Lethbridge Herald, The (Newspaper) - February 11, 1975, Lethbridge, Alberta
Socreds slam Miniely budget as misrepresentation By AL SCARTH Herald Legislature Bureau EDMONTON The Progressive Conser- vative government's election budget is a deliberate misrepresentation of facts, Little Bow MLA Ray Speaker said in the legislature Monday. Launching the Social Credit opposition's at- tack on the budget brought down Friday, Mr. Speaker scored the government lor taking credit for burgeoning oil and gas revenues. "The Facts of course are that the increases in Alberta's natural resource revenue is primarily due to an. international event over which the Alberta government, the Canadian government, nor any western government had Mr. Speaker said. He accused the government of "naive mis- representations and omissions" and failing to take the blame it should for destroying investor confidence and thus hampering oil and gas ex- ploration. "The unpleasant reality which this budget attempts to avoid is that the ill advised actions of both the Alberta and federal governments to secure the maximum short run return from windfall resource revenue earnings for their respective treasuries, has succeeded in strangl- ing the exploration and development efforts of the private Mr. Speaker charged. He said that through "inexperience, inep- titude, or a desire to get all that the traffic would the government has become party to creation of a potential energy shortage in Canada: "This is a classic case of mismanagement in public the Little Bow MLA said. He suggested Albertans will need their "meagre" average tax reduction announced in the budget to pay for the Syncrude investment, and might need much more. The poor energy policies of the government re- quired re investment of oil revenues in the Alberta Heritage Trust Fund just to catch up, he said. "When we realize that billion is com- mitted to Syncrude either in equity or loans, lit- tle is left for a heritage fund, but more serious is the fact that little could be left for other resource development which may face us." Mr. Speaker also said the budget is a rehash of. old programs, and that of four new initiatives, two had been suggested by the Social Credit par- ty. He said the government should not portray a "paternal, smug master interested only in power and self aggrandizement. It should put a low priority on "public image building." Accusing the government of overdone pater- nalism, he said "if the conceit and immodesty of the provincial treasurer and this Conservative government continue to swell in proportion to this budget, the minister may well explode prior to the next election." The Lotlibridcje Herald LXVIII-51 LETHBRIDGE, ALBERTA, TUESDAY, FEBRUARY 11, 1975 15 Cents ELIZABETH CARMICHAEL SHOWS MODEL OF BOGUS CAR I Dream car becomes nightmare DALLAS, Tex. (AP) A dream car which would do 70 miles to the gallon and sell for only has turned into a nightmare for hopeful international investors. A widow from California turned up in Dallas to announce she has the answer to the energy problem with a two-cyl- inder, three-wheeled auto which would start rolling off the assembly lines by summer. It was called the Revette. A week later, Elizabeth Carmichael, her 20th Century Motor Car Corp., and seven company officials disappeared when criminal charges were laid. Carmichael, a 42-year-old, six-footer with red hair, said she was ready to throw down the gauntlet against the big three of Detroit. She said dealers were being ap- pointed for 30 states and that deposits on orders were coming in so fast that she expected the first year's production of to be sold in advance. Dealers were required to pay to for a franchise. She said Pan- Marine Products of Tokyo bought the Japanese distribution rights for 3SSS3 million and there had been a deal in Thailand for She said the com- pany was negotiating with a subsidiary of Caravan International of Alberta for the Canadian market. A sign that all was not well with 20th Century came last week when a judge's restraining order halted the firm's op- erations. The sales pitch for the for two larger models to follow said to have made no men- tion that two similar restraining orders already had been issued against the company in California. Instead of remaining in California to fight them, the business had been largely moved to' Texas. The restraining orders were based on allegations that the car's performance has not been proven and that purchase options and dealerships were said to have been sold when necessary financ- ing and parts did not exist. Mrs. Carmichael said six prototypes of the car were in existence and have been displayed at auto shows in Chicago and Los Angeles. She also said she had driven one of them into a brick wall at 60 m.p.h. to test its super-tough plastic body. A reporter found the only prototype in Dallas, hidden away in what she claimed was the company's research and development laboratory: an empty warehouse. Two mechanics were work- ing on the transmission, which she said had been damaged when the plane struck turbulence while flying it in from California. The two-passenger, streamlined prototype, 14 feet, eight inches long, resembled a small Ferrari or Corvette. One engineer who saw the car described it as "a load of can- nibalized from an engine of a type usually used for portable generators, with two lawn mower carburetors and a borrowed transmission. He said he doubted it would either at- tain the top speed of 85 m.p.h claimed or, get 70 miles to the gallon. As for hitting a brick wall at 60 m.p.h, it would just disintegrate, he said. Sony we gave it all to Svncrudat' Inside 44 Pages .24-27 Comics ............22 Comment 15-17 Markets...........23 Theatres.............7 TV.................6 Weather............3 Low tonight -2A high Wed. 0 light snow. Rebels claim downing Ethiopian jet fighter ASMARA (AP) Eritrean insurgents said today they shot down one of Ethiopia's dozen U.S.-built F-5A jet fighters during raidsDn rebel positions north of Asmara, diplomatic sources said. If confirmed it would be the third F-5A lost by action of the Eritrean Liberation Front Diplomatic sources in Addis Ababa, the Ethiopian capital, said government troops beat back a determined rebel at- tempt Monday night to take Asmara's airport and cut the besieged northern provincial capital's only remaining supp- ly route. No casualty figures were available from the latest fighting. British Tories pick woman to lead them Jobless rate jumps to 6.7% OTTAWA (CP) A steep rise in unemployment, in On- tario was the major contributor to a jump in the national unemployment rate to 6.7 per cent in January, Statistics Canada reported. Nova Scotia was the only province with a drop in the un- employment rate while there was no change in Quebec and Saskatchewan! The January figure is up from six per cent in December and it is the highest since April, 1971. The un- employment rate has gone up for three straight months. It was at 5.3 per cent in October. In Ontario, the January rate was six per cent, up from 4.6 in December. The last time the Ontario rate was that high was in April, 1961. These figures are adjusted to account for the fact that many workers are out of jobs because of seasonal factors which hit such industries as agriculture, fishing and logging. The actual January unem- ployment rate was 8.4 per cent, or in a labor force of The increase in unemploy- ment here is part of a trend affecting industrial countries. The January rate in the United States was 8.2 per cent, a 33-year high. Newfoundland continued to have the worst unemployment rate. At 16.1 per cent in January it was up slightly from 16 per cent in December but still below rates last June when it hit 20 per cent. The New Brunswick rate in January was 10.9 per cent, up from 10.6 per cent in December. These are the highest rates in the province since Statistics Canada began compiling separate unemploy- ment figures for the Atlantic provinces in 1966. The largest increase in unemployment rates in the Prairie provinces was in Manitoba, to 3.5 per cent from 2.8. The Alberta rate went to 3.2 per cent from 2.7 and in Sas- katchewan the January rate was 2.7 per cent, no change from December. Cov't tradesmen mull strike action By MURDOCH MACLEOD Herald Staff Writer A strike of general laborers and tradesmen in the federal civil service could occur as early as midnight Thursday an official of the Public Ser- vice Alliance of Canada said today. V Lethbridge workers Monday rejected a conciliation report by about 70 per cent, said John Hart, Southern Alberta regional representative for the PSAC. Several other ratification meetings in the South have rejected it by 90 to 95 per cent, he said. A strike would depend on re- jection of the award by the total membership in the Syncrude firms to get huge tax breaks Herald Ottawa Bureau pTTAWA The three private oil companies par- ticipating in the'Syncrude Canada Ltd. oil sands consor- tium will be able to write off against their own general in- comes hundreds of millions of dollars of development, ex- ploration and other tax-de- ductible expenses of the lion Syncrude project, accord- ing to government and in- dustry sources. And under federal tax con- cessions, the "joint venture" Syncrude project not only is exempt from the" controver- sial royalty non-deductability provisions of the November federal budget but also benefits from a lower tax rate than any other petroleum and mining venture. Syncrude will also retain "automatic" depletion of up to one-third of production profits, instead of having to "earn" the depletion and be- ing limited under the deple- tion allowance to a maximum of 25 per cent of production profits. The overall federal tax con- cession package granted Syn- crude as one of the conditions for the project to be kept alive, even with participation by Ottawa, Alberta, and On- tario, is much broader than the concessions alluded to in press reports and government statements to date on the im- plications of the Syncrude "agreement" of last week. The most important "twist" to the ultimate impact of the federal tax concessions in- volves the manner in which the Syncrude consortium was organized. J.A. Cogan, senior vice- president for. Imperial Oil Ltd. of largest Syncrude partner and the chairman of Syncrude, said Monday in an interview that Syncrude is a "joint venture" and not a separate company. As a result, if Syncrude does not have sufficient profits to absorb all allowable tax write- offs, the write-offs can be passed back proportionately to the partners, to be written off against their income, thereby lowering their before- tax profits. Since preliminary Alberta government studies of the Syncrude project indicate the consortium won't likely start to show profits for at least four or five years, the "joint venture" arrangement will mean that the private oil com- panies will be able to writeoff the tax-deductible expenses from the project Bt an accelerated rate, by writing the expenses off against their general oil company reve- nues. It also will mean that the federal government will tax that much less of the profits of the oil companies. NDP Parliamentary Leader Edward Broadbent, who un- successfully asked- Finance Minister John Turner to clarify the impact of the federal tax concessions to Syncrude on the oil company members of the consortium, claimed Monday that being able to write-off investments in Syncrude against other oil company corporate earnings will mean that the 70 per cent oil company ownership of Syncrude will in fact cost the oil companies substantially less than claimed. category. The classification includes laborers and journeymen working at federal es- tablishments such as the air- port, the research station, and national defence bases; he said. The dispute is not with the individual departments, but with the treasury board, which negotiates for the government. "The only issue at the mo- ment is said Mr. Hart. "They've settled everything else." The conciliation report had recommended an increase of 15.14 per cent on the total payroll the first year, and 11 per cent the second year. That would not increase all 'workers' salaries by those amounts, but the total amount paid the employees: Some in- dividuals would get more, and some less, he said. The PSAC originally asked for 42 per cent, or 90 per cent of parity with the-private sec- tor, said Mr. Hart. Meanwhile, in Ottawa, Treasury Board President Jean Chretien Monday told the Commons the government is doing everything possible to head off the strike, which could cripple air travel and postal services by the end of the week. He said he had not met with PSAC officials and did not in- tend to do so. Mr. Chretien said it was "up to my of- ficials" to solve the dispute. Acting Conservative House Leader Walter Baker had In- sisted Mr. Chretien make per- sonal efforts to stop the strike. LONDON (AP) Margaret Thatcher today was elected the first woman leader of Britain's Conservative party. She would become the first British woman prime minister if the Tories, now in the opposition, won the next general election due by 1979. Mrs. Thatcher, 48, a former education minister and leader of the party's right wing, received 146 votes, out- polling four male competitors and giving her an outright majority of the 276-member Conservative caucus in- the House of Commons. This was 16 votes more than she got last week when she outpolled former prime minister Edward Heath and toppled him from the Tory leadership without herself getting a decisive margin. Her main rival this time, the former secretary for Northern Ireland, William Whitelaw, polled 79 votes. James Prior and Sir Geoffrey Howe each polled 19 and John Peyton 11. Two members were absent or abstained. Mrs. Thatcher, currently party spokesman on financial affairs, pulled oft a stunning political upset in deposing Heath. The former prime minister had agreed to put his leadership to the test after losing two national elections to Harold Wilson's Labor par- ty last year. Even in this second round of the voting, the Thatcher camp lighter had not been certain of out- 6 right victory. Had Mrs. Thatcher polled less than. 139 marijuana majority of the race would have penalties gone into a third ballot r Thursday. OTTAWA (CP) The Cana- A burst of cheering greeted, dian Medical Association the result as it was announced (CMA) said today that offend- to Tories in a committee roonf ere convicted of simple possession of juana or not be burdened with a criminal record. Dr. Bette Stephenson, presi- dent of the association, which groups physicians, led a delegation 'which presented a brief to the Senate committee on legal and constitutional af- MARGARETTHATCHER Medics urge which had been used for the voting. "She is like Joan of and deter- mined to show that the Tory party is not for one of her supporters, John Spence, said later. Mrs. Thatcher is generally held to be an advocate of tough financial policies designed to cut government spending. Some of her critics suggested that this approach, coupled with her Oxford ac- cent and London suburban style, might handicap the par- fairs: _ The committee is studying proposed legislation to 'transfer control of marijuana and hashish from the Narcotic Control Act to the Food and Drug Act. Dr. Stephenson said the ;r t -i Ul uwulicllawll bllt; ty in northern industrial areas VCMA welcSmes provisions of which it must win back to tbe proposed legislation that regain power. v B Mrs. Thatcher immediately takes over leadership of the Conservatives in Parliament. would eliminate jail sentences for simple possession of can- nabis drugs, but said this is not enough. Premier, PM fail to reach accord CALGARY (CP) Alberta Premier Peter Lougheed says he and Prime Minister. Trudeau did not reach agree- ment on federal resource tax- ation policies during a two- hour meeting today. The premier told a news conference that the prime minister "didn't 'change" on the federal government's stand of not allowing resource companies to deduct provin- cial royalties from their federal income tax. "We think the petroleum in- dustry needs further incen- the premier said. Asked if the results of UN- meeting with the prime minister mean that he will call a snap election, the premier replied: "I don't'want to respond so quickly to that question." hord About town Disaster movies fan John Daviei describing "Earth- quake" and "The Towering Inferno" as Shake and Bake John Kobal getting a roasting from city hall hockey fans over Sunday's game.