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Lethbridge Herald (Newspaper) - March 10, 1971, Lethbridge, Alberta \mi M Forecast, high Thursday in 40s The Lethbridge Herald ? ? ? ? * VOL. LXIV - No. 75 LETHBRIDGE, ALBERTA, WEDNESDAY, MARCH 10, 1971 PRICE NOT OVER 10 CENTS TWO SECTIONS - 32 PAGES Another long lobwss pipeline fuss in the making rise seen By DAVE McINTOSH OTTAWA (CP) - Is another great pipeline debate in the making? A lot of people on Parliament Hill say they think so. Many of the ingredients that were present in the epic parliamentary pipeline clash of 1956 are visible now, they say: such as American ownership. And there is the rich new ingredient of possible danger to the environment. It all could add up to the greatest confrontation since 1956 when the then liberal government used closure to push through legislation providing a federal loan to American financiers - Texas buccaneers, the Opposition called them-to complete a pipeline across Northern Ontario. The Liberals reaped the political whirlwind the next year and Conservative John Diefenbaker became prime minister. Proposal made The current situation is that the federal government has made a proposal-Prime Minister Trudeau's word-that United States interests move their oil from the North Slope of Alaska to mid-continent by using a route down the Mackenzie River Valley in the Northwest Territories. Northern Development Minister Jean Chretien said in a speech at Dallas, Tex., Tuesday that Canada welcomes foreign capital for further economic development. Mr. Chretien told the Commons Friday it would be possible to establish a pipeline corridor through the Arctic without hurting the interests of the Indians and Eskimos. It is taken for granted here that the major part of the estimated $1.5 billion required for a Mackenzie Valley pipeline would come from the U.S. This raises again the issue of American ownership and control, on which the cabinet has not yet formed an announced policy. There is also the environmental issue on which the government has expressed strong views-but in relation to oil spills at sea and not into the land of rivers. Talks coming Canada and the U.S. are soon to hold formal discussions on a proposal by U.S. oilmen to move oil across Alaska by pipeline from the North Slope and then by giant tanker to Bellingham, Wash. External Affairs Minister Mitchell Sharp has said sea shipments pose "great risks and dangers" to the British Columbia coast. He has been supported by an all-party group of 18 MPs who have told the U.S. interior department that an ominous procession of tankers from Valdez, Alaska, to Washington state would sooner or later result in an oil-spill disaster. A source close to the cabinet said Tuesday that at the moment Ottawa's basic policy is to try to kill off the tanker route so that U.S. will have to consider the Mackenzie Valley route. Mr. Sharp hinted broadly at this policy in the Commons March 4 when he said: "A decision adverse to the trans-Alaska pipeline would leave us in a position of looking at the problems of alternative routes free of any prejudice." A little later, he said: "I am sure that the national interests of Canada and of the United States would be best served if a decision were made not to build the trans-Alaska pipeline system and then go down the Pacific coast to Bellingham by sea." Hard bargaining The following day Mr. Sharp indicated that bargaining with the U.S. for a Mackenzie route will begin fairly soon. "I hope we will have to give up as little as possible," he said. Up to now, the Conservatives have not taken a clearly defined position on the pipeline issue, partly on the grounds that government policy is not clear. But Mr. Chretien's Dallas speech appears to make it plain the government would welcome a huge U.S. investment in a Mackenzie Valley pipeline. Still to be defined is the government's position on control of such a carrier. 1VDP will fight The New Democratic Party lias indicated it will fight a U.S. pipeline on both American ownership and environmental grounds. Erik Nielsen, Conservative MP for the Yukon, has been insisting that the interests of Indians and Eskimos be protected. It was the NDP, then the Co-operatdve Commonwealth Federation, that began the big 1956 pipeline fight. It recently has been demanding a full Commons deba'le before any final government pipeline decision, which would have to be made if the U.S. ditches the proposed trans-Alaska system. Mr. Sharp-acting prime minister when Mr. Tru-deau was on his honeymoon-said in the Commons there could be debate on the issue. Mr. Sharp then left for an African trip and Works Minister, Arthur Laing became acting prims minister* OTTAWA (CP) - Labor Minister Bryce Mackasey is expected to introduce in the Commons today his sweeping legislative reform of Canada's unemployment insurance system, sources suggested Tuesday. The bill, based on the white paper on unemployment insurance released by the minister . last June, would repeal the existing Unemployment Insurance Act and extend coverage to all members of the work force who are not self-employed. As proposed by the white paper, benefits would be increased to $100 a week from $57 for an unemployed worker with a family. Benefits would also be paid for up to 15 weeks if employment is interrupted by sickness or pregnancy and to retired workers awaiting first instalments from the Canada or Quebec Pension Plans. Many of the white paper proposals have run into criticism from either business or labor spokesmen but almost all were approved by the Commons labor committee last fall. EMPLOYERS PAY Changes are expected in the original plan to require higher premiums from any employers with a higher-than-average layoff factor. The legislation will likely set an individual employer's layoff factor in comparison only with other firms in the same industry. Mr. Mackasey has described the new plan in interviews as a major new monetary tool for the government. The immediate effect of the legislation will be to transfer to government accounts the approximately $450 million now held by the unemployment insurance commission. The government, however, will not be able to spend the money at its own discretion. New employees covered by the plan will not pay full premiums until 1972 and the government meanwhile will have to absorb the higher benefit costs resulting from the current rate of unemployment. Government contributions drop sharply if the national unemployment rate goes below four per cent of the work force when the plan is to be self-sustaining. Joe willing to meet Ali again NEW YORK (AP) - Heavyweight champion Joe Frazier said today he is willing to meet Muhammad Ali in a return match. "Sure, I'll fight him-any time he wants it," he said in a radio broadcast beamed to the BBC in Britain. Frazier's longtime manager and trainer, Yancey (Yank) Durham, said Tuesday that he had asked Frazier to retire now that he had accomplished all of his goals in boxing. He said that Frazier had indicated he would accede to his wishes. Frazier's appearance in a New York studio for the overseas live broadcast was his first since Monday night when he scored a 15-round decision over Ali. Ali said Tuesday that he thought he won the fight and that he wanted a return match. "I will win the next time," Ali said. Nixon: 'Vietnam war is ending' NEW YORK (AP) - The New York Times published an interview today with President Nixon quoting him as saying the Vietnam war is ending. "In fact, I seriously doubt if we will ever have another war. This is probably the very last one." Times columnist C. L. Sulzberger reported that the president stressed that the United States must maintain its responsibilities in the world, warning against a course that he described as neo-isolatioo-ism. The Times gave this ac-' count: "I'd like to see us not end the Vietnamese war foolishly and find ourselves all alone in the world," Nixon said. "I could have chosen that course my very first day in office. "But I want the American people to be able to be led by me, or by my successor, along a course that allows us to do what is needed to help keep the peace in this world." Nixon said it was ironic "that the great internationalists of the post-World War II period have become the neo-isolationists of the Vietnam war period and especially of the period accompanying the ending of that war." "Part of the answer," he suggested, "is simply that Americans, like all idealists, are very impatient people. "They feel that if a good thing is going to happen it should happen instantly." Nixon described himself as "a deeply committed pacifist," but he added: "It is not enough just to be for peace. The point is what can we do about it." The United States, he said, is in a situation "where no one who is really for peace in this country can reject an American role in the rest of the world. "The day the United States quits playing a responsible role in the world-in Europe or Asia or the Middle East- or gives up or recedes from its efforts to maintain an adequate defence force-on that day, this will become a very unsafe world to live in," said Nixon. PRESIDENT NIXON Controversial fax to be scrapped KINGSTON, Ont. (CP) - The federal government's controversial white paper on taxation "will never be legislated," Finance Minister Edgar Benson said Tuesday night. . In departing from his prepared text, Mr. Benson told the Kingston and Brockville Junior Chamber of Commerce the white paper generated public opinion as it was intended. "The public's views have been aired," he said. "We know its wants and as a result of the white paper criticism we'll be able to legislate better taxation - a fairer system." 3,400 Alberta pensioners get $10 more per month EDMONTON (CP)-Changes in Alberta's public assistance program which will put $10 more a month in the pockets of 3,400 pensioners were announced Tuesday by Raymond Speaker, minister of social development. The changes will add $10 to the gross income that pensioners on public assistance now receive and will guarantee retention of their medical, den- tal, optometric and drug benefits. The new policy takes effect April l, to coincide with an increase in the federal old age assistance and guaranteed income supplement to $135 for single pensioners and $255 to married couples. There are 58,000 pensioners in Alberta now receiving old age security and guaranteed income supplement, of which 900 are in nursing homes and auxiliary hospitals. Federal labor law overhauled OTTAWA (CP) - A legislative overhaul of federal labor law began in the Commons Tuesday with first reading of a bill seeking to improve employment conditions for more than 500,000 Canadian workers. Key features of the bill, to amend the Canada Labor (Standards) Code, include: -An increase to $1.75 an hour from $1.65, effective July 1, in the federal minimum wage rate, with further increases to be at the discretion of the cabinet; -Maternity leave of 17 weeks, more if the birth is delayed, with a guarantee for the mother that her job, or a similar job, will be open for her six weeks after delivery; -Advance notice of up to three months of mass layoffs and two weeks' notice for individual workers if the employee has not himself given cause; -A minimum of one week severance pay for workers laid off after five years1 with a firm. The amendments to the Labor (Standards) Code incorporate some of the principal findings and recommendations of the The bill repeals the Female Employees Equal Pay Act, criticized by the commission as ineffectual, and puts the onus on the government to ensure that women workers receive as much as men for doing the same or similar work. Under the present system, Mr. Mackasey agreed, women fear reprisals if they stand up for their rights. Penalties for a conviction under the amendments include fines of up to $1,000 or one year in jail. PROVIDES PROTECTION The bill also would provide protection against dismissal for employees whose wages have been or are about to be garni-sheed. Other measures would modify provisions in the existing code: -Employees would be able to claim two weeks of paid vacation during their first year of employment rather than at the end. Those leaving their jobs would be entitled to unclaimed vacation pay at a rate of four per cent of their basic pay. -A holiday with pay would be provided on the working day immediately before or after New Year's Day, Christmas Day, Dominion Day or Remembrance Day if they fall on a Sunday or a Saturday normally a non-working day. -The labor minister would be able to set out regulations to exempt certain businesses or classes of workers from the present code's provision for a maximum 48-hour work week. Special cabinet dispensation now is required for exemptions. DIRECT EFFECT LIMITED The new amendments will affect directly the conditions only of those workers in federally-regulated industries, including railways, banking, communications and interprovincial trucking. The federal code, however, is generally seen as the pattern for provincial legislation. BUSINESSMEN CRITICAL Small businessmen attacked the proposed reforms when they were introduced in 1969, on the grounds they would hamper business, cripple free enterprise and destroy individual enterprise. At Calgary in 1969, Mr. Benson ran into hoots of laughter from businessmen as he tried to explain the government stand that the recommendations would benefit many Canadians. The criticism continued unabated after that. Mr. Benson said Tuesday night some type of tax reform "will likely be made public this spring-quite possibly by the end of April, but it will be designed to appeal to a greater segment of society." COMMONS WILL DISCUSS IT The proposed tax reform to be put before the Commons for debate "will not dampen Canada's economic growth and is expected to generate the flourishing of small businesses." Mr. Benson said he "wasn't a bit shocked as to the public's reaction to the white paper nor were the few senior members of the staff." "Some day I will reveal my reaction in relation to the public but not now," the finance minister said. Mr. Benson predicted the new tax reforms "will be more acceptable than the present system. It won't retard the growth of our economy, nor will it frighten people out of the country." The white paper dealt mainly with redesigning the system of personal taxation in Canada. MANY CHANGES PROPOSED Businessmen objected to its proposal for a modified capital gains tax and other items. It proposed income tax changes to ease the pressure on the poor and placed the weight of income tax on the middle-income groups. Among the other proposals were changes in the incentives accorded new mines and oil exploration and development; new incentives for Canadians to invest in Canadian business; and heavier withholding taxes on incomes paid to people abroad-including pensions paid to Canadians who retire and move away from Canada permanently. Mr. Benson stressed in a cross-country tour he wanted the proposals to be thoroughly thrashed out in a parliamentary committee, in federal-provincial government talks, and in general public discussion before he made the final decision to introduce new tax laws. EXPRESSES SURPRISE In Ottawa, Mr. Benson expressed surprise today about the excitement generated in some quarters by his comment in Kingston that the federal white paper on tax changes will never become legislation. "I've been saying the same thing since a few months after it was published" in November, 1969, he told reporters. Canada dollar General lockup at San Quentin SAN QUENTIN, Calif. (AP) - Five stabbings within 24 hours have brought the first general lockup at San Quentin state prison in two years as authorities sought to check mounting racial tension. None of the stabbings was fatal. Prime minister votes himself out of office Former Alberta A-G named to court post EDMONTON (CP) - Lucien Maynard, former Alberta attorney-general, has been appointed a provincial judge. The appointment, effective April 1, was approved by order - in - council made public Tuesday. The position carries a $20,000-a-year salary. Mr. Maynard, 62, was a Social Credit member of the legislature from 1935 to 1955 and he held the attorney - general portfolio from 1943 to his retirement. Earlier he had been minister of municipal affairs., NEW PRINCIPAL - Kenneth C. Sauer, 39, of Saskatoon, Sask., has been named the new principal of the Leth-bridgc Collegiate. He was chosen over 21 other candidates. Details on page 17. From REUTER-AP CANBERRA (CP) - John Gorton, Australia's plain-speaking prime minister who has been the centre of a storm of controversy within his own Liberal party, voted himself out of office today after a crisis meeting of the party. He was replaced as prime minister and party leader by William McMahon, the country's 63-year-old external affairs minister. McMahon was sworn in by Gov.-Gen. Sir Paul Hasluck at a brief ceremony later in the day. The decision followed a three-hour party meeting at which Gorton, a 51-year-old former fighter pilot, faced a motion of no-confidence. A "Secret ballot was held and tied 33 to 33, without Gorton's vote. He then declared he no longer had the support of the party and cast his vote against himself to make it 34 to 33. Gorton had been prime minister for three years. The crisis came to a head after former defence minister Malcolm Fraser quit his post Monday in a row with Gorton over Vietnam policy and the handling of liis army generals. Gorton was sworn in as de- JOHN GORTON fence minister today, replacing Fraser. "Hcris not fit to hold the great office of prime minister," Fraser told the house of representatives before Tuesday's meeting. McMahon said he would consult with Industry Minister Douglas Anthony, leader of the Country party, to form a new coalition cabinet. McMahon said he planned major changes in policy for Australia. In particular, be said, he will review the policies on the economy, tariffs and trade and the financial relationships between tho Australian states and the federal government. GORTON IS DEPUTY McMahon was reminded of the traditional antipathy between himself and Gorton, who was elected deputy leader of tho party at the meeting that saw him ousted as leader. "He has pledged his support and I am first and foremost a party man," McMahon replied. Gorton's downfall resulted from steadily growing dissatisfaction within the Liberal party with the way he handled his cabinet and the party, what a Sydney newspaper in 1969 described as his "slightly arrogant, impulsive one-man-band style of leadership." The rebellion came to a head when Fraser resigned, accusing Gorton of "significant disloyalty to a senior minister" by not putting a stop to a campaign by army leaders to discredit Fraser. Leading newspapers applauded the change. MONTREAL (CP) - Some Canadian chartered banks were buying,the U.S. ;dollar Tuesday at one-quarter per cent below the Canadian dollar in certain transactions. The Bank of Montreal and the Royal Bank of Canada were buying the American dollar at a discount of one-quarter per cent below the Canadian dollar in over-the-counter cash transactions of less than $2,000. When the banks sold U.S. currency in cash in small amounts, they placed the Canadian dollar at a rate of one per cent below the U.S. dollar. In Toronto, a spokesman for the Bank of Nova Scotia said his bank placed the U.8. dollar at a lower value than the Canadian dollar only when converting Canadian money to American in small cash transactions. SMALL DEALS ONLY Both Montreal-based banks said these discounts applied only to small cash transactions and not to transactions involving cheques or telegraphic transfer of funds. The Bank Canadian National said it was discounting the U.S. dollar at one-quarter per cent on amounts in excess of $1,000 at 3 p.m. Tuesday on the international money market. This was the first time since the Canadian dollar was pegged at 92% cents of the U.S. d.ollar in 1952 that the American dollar was bought at a price below the Canadian dollar by Canadian banks. The Canadian dollar was unpegged last June 1. Seen and heard About town rF,-HlE dealer Henry Roe-lofs returning to the city with1 50 new tires on his truck, getting a flat, discovering the spare was at the bottom of the stack, and, after unloading the tires, finding the spare was flat . . . Alderman C. W. Chichester, chairman of the beard of directors of the Travel and Convention Association of Southern Alberta, forgetting which meeting he was chairing when he addressed association manager Frank Smith as "city manager". ;