Lethbridge Herald (Newspaper) - February 7, 1973, Lethbridge, Alberta
Life of minority government threatened by tax issue OTTAWA (CP) - The life of the minority Liberal govern-m e n t appeared threatened Tuesday following Finance Minister John Turner's statement in the Commons that the government will go ahead with legislation giving tax cuts and other concessions to corporations. Minutes later Conservative Leader Robert Stanfield indicated strongly to reporters his party would join the New Democrats in voting against such a bill. Defeat of the tax cuts would be inevitable in such circumstances and failure of the government to get parliamentary approval of a budget bill could lead to its resignation. The political showdown, which could come later this month, emerged as a possibility after Mr. Turner told the Commons he will bring down his second budget at 8 p.m. EST Monday, Feb. 19.' Replying to NDP Leader David Lewis, Mr. Turner said the government is committed to the tax cuts and accelerated writeoffs for machinery and equipment announced in his May 8 budget. MARRIAGE OVER? "That's the end of the marriage," shouted Lincoln Alexander (PC-Hamilton West), referring to support the NDP has given the government since the session started last month. Mr. Turner said the tax cuts, due to go in effect Jan. 1, would help Canadian industry "to pierce and take advantage of a very competitive world mar--ket." Outside the Commons, Mr. Stanfield said he warned Mr. Turner last May that such measures were not enough to have the desired effect. He was not convinced that business had made additional investments as a result of the concessions. "And you will recall that we voted against the acceptance of the budget," noted Mr. Stanfield. Mr. Lewis told reporters his party could not accept passing on these benefits to corporations, an echo of his "corporate welfare bums" theme in the Oct. 30 general election. In announcing the Feb. 19 budget, Mr. Turner said his accounts for the current year ending March 31 will show a deficit close to the $2 billion he predicted. The finance minister rejected arguments by Mr. Stanfield that the government should have launched a more vigorous attack on unemployment because of "a surplus of over $600 million" for the first nine months of this fiscal year. Mr. Turner replied that such talk was misleading since the surplus would be gone at the end of March. Outside the House. Mr. Turner sad his Feb. 19 budget is designed to have an significant impact on unemployment. "But I have absolutely no predictions to make at all." One condition of continued NDP support of the government is a significant increase in the old-age pension, already promised by Health Minister Marc Lalonde. Both Mr. Lewis and Mr. Stanfield said Thursday they also look for big cuts in personal income taxes as well. The Lethbridge Herald VOL. LXVI - No. 49 LETHBRIDGE, ALBERTA, WEDNESDAY, FEBRUARY 7, 1973 PRICE: TEN CENTS THREE SECTIONS - 36 PAGES Whelan says food prices not high enough By DOUG SMALL The Canadian Press OTTAWA -� Grocery prices must climb above their current costly level if farmers are to catch up economically with the rest of Canada, Agriculture Minister Eugene Whelan said Tuesday. And he left no doubt in the minds of the 100 farm leaders gathered at the Canadian Federation of Agriculture annual meeting that he thinks food costs should go up. "It's high time thai, farmers start, to get a better deal in our society and economy. We have absolutely nothing to apologize for. We have nothing to be ashamed of," the blunt-spoken southwestern Ontario farmer said. "The last tiling farmers in Canada need is a freeze on food prices which would reduce profits even further . . . They have some catching up to do just to get on an even footing with the rest of our society and economy." The group, which represents all of Canada's 360,000 farmers one way or another through the CFA's 14-mem-ber organizations, responded with approval and affection, TALK PLEAjSES "That's the kind of talk I've wanted to hear from a minister of agriculture for a long time," said president Gordon Hill of the Ontario Federation of Agriculture. Farmers should get on the offensive and demand fail' prices for their goods, he said earlier. He reinforced statements by a widowed mother of nine children, Hattie Densmore of Densmore Mills, N.S., the federation's eastern women's representative, who agreed farmers had nothing to be ashamed of in respect to high food costs. Mr. Whelan's comments, and others earlier by CFA President Charles Munro, dealt particularly with the recently-established Commons inquiry into food prices. Mr. Whelan said he would tell the committee how farmers had improved their efficiency and productivity, while their prices fell behind costs of production. He rejected out-of-hand what he said will be a committee suggestion to freeze farm product prices. Such a freeze would encourage farmers to stop producing, Mr. Whelan said. And "a huge source of export income" would be cut off if fanners were forced to cut production. MORE DUTIES TOO �Additionally, other countries would "slap us with countervailing duties" if subsidies were brought in to offset the price freeze. "Those are just three reasons why I think the committee would be wise to hesitate before recommending a price freeze for farm pi-oducts." Ironically, the CFA passed a resolution only hours earlier calling for wage and price controls to help harness inflation. But such controls should leave room for farmers to have incomes "in reasonable relationship" to the rest of the economy. Mr. Munro, an Embro, Out., hog farmer, said the Commons committee would find no villains during its inquiry because the issues involved were not those of food costs,, but of an inflated economy in general. "The issues are those of the frustrations and inequities of inflation, the problems of the poor, the disadvantage of the pensioner, the problems of inequality of distribution of income, the problems of expectations for a better life running ahead of reality." To this, he added a warning: Farmers will simply stop growing food if society expects' them to supply it for prices below their costs of production. The four-day meeting, which began Monday, cot* tinues today. Inside 'Harg comas a kid now.' Classified .. . 24-28 .....30 District .... . 3, 18 Family - 20. 21 I/jral News ,. 15-16 22 .. 10-12 TV ......... 6 LOW TONIGHT -10, I UGH TIIUHS. 20; LITTLE MILDER Socre Schmidt's back . New Socred leader catches up on paper work at his college office Tuesday. urcli plan is unveiled A plan to unite more than four million Christians in Canada was to be unveiled today before the executive bodies of the Anglican, Christian (Disciples of Christ) and United Churches in Toronto. The name recommended for this new body is The Church of Christ in Canada. Spokesmen representing Lethbridge denominations involved in the merger plan greeted the announcement with cautious enthusiasm. The national executives of the three denominations were to meet today in Toronto to receive the Plan of Union, the result of five year's work. 'Die document, after being formally presented to the lead- Fire victim's n critics The 18 - niontli - old baby seriously injured in Tuesday morning's house fire, remains in critical condition today in Foothills Hospital in Calgary. The baby received bums on 60 to 70 per cent of his body after a blaze in the house at 537 8th St. S., which is believed to have started when one of the four children in the house found some matches. When the child lit a match, the whole book apparently caught fire. The child then apparently threw it into a cupboard in (.he bedroom where all four children were Mrs. Mary Heninger, the children's mother, was visiting across the street at the time, and the children were being cared for by Norma Ganger, a 20 - year - old babysitter. The children were rescued from the blaze by the bnby-s'ilor, ,'ind two men, Dennis Diesing, and John. Baird, who lived in die adjoining half of the duplex. ers of the three churches - Archbishop E. W. Scott, primate of the Anglican Church of Canada; Rev. Robert K. Le-land, president of the All-Canada Committee of the Christian Church (Disciples of Christ); and Rev. Bruce McLeod, moderator of the United Church of Canada - will be submitted to the legislative processes of individual denominations. "The plan by itself cannot unite our three churches," said Canon Ralph Latimer, an executive commissioner working on the proposal. "It can, however, be a means of uniting us as Christians in The Church of Christ in Canada." Co-commissioner. Dr. Robert Craig, reiterated that the first draft of the plan presented in 1971 did not call for unilormity. "In the first draft, this freedom w a s emphasized and the final plan puts the responsibility on the councils and bishops to reassure people that they will not lose their particular heritage," he said. One of the most frequently asked questions relates to forms of worship. The two commissioners said people wall bs free to choose their own style. "While the essential elements and order of services of baptism, confirmation and eucha-.rist will be established within that overall pattern, there is freedom for the individual congregations to use whatever wording they consider appropriate," Canon Latimer said. "Freedom to worship in our own way is important," Rev. Blake Anderson of MeKillon United Church in Lethbridge, said today. "t confess 1 have been wondering how much of the Anglican forms of worship would be imposed." Mr. Anderson said he cannot envisage Let hbridge Anglican and United Church congregations merging under one roof simply because of a lack of physical space. The trend hi worship is away from large spiritual centres into smaller community units, Mr. Anderson said. Rev. Ken Jordan of First United Church in Lethbridge expressed optimism for union plans if the program can be introduced according to local desire rather than be imposed nationally. "I believe if the plan can be adopted by different denominations in local situations, it could be healthy," Mi'. Jordan said. The General Commission on Church Union was established by the Anglican and United Churches in 1967. In 1S89, the Christian (Disciples of Clu-ist) Church joined the commission, which now consists of 217 members, clergy and laymen from all across Canada. Prif. John Grant, editor of the Plan of Union, said the commission recognized that on certain issues, customs of the three denominations strongly differ. "The most important steps at present are to identify the problems and establish confidence and trust between the churches." he said. Asked it' the present Anglican prayer book and service book of the United Church would continue to be used, Prof. Grant said he was confident they would be used for some time. may SCHMIDT MAY STAY AT LCC Werner Schmidt may not be for some time the full-time Social Credit leader delegates thought they were choosing last weekend. Mr. Schmidt may be kept on salary at Lethbridge Community College to complete a project he began as college academic lice-president. LCC President Dr. C. D. Stewart said today he will, propose to the board of governors this evening that Mr. Schmidt be kept on to complete a long-term planning report he had worked on before taking a l'e a v e of absence Oct. 27 to campaign for the Socred leadership. Dr. Stewart said the report is three-quarters complete. Salary and the length of time required to complete the report will be discussed with Mr. Schmidt after the principle of keeping him on is discussed tonight with the board, he said. ' EXPRESSES SURPRISE Bob Babki, board chairman, said he was surprised that Mr. Schmidt is not intending to submit his resignation. Mr. Babki said when a leave of absence was granted it was understood that if Mr. Schmidt won the political post, he would resign. "A lot of water has passed under the bridge since then, though," said the board chairman. "But frankly I can't see how he could hold down two jobs." Without holding elected office Mr. Schmidt does not qualify for any of the $35,500 salary of the opposition leader in the Alberta legislature. bolt By GREG McINTYRE Herald Staff Writer Bitterness in Social Credit ranks over the stunning weekend upset victory of political novice Werner Schmidt for the leadership of the party over two experienced MLAs and former cabinet ministers, appears to be widening into a split. Party officials, including Mr. Schmidt, have denied any knowledge of a split. But, the possibility now exists that several Social Credit MLAs, unhappy with the campaign the Schmidt camp waged for the leadership and the direction the party now might take, may bolt the party and sit as independents in the legislature. One ML A, an active supporter of former education minister-Robert Clark for the leadership, told The Herald several of his colleagues who supported Mr, � A senior today the isoner releases expected SAIGON (AP) - U.S. official said United States is planning to receive 20 to 40 American prisoners of war from jungle camps along the Cambodian border north of Saigon Saturday. Three eight-man teams, two each from Canada, Indonesia, Poland and Hungary, members of the IOCS, are standing by in Saigon ready to move out on two hours' notice. Twelve members of the Canadian Red Cross were flying to Vietnam today to join representatives of the Polish Red Cross in touring the prison camps. Mourners fired on in Irish strike BELFAST (AP) - Machine-gun fire raked mourners at a guerrilla funeral and a mob of howling Protestants stormed the home of a Roman Catholic priest and set his church ablaze in Belfast today. The flash of sectarian violence erupted us a general strike, aimed al demonstrating Protestant, muscle, paralysed Northern Ireland. The stoppage caused wide- spread power blackouts, disrupted transport, closed factories, newspapers and shops and hit milk and bread supplies. The strike was planned to protest the detention of two Protestants after a Belfast grenade attack on a busload of Roman Catholics. But its aim widened to include a demand for the restoration of the Parliament suspended last. Martii when Britain imposed direct rule. Clark are giving serious thought to leaving the party in protest against the new leadership. A sizable faction of the opposition caucus appeai-s upset that Mr. Schmidt, 41, who is retiring as vice-president of Lethbridge Community College, was elected with the support of a "Bible belt mentality" within the party, said the MLA, who did not wish to be identified. The strong religious commitment stated publicly by Mr. Schmidt in his acceptance speech and throughout the campaign is not acceptable to the Alberta electorate and spells death of the party, the MLA claimed. "If the Bible belt wants Schmidt as their leader, then . they'd better get Mm a seat to run'for . . . and quickly. We're the official opposition and the leader must be elected and sitting in the legislature,'' Strom's seat He suggested Harry Strom, the former party leader and only Socred premier to be defeated in Alberta, resign his Cypress seat to allow Mr. Schmidt to seek election. If Mr. Schmidt can't get elected in Cypress - an area in southeast Alberta where much of the "Bible belt" support is thought to lie - then he is simply not electable, the MLA said. Mr. Strom is holidaying in Arizona until Feb. 19 and was not available to comment. Alberta Liberal Leader Bob Russell claims before the Socred convention that he was approach*'} by three Socred MLAs who were thinking of bolting the party if Mr. Schmidt won. However, the MLA interviewed by The Ht*'; said Mr. Russell should cuhskfer joining the Socreds instead of the other way around, because there are no Liberal MLAs in the province. Mr. Clark, the 35-year-old MLA for 01ds-I>idsbury, campaigned to open the party to a broader range of people - including Christians, Jews and non-believers. He said in an interview after a second-ballot defeat to Mr. Schmidt that two issues swung the vote - religion and the issue of -ties between the provincial and federal Socred parties. "My position is that religion is a private matter," Mr. Clark said, Mr. Schmidt appealed for closer ties between provincial and federal Social Credit - old-line monetary reform has been a federal concern recently - while Mr. Clark said his position was that the provincial party should restrict itself- to provincial- matters. Like other unhappy Socred MLAs contacted by The Herald, Mr. Clark said he hasn't decided yet what his future in the party will be. "I'm the member for Olds-Didsbury and the last time I looked I had a good majority so I'll continue to work for my constituency," said the Car-stairs resident. Would he continue in the party? "Hopefully," Mr. Clark replied. The first test of whether the Lethbridge college administrator without a seat .in the legislature can govern the obviously-split 24 Socred MLAs will come at a meeting of caucus Feb. 13 in Edmonton. New house leader Mr. Schmidt must appoint an opposition house leader - a position held at the last legislature session by Gordon Taylor, the veteran Drumheller MLA and former cabinet minister. Because the house leader must command the respect of caucus and pull the party together, the job could go to Mr. Clark. However, he said he hasn't decided whether he'd accept or not. These who openly supported Clark in the leadership contest included front - bench MLAs Walter Buck. Art Dixon, Jim Henderson, George Ho Lem, Albert Ludwig, and Roy Wilson. Back-bench Socreds who .declared their support for Clark included Ted Hhiman, Doug Miller and Lethbridge members Dick Gruenwald and John Anderson. Mr. Ludwig, former public works minister, said he will, now support Mr. Schmidt. "Werner Schmidt has proved lie's a good worker . . . but. T wouldn't play down the fact that, life work i.s cut out for him." Mr, Ludwig said that although the old-line Social Credit supporters put Mr. Schmidt into the leadership, old-line policies will not necessai-ily.be evident in the direction the party now takes. Ray Speaker, the 37-year-old former social development minister and MLA for � Little Bow wh^ masterminded the Schmidt victory, agreed that old-line Socreds are not about to assert themselves. The parrs' must be rebuilt with new people and new ideas, he said. Seen and heard About town TyjODEST Jack Lakie, after failing to find a blackboard, saying, "I can't write anyway" . . . Wendy .Ras-mussen warning c o 11 e ge queen contestants not to have coffee with strangers lie-cause they could get "kid-.napped" as pari, of a campus gimmick.