Lethbridge Herald, The (Newspaper) - March 28, 1972, Lethbridge, Alberta
SUNNY FORECAST HIGH TUESDAY NEAR 40. VOlTLXV No. 91 LETHBR1DGE, ALBERTA, TUESDAY, MARCH 28, 1972 PRICE NOT OVER 1C CENTS wrong "rowng TWO SECTIONS 28 PAGES By GREG MclNTYRE Herald Staff Writer EDMONTON Provincial Treasurer Gordon MEn- iely does not apologize; that Alberta is budgeting to borrow up lo million by March, 1973. Tliere is no shame in borrowing. Almost everyone today borrows cheerfully to buy a house or car says Mr. Miniely. Businesses large and small borrow to expand. He laughs at the suggestion that some consider pay-as-you-go budgeting a virtue and borrowing a sin. Those who have pinched and saved through the hard times of the 1930s may feel that spending must be kept at or below revenue. But not the Now genera- tion. Borrowing can be the key to a belter life. Only be sure it does not exceed your ability to repay. Opposition MLAs who reminisce about the debt free years under Soci.nl Credit rule, are not being honest, says (he treasurer. Those we're Ihe days before resource companies began moving north looking for new oil wells. Oil and gas lease sales and royalties were higher and the general level of government spending lower. Government rlebl was well down (he road by tho firne the Progressive Conservatives came to power in the fall. Provincial debt began in the 1969-70 budget with a million deficit, says the Edmonton chartered ac- countant. In 1970-71 debt rose to million and in the 1971-72 budget to ?170 million, How much too much? Had the new Tory government riot put a freeze on spending after taking office in September, debt in the current budget might have been million rather than the million, says the treasurer. As a reminder of Ilie financin! facts of life when he took over the treasury portfolio, Mr. Miniely has framed on the wall of his legislature office the first issue of bond borrowing he signed as Ihe new minister. "I'll always remember how shocked I was that he says seriously. "I wondered I'd taken on." The government will probably only borrow to million of the million in the budget during the coming 12 months. Admittedly it is an increase over the million borrowed last year by the Socreds. The total budget for 1972-73 is estimated at S1.329 billion an increase of 8.5 per cent over 51.225 billion spent during the year ending March 31. The tolal budget is easily largo enough lo cariy current debt without strain, says Mr. Miniely. In add- ilion, as the budget grows each year, its ability to carry more debt grows too. The question is: How much debt is loo much. Mr. Miniely says he will recommend guidelines on borrowing shortly. The limit on borrowing will be set at a level based on percentage of annual revenue. Asked what the limit will be, he replies "that's pretty hard lo say at this time." The Conservatives inherited a level of government spending created during a time of "easy he says. Cash resei-ves have been steadily decreasing over the last few years. Three alternatives To meet rising costs, Mr. Miniely says there are flree alternatives: ......cut government services, increase taxes, or a sound financial program to handle debt servicing charges. Rather than cut government spending, the Tories have shifled emphasis. Spending has teen shifted away from areas such as education and highways toward areas such as senior citizens and agriculture. The government has rejected lax increases in favor of "a sound financial program to handle debl." A lax increase could dampen economic activity in Albcrla, says Mr. Miniely, by culling down the dis- posable income of residents. In nn economy Hint Mr. Miniely sees as operating below polonlinl, a lax increase would be exactly the wrong solution. The aim is In slop .idivilv, ami jobs He nffrrf. 'Von shouldn't and Ilir for a In buy a new house if you can already handle mortgage payments out of your present salary." In other words, don't raise taxes if you have tho sbility to borrow. Highlights of the first Tory budget are: new taxes and no increase in exisling taxes nnd capital financing plan to stimulate the econ- omy including a new agricultural development fund and an Alberta Opportunities Fund lo aid manufactur- ing and small business. BRIGHT AND EARLY-Tbe first picketers in a province- wide slrike appeared before Montreal St. Jean de Dieu hospital Tuesday, part of a one-day strike by Ihe prov- ince's civil servants. (CP Wirepholo) QUEBEC (CP) The largest strike in Quebec history closed schools and cut services in most hospitals and government offices to a minimum today when most of the province's public service employees stayed off work. Court injunctions kept 59 psy- chiatric and chronic-care insti- tutions operating and prevented fl.OOO Hydro-Quebec employees from taking part in the 24-hour general strike to back wage de- mands. Most of the 215 hospitals affili- ated with the Quebec Hospitals Association were operating with emergency crews, an associa- tion spokesman said. DECIDED MOMMY NIGHT A common front of unions representing the public service employees decided Monday night to walk out. The government and Ihe com- mon Confederation of National Tri.de Unions, the Quebec Federation of Labor and the Quebec Teachers promised to maintain essential services during the walkout, first covering such a broad cross-section of the public serv- ice in Canadian history. The slrike originally was scheduled for last Friday but was postponed when 24 inches of snow fell in eastern areas of the province, paralysing Quebec City. A common front spokes- man said the combination of storm and strike could endanger public safety. Involved in tiie walkout are teachers outside the Montreal area, Quebec Liquor Board em- ployees, auloroule and highway 570 injured in train crash FUNABASHI, Japan (Rculer) At least 570 people were in- ji'rf.d, nine seriously, when a crowded commuter train rammed into the rear of an- other train today, during Ihe of- fice rush hour. Each Irain was believed to have been carrying about passengers, police said. maintenance workers, govern- ment office workers, health and welfare employees, non-medical hospital workers in institutions not affected by the government injunction and school mainte- nance workers across the prov- ince. "You're right. It is Howard SYDXEY, Australia (ficuterl NTew South Wales farmer E. L. Timms has bought a desert- ed town adjoining his farm at Ulong 315 miles north of Syd- ney for S35. The 63 buildings on 20 acres of land cost him just over SO cents each. Dairymen favor milk market plan EDMONTON (CP) Alberta dairy producers voted over- whelmingly in favor Monday of a milk marketing plan for the province. Ballots received and counted at the Alberta Milk Control Board offices in Edmonton showed 76 per cent of Ihe votes were in favor of the plan. More than registered dairymen voted and board chair- man S. H. Thomas said these represent about 67 per cent of the milk and cream producers in the province. Under the marketing plan, to come into effect April 1, dairy- men will recover additional subsidy eligibility quotas lost to the province because some producers left Ihe industry in the last few years. Under pre- vious arrangements, the Cana- dian daily commission could not distribute these producers quotas to the remainder. New stand on constitution berta-Ottawa clash m By THE CANADIAN' PRESS Alberta will clash with Ottawa over fundamental issues, includ- ing division of taxes which now "penalizes the says Pre- mier Peter Loughheed. Alberta will not join in any more constitutional latks unless Ottawa takes some steps lo clarify provincial jurisdictions, the Progressive Conservative leader told the provincial legis- lature Monday. A constitution which did not deal with this matter "is no constitution at all." II might that in the months ahead Al- bera might become the holdout province and if this were so would not he averse to seeking a fresh mandate on ths issue." Allocation of income fax reve- nues by Ottawa "is not even close to matching the fiscal needs of the provinces. Tims provincial and municipal governments were forced into heavy borrowing "and lo rely far too heavily on property and other regressive taxes. "As a result, the taxpayer is not paying for government serv- ices in accordance with reason- able ability to pay." Tiie present imbalance was prejudicial to Canadian growth and resulted in an unfair tax system which penalized the poor, penalized metropolitan areas and created waste by du- plicated programs. PENSION'S BOOSTED Mr. Lougheed, in his maiden speech in the legislature as premier, said the government should do more for the disabled workman. The budget calls for an in- crease in the disability pension paid under the Workman's Compensation Act to S225 a month from a month. "I think we can do more and should reassess he said. Defending the budget's million capital deficit, Mr. Ixmgheed said it is unfair to today's taxpayer to have a pay- as-yon-go policy." "A capital program essential- ly provides services and oppor- tunities to younger Albertans and it is unfair to charge the entire cost of capital pro- grams either by way of in- creased taxes or reduced ser- vices for senior citizens." FOIIEIG.V INVESTMENT Dealing with foreign invest- ment, the premier said the Conservatives "do not intend to go too far as a provincial gov- ernment on this issue until tho federal government has de- clared and presented its posi- tion." He said Ihe government's po- sition needs elaboration, hut generally Ihe new administra- tion welcomes foreign invest- ment as long as foreign firms are good corporate citizens." The challenge was to ensure greater participation by Alber- tans in the ownership and con- trol of the province's industry and to ensure Alberta and its residents gain full benefit from foreign and domestic invest- ment. Mr. Ixnigheed said a select committee of tho legislature will sliuly foreign investment in (he province and the govern- ment is in (lie processing of develop i n g legislation regard- ing the sale of crown lands, TOPPING THE UNION JACK An "Uhler Flog" is flown obove Ihe Union Jock by supporters of Ihe Ulsler Vanguard Movement, a hardlino Protestant organizalion, at the city hall in Belfast Monday during rally protesting direct rule by London. (AP Wirephoto) protest U.K. takeover From AP Tlculer BELFAST (CP) More than angry Protestants marched on Northern Ireland's Parliament today in an emo- tional protest against Britain's seizure of power in the prov- ince. A Protestant general strike paralysed the country for the second straight day. Crowds thronged the trim lawns and imposing drive of the government seat at Stormont Castle on Belfast's outskirts and heard outgoing Prime Minister Brian Faulkner declare from a balcony: "We share your feeling of re- sentment and bewilderment and the feeling of betrayal by Lon- don." The marchers, their numbers swelling along the route from Belfast city centre, openly flouled Faulkner's own ban on parades. The red and while flag of Uls- ter, Ihe common name for Northern Ireland, outnumbered British Union Jacks 20 lo 1. Tills was the Northern Ireland Parliament's last session before suspension for at least a year while Britain (ries its hand at direct rule of the troubled prov- Piiicher Creek man killed at plant PfNCHER CREEK Ores! Grofh, in liis early 20's and an employee of Vennard and Ellethorpe Company Ltd., sulphur movers, was killed in an industrial accident at the Shell plant here Monday after- noon. Grofli was decapitated when he fell on Ihe. tracks under a train car. (irofh, a resident of Pinchcr Creek, was married with a four-months-old baby. His parents live in Saskatch- ewan. RCMP silent on spy sensation -B- fSeen ond heard About town JJI IKER Andy Blank get- ting tired of walking to work Bill Ilavinga, John Van Sluys, John Van Sluys Jr. and Walter Genisis show- ing "hands across (he slreel" by helping neighlxir Toil Swi- liart dig hi.s welding shop up from under the snow fall Skifinn trying lo find his. H'hjla car in 9 BIWT drift, OTTAWA (CP> The JICMP maintained official silence Mon- day night about Canada's latest spy it is a spy sen- sal ion. The police hnd no comment on the case of an alleged Soviet, ogonl v.Itfrsr reported activities follow closely a semi-fictional account in a widely-circulated document. Speculation was rife here about why the account had re- ceived sudden widespread circu- lation after disclosure of the al- leged case in a British Sunday newspaper. The account in the British News of the World hewed dosely to a document entitled Tho File on Anton Sabotka, an IICMP training manual distribu- ted to government security offi- cers in December as a profile of a typical kind of spy. Officers who saw Iho said they understood it to be a K-mi-IiclioTial profile drawn from a of actual CAMS histories. TOLD UK EXISTS But reporters who were fitiown the document were told that a real Anlon name is that he operated in Canada for 10 years before defecting. One report said the cabinet, on the basis of the Sabotka rase, was asked 17 lo six Soviet diplomats for espionage acthitv. Tn the Commons, Prime Min- ister Tnideaii told Opposition Leader Robert Stanfield that So- viet personnel haven't im- plicated lasi ex- pulsion was in parly es- pionage activiiy. Outside DIP Mr. Tril- clcnu added lo speculation by saying reporters would have to separate truth from fiction in tlie alleged case. External Affairs Minister Mitchell Sharp said he had seen Uie report and it wasn't entirely without substance. He said there has boen no re- quest fiom the RCMP. who aro responsible for security oases, to declare any Russian officials here persona non srrala, Solicitor-General Jean-Pierre Clover was in Mexico to .sign a C'anada-U.S'.-Mexico agreement nn narcotics. Ho would normally reply on security matters. Officials appeared puzzled by Iho sudden appearance of the has a low secu- rity the basis for a spy sensation. But undercover sources main- tained it deals largely with one CESO. They said prosecutions m expulsions aren't likely but they insisted it involved a real case. They said a -12-year-old Mont- real-born, Czech-raised, Kus- sian-traincd former spy now i.s living in anonymity in Western Canada afler turning himself over to secirrity agents. ince, driven by Roman Catho- lic-Protestant feuding and the violence of the outlawed Irish Republican Army, which wants to unite Ireland and Northern Ireland. With this protestant-dominated through- out its 51-year sus- pension, Britain's new secretary of state for Northern Ireland, William Wliilelaw, becomes in effect a one-man government with power to rule by decree. The demonstrators were led by the leader of the militant Proleslanl Ulsler Vanguard, William Craig, who called the 43-hour strike. The strike was due lo end to- night. But the big event of tho clay was the rally a! Slormont, Ihe rambling building Belfast where the Northern Ire- land Parliament and govern- ment has had its scat since tho province was created 51 years ago. At Elcrmont. police turned out in force and British troops who since last Friday's British announcement of direct rule hnve lost their fr.rmer popularity with Protestants remained concealed in the building. No Herald on Frith ay Good Friday, March 31, be- ing a statutory holiday, The Herald will not publish. Reg- ular editions will be published Saturday, April I. Display advertisers are re- minded that advertisements lo appear Saturday must be at The Herald hy noon Wednes- day, and for Monday, April 3, by noon Tfiursday. Classified advertisements to appear Saturday must bo in by 3 p.m. Thursday.