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Brandon Sun (Newspaper) - August 2, 1979, Brandon, Manitoba
Figures reveal stagnation Pawley opposition nip Leader Howard Pawley said today the mid year investment figures released by statistics Canada reveal economic stagnation in Manitoba. Pawley said figures show private investment in Manitoba increased 5.1 per cent Over last year As compared to a 12.8-per-cent increase nationally. He said that figure Points out that the Lyon government a has no Superior ability to attract private investment and that the business sector in the province is losing its Confidence. With inflation running at nine per cent Pawley says private investment is a a in reality below the level attained in 1978. Related coverage Page 2 today open considering Oil Price increase new York apr crude Oil prices already up 42 per cent this year May Rise again soon because foreign producers Are unhappy with the slide of the . Dollar and the Price they set at the june meeting of the organization of Petroleum exporting countries open. Although Many analysts say ifs too Early to Tell whether open will decide to Call a special meeting in september As the Cartel is reported to be considering they say such a meeting would probably Lead to a Price Rise. Takeover angers . Lusaka Zambia a the dispute Between Britain and Nigeria Over nigerians seizure of British Oil holdings overshadowed the Commonwealth conference As it turned today to world economic and political problems and Southeast Asia. Foreign Secretary lord Carrington of Britain confronted foreign minister h e o. Adefop of Nigeria at an outdoor reception wednesday and displayed his anger Over the nigerian governments seizure of British Petroleum a holdings in the West african country. Lord Carrington strongly denied nigerians allegation that Britain is supplying Oil to South Africa which Nigeria said was the reason for the takeover. Petro can still Active Ottawa up a Energy minister Ray Hnatyshyn said wednesday that Petro Canada the Crown Petroleum Agency that the progressive conservative government says it will drop still is involved in Oil negotiations with Mexico and May participate in forthcoming Energy talks with Venezuela. He said in an interview that a statement by one of his aides earlier wednesday that the government no longer wants Petro Canada involved in state to state transactions was based on a misunderstanding of the question put to him by a reporter. Foreign reserves higher Ottawa up a the government increased its holdings of foreign currency reserves by $60 million in july to $4.24 billion despite a fall in the value of the Dollar of about three quarters of a cent. It was the second consecutive month that the governments holdings of foreign currency showed an increase. Robbery charge Laid Francis Perry Antoine was remanded in custody until Friday when he appeared in provincial judges court this morning on a charge of robbery while in Possession of an offensive weapon. The charge stems from a robbery tuesday at Zinkus grocery at first Street and Louise Avenue during which a Man held a clerk at knife Point and escaped with $200. Tic amp Aan j grandpa gave me his transistor radio. A in6ide peacekeepers pulling out. Page 5 editorials. 4 Canada/world.5 sports. 6-8 family. 9 to comics. To entertainment. La classified. 13-15 Canada. 16 to today National geographic special a Thor Heyerdahl a final and climactic voyage the Tigris expedition is commemorated in film with additional footage from the Kon Tiki and a expeditions. Cable Channel 3, 7 . 98th year no. 165 serving Western Manitoba since 1882 Brandon Manitoba thursday August 2, 1979 Price 15 cents 4 f Banmann a remarks draw fire a f a loan write off becomes Issue anti Sale committee pledges stiff fight despite Council a spokesman for the committee to save Mckenzie seeds said wednesday the group plans to Quot completely ignore City Council and step up its anti Sale protest in the fight to Stop the possible loss of the ninth Street seed company. In a release issued today the committee indicated it is seeking the help of Brandon Souris of Walter Hinsdale in its attempt to change the governments decision to sell. A we have asked Hinsdale by Telegram to ask Premier Lyon to keep his election Promise not to sell Mckenzie so committee chairman Barry Brooking said today. A and we have asked him to state his views whether he favors the possible takeover of Canadas Only National seed company by foreign controlled with More than 7,800 names on a City wide petition opposing the Sale the committee now feels it wields sufficient strength without the support of elected City officials who last week declined an invitation to join the protest. The pledge to step up its fight comes in the Wake of increasing support for provincial government arguments from City officials and the City a business Community. Brooking said the committee Hopes to have 10.000 names on the petition before it travels to the legislature next tuesday to present its Case to the province. He said that number of names gathered properly without a Hanky Panky a lends credence to the groups protest. The petition As it now stands represents a fair proportion of the City s electorate. Mayor Ken Burgess took office in january on the strength of 5,242 votes. Brooking accused City Council and the City a chamber of Commerce of being a swishy Washy for their passive stands on the Issue. Both groups have indicated they Are concerned about the governments offer to sell Mckenzie a but Are satisfied with assurances that the seed firm will stay in Brandon and claims that the company is financially desperate. Disappointed with the reaction of the City to their pleas for action committee members met tuesday to map future strategy. Brooking said initial concerns that the group has perhaps a come on too Strong were rejected at that meeting As a result of statements made tuesday in the City by Bob Banman the minister in charge of the Mckenzie seeds. Brooking said the committee is a getting stronger and will continue its Campaign Well past aug. 14, the Date set for the opening of bids on the company. The group has scheduled a protest demonstration for tuesday at the legislature in Winnipeg. Brooking said 250-300 Brandon people Are expected to attend. So far three buses have been chartered by the committee at $275 apiece paid for through donations received from citizens and Union groups Brooking said. By Russ Shaw Sun staff w Riter Cabinet minister Bob Banman has drawn the ire of private citizens protest groups and the official opposition As a result of statements made earlier this week concerning the financial future of Mckenzie seeds Ltd. Banman the minister in charge of the 83-year-old seed firm that was taken Over by the government 34 years ago said wednesday the company has been caught in a financial bind for several years. Banman told reporters the firm is in danger of dying a a slow death and apparently told a meeting with the City a chamber of Commerce and City officials the it it was for All purposes of evaluation bankrupt. That meeting and the financial explanations for the governments decision to offer the company for Sale have satisfied mayor Ken Burgess and some members of City Council. They have also apparently satisfied members of the chamber. Chamber president Jack brawn said the meeting with Banman a cleared up a he said the chamber which has been recently criticized by protesters for inaction has been silent on the Issue to Date because it did not have sufficient information and did not want to make a crash he said the organization was awaiting the meeting with Banman before speaking out on the matter. A meeting of the chamber Board of directors was scheduled for noon today brawn said. A press statement concerning the chamber a views on Mckenzie seeds was to be formulated at that meeting. But Barry Brooking chairman of the committee to save Mckenzie seeds said he attended tuesdays meeting with Banman and went away he says Banman a a snowed those attending the meeting. A you can take facts and figures and twist them any Way you want a he said. A i can read financial a the said the company is in essence bankrupt and needs refinancing. So Why done to they refinance it a Brooking said. A it is paying Back Large interest payments and still showing a profit. If that is bankrupt i wish my books showed the Brooking says the company is just now beginning to show potential and is growing. In a news analysis in the july 27 edition of the Winnipeg Tribune associate editor Harry Mardon said government officials have admitted they do not expect to get any serious tenders for Mckenzie sunless it offers concessions a specifically the forgiveness of $3 million it has loaned to Mckenzie seeds in a release issued today the save met by Onzie seeds committee says the loan a write off a is u Giveaway of our tax a if this is the Case Why not use this write off to refinance the company a the statement says. The comment refers to a press conference held last week in which Premier Sterling Lyon said the company needs a $2 million injection of capital. A a Mckenzie a has not Cost the government any Money in the past five years. Rather it has contributed thousands in interest payments to government coffers a the committee statement continues a but the government remains Adamant in its decision to pay somebody to buy the 1978 financial statement shows the seed firms net profit in 1978 was $140,300 after Gross sales before expenses of $6.9 million. In 1977, profits totalled $280,500 after total sales of $6.5 million. The company pays More than $800,000 annually to the province and the Bank of Montreal As interest on Loans totalling an estimated $7-8 million. The government through the Manitoba development corporation has loaned the firm about $3 million of that amount. The statement indicates a working capital deficiency of $1.9 million. Terry Penton a former City Alderman said wednesday that Banmann a financial explanation for the decision to sell is he said he simply cannot understand the attitude of Banman or City Council. A it is not As desperate a situation As Burgess and Ald. Rick Boro Tsik outlined a he said. A the company is certainly pressed for working Cash but it shows a profit and the government is making Money from he said Banman seems to be trying to a Bury us with figures a but a there is More to this than the financial he said a there Are jobs and taxes not to mention the social values involved Here a the Impact on the City will be Penton said a private firm will Quot undoubtedly move the firm from the City and the loss of the approximately $2 million payroll Here could be compared to the loss of a $25 million payroll in Winnipeg. A and you can bet that would cause a hell of an City Council a is doing a disservice by not taking the initiative and reacting to the Issue Penton said. Council has a Job to do and should not Back off because it has become a political Issue. A this thing goes beyond politics a he said. He said he cannot believe the reaction of some City aldermen to the Issue. Ald. Margaret Workman said monday she will Quot wait and see by fore acting further on the Issue. Penton is a Ive uiting for somebody to kick you in the ass and then thanking nip was preparing recapitalization before i 977 election Evans says statements made by Cabinet minister Bob Banman concerning the financial position of Mckenzie seeds Are a sad and regrettable a says Brandon East nip la Len Evans. Evans says Banman the minister in charge of Mckenzie a is a trying to belittle the significance of the company and put it in As bad a Light As he can to cover up the governments election Promise that it would not sell the company. Banman said wednesday the seed company is in a financial bind and needs refinancing a situation that has been building for several years. He said the need for refinancing was Clear several years ago but the nip government of the Day failed to act shifting the responsibility to the present government a which has decided to seek new capital in the private sector. But Evans says the nip did act to refinance the company. He says the nip government actually took the initial Steps and made a preparations Quot to refinance but the task was interrupted and left in limbo by the 1977 provincial election. Evans says he has since pressured the government to get on with the Job. He says evidence exists of those preparations. In 1977, his government negotiated with Brandon University for the Transfer of its 10-per-cent interest in the company to the government which would have Given the government 100-per-cent ownership. Evans today lauded Robert Clement chairman of Mckenzie seeds Board of directors for a stating he wishes the company remain publicly he said the present government has been trying to use the Board As a Quot Scapegoat and Clements View As a longtime Board member is significant. Clement said in a press release last week he personally feels the company should remain in the hands of the people of Manitoba and that if the company is sold Only a local buyer could guarantee Job Security to company employees. Evans said the government has made Public the resolutions passed by the Board at its june meeting at which the firms Sale was discussed but he would like to see the transcript of the meeting made Public. He said a majority of the Board members did not favor the Sale but were a Given no Choice in the Mal term by the government. Evans indicated wednesday he feels the company could alleviate its need for working capital by Selling some preferred shares a to the Community and to Mckenzie seeds employees. He said Selling about $2 million in shares along with turning the $3 million in government Loans into shares would solve the financial problem. A the loan Hasni to been a gift from the government it has been getting an Arm and a leg in interest payments from the company for that loan a he said. Pions to stay in wow Onesa doctor satisfied with settlement by Tracey Taylor Sun staff writer or. Robert Abell of Wawanesa says he is satisfied with the results of two meetings tuesday which have apparently ended a dispute which threatened to leave the town of Wawanesa and three surrounding municipalities without medical service. Abell and his wife Margaret a the Only two doctors in the area a had threatened to leave the town by july 31 unless the chairman of the hospitals governing Board resigned and Abell was allowed to attend All Board meetings. The dispute Between Abell and the Board chairman Ernie Ellis arose in March when Abell nominated a Wawanesa insurance executive As a member of a building committee formed to plan an addition to the Wawanesa Hospital. Abell said the nomination was originally accepted by Ellis but rejected at an april meeting of the Hospital Board. Abell said he was not invited to the meeting. Tuesday the pm of Oakland Council voted to replace the Board members and appoint a new nine member Board. Reeve Willard Mcfarland of Oakland said Ellis would not be on the new Board. Later that Day Abell and Ellis met in Winnipeg with provincial health officials in an attempt to Settle the dispute. A the general agreement reached is that ill do the very Best to facilitate communication Between the doctor and the present Lioard a Ellis said in an interview wednesday. Ellis will not make an official statement on his status As chairman of the Board until he returns from Banff in a week. Abell said in an interview wednesday that those attending the Winnipeg meeting had assured him that Quot the request to attend All Board meetings to do with the District Hospital was not an unreasonable he also said that a it appears that we will stay in Oakland municipality appointed Elgin Rodgers David Ross Carl Cunningham and Keith elder to the new Board tuesday and the other districts involved a rms of Riverside South Cypress and the town of Wawanesa a will appoint their members in the next few weeks. The new Board will be in charge of governing the Wawanesa and District health care unit which will be formed by the addition of a personal care Home onto the Hospital. Reeve Harry Garabed of Riverside said his municipality a appointments would be taken up a with the Council Quot at its meeting today. Mayor Hugh Wilton of Wawanesa said that his Council would be a discussing the proposal for the health care unit and if approved we could appoint members for the boards at a scheduled aug. 14 meeting. Reeve Percy Shepherd of South Cypress said that he presumed discussion of appointments to the Hospital Board would be held at his councils next meeting also aug. 14. A. In electrifying experience this Squirrel found himself out of his Normal environment last night when a Domestic House cat chased it out on a Hydro Power line. However squirrels tread where cats fear to go Sun photo by Dirk Abt son and the Happy sequel a to what might have been an electrifying experience for the Squirrel a was that he made it safely to surrounding Trees
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