their role in the leak.
That’s because the investigation originally sought a possible breach of trust by a government employee, he testified.
Police fingerprinted Belisle and gave him a lie detector test without telling him his rights, said the 19-year RCMP veteran.
He added that it was his impression senior officers decided to charge Belisle otherwise the case against Small wouldn’t stand up.
Jordan said the test confirmed Belisle inadvertently took the budget pamphlet — a printing reject worth .029 cents — from trash in a government printing plant.
E. GERMAN BORDERS OPENED
EAST BERLIN (AP) - East Germany announced today it was opening its borders and will allow its citizens to freely travel anywhere.
The dramatic development was announced by Guenter Schabowski, a member of the ruling Politburo.
He said East Germany’s heavily .fortified frontier with West Germany would be opened as a provisional step until passage of a proposed new law to allow all East Germans greater freedom of travel to the West.
The move comes after decades of fencing East Germans in to prevent their flight to the West.
Schabowski told a news conference that those East Germans who want to emigrate can go to West Germany directly without having to go through a third country, such as Czechoslovakia.
Schabowski said those who only want to visit the West need visas, but that those should be issued as quickly as possible. He mentioned no limit about the length of stay abroad.
During the news conference in East Berlin, Schabowski made the announcement that, among other things, will make the Communist-built Berlin Wall virtually superfluous. The wall has divided Berlin and the two Germanys since 1961.
The Politburo member said East Germans can use any border crossings, including those through the Berlin Wall.
Schabowski said the measure would stay in force until a new, revised travel law comes into force. He did not say when that would happen.
Schabowski told reporters the decision was made during a Communist party Central Committee meeting.
He said the decision means all East Germans “can travel over all East German border checkpoints.”
Less than a week ago, East German officials announced that East Germans who wanted to emigrate to West Germany could do so over the Czechoslovak frontier, which has resulted in a surge of more than 50,000 new refugees since Saturday.
East Germany’s Communist leaders have been under increasing pressure to impose reforms and ease travel restrictions.
Earlier today, East German leader Egon Krenz called for a law ensuring free and democratic elections.
Mulroney rates , poll shows
MONTREAL (CP) - Prime Minister Brian Mulroney met the premiers in Ottawa today with the lowest public support of any government leader at the conference, a national poll suggests.
A Southam News-Angus Reid poll of 2,006 adults shows that in terms of public backing, the prime minister will be bargaining from a position of weakness.
The disapproval level for the prime minister indicated by the poll stands at 69 per cent, with only 26 per cent of respondents saying they like the way he has conducted the country’s business during the last few months.
The level of disapproval for Mulroney and his government is as high or higher than at any time since 1984, when Canadians elected the first Tory majority government in a quarter-century.
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