Lethbridge Herald, The (Newspaper) - May 9, 1972, Lethbridge, Alberta
CLOUDY FORECAST HIGH WEDNESDAY 50-55. "VOL. LXV No. 120 The LctWnridgc Herald LETHBRIDGE, ALBERTA, TUESDAY, MAY 9, 1972 PRICE NOT OVER 10 CENTS. TWO PAGES et offers goodies nsioners, business Interpretative By BUD JORGENSEN OTTAWA (CP) The federal budget brought down by Finance Minister Turner Monday night em- phasizes belp for Canadians pressed by inflation and for business under pressure from foreign competition. In the area of foreign trade, Mr. Turner gave the outline of a new design lo enbance 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 cost-of-living escalator that will pro- vide for increases based on the full amount of changes in the consumer price index. The pension changes are retroactive to Jan. 1, which means catch-up cheques may be in the mail Ire- fore a federal election. Mr. Turner said international economic develop- ments have made it "sensible and realistic for us lo lake a new look at, nur situation and to consider vihal. policies will best serve our long-term interests.'' "What I shall strive to do tonight is to set Ibn stage for Canadian Industry lo be competitive in world markets." The help for business included slicing most corpor- ation income taxes, beginning next year, to a lop rale of 40 per cent from 49 and sharply reducing the time period during which manufacturing businesses can writa off equipment purchases for tax purposes. Related U> U.S. move A senior finance department official said Uic bud- get. proposal.1; were "related" to recent moves by the United States government fo support, its export riiis) ries. The officials -said he believes the write-off provi- sions will be "more valuable'1 than recent tax reduc- tions implemented in the U.S. Mr. Turner told the House he expects business to respond with "competitive prices, both at home and abroad.'' One area where the government, expects business t.n hustle is in (.lie underdeveloped nations. Mr, Turner announced that the government plans for a general preferential tariff on goods imported from developing countries. It. will provide for lower tariffs on most semi- manufactured and manufactured goods and on selected agricultural products and industrial raw materials. No pay change III By STEWART MacLEOD OTTAWA (CP) A pensioner with a spouse in a wheelchair, children taking on-the-job training courses and a yen for importing good.s from developing coun- tries might well think that Finance Minister John Turner brought doun a cracker-jack of a budget Mon- day nichi. P.ui foe ihr v.orkinc m-in. u-Hh nn umiMJa! nn unusual inrnmp and no unusual invest' monts, lifp today will he just about the samr. as yes- terday. Income taxes remain So do the taxes on booze, cigarettes and television sets. The long-term effects of ihe budgetary measures may be profound in igniting the economy, creating new jobs and changing thousands of lives hut the imme- diate impact manages to miss the vast majority of working Canadians. Aims al economy" In this his first budget, Mr. Turner concentrated on (hn economy and business. When he did look al. the lol, nf individual Canadians, bo focused his attention squarely on Ihn elderly and, to a lesser degree, stu- dents. The biggest group, about will be affected by Ihc1 announcement of higher old-age pensions. An- other veterans ami dependents will be affected by increases in Iheir pensions and allowances. About fiOO.oiKi will have Iheir lux burdens eased somewh.'it by Ihc higher di'diu-lions for cducalion. and another ino.liiio or so will gain from the broadened base medical flediirliniis, am! (ho elimination nf saler, from (viiiiiuiinil, Mir. handicapped Smaller groups will be affrclrd by changes ill in- come tax regarding such things as residency require- ments, the export of capital, the higher tariffs on Brit- ish knillcd goods, and the lower tariffs on goods from developing nations. There may be cscilement on Ray and 81. .lames si reels over the corporate lax cuts, but the average taU'-lmme pay in I.ethbridge won't change and neither v.iil Hu1 nisi of housing in or Ihe price of in CnrniT Brook. OTTAWA (CP) Tax cuts for many corporations and aid for (lie elderly and post-second- ary students highlighted a pre- election budget presented to the Commons by Finance Minister John Turner Monday night. Businessmen w ere under- standably pleased while opposi- tion leaders criticized the gov- ernment lor 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. Veterans also will get cost-of-living increases for pensions and allowances. Students, beginning with the current, tax year, will gel a a-moiith tax deduction against income. Tills 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 corporation income tax rale will be reduced to 40 per cent from 49 per cent in 1973 for profits from manufac- AKSO SEE T'AGK n FOR BUDGET STORIES luring and processing In Can- ada. Finance department offi- cials estimate the cut will apply to between 40 and 45 per cent of tolal corporation incomes. A cut to 20 per cent from 25 in the corporation income tax for manufacturing and processing profits eligible for the. small business incentive also goes into effect toxt year. Ttds covers about five 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 have no de- fence against inflation and then a tax cut for the middle class. "I didn't have the money, un- less I were willing to risk infla- tion, to solve all the problems." Part of the package to stimu- late the economy was provision for a two-year write-off for tax pui-poscs for purchases of equip- ment to be used in manufactur- ing and processing goods in Canada. This goes into effect immediately and replaces a schedule that takes 10 years to depreciate about 90 per cent of the value of equipment. IN THE ARM' 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 "tha best news manufacturers have had in a long lime." Opposition Leader Robert Stanfield said concessions to business were not enough. A re- duction in personal income tas rates also was needed. David Lewis. New Demo- cratic leader, said it was "sheer stupidity" to expect business to use its concessions to provide more employment. Mr. Turner told the 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, he- said Iho automobile prices here relative to prices in the U.S. would be among things ha would be watching In the budget speech, Mr. Turner also announced govern- ment plans to implement a pref- erential tariff system for im- ports from developing countries. The cabinet would decide which countries are eligible for tlia preferential tariff. Other items in the budget in- cluded: I. Immediate elimination of federal sales taxes on eyeglass lenses and frames ordered by prescription; An immediate tariff In- crease fo 25 per cent from 18 per cent on British knitted goods: :i. Adoption of a tax-saving al- lowance covering expenditures for equipment to process min- eral ores to the prime metal stage: An increase to Sl.OOO from starting with the current tax year in the tax exemption for persons over 65 and for tha blind or disabled; n. Immediate elimination of federal sales taxes on scientific research equipment bought for testing and developing products. The changes in the old-age- pension payments will be made in two stages. Retroactive to Jan. 1. there will be an increase of 52.83 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 S15 a month for a single person and a month for a married couple. Beginning April 1. 1973, the combined old age pensions and guaranteed income supplements will be increased by the amount of Ihe increase in Ihe consumer price index during the previous year. By THE CANADIAN PRESS Corporation income tax re- duced in 1973 to 40 per cent from 49 per cent for manufac- turing and processing in Can- ada. old pensions In he ad- jtifled annually fo reflect full increases based on consumer price index. Maximum monthly payment under combined old nge pen- sion and guaranteed income supplement to be increased to from for single per- son and to from for married couple. No persona] income fax rale changes. Machinery and equipment, purchased for use in manufac- turing or processing goods in Canada may bo depreciated over two years. Students to lie allowed a exemption for in- come- tax purposes for oach nionMi in .school. i income- rate on manufacturing and proc- essing profits eligible for small businesses deduction to be cut, to 20 per rent from Legislation to be introduced lowering tariffs on imports from developing countries. purchases t n procoji twineruJ orrs to Uw prime metal stage to be eligi- ble for a depletion allowance. Pensions and allowances for veterans to he increased an- nually in step with cost-of-liv- ing rises. pxempl.ion for persons over fi.i nnrl for (.lie blind or to he increased to from Eycplass lenses and frames proscribed by a physician or optomet.ri.st to he exempt from federal sales tax. Provisions for accelerated depreciation on pollution-con- trol equipment, to he extended one year through PROPOSED ARENA City council rolls up its sleeves this afternoon to consider recommendations for o million, multi-purpose arena to be located at Scenic Drive and 28th St. S., immediately adjacent to the tDS Stake Centre property. The recommendations were presented to council Monday night by arena consultants. For story, see page 17. School risks bids _ with Russians EDMONTON (CP) All new school building requests in Alberta 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 better indication of some sort of stabilization in birth rate and number of pupils entering school for" the first time. VACANT CLASSROOM The action follows a recent survey by the education de- partment which indicates there are 800 vacant classrooms in the province. This is in addi- tion to portable units not re- ceiving full use, of which there are about GOO scattered throughout the province. Mr. Hyndman said the birth rate is dropping and a decreas- ing number of students are en- tering Grade One. In Septem- ber, 1909, 39.567 students enter- ed One in Alberta. In September, 1970, the figure dropped to and In Sep- tember, lo 3.i.I73. The minister said the educa- tion department wants more assurance that present facili- ties arc being used to capacity. All new school projects now being considered, on which contracts have not been let, 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 to mine North Vietnam- ese pork and choke off Soviet war supplies to Hanoi. He also ordered intensified bombing of the North. announced his far- leaching moves, the most seri- ous of the long and bloody Viet- nam war, in a televised address Monday nighl, only two weeks before his scheduled trip to PRESIDENT NIXON big gamble QUEBEC iCPi A protest movement, gathered momentum across Quebec loday as three labor leaders prepared to give themselves up at the courthouse here to face one-year jail terms for contempt of court. The ports of Montreal and Trois-Rivieres were closed down as dockworkers walked off their jobs in an apparent show of soli- darity wilh cavalcades of union members heading to the provin- cial capital for a mid-afternoon protest demonstration. Moscow to confer wilh the Rus- sian leaders. Nixon embarked on the most hazardous gamble of his politi- cal career, appealing to the Russians to 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 "Ihe international Outlaws of North Vietnam'' within tliree days or face destruction of So- viet ships. MINES PLANTED The mines dropped by U.S. Navy planes were set to 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. SOFTENS 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 battle cry Monday night was that he never would accept, defeat even if his ac- tions did force a showdown with Ihc Russians and cost him Ihc presidential election in No- vember. He reported lolai failure so far to engage the Communists in serious negolialions at Ihe Paris peace talks and at one point clearly implied that the Russians whose guns and tanks he claims are feeding the North Vietnamese offensive in tlie were rebuff- eel or refused to carry through a promise that they would use their constructive influence to bring about a peaceful settle. ment. Arab plane pirates gunned down TKI, AVIV (Al'l Israeli army troops killed two Arab hi- jackers today, captured two oth- ers and released (17 people on a Belgian jetliner the Ihre.-ilrned to blow up. The passengers escaped initv two over men rlimhod onto Ihe wing of Iho plane and forced the emergency doors open. "It is all over said an army spokesman, 21 hours after the plane landed al Tel Aviv In- ternational Ail port. liulli of the' dead guerrillas were men wigs as dis- guises The captured hijackers woro women, nnr. nf whom was shot in the chest and seriously wouiuloil. Two of Ihe paratroopers rhmbed nnlo Ihe wing of Iho, plane, evidently pretending lo be repairing or refuelling tho jet. and the airliner's emer- gency doors were forced open. Minnies Inter, the passengers began sliding down escape- chutes to the ground and run- ning frantically lo safety. The hijackers, armed will] guns, grenades and explosives, hail Hire-atoned to blow up Ihe airliner and everyone aboard unless Israel released 100 lo Arab guerrillas held in Israeli prisons, The Belgian pilot of the plane. Reginald Levy, climbed out of the bullet-scarred jetliner wiih his hands nncred in blond, but smiling happily and appar- ently uninjured. "Thanks very much, ils a lovely he (old Defence Minister Jlithc Dayan, who was standing with Israel's chief of slaff, U.-lien. Pavid Elazar, and four other generals besido the jetliner. Most of tho released passen- gers walked down Hie stairs of Ihe plane instead of using the safely clinics. of joy sounded in Is- rael's Knesset, i parliament a? Premier Golda Mcir and the, government received word that the troops had taken the plane. The plane had been parked on a side runway at l.od Interna- tional Airport while the long and tense negotiations were eon- duclcd through officials of Iho I'ros.s, Yhn thwarting of tho guerrilla attempt (o hold ihe passengers to ransom was soon here as a great victory for the Israeli ati- tborilies. v.'lio bad refused lo into hijackers' ultima- tum iK-raiiM- Iliey foil, this would only encourai.'.' furl her guerrilla atl.cmpts. MOSCOW (CP1 Tass cused President Nixon today i "naked aggressive acts" and violating international law In his actions against North Viet- conceivably against Soviet shipping. At the same time, North Viet, nam 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 the Vietnamese people. They rejected any such action. The Viet cong delegation to the Paris peace talks called on the president to "immediately halt all of his acts of war and engage in serious negotla. Meanwhile, Russia pledged continuing support for tha North Vietnamese regime. The possibility that Nixon's visit lo Moscow, due lo begin on May 22. will be called off was raised from diplomats in Moscow but there was no im- mediate comment from the vict side. In Washington, Dr. Henry A. Kissinger said today President Nixon realizes his latest, Viet- nam moves "will create short- term difficulties for Soviet leaders'' hut fully hopes to pro- ceed with Moscow summit tslks May 22. Britain said that Nixon's proposals on Vietnam offered Ihe chance of ending the fight- ing within a short time under inicrnation.il supervision and the opening of real negotia- In Washington. U.S. con- gressmen are pressing the administration for clari- fication of its decision to block- ade North Vietnamese ports, described by Democratic presi- dential contender George Me- Govern as "a Flirtation will) Three." AFL-CIO President George Mcany and the vice- president of the U.S. Chamber rf Commerce. Arch Booth, fmmd themselves in agree- ment: Nixon should lie sup- ported. Sweden's leading pro-govern- ment newspaper, commenting on Nixon's dcnMoti, questioned his sanity. Seen and heard About town AM1- Hit S i; a y a Korth- gnting up al 7 o'clock in Ihe morning to wash her hair only to discov- er she was out of shampoo (.all suffering from baldness nf Iho upper iip Harry I'allorson nervously nwniling tho tiilo, of his CM.