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Lethbridge Herald, The (Newspaper) - November 1, 1974, Lethbridge, Alberta 'Unaltered federal budget would create energy shortage' By AL SCARTH Herald Legislature Bureau EDMONTON Canada will face its own energy shortage within a decade if Ottawa re introduces the May 6 budget next month, Premier Peter Lougheed predicted Thursday. "Let us all hope wisdom and judgment prevail during the next few days in Mr. Lougheed told the legislature after meeting Prime Minister Trudeau and Finance Minister John Turner in Ottawa. The premier warned that re introducing removal of royalties as a tax deductible ex- pense for energy companies would "seriously jeopardize the Canadian petroleum industry." The "excessive and extreme" measure would discourage exploration by the companies to the extent that an energy shortage would develop in Canada "in about eight years." He was non committal about Ottawa's lesponse to the province's final bid before the mid November federal budget to have the measure deleted. It died with the remainder of the budget when the government was defeated and went to the polls. The only undertaking by Ottawa was that the budget had "not yet been settled" and Alberta's concerns would be considered. "We and the industry have done everything we can to convince them to modify their the premier told th- Hcuse. He was asked at a news conference if he retained his "cautious optimism" expressed earlier about the budget. "Now I'm just Mr. Lougheed replied. "I just can't tell." He was asked if re introduction of the measure disallowing royalties as tax deductions would cause Alberta to re open an agreement on oil prices which does not expire until next July. "I just have to reserve comment on that question, until I see the he said. Mr Lougheed said he made seven points with the prime minister to sum up Alberta's opposi- tion to the budget measure. It would mean Ot- tawa would receive more revenue from sale of Alberta resources than the people of Alberta who owned them It would, in the judgment of the province and industry, "create an energy shortage within a decade in this nation." The measure was "both punitive and unfair" to the producers It was a tax on something they did not own o" produce. Royalties paid the province were a legitimate business expense and should be deductible. It was "particularly damaging" to indepen- dent und smaller companies which did much ol the energy exploration in Alberta The tax aggravated a situation where American funds for exploration in Canada were drying up as "Project Independence" sent them back into the U.S. Ottawa should introduce different tax measures to encourage Canadian investment in exploration to fill the gap Finally, Mr Lougheed said, he referred the prime minister to his own pledges in the House of Commons to an "active commitment" to fair prices for oil producing provinces and to help them diversify their economies. The Lethbridge Herald LETHBRIDGE, ALBERTA, FRIDAY, NOVEMBER 1, 1974 15 Cents 32 Pages Milk jumps 40 a quart Lethbridge milk drinkers dug a bit deeper into their pockets this morning as con- sumers across the province today started paying an ad- ditional four cents a quart for milk. Following price increases announced Thursday by the Alberta Dairy Control and Public Utilities Board, one quart of homogenized milk goes to 43 from 39 cents, two per cent to 41 from 37 and skim to 37 from 33. Spokesmen for Palm and Silverwood Dairies in the city today said price increases went into effect this morning. Silverwood's manager Al Wiggins told The Herald two cents of the retail price hike will be passed along to producers. Southern Alberta producers, paid a hundredweight until Thursday, now receive a hundredweight from local dairies for bulk milk averaging 3.5 per cent butter- fat content. Part or the price niLi an- nounced Thursday came from the Public Utilities Board, which granted Aiberta producers a two cent a quart increase and allowed processors to add one cent a quart to recover increased labor costs. Another cent was added to the retail price Thursday by the province's Dairy Control Board, which will add two cents to the new price in December and a further two cents in January. Smog protest Masking her disgust with recent city smog, Heather Green strides along Van- couver's Broadway during early morning traffic. Her one-woman clean air campaign attracts curious glances from fellow pedestrians, who suffer the effects of several recent temperature inversions unaided. Ottawa making money on oil export taxes OTTAWA (CP) The federal government is collecting about million more in oil export taxes than it spends annually to stabilize oil prices across the country. Energy Minister Donald Mac- donald said in the Commons Thursday. Mr. Macdonald said revenues from the export tax on domestic oil are flowing in Kuwait ruler calls for 'rational' inflation talks ASSOCIATED PRESS The ruler of oil-rich Kuwait. Sheik Sabah Salem el Sabah. has called for "rational and sensible" talks between indus- trial and oil-producing countries to solve the world's inflation crisis. Addressing the Kuwaiti par- liament after returning from the Arab summit conference in Morocco. Sheik Sabah re- jected the United States government's contention that the rise in the price of ex- ported crude oil is primarily responsible for the world inflation. But he said oil relations should be discussed "in a rational and sensible way befitting the major problems of humanity Inside Classified Comics Comment District FamiH Local Ncv Markets Sports Theatre? Trave1 TV Weather M Home .28-32 S 19 22.23 17.1R 27 14-16 13 21 M0.12 6 x 'It's probably a Premier in town for The inflation meeting I.OW TONIGHT 25: HIGH SAT. 50. rLOVir. at an annual rate of about billion. Spending to subsidize the higher priced imported oil is about billion. He said the figures are rough estimates of what should be collected and spent by the end of the fiscal year. March 31. The National Energy Board sets the export tax but was not expected to change the present rate of per barrel before then. Mr. Macdonald spoke dur- ing debate on the proposed Petroleum Administration Act. re-mtroduced from the last Parliament. It would allow the federal government to intervene if necessary to set domestic prices for oil and gas. The bill also would authorize Ottawa to collect the export tax that oil com- panies have been paying voluntarily since last spring Last January the federal and provincial governments agreed to freeze the domestic price of crude oil at a barrel The export tax covers the difference between the domestic price and inter- national prices of about Sll 70 thai are r-hargcd for imported oil used in Eastern Canada The lax revenues are used to reduce the price to con- sumers imported petroleum proaucts in eastern Ontario. Quebec and the Mantimes Mr Maodonald said the gov- ernment thus far has met the goal of a single national price for oil set at the -Tanuary fed- Elected Aid. George Davidson, above, of Medicine Hat was elected president of the Alberta Urban Muni- cipalities Association Thursday in Edmonton. Among those named to ihe executive committee were Mayor Andy Ander- son of Lethbndge and Counc. Eugene Waskie- wich of Vulcan. Inquiry may probe beef industry woes Fluoride recount sought The Lethbridge Safe Water Committee filed an applica- tion at the district court house Thursday for a judicial recount of the fluoridation plebiscite. But defeated aldermanic candidate Dick Johnston said today he will not seek a recount. Today was the last day for recount applications to be accepted. Mr. Johnston, beaten out for the last seat on city council by incumbent Cam Barnes by a scant 10 votes, said the poten- tial cost of the recount played a part in his decision. "The fact that I can't get hard information on whether or not the petitioner is liable for all costs, or what the cost might be in total is a he said. A court house spokesman said today the application for a fluoridation recount would be heard Tuesday at 10 a.m. Home buyers to get cash grant OTTAWA (CP) Effective today, the government will give cash grants to first time buyers of moderately priced houses. Urban Affairs Minister Barnett Danson an- nounced in the Commons. The minister said the legislation, once passed, will make the grants available for a one year period retroactive to today. His announcement fulfils an election campaign promise made by Prime Minister Trudeau in June. The definition of a moderately priced home in the Lethbridge area is OTTAWA (CP) Agriculture Minister Eugene Whelan might be on the verge of ordering a federal inquiry into the plight of hard-pressed beef producers. He said Thursday night, during an emergency debate in the Commons, an inquiry will be called if a report scheduled today by the food prices review board proves inadequate. "If it isn't I'll be very surprised if it we'll be going ahead with a full scale he told reporters after angrily denouncing critics in the House. He said he would favor a Seen and heard About town County of Lethbndge Coun. Steve Slemko telling county solicitor Phil North that lawyers belong to the second oldest profession in the world, hence the title "solicitor." thorough investigation by a one-man commission and the findings would be made public "if I have anything to do with it." The emergency debate was precipitated by Ed Broadbent. New Democratic Party parliamentary leader. Mr. Broadbent asked for the debate in wake of the slaughter of 600 calves Wednesday by Quebec farmers protesting low beef prices. Live veal has been selling at some Quebec auctions for 15 cents to 40 cents a pound Farmers say they need at least 60 cents to break even. Commons Speaker James Jerome agreed that the "dramatic and tragic" slaughter by farmers at St. Bruno. Que.. was serious enough to interrupt normal House business for an emergency debate. Mr. Broadbent (Oshawa- Whitby) demanded a full fed- eral inquiry when he led off the four-hour debate Thursday night People had a right to know why sirloin steak prices are up 25 per cent while slaughter cattle prices are down 10 per cent, he said. This would take more than the beef prices report schedul- ed today by the food prices review board, he said. Mr. Whelan attacked Mr. Broadbent for setting himself up as "an instant expert on ev- erything" when he hadn't worked "a day in his life But minutes later, after he left the Commons, the minister indicated he will yield to the NDP demand for an inquiry. He rejected a second NDP proposal for a national beef marketing board. Legislation permitting such a board exists, he told Mr. Broadbent in the Commons, but he would not use it until the majority of beef producers asked. The debate did nothing to solve problems faced by beef producers It ended, by all- agreement, at midnight with no vote being taken Mr Whelan said opposition critics have distorted the facts, and that the main problem is a world surplus of beef Producers generally were in a far more stable posi- tion than opposition parties would admit FARMERS KILL CALF IN PROTEST WEDNESDAY Waste 'common' in Canadian life Sec additional story picture- on Page 20. and OTTAWA (CP) The emergency Commons debate Thursday on the crisis facing beef producers erupted amidst warnings that Canadians are throwing much food. Federal and provincial health authorities, farmers, ranchers and fishermen have Plane crash site probed EDMONTON (CP) An in- vestigation was started Thurs- day at the Rea Point camp. 1.- 600 miles north of Edmonton, into the crash of a Panarctic Oils Ltd. aircraft which took 32 lives early Wednesday. Coroner Walter England of Yellowkmfe. who is con- ducting the investigation, was accompanied to the camp, the base of the firm's operations in the high Arctic situated on the cast coast of Melville Island, by eight RCMP of- ficers, ministry of transport investigators and company of- ficials Two survivors of the crash of the Lockheed Electra. co- pilot David Hatton and flight engineer Gary Weyman. both of Calgary. were in satisfac- tory condition in hpspiia! here Thursdav been saying and showing that waste is becoming a dis- tressingly commonplace fact of life in Canada. The four-hour debate, following the ritual killing of 600 calves by financially hard- pressed Quebec farmers, took place a few hours after a spe- cial Commons committee end- ed another day of hearings on egg marketing The committee is trying to determine why the federal egg marketing agency let 28 million eggs rot at a time of high domestic prices and growing international food shortages Now there is talk of possible similar upsets in the big federally controlled markets Another example of food be- ing wasted occurred recently in the Atlantic fishing in- dustry Conservative MP Lloyd Crouse. a Lunenberg. N.S.. fishing company executive, said Wednesday a Canadian fishing boat captain recently dumped 85.000 pounds of freshly-caught haddock into the ocean. He had exceeded his quota and chose to get rid of the catch The fish die even returned to the water quickly The problen in the food pro- duction industries is said by government and industry offi- cial s to involve a complexity of factors Gov't examining babysitting situation Herald Legislature Bureau Complaint? h> puHi Valth nurses social r? and parents about illing services in Kite ;ould bring action by pro-.innal ernment The department of health and socul development sidering whether new legisla- tion or regulations are needed 1o govern babysitting services offered b> shopping centres. S resorts 'These care situations are now coming to the fore." says Larry A u s 1 m a n, a d ministrator of licencing for 1he homes and institutions branch of the department The branch has asked Depu- ty Minister Bruce Rawson to consider a review "We'll un- doubtedly be having meeting-; in the not too distant future." Mr Austman The administrator tha' manv. mam vrn satisfied people arc using these services But a proliferation of surh and increased public awareness about child care in general has complaints and concerns bubbling to the sur- face To this point, says Mi Aust- man the feodbark is negative we shouldn't be waiting for these ibmgs 1o to attention he vvs Tirre is a prf.rnlalne aspect r 1 we i p i p p r e rt IP and i ould br a selling point for ;he operators Thr isMip was rais ed in Trie Hfrald. recently in .in a r 1 1 1 e describing b iiv.Mllinc in local ,3 rrculalorv umbrella The d av care silting services wtrenl there" when the act was written. Mr Austman The Welfare Homes whirh was in ihf tool ihr We had to deal with these things on an individual basis The big push right now is in are area, he says But we would be greath remits if WT itisj forus-cd on rare and not services for ;