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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - February 27, 1975, Lethbridge, Alberta 10 THE LETHBRIDGE HERALD Thursday, February 27, 1975 Alberta may scuttle Petrosar by selling oil at world prices Herald Ottawa Bureau OTTAWA In the latest twist in the continuing Alberta-Ottawa confrontation over development of Canada's petrochemical industry, Petrosar Ltd. of Sarnia has in- dicated to both Ottawa and Edmonton it doesn't want to have to pay world oil prices for its domestic crude oil feedstock. And federal officials ad- mitted Wednesday that Alberta might still be able to scuttle the Petrosar world scale petrochemical project planned for Sarnia by using price, as well as or in place of assured oil supply, as its weapon. Alberta has long opposed the Petrosar project on the YAMAHA ORGANS I New and Used COLLEGE MALL Phone 328-3694 grounds that Ottawa had sup- posedly promised to support creation of a major petrochemical industry in the west. The Petrosar project would compete with Al- berta's petrochemical development plans. And Petrosar's preliminary discussions with Ottawa about crude oil prices will undoubt- edly be high in the mind of Al- berta Premier Peter Lougheed at the meeting of first ministers in April on the oil and natural gas pricing issue for Canada in 1975 and 1976. Petrosar Ltd. of Sarnia has told the federal government that it wants Canadian crude oil feedstock prices for its planned world-scale petrochemical project to be competitive with oil feedstock prices paid by U.S. Petrochemical concerns. And in the event Canadian domestic oil prices exceed the average U.S. domestic oil as very well could happen by the time Petrosar comes on-stream late in then Petrosar wants the federal government 16 take the necessary steps to protect the Canadian com- petitiveness of Petrosar and other Canadian-based petrochemical operations. The most obvious step, ac- cording to federal government and Petrosar officials, would be to provide Petrosar and other petrochemical com- panies with cheeper feed- stock. Another approach would be extra tarrif protection against imports, of Petrochemical products and derivatives from the U.S. and other sources. But industry sources claim this is less likely in view of Ot- tawa's current trend towards lowering tariff protection. Petrosar officials said Wednesday they have not directly asked either Ottawa or Alberta for any preferen- tial treatment on crude oil prices. But one senior Alberta cabi- net minister reportedly believes that is what Petrosar is feedstock prices somehow lower than domestic oil has complain- ed that such a price break would be at the .expense of Alberta, as owner of the oil resource, and at the expense of the enlarged natural gas- based petrochemical industry planned for Alberta. In Ottawa, federal energy sources said that Ottawa couldn't offer Petrosar or any other oil user a special break on oil prices. And Federal Industry Minis- ter Alastair Gillespie said bluntly outside the Commons that the federal government would not be providing any subsidy for the petrochemical industry in Canada. Another option open to Ot- otawa, as, a way of re-estab- lishing the competitiveness of Petrosar 'and other Canadian petrochemical companies in the event domestic oil prices up too much in the next few years, would be to raise extra tariff protection. Tirestone STORES HU6E OVER SUPPLY SUP-R-BELTS Deluxe Champion Sup-R-Belts were original equipment on many 1 970-74 cars. Built with extra tough rubber compounds and two plus two construction. A perfect combination of strength, performance, and long trouble free mileage. MADE FOR 74CARS! Now, during February only... BLACKWALL A78-13 C78 14 E78-14 F78-14 G78-14 H78-I4 F78-1S 078-15 H78-15 L78 15 FEBRUARY PRICE 8.30 8.55 BUY NOW! FREE INSTALLATION SAVE ON SIZES FOR MOST POPULAR "70- 74" CARS! WHITEWALL A78-13 C78 14 E78-I4 F78-14 H78 14 F78-15 G78-I5 1178-15 L78-15 9.50 9.75 We Guarantee Everything Stores at Corner 3rd Ave. and 8th St. S. Phone 327-8548 limousines stall, too OTTAWA (CP) Even a brand-new custom-built 000 limousine may leave you stalled on the road. This one was tooling south on Quebec Highway 5 when it happened. A tire went flat, separated from the rim, in fact. The big, grey bullet-proof Cadillac came to a halt. Someone got out and flagged down a car. Then .appeared Prime Minister Trudeau and his family, caught in a minor emergency on a trip back to town from their country place at Harrington Lake, Que., 20 miles north of the capital. The emergency was soon over. The Trudeaus boarded the following RCMP security were driven home. Federal funds earmarked for project OTTAWA (CP) Federal funds have been earmarked for uranium exploration in the James Bay hydro develop- ment area, using a consortium that includes the French government agency interested in a controversial uranium enrichment plant there. The Quebec government has proposed the enrichment plant in co-operation with France, but the federal government is opposed because the Candu nuclear reactor, used here and sold internationally, does not .employ the refined uranium. Spokesmen for both the fed- eral and Quebec government agencies in the exploration consortium, called the SES group, deny any link between exploring for James Bay uranium and proposals for the enrichment plant. But a spokesman for. the French government agency involved said Wednesday his organization, Seru Nuclear Canada- Ltd., is definitely interested in the enrichment plant. Canada's grain-exporting reputation gets new jolt By STEVE KERSTETTER WINNIPEG (CP) Canada's reputation as a major grain exporter, already badly tarnished, is declining even further as rotating strikes by members of the Public Service Alliance of Canada (PSAC) continue. A spokesman for the Canadian wheat board said Wednesday that grain movements in the West have been dis- rupted by the contract dispute between the federal treasury board and PSAC weighmen and grain samplers at a number of locations. Vancouver, hard hit by a grain handlers strike last fall, has been seriously affected by the current dis- pute as well. No grain has movedyfrom the port since Feb. 19, and none js being moved into export position. Thirty ships were waiting in the har- bor earlier this week for grain, with seven more due in. Grain shipments from Vancouver from the beginning of the crop year Aug. 1 to this month are only about 93 million bushels, down sharply from the nearly 131 million bushels during the last crop year. Similar disturb customers and add greatly to the demurrage charges borne by the wheat become chronic with dis- putes dating back to a national strike of non-operating railway employees in the late summer of 1973. "Our reputation is just going down through the sewer hole so the wheat board spokesman lamented. "The world grain situation is the only thing that has saved us." A total of boxcars of about a month's exports at this time of been stalled by the current dispute at various points in the delivery system. This could mean further delays in ex- ports from West Coast ports, but it could also create serious backlogs at Thunder Bay once the shipping season opens again in April. "With every week's delay, it means there will be that much less grain ready once the ice the wheat board spokesman said. Stocks of principal grains at Thunder Bay totalled nearly 55 million bushels last week, somewhat better than at the same time last year, but well below the capacity of terminal elevators there. The only bright spot for grain move- ment this week was in eastern Canada, where many grain workers doing similar jobs are employed by .private elevator companies rather than the federal government. The 420 weighmen and grain samplers who are members of the PSAC are responsible for examining grain moving in or but of government and terminal elevators. Without their services, major grain movements must come to a halt. This in turn can cause grain to back up at country elevators in Western Canada. The wheat board spokesman said some Prairie elevators were runn- ing out of working space two weeks ago, and the strike now may be creating congestion problems, par- ticularly at country elevators in Manitoba. The inability of the treasury board and the PSAC to reach a new contract agreement is a setback to wheat board officials, who have been increasingly concerned about labor relations in the grain industry. Among the customers disturbed by Canada's export performance in recent months is China, whose order of 74 million bushels of wheat is several months behind schedule. The Chinese were so concerned about the reputation of Vancouver that they stipulated 40 per cent of the shipments should originate at Thunder Bay. The wheat board spokesman said the stipulation is the only one of in current contracts, "but I'm sure that more and more of that kind of thing is going to happen in the future." Despite Vancouver's unenviable reputation, however, potential problems await the board this year at Thunder Bay and in eastern Canada. The contract for Thunder Bay grain handlers has already expired, and the men are expected to hold out for a set- tlement as good as the one legislated by Parliament last fall for their counter- parts on the West Coast. Ford fined SANTA BARBARA, Calif. (AP) Henry Ford II, chair- man of the board of Ford Motor Co., pleaded no contest through his lawyer today to a charge of drunken driving and was fined Municipal Court Judge Ar- nold Gowans also sentenced Ford, 57, to a suspended jail term of 35 days and two years' probation. Diefenbaker improving OTTAWA (CP) John Die- fenbaker continued to show marked improvement today as he recovers in Ottawa Civic Hospital from an infection that brought on a four-day fever. The 79-year-old former Con- servative prime minister was described as "much much bet- ter" today, more than 24 hours after his temperature returned to normal. A spokesman for the Prince Albert MP said Mr. Diefenba- ker likely would remain in hospital for some time Adding Machines Calculators Standard and Electric Typewriters CHINOOK STATIONERS LTD. 319 OFFICE MACHINE SALES SERVICE 7th St. South Phone 327-4591 There's one great reason why Acadian 400 is becoming so popular. Flavour! SUPERIOR CANADIAN ;