Lethbridge Herald (Newspaper) - February 27, 1973, Lethbridge, Alberta
Tuesday, February 27, 1973 - THE LETHBRIDGE HERAID - 17 Russia relaxes economic secrecy By THEODORE SHABAD New York Times Service MOSCOW - The Soviet Union, in an apparent relaxation of economic secrecy, has disclosed for the first time since World War II the production of its major steel mills. Due to the power failure this morning, the regular stock quotations are unavailable for publication. Trade union denounced by Munro BURLINGTON, Ont. (CP) -Labor Minister John Munro says the international trade union movement may no longer be able to represent fairly both Canada and the United States. In a speech Saturday at the annual meeting of the Halton West and Halton- Wentworth Liberal Association, Mr. Munro denounced the AFL-CIO for its support of a bill now before the U.S. Congress that would put quotas on imports to the United States. The labor minister said the bill, the Foreign Trade and Investment Act (1972), could cost Canadian jobs, growth and development, because it was designed to protect American jobs and American-based industry. "The fact remains that the basic tenet of the American labor movement has always been to foster a lowering of trade barriers," said Mi-. Munro. "Abandoning it will be at their peril." The act, also known as the Burke-Hartke Bill, must cause trade unionists to ask if international unions can serve two countries, Mr. Munro said. "I fervently hope the answer is 'yes,' but the answer cannot be reconciled with the fostering of the Burke-Hartke protectionist trade bill." Mr. Munro said he was dedicated to Canadian union autonomy within the international structure and that's why he was concerned about the support of the AFL-CIO for a policy that could be detrimental to the labor force. CONSIDER!! GOOD SALESMEN ARE TRAINED . . . 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Feb. 26-Mar. 2 9 a.m.-7 p.m. Out of town call collect The lifting of traditional secrecy on detailed industrial statistics seemed to reflect increasing confidence of the Soviet authorities now that this country has moved to the forefront of the world's steel producers, surpassing the United States. In 1972, for the second consecutive year, total steel production in the Soviet Union was higher than in the American industry. The United States still has the greater production capacity, but economic conditions and large steel imports have depressed domestic output. The new Soviet steel data were disclosed as part of a review of the iron and steel industry published in the industrial weekly Ekonomicheskaya Gazeta. The review contained a listing of 10 major steel mills with their output in 1970 and 1072 and the planned production for this year. The disclosure of the steel figures did not appear to signify a general lifting of secrecy. Many production figures, particularly in the non-ferrous and chemical industries, are still considered state secrets. The extent of this nation's large petroleum reserves is also not disclosed. The steel figures showed the Urals steel center of Magnitogorsk to be still in the lead, with a 1972 production of 13.5 million metric tons, and an increase of 1 million metric tons scheduled for this year. One metric ton is 1.1 short ton, used in the American steel industry. However, several steel centers of the European part of the Soviet Union west of the Urals also figured high in the list. The figures seemed to confirm that after an earlier eastward shift of production capacity, the Soviet steel industry is now being built up also in the European regions where most of the country's population and manufacturing are concentrated. Although the industrial strength of a modern nation is no longer judged solely by its steel production, the Soviet Union still considers the steel industry a prestige sector of its economy. It is viewed as the basis of Soviet military strength, and the completion of new sheelmaking capacity is usually front-page news in Russian newspapers. 14 million stage strike ROME (Reuter) - About 14 million Italian workers staged a general strike today, temporarily paralysing industry and halting many public services. The strike was called by Italy's three main trade unions to demand social reforms and support unions involved in pay negotiations. In Rome and other Italian cities traffic was chaotic because of a four-hour strike by bus and train drivers. Railway workers staged a token 15-min-ute stoppage. About 220,000 employees of bars and restaurants that are not family concerns were on strike all day as were farm workers. Doctors stopped work for an hour but kept emergency services going. Industrial and construction workers downed too^ for up to four hours. Printers were holding two-hour strikes for each shift, although newspapers publication was not expected to be affected. Tliis is the second general strike this year in Italy. The first was Jan. 12. Dividends By THE CANADIAN PRESS Westfair Foods Ltd., class A, 50 cents; $1.40 pfd. series, 35 cents; both payable Apr. 13, record Mar. 15. MANAGERESS REQUIRED FOR LETHBRIDGE SELF-SERVE GAS BAR Unique opportunity for lady with supervisory experience to manage modern self-serve gas bar now under, construction! in Lethbridge. Htquest for Application or Information writ* GULF OIL CANADA LTD. S. G. SPEARMAN P.O. BOX 5210 STATION t EDMONTON, ALBERTA Economic disparities cut needed to help employment Driver's nightmare Hundreds of new Japanese vehicles parked on Annacis Island give a frightening impression, but they are only there awaiting delivery to Canadian dealers. Three large storage lots on> the island will be phased out when the company builds a new $1.5 million complex. ^_ Canada, Europe fear punch from American labor giant By HAROLD MORRISON The American labor movement appears to have turned into a brooding giant. And the fear in Canada and Europe is that the giant may suddenly throw a punch that can cause more than a few accidents to jobs and wages. Strongly endorsing domestic trade protectionism, the 13.5-million AFL-CIO also seems to be shunning world labor movements including the new European Trade Union Federation (ETUF). This new federation has its roots in the problems of workers trying to co-ordinate their efforts with expansion of the European Comiiroon Market. One aim of the founders is to co-ordinate strikes across national borders to attack multinational corporations in the drive for higher wages and reduced work hours. What stung AFL-CIO president George Meany at the executive committee meeting at Bal Harbour, Fla., last week was acknowledgment by Vic Feather, secretary of the Trades Union Congress of Britain, that the Russians might also be invited to join. This led to a public rebuke by the 78-year-old Meany who charged that the TUC had formed "a Moscow-London axis." The unhappy Feather told a reporter later: "I don't look like a Russian, I don't speak Russian and I don't think like a Russian." But that didn't eliminate the situation in terms of Meany's and American labor leaders. Feather tried to explain the situation in terms of Meany's age but more evident is the predominant American labor view that turmoil in Britain was brought to the boil by militant left-winger probably more in- Tax return tips For further information, call the District Taxation Office. If you live in a toll area, ask your long-dstance operator for Zenith 0-4000 and your call will, be placed without charge. Q. I understand that a person who moved in 1972 to a new locality is now entitled to deduct the cost of moving from his income for income tax purposes. Is this correct? A. Yes. Beginning in 1972, if you moved to a new location you may be eligible to deduct 3rour moving expenses from income earned at the new location. Q. I graduated from university in 1972 and moved my wife and family to another province, where I began working. What moving expenses, if any, may I claim as deduction on my 1972 income tax return? A. Moving expenses are an allowable deduction from the salary or business income earned in the new work location. Any moving expenses in excess of the income earned at the new work location in the year of the move can be claimed against the salary and business income earned in the following year. The moving expense claim would include any of the following costs incurred: 1. Travelling expenses, including meals and lodging, in the course of moving from the old residence to the new residence. 2. The cost of transporting and storing household effects. 3. The cost of temporary accommodation (not exceeding 15 days) near the old or new residence. 4. The cost of cancelling the lease on the old residence. 5. The selling costs pertaining to the old residence. The above moving costs include those of the taxpayer and the members of his household. Q. May every person who moves in 1972 or later deduct the cost from his income or is the deduction restricted in any way? A. No, not everybody is able to claim a deduction for moving expenses. The deduction is limited to salary or wage earners, self-employed persons, and, in some cases, students attending post secondary educational institutions. Q. If a wage earner, for example, move in 1972, how does he determine if he qualifies for the moving expense deduction? Can you tell us briefly what the rules are? A. The most important rule to keep in mind is that moving expenses may be deducted from income if you move to a new residence to earn wages in a new location in Canada, and your new residence is at least 25 miles closer to your new place of work than your former residence was. You should also remember that moving expenses may be deducted only from income earned at a new place of work or business. Q. Can i claim as moving expenses the cost of transportation, food and lodgings spent trying to establish a new residence before I actually terminate my present employment? A. No. You must have ceased your employment at the former location. Q. Are there any other rules we should be aware of, and what would happen if a person moved, for instance, near the end of the year, and his moving costs were greater than the income he earned for the short period remaining in the year at his new place of work? A. To answer the first part of your question, no deduction of moving expenses could be permitted if those expenses were either paid by the wage earner's employer or the employer reimbursed the employee for his moving expenses. In addition, no moving expense deductions will be allowed for moves into or out of Canada, except for certain students. In regard to the second part of your question, moving expenses paid must be deducted in the year of the move from income earned at the new place of work. If, as you suggest however, your moving expenses were greater than income earned at the new place of work, the difference may be carried forward and deducted from income in the following year. tent on destroying democracy than in seeking higher earnings. Another conclusion by the American labor hierarchy seems to be that the needs and outlook of American workers are sharply different from many of their fellow-workers abroad. As one British labor observer suggested, the American worker may have largely reached his goal. He may have attained a satisfactory standard of living and may feel his big job is to protect it against raiding by cheap foreign labor. The shift of American labor seems to be sharply to the right. Meany and his advisers see the left-wing element in many labor organizations abroad, including the International Confederation of Free Trade Unions (ICFTU), headed by Donald MacDonald, president of the Canadian Labor Congress. In a cruel crack against Mac-Donald, Meany described that organization, which has many links with the developing world, as "a useless body." In former days the American labor movement generally supported Democrats-until George McGovern got the party's presidential nomination last year. Suddenly President Nixon began to shine for labor leaders. More recently the AFL-CIO spread the argument that cheap foreign labor, allowing low-priced products to flood the American market, is taking jobs away from American workers. Nixon is also preparing trade legislation, expected to give him authority to increase import restrictions as well as reduce them. By TOM MITCHELL OTTAWA (CP) - Canada has little hope of reducing unemployment to three or four per cent of the labor force unless it can successfully reduce regional economic disparities, a United Nations eonomic study shows. Whittling the jobless level to three or four per cent would "seem to be realistic only in a situation where existing regional differences have been substantially reduced, a process likely to require time," the Organization for Economic Co-op-e r a t i o n and Development (OECD) says in it's annual economic survey of Canada. The OECD, a grouping of European nations that also includes the U.S., Canada and Japan, makes an annual aalysis of its members. The special study, distributed here before release by OECD's Paris headquarters, notes that progress towards reducing regional economic differences has been "painfully slow." The study, prepared before Finance Minister John Turner presented his new federal budget a week ago, rated the Canadian economy a strong performer through 1972 and said growth should continue through 1973. But high unemployment and inflation were picked out as soft spots in the economy. Expansionary federal policies may have to be reined in somewhat over the coming months to keep inflation at acce^able levels, the study suggested. Government controls on prices and wages remained a "possible approach to alleviating the unemployment-inflation dilemma." -The Turner budget included personal income tax reductions and higher pensions for veterans and the elderly in expansionary moves which the government said should stimulate job creation. RATE TOO HIGH Despite a strong recovery of demand from 1970, Canada's unemployment rate, averaging 6.3 per cent during 1972, remains "undesirably high," the OECD report says. Gold futures WINNIPEG (CP) - Gold futures, U.S. funds, Winnipeg coramodity exchange Monday. Apr 73 - 80.80; Jly 73 - 82.40; Oct 73 - 83.60A; Jan 74 - 85.15A; Apr 74 - 86.35A. Friday's volume: 12 contracts. "The disappointing levels of total unemployment which have persisted over the last two years indicate that the problem of maintaining a high level of employment in Canada has, if anything, hardened despite the application of a wide range of policies aimed at reducing structural labor market imbalances and regional differences. "These developments, combined with a trend in prices and wages which remains a matter of concern, raise the question whether the economy is tending to be left with persistently unsatisfactorily Ugh unemployment, or unsatisfactorily high inflation, or both . . ." There is little reason to expect a slowing of the rate at which young workers and women are participating in the labor force, the study says. This high participation rate has been cited as one reason for recent high unemployment rates. TREND CONTINUES Expanded coverage of' minimum wage laws and higher unemployment insurance benefits had made it more attractive for Canadians to be in the work force and this treiid would continue. Persisting wide regional differences in "economic structure, employment and incomes remains an important obstacle to the achievement of lower unemployment," the study says. Efforts to reduce the differences had been stepped up, "but progress in this area has been painfully slow, and policies aimed at alleviating disparities of various kinds among regions are frequently complicated by the federal system of government and the country's spatial characteristics." Equalization payments, where Ottawa redistributes tax monies from the richer to the poorer provinces, have helped maintain public services there. But because they are not "geared to development objectives," they "may have done little to strike at the fundamental causes" of the differences. GRANTS HELP Grants and loans by the de- partment of regional economic expansion should help promote industrial development in the lagging regions, the study says. "Nevertheless, progress in reducing regional disparities remains disappointingly slow, illustrating the strong pull exerted by the high-income provinces with their locational and other advantages....." Developments through the 1960s .added to Ontario's primary role among the provinces although there was economic strengthening for most western provinces, the study says. "On the other hand, the economic performance of the Atlantic region, while improving relatively, remains well below most of the key national averages with respect to production, income, employment and investment." There had been "lagging investment performance" in Quebec in recent years although this appeared to be strengthening again. Non-economic factors must be considered for Quebec, the study says, including the "traditional stress" of its school system on "liberal rather than technical education and business training" and the fact that the separatist movement "may have discouraged the establishment of new enterprises and business investment." Manitoba, with a diversified resource base, was finding it easier than agricultural Saskatchewan to promote industrial development. Alberta had benefitted from rapid development of its oil, gas and coal re* sources. British Columbia had a diversified resource base and activ. ity had been heavily stimulated by demand from the growing Japanese market. With locations far from the big central North American market area, fewer natural resources and a less favorable climate, Atlantic Canada would continue to find it difficult to advance as quickly as other areas and the activities in the more developed areas would continue to lure younger people away from home. Research station plays big threat rote in army worm By D. L. STRUBLE Organic Chemist Lethbridge Research Station A major role in developing methods to meet the threat from the Bertha armyworm is being undertaken at the Lethbridge Research Station including a significant discovery in the field of sex attractants for this pest. Hopefully this will be developed into a system to provide rapeseed growers with an early warning of outbreaks of the Bertha armyworm. Bertha armyworms overwinter in the soil as pupae. About mid-June the moths emerge and mate. The females deposit their eggs on the leaves of rape plants. Early in July the larvae hatch and feed on the rape for about four weeks. Thus, an estimate of the number of moths would allow a prediction of the size of larval infestation. During the past 50 years entomologists have tried to determine moth populations by attracting the moths to light traps. This trapping method is inefficient as only a few moths are captured even when they occur in outbreak numbers. Furthermore, so many species of moths are attachted to light traps that identification is difficult. To overcome these def-ciences a more specific and effective trappng method is needed. The use of sex attractants for this purpose appears to be promising. In 1972, I found that the female moths of the Bertha army-worm produce a chemical that attracts the male moths to them for mating. Sex attractants to this kind are known to exist in several species of moths. Usually, the attractants produced by one species attracts only males of that species. Thus, by using traps baited with the Bertha armyworm sex attractant, it should be possible to attract only the males of this species. This would greatly simplify the identification of the captured moths. The chemical structure of the sex attractant of the Bertha armyworm is not known. Each female produces such a minute quantity of the attractant that several thousand virgin females would be needed to produce enough to permit chemical identification. Because too few moths were available another approach was taken to find a for the male Bertha army- sex attractant moths of the worm. The attractancy was determined for about 50 synthetic chemicals that are similar to known insect sex attractants. In laboratory tests one of these chemicals caused male moths of the Bertha armyworm to respond as they do to the natural sex attractant produced by the female moths. This chemical is not commercially available and I am synthesizing a large quantity, one-tenth of a pound, by a series of complex reactions. Later tins year its attractancy will be determined in the field. Methods of using the synthetic attractant and a suitable trap for the male moths will be developed in co-operation with entomologists at the station. Beef futures WINNIPEG (CP) - Live beef futures close Monday. Mar - 42.05B; May - 42.75; Jly - 42.45B; Sep - 41.25b. Friday's volume: Two con-racts a Minding your own business" is the title of our series of pamphlets about good business management practices for owners and managers of smaller businesses. Pamphlets now available are: 1. Reference booklets for small business 2. Giving credit to your customers 3. Presenting your case for a term loan 4. Forecasting for an existing business 5. Managing your current assets 6. Forecasting for a new business 7. Managing your fixed assets. � idb MWISWW swims DMWPMM To obtain copies, write to: Director of Advisory Services, Industrial Development Bank, P.O. Box 6021, Montreal 101, Que.