Health
Eating a variety of foods is the best way to fight a cold. Page 12
World
Britain might target the welfare state in its new budget. Page 26
Sport
Eskimos ground the Bombers in 1993 Grey Cupi Pages 15,20
Nation
Police stop papers covering Teale trial at U.S. border. Page 10
PRINCE GEORGE
Citizen
Low tonight: -6 high tomorrow: -2
Details page 2
ONE-THIRD HIGHER THAN TORY PREDICTION
Federal deficit nears $46 billion
by Canadian Press
MONTREAL — The federal budget deficit is expected to be $44 billion to $46 billion for the current fiscal year, Finance Minister Paul Martin said today.
That’s more than a third higher than the $32.6-billion deficit predicted by the former Conservative government in its budget last April.
Despite the higher than forecast deficit, Martin said the Liberals would stick to an election promise to narrow the gap between government income and expenditures.
He gave no details but said the Liberals would bring in their first budget “within two or three months” of the start of 1994.
Martin repeated a Liberal cam-
paign promise to reduce the deficit over three years to three per cent of the country’s total economic output.
He didn’t put a dollar figure on his goal. Others have estimated that a target of three per cent of gross domestic product would mean an annual deficit of at least $21 billion.
“As a government we are committed to deficit reduction, no one should be under any misapprehension about that,” Martin said in a speech to business school students.
In a question-and-answer session later, the finance minister wouldn’t say whether the Liberals plan to reappoint Bank of Canada Governor John Crow, whose seven-year term ends in February.
“I’ll make my decision public later, but not today,” said Martin.
Crow made inflation-fighting a top priority for the central bank, and some economists have said that policy helped lead to a severe recession.
Others have said financial markets would bc disappointed if Crow is not reappointed. They warn that discontent among investors could put downward pressure on the dollar and upward pressure on interest rates.
Low inflation — which led to slower growth in government tax revenues — was one reason Martin gave today for the higher than predicted deficit.
Slow economic growth also hurt government revenues, he said.
The finance minister said he now expects economic growth for 1993 to be 2.5 per cent. That would be less than the 2.9 per cent forecast in the last Conservative budget.
Inflation has fallen to about half the level previously predicted.
“We are not talking here about a small amount,” Martin said in reference to the impact of lower inflation on the deficit.
“The difference between last April’s forecast and that of today will add between $4.5 billion and $6.5 billion to the deficit.”
Reform Leader Preston Manning said the government will have to cut spending by $12 billion to $15 billion a year for three years if the Liberals are to keep their promise
to reduce the deficit to three per cent of GDP.
“Nothing in their (campaign policy) red book comes anywhere remotely close to those types of spending cuts,” Manning told CBC Newsworld from Calgary.
“I think they are going to have to revise their spending priorities completely. Where are they going to get the money? Are they going to borrow it or are they going to tax it?”
Bloc Quebecois economic critic Yvan Loubier told reporters in Ottawa that Martin seems to be underestimating the gravity of the fiscal situation.
While stronger economic growth should increase tax revenues, Loubier predicted it will take a lot
more than an economic recovery to solve the government’s deficit problems.
Martin didn’t release revised five-year economic and financial forecasts to replace the detailed forecasts of the departed Conservatives.
But he underlined in general terms the Liberal government’s determination to reduce the deficit.
“Given the numbers that have just been announced, it will not be easy to say the least,” Martin said of keeping the Liberal promise lo cut the deficit to three per cent of GDP.
“But let me assure you that that remains our target, and it forms the basis for our ongoing budgetary planning.”
INDEX
Turban
policy
changed
SURREY (CP) — A headquarters decision to allow Sikhs wearing turbans to enter all Royal Canadian Legions will not be well-received in some quarters, says a spokesman for a branch that wants them banned.
Frank Underwood, president of the Newton branch in this Vancouver suburb, said Sunday he is surprised the executive committee of the dominion command in Ottawa would make such a move before the annual convention.
Legion officials say a new policy changing what constitutes headdress will go into effect immediately although it must be approved at the national convention in May.
Underwood also said he expects the policy change will cause problems at some branches.
“It’s going to hurt a lot of branches between now and May.”
The issue was put on the executive committee’s agenda after complaints from five Sikhs who were prohibited from entering the Newton branch after being invited to participate in a Remembrance Day parade.
They were told they couldn’t come in because they were wearing turbans and headgear of any kind was banned.
A week later, the turban ban was overwhelmingly upheld at the branch’s monthly meeting. The headgear rule is optional and many branches allow Sikhs wearing turbans.
Ann Landers .... 12
Bridge................. 25
Business.................8
City, B.C...........2,3
Classified  22 25
Comics.............. 21
Commentary...............5
Crossword........... 23
Editorial................4
Entertainment ...	21
Horoscope........... 25
Lotteries................7
Lifestyles 12,13
Movies.............. 21
Nation ................ 10
Sports...............15-20
World............... 11
Citizen photo by Dave Milne
Thousands braved pouring rain Sunday as they lined downtown streets for the Christmas Parade. More photos, page 3.
Thousands cheer Christmas parade
Tony Burson is getting ready for Prince George’s second Christmas parade
Burson, still glowing in the warmth of Sunday’s inaugural Christmas parade, said he was going to city hall this afternoon to get ready for another.
“I am going out to get a parade permission slip today,” Burson said this morning. “I had a lot of people thanking me for bringing this parade. “It did bring tears of joy to my eyes.”
Floats, bands and clowns
marched down Victoria Street Sunday as 50 entries braved wet and blustery temperatures. Even organizers were surprised at the crowd turnout estimated in the thousands.
Top prize in floats went to the Community Arts Council, followed by runner-up Beverly’s Boutiques. Timberland Trail Riders were third and the Sweet Adelines fourth.
Bob McColley was the top clown and the best band honors went to 396 Squadron, Royal Canadian Air Cadets.
downtown plan
ters, realignment of traffic signals and the conversion of some nearby streets to angle parking.
Bill Kennedy, director of finance and administration, will offer three options tonight for council to consider which all increase the cost to the city.
■ Option A suggests a 43 to 57 per cent cost split between merchants and city, respectively, in which merchants would be taxed at a rate of $68.40 per frontage foot After considering all extra costs to the city, merchants would pay 50 per cent of the total cost.
■ Option B suggests a 48 to 52 per cent split between merchants
and city, respectively, in whic merchants would be taxed $62.2 per frontage fooL Merchani would pay 46 per cent of the tou
COSL
■ Option C suggests a 46 to 5 per cent cost split between mci chants and city, respectively, i which merchants would be taxe $55.34 per frontage foot. The n suit of this option would see m© chants paying 41 per cent of th total project.
Kennedy recommends “at if very least, option A should t selected” but the last two optior should be considered as well.
CNC feels cost squeeze
by MARILYN STORIE Citizen Staff
A review of CNC’s budget forecast for 1993-94 indicates the college may be worse off financially by the end of its fiscal year than was predicted.
The latest College of New Caledonia forecast shows a deficit of $493,000 for the year ending March 31, 1994. That is some $70,000 more than originally anticipated.
Jim Blake, vice-president of administrator and bursar, attributes
the growing deficit to a large number of reasons. Some of the more significant ones outlined at CNC’s montly board meeting Saturday:
■ Cost-rccovery programs are not expected to improve but to deteriorate by some 2.7 per cent or $18,800. The main decreases are seen at the main campus, particularly in trades, due to staffing changes, and in the time needed for the new community education department to get up and running. Blake said that is offset by increased activity in the three college regions.
■ Much of the increase in the ministry grant to the college this year was earmarked for special purposes. The provincial government assisted the college in achieving pay equity for female support and administrative personnel by providing $85,000.
The college’s challenge is to make substantial improvements before the end of March. On the plus side, Blake said the cost-re-covery estimates are conservative and that the picture is expected to brighten as the community education department is established.
Fa reus
Council tackles
ujAiibLAii/coot-r^a.'
Prince George city council will take a second look tonight at cost-sharing between the city and downtown merchants for the proposed revitalization of Third Avenue.
Fewer than half of property owners are in favor of the $3-mil-lion project due to the initial cost proposal in which the city paid one-quarter and property owners the other three-quarters of the cost.
That cost to property owners would be more than $2,400 annually for the next 10 years.
At the Nov. 1 council meeting, the downtown revitalization steer-
ing committee asked council to consider contributing more than one-quarter of the project to lessen the impact on the business community.
The B.C. government’s revitalization manager advised annual costs to downtown property owners should be kept between $350 and $800 in order to sell the project.
Only 23 of 65 affected Third Avenue properties signed up as confirmed supporters.
The city’s costs also include construction of a gateway park at First Avenue and George Street, roadwork, removal of parking me-
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