Lethbridge Herald, The (Newspaper) - May 9, 1972, Lethbridge, Alberta
CLOUDY FORECAST HIGH WEDNESDAY SO-5S. The Lethbridqe Herald VOL. LXV No. 120 LETHBRIDGE, ALBERTA, TUESDAY, MAY 9, 1972 PKICE NOT OVER ID CENTS. TWO PAGES offers pensioners, business Interpretative By BUD JOnGENSEN OTTAWA (CP) The federal budget brought down by Finance Minister Turner Monday nighl em- phasizes help for Canadians pressed by inflation and for business under pressure from foreign compcMlion. In Ihc area of foreign Irarlfi, Mr. Turner gave Ihe outline of a new design l.o enhance Canadian busi- ness dealings in Third World countries. For election-minded people, the budget might be considered appropriate. The budget provides the old age pensioners will ultimately get a cosl-of-living escalator that will pro- vide for increases based nn the full amount of changes Jn the consumer price index. The pension changes are retroactive to Jan. 1, which means catch-up cheques may be in the mail lie- fore a federal election. Mi. Turner said international economic develop- ments have made it "sensible and realistic for us to lake ,n new look at. rnir situation and In consirlcr vhal. glides will bos! serve our long-lerm interest. "What I shall slrivc lo rio tonight is lo set Mm Flagc for Canadian induslry lo be compcLilive in world markets." The help for business included slicing most corpor- ation income taxes, beginning next year, to a top rale of 40 per cent from 49 and sharply reducing the time period during which manufacturing businesses can writ.9 off equipment purchases for tax purposes. U> U.S. move A senior finance department official said the bud- get proposals were "related" to recent moves by the United Stales government fo .support its export in- The. officials said hf believes the write-off prcni- fions will be "more valuable'1 than recent tax reduc- tions implemented in the U.S Mr. Turner told Hie House he expects business lo respond with "corapelitive prices, both at home and abroad. One area where I he- cwcrnmonl cxprd.s business In hustle is in the underdeveloped nations. Mr. Turner announced that the government plans for a general preferenlial tariff on goods imported developing enquiries. II will provide for lower tariffs on most semi- manufactured and manufactured ponds and on selected agricultural pnxlucls and industrial raw materials. No pay change in By STEWABT MacT.EOD OTTAWA (CP) A pensioner with a spouse in a wheelchair, children laking on-lhe-job (raining courses ami a yen for importing goods from developing coun- tries might well think that Finance Minister John Tumor brought rlouTi a tracker-jack of a budget Mon- day nichi. rlqvindcnls, nn imii.Mi.il income ,nnr] no unusual inKtilf. life today will he jnM aboul the fume as yes- Icrday. Income remain unchanged. So do Ihe I axes on booze, cigarettes nnd television sets. The long-term effects of the budgetary measures may lie iirufound in igniting the economy, creating new jobs and changing thousands nt lives IniL the imme- diate impact manage to miss liic vast majorily of working Canadians. Aims al economy In Iliis Ins first hudgoi, Mr. Turner concentrated on Mm economy ami IVhpn ho did lank a I. (lie lot, of individual lie focused his allenlion Hiuarely on the elderly and, lo a lesser degree, slu- Tlic biggest group, about l.snn.ouu, will he affected li> Hie announcement of higher old-age pensions. An- other and dependents will lie affected by increases in their pensions and allowances. About iKio.oiiii will have I heir lax hnrdens eased somewhat by Ihe lunger dednHiuiis for education, nnd .inolher Mitt.lion or will gain from the broadened base f'ir medical ,ind Hie eliiuinalion nf fnun tnr Ihc pliv.ically handirappi'd Smaller groups will be affected by changes in in- come regarding such things as residency require- ments, Hie exporl. of capital. Ihc higher lariffs on liril- i.-h kmllccl goods, and the lower tariffs on gootls from developing nations. There may be excitement on Hay and SI. .lames si reels river the nils, bill llm average lal.chome pay in l.olhbridgo uon'l change and neither vill Ihe nf bnn-ing in or Ihe price of foul in Cornel' Itrook OTTAWA (CP) Tax culs for many corporations and aid for the elderly and post-second- ary students highlighted a pre- election budget presented to the Commons by Finance Minister John Turner Monday nighl. Businessmen w ere under- slandobly pleased while opposi- tion leaders criticized the gov- ernment for not reducing per- sonal income tax rates. Corporations, both large and small, will have real and poten- tal benefits from the first budget presented by Mr. Turner as finance minister. About 1.8 million pensioners will have a cost-of-living escala- tor built into old age security. They will get increases retroac- tive to Jan. 1. Veterans also will get cost-of-living increases for pensions and allowances. Students, beginning with Ihe current lax year, will get a S50- a-month Ux deduction against income. Tlu's was the only major item in the budget that will benefit a large segment of the middle class. Finance department officials estimate about 2.7 million Cana- dians will get direct benefits from the budget. LESS CORPORATION TAX The top coloration income tax rale will be reduced to 40 per cent from 19 per cent in 1973 for profits from manufac- M.so SEK T'ACIK r, FOR BUDGET STORIES luring and processing In Can- ada. Finance department offi- cials estimate the cut will apply lo between 49 and 45 per cent of (olal corporation incomes. A cut fo 20 per cent from 25 in Ihe corporation income tax for manufacturing and processing profits eligible for Ihe small business incentive also goes into effect year. TTis covers about fiie per cent of total cor- poration income. Mr. Turner, at a news confer- ence following his budget speech, said his priorities were incentives for job-producing in- dustries, moves to encourage medium-term growth in the economy, inflation control, prot- ection for those who no de- fence against inflation and then a lax cut for the middle class. didn't have Ihe money, un- less I were willing to risk infla- tion, to solve all fhe problems." Part of (he package to stimu- ]alc the economy was provision for a two-year write-off for lax pin-poses for purchases of equip- ment lo be used in manufactur- ing and processing goods in Canada. This goes into effect immediately and replaces a schedule that takes 10 years lo depreciate about 90 per cent of the value of equipment, 'SHOT IN THE AHM1 Gerard Filion. president of the Canadian Manufacturers' Association, said the budget was a "shot in the arm" for bus! ness and the tax cut was "Ilia best news manufacturers have had in a long lime." Opposition Leader Robert Sfanfield said concessions to business were not enough. A re- duction in personal income tax rates also was needed. David Lewis. New Demo- cratic leader, said it was "sheer stupidity" fo expect business to use its concessions to provide more employment. Mr. Turner told Hie news con- ference incentives for busi- nesses in other countries, in- cluding the United States, made such incentives necessary in Canada. The effect of the budget would be to make more cash available for business use. "I will be watching to see how this cash flow is used." In response to a question, IIB said Ihs futcmcbile prices h3re relative lo prices in the U.S. would bo among things ha would be watching In the budget speech, Mr. Turner also announced govern- ment plans (o implement a pref- erenlial tariff system for im- ports from developing countries. The cabinet would decide which countries are eligible for Uio preferential tariff. Other items in the budget in- eluded: 1. Immcdiale elimination nf federal sales laxes on eyeglass lenses and frames ordered by prescription: 2. An immediale tariff In- crease lo 25 per cent from 18 per cent on British knitted goods: :i. Adoption of a tax-saving al- lowance covering expenditures lor equipment to process min- eral ores to the prime metal stage: An increase lo from starting with the current lax year in the tax exemption for persons over 65 and for tha blind or disabled; Immediate elimination of federal sales taxes on scientific research equipment bought for tesling and developing products. The changes in Ihc old-age- pension payments will be made in two stages. Itelroaeih'C lo Jan. 1. there he an increase of a on the increase last year in the consumer pries about pen- sioners. The one million elderly receiving guaranteed income supplements will get retroactive raises ranging to a maximum of SIS a month for a single person and sio a month for a married couple. Beginning April J. 1973, the combined old age pensions and guaranteed income supplements will be increased by the amount of Ihe increase in the consumer price index during the previous year. et in By THE CANADIAN PRESS Corporation income lax re- duced in 1973 to 40 per cent from 49 per cent for manufac- turing and processing in Can- ada. old SEC pensions, In be. ad- juried annually In reflcrl full increases based on consumer price index. Maximum monthly payment under combined old ape pen- sion and guaranteed income supplement (o bo increased lo from for single per- son and (o 5285 from for married couple. prime metal stagG to be eligi- ble for a dcplelion allowance. Pensions and allowances for veterans lo be increased an- nually in step willi costof-liv- ing rises. T.TA for persons over fi.i nufl for fbc blind or to be increased lo from fesn. No peisonal income lax rale changes. Machinery and equipment purchased for use in manufac- turing or processing goods in Canada may ho depreciated over two years. .Sludonl.s lie allowed a exemption for in- come lax purposes for rach nionlli in school. I'nrpnrnln inoomr rale on manufacluring and proc- essing profits eligible for small businesses dcduclion to lie cut lo 20 per renl from Legislation lo be introduced lowering tariffs on imports frnm countries, purcha.se., I o procr.1-.! ijiinp.i oj ores lo Uio lenses and frames prcscrilii.-d by a jihysician or oplomel.ri.st lo be exempt from federal sales lax. Provisions lor arroleraled depreciation on polir.lion-con- Irol equipment lo be extended one year through I'i73. PROPOSED ARENA Cily council rolls up its sleeves Ihis oflernoon to consider recommendalions for o 52.69 million, mulli-purpose arena lo be totaled at Scenic Drive and 28lh St. S., immediately adjacent to the LD5 Stake Centre property. The recommendalions were presented lo council Monday night by arena consultants. For story, see page 17. School bids held W ixon risks war ith Russians EDMONTON' fCD A1J new school building requests in Alljerta will be placed into a "holding Education Minister Lou Hyndman an- nounced in the legislature Monday. Mr. Hyndman said that only critical requests for new build- ings will be entertained until there is a beUer indicalion of some sorl of stabilization in birth rate and number of pupils entering school for" the first time. VACANT CLASSnOOM The action follows a recent survey by the education de- partment which indicates there are ECO vacant classrooms in fhe province. This is in addi- tion to portable units not re- ceiving full use, of which Ihere are about coo scattered throughout the province. Mr. Hyndman said the birth rale is dropping and a decreas- ing number at students are en- tering Grade One. In Septem- ber. 1909, students enter- ed One in Alberta. In September. 1970, Hie figure dropped fo 39.128 and In Sep- tember. to 3ri.l73. The minister said the educa- tion department wants more assurance Ibat present facili- ties are being used to capacily. All new school projects now being considered, on which contracts have not been lei, will be reviewed. Some rec- ognitions of need will be con- firmed, others scaled down and some rescinded or refused. From AP-REUTER WASHINGTON (CP) Presi- dent Nixon risked a direct naval clash with the Russians and the collapse of his planned Moscow summit with his drastic decision Monday lo mine North Vietnam- ese ports and choke off Soviet supplies lo Hanoi. He also ordered intensified bombing of Ihe North. Nixon announced his far- reaching moves. Ihe most seri- ous of the long and bloody Viet- nam war. in a [elevised address Monday nighf, only two weeks before his scheduled trip to PRESIDENT NIXON Iiig gamble QUEBEC (CD A prnlcsl. Tnovpmenl cal.lievef] momentum srrnFf. Quebec loclny as Ihroe labor leaders prepared to give IliDmsclvcs up al l'ie co'.irthausB here to [ace one-year jail terms for contempt of court. The ports of Montreal and Trois-Rivieres were closed down fis docktvorliprs talked off their jobs in an apparent show of soli- darily ivilli cavalcades of union members heading lo the provin- cial capital for a mid-afternoon protest demonstration. Moscow lo confer wilh the Rus- sian leaders. Nbcon embarked on ihe most hazardous gamble of his politi- cal career, appealing to the Russians lu co-operate in the cause of peace and to under- stand why he was taking mili- tary measures involving the use of force to prevent their tanks and armor reaching North Viet- nam. The Associated Press said Nixon delivered what amounted to an ultimatum for the Soviet Union to quit supplying arms and material to what he called "the international Outlaws of North within three days or face destruction of So- viet ships. MINES PLANTED The mines dropped by U.S. planes were sel lo acti- vate automatically in three days' Thursday. They were planted Monday. The AP said that besides risk- Ing collapse of summit talks with Soviet leaders, Nixon's sea quarantine of North Vietnam posed the potential for perhaps the greatest confrontation of world superpowers since the Cuban missile crisis a decade ago. 50FTEXS PEACE TERMS Nixon combined disclosure of the toughest military moves ever ordered by an American president in Vietnam with what some Washington officials viewed as a softening of peace terms: An offer to withdraw all U.S. forces from Vietnam with- in four months after American prisoners of war are released and an internationally-super- vised ceasefire has begun. Nixon's hat tie cry Monday night was that he never would accept defeat even if his ac- tions did force a showdown wilh Uie Russian? and cost him the presidential election in No- vember. He reported tolal failure so far lo engage fhn Communists in serious negotiations at Ihc Paris peace talks and at one point clearly implied that the Russians whose guns and tanks lie claims are feeding (he North Vietnamese offensive m Die were rebuff- ed or refused to carry through a promise that they would use their conslrucluc influence to bring about a peaceful settle- ment. Arab plane pirates gunned down TKL AVIV (AIM Israeli army intops killed Arab lii- jnfrUTF (cKli'iy, t'iipluird oth- ers and rolcased (17 on ;i llrlnian jrlliner the fn hlmv The passengers csmpcd min- nt. iii.n- CUT IH men rlimlii'd onto I ho wiiiR of I ha pinna nnd forced the emergency donr.s open. "IL is all over snid nn army spokesman, 21 hours nflcr the plane lamlrd al Tel Aviv ln- Irrnalional An Until of Ihr dead nui'rrillas WITO mm ucarini: as di.s- KMisi's The raplurrd hijackers wnnirn, nnr n( irhom H'ns shot in the 1'hc.sl and seriously T o of Ihc punilroopors rlimbed onto Ihp of llici plane, ovidrnlly prelending In br repairing or Ilin jet., and (hr nirlinrr's rriUT- pcncy doors forced open. Minutes Ir.ler, l.he pussongors s 1 i d i n p down oscapo chutLS (o UK; fjroiinfl and run- ninp frnnlirally lo .safely. The hijackers, firmed puns, pronndcs and explosive's, Ji.'Kl Uuv.'tlrfkv) lo hltnv up Ihc jiirliiu-r and cvi'i'vont1 alioanl unless Israel released lOfl lo lldil Aral) purrrillns held in Israeli The liel.qinn pilot of the plane, Capt. Reginald climbed (Hit of (lie bullet-scarred jetliner his hand.s rmered in blond, but smiling happily nnd appar- ently uninjured. "Thanks mueh, its B lovely he. (old Defence Minister Mo.-hc Diivan, was J.sracl's nf staff, U.-tini. Pavid .nnd four other pcncrals bcsido Hie jelliner of Ihr reloased P.-IXJ-TII- pors u.ilhnl doun I lie slairs cf Hie plane instead of usinp the safety rhules. of joy pniindH jn Iv nicl's Kncssol, i parliament a--' Premier (iolda Meir and the, povcrnmenL received word that Ihe troops had taken the plane. The plane had been parked nn ;i side runway al l.od Inlcrna- fionnl Airpnvl while the long and tense negotiations were cnn- cinclcd Iliroupti officials of tho Ked ui" I lie atlcnipt lo liold the to ransom was ?eeii here as n preat victory for the Israeli aii- IJmrilies. had ivdo'tvl jo into Hie hijaekei's' nltima- Miey felt this would only further guerrilla PtLr-mpts, MOSCOW rCP) Tass rfc cused President Nixon today i "naked aggressive acts" ai-d violating inteiTiational law in bis actions, against North Viet- conceivably against Soviet shipping. At the same time, North VieU nain and the Viet Cong spoka defiantly of what they called an ultimatum. The North Vietnamese and the Viet Cong accused Nixon of. laying down an ultimatum to (he Vietnamese people. They rejected any such action. The Met cong delegation to the Paris peace talks called on the president to "immediately halt all of his ai'k of war and engage In serious negotia 12 Britain said that Nixon's proposals on Vietnam offered Ihe chance of ending (he fight- ing within a shurl lime under internal ional supervision and the opening nf real oegotia In Vi'ashington, U.S. con- gressmen are pressing the Ninon administration for clari- fication of its decision (o block- ade North Vietnamese ports, described by Democratic presi- dential contender George Me- Govern "a la lion with YYnrld Wnr Three." AFL-CIO President George Mcany and HIK executive vice- president of Hie U.S. Chamber rf ConimeiTe. Arch Booth, found themselves in agree- ment Nixon should lie sup- ported. Sweden's leading pro-govern- ment newspaper, commenting on dcei.sion, questioned his sanilv. Seen nnd heard About town A M151TIOVS i; a y a Korlh- uing up nl 7 o'clock in Ihe morning to wash her hair only lo discov- (.all siifferiiK from nt the upper lip llarrv PallcrMin nervously nu.iiiinr l.lm t-ak. of his car.