Lethbridge Herald, The (Newspaper) - September 5, 1973, Lethbridge, Alberta
TRUDEAU RECKONS THATS ENOUGH FOR NOW, CONTROL-WISE ROBERT STANFIELD By IAIN HUNTER Herald Ottawa Bureau OTTAWA Prime Minister Pierre Elliott Trudeau reckons he's proposed enough to dsal with inflation in Canada for now and stay in power a little longer. As James McGrath John's East) unkindly observed in the House of Commons, the prune minister had just given the New Democrats about half of what they de- manded as the price of their continued support for the mi- nority government Among what were billed as anti-inflationary measures an- nounced by Trudeau that after- noon were "consumer sub- sidies'' for bread and milk, con- trols to prevent higher oil prices in the U S. from raising Canadian prices, and measures to allow old age and other pen- sions to reflect more readily in- creases in the cost of asked for by the NDP. But the prime minister failed to announce measures to give the Pood Prices Rsview Board power to order rollbacks in food prices or a program to cut back high mortgage interest rates as by the New Demo- crats. so, his announcements appeared to please NDP Leader David He was so p'eased, in fact, tnat hs spent almost as much time attacking Conservative Leader Robert Stanfield for advocating in- effectual across-the-board price and wage controls as he spent cnticizing the shortcomings of the Liberals. It was not the reaction of a party leader ready to pull the rug out from under the minority government even supposing he were given the opportunity. For Trudeau made it clear that if the apposition parties want to defeat the Liberals on an issue during this special sic- tin? of Parliament called origi- nally to deal with the rail strike, they will have to vote against the anti-inflationary, pro-consurr3r legislation he out- lined Tuesday. Asked by McGrath if, having met just about half the condi- tions laid down by the New Democrats after a caucus meet- ing last month, Trudeau would present a motion to test the confidence of the House in his government, the prime minister stated that the opposition can "express its opposition" by de- feating any of the forthcoming bills. The prime minister already has reserved to himself the right to decide when a defeat of a government measure means a vote of no-confidence in his ad- ministration and consequently cause for its resignation and an- other election. Stanfield accused the govern- ment of "fiddling around with selective controls" when it should be imposing general wage and price controls to deal with inflation in all sectors of the economy on a more fair basis. Lewis in turn attacked the Tories for imposirg ineffectual across-the-board controls with- out once saying how a Con- servative government would im- pose the controls or how far they would go. Ke said he didn't understand why Trudeau hadn't announced the Food Prices Review Board would be given powers to order price reductions, and he stated that he was sure member of his party would be "dis- appointed and heartbroken" that there was no announce- ment dealing with soaring inter- est rates. DAVID LEWIS VOL. LXVI No. 224 erald LETHBRIDGE, ALBERTA, WEDNESDAY, SEPTEMBER 5 1973 TEN CENTS THREE SECTIONS 42 PAGES ie brews rules CALGAKY (CP) Fed- eral attempts to control pe- troleum prices are likely to violate provincial jurisdic- tions, says Hans Maciej, mai i of the Canadian Petroleum Association. He said Ottavs can regu- late inter provincial ship- ments of petroleum but asked: "What about oil pro- duced, refined and sold in Alberta7 Is the federal gov- ernment going to tell Pie- mier Peter Lougheed what he can do with his oil prod- Jurisdiction over natural resources, including oil, has long been a provincial responsibility. Mr. Maciei also said the federal government might have a hard tune freezing the price of oil shipped to Ontario from Alberta, then refined at Sarnia, Ont, and sold in that province "Can the federal govern- ment tell the Ontario gov- ernment what can be charged'" he asked. "What if Ontano wanted to raise taxes on oil' The retail price would have to go up and I don't see what Tru- deau could do about it In his statement Tuesday, the prime minister said the industry is being asked to freeze further price in- creases for petroleum prod- ucts until next Jan 30 Mr. Maciej said it was Scotty Cameron, general- manager of the Indepen- dent Petroleum Association of Canada, said the gov- ernment's proposed freeze could result in a drastic drop in oil exploration and even a depletion of re- sen PS. He said the proposed freeze could reduce the in- dustry's ability to raise badly-needed "risk capital" because the potential prof- it margin would not be as atti active as with other risk ventures. He said the United States experienced the same prob- lem after its freeze on nat- ural gas prices had been in effect for some time. Now, he said, U S. govern- ment officials are hav- ing second thoughts about the wisdom of the move. _ Another problem result- ing from a freeze would be a sharp rise in public us- age of petroleum products due to their cheapness. This would further deplete reserves Mr. Cameron also said there is no need for the suggested oil marketing board since it would only duplicate the job already being performed by the Na- tional Energy Board. The government's pro- posed revival of the con- cept of a pipeline to carry oil from Western Canada to Montreal is not likely to popular Parties denounce Liberal program Police carry tvindow juniper Pans police cciry a man who was wounded as he jumped out of a window of the Saudi Arabian embassy after three gunmen, claiming membership in a Pales- tinian splinter group, took at least five hostages in the embassy today and demanded an aircraft to fly them to an unnamed Arab capital. not clear from Mr Tru- make oil prices any cheap- deau's words whether the er m Eastern Canada since the ncn Canadian pe- troleum currently used would probably still be cheaper in that area, he added. Maury Paulson, oil industiy would merely be "asked" to freeze prices or if legislation was plan- ned. The jurisdictional dispute would only arise if the freeze was legislated, he added. It was too early to tell how the petroleum in- dustry v oulcl react to a re- ouest for a voluntary freeze. execu- tive vice-president of Home Oil Ltd said a pipeline to Montreal could lead to the suppression of Western Canadian crude oil prices. Points east of Toronto Fiom AP-REIjTER PARIS (CP) Three Aiab gunmen claiming to be mem- bers of a Palestinian splinter group took at least fne hos- tages in the Saudi Arabian em bassy today and demanded a plane to fly them and their pns- "The petroleum industry would probably demand will have to ask for a meet- that western crude prices: with ing with Pnme Minister Trudeau and Energy Min- ister Macdonald to clarify this whole mess "You would think that the industry would be told ex- actly what was planned in a major announcement of this nature "It looks like a potential nightmare." be artificially lowered. Mr. Paulson said a freeze would not have a drastic ef- fect on the western petrole- um industry. "However, it was just another step toward pre- venting the western pro- ducers from marketing their production on a com- petitive basis and heard About town CTUDENT Angelinc lin sleeping in her car because she was unable to find housing accommodation Former Lathbndgeite Sam Cohen, now a Mouueal- er, exclaiming on a quick visit that it's groat, simply great, to breathe Southern Al- berta air. ci-ers to an unnamed Arab capi- tal pohca said The t'ncs Arabs said they would trade their hostages for the release of a high-rankirg Palestinian resistance figure" held in Jordan, Police Commis- sioner Jean Bucheton said Other police sources said Mie pei son whose release the gun- men are seeking is held in Ku- V. 3lt Thev sa'd the gunmen claimed 1o be members of a Palestuvan faction called Al Pun'shmeiit Thiec of the hostages were reported to be the Saudi Ara- b'an cultural attache, ihs em- brssy accountant and a trans- late! T'.e Kuwaiti ambassador to France was acting as an inter- mediary ween fie Palestin- ians and the police, Bucheton lepoited. Inside This land was my land, this land was my land...' Classified 8-lt Comment......4 District 30 Family......19-21 Local News Markets 12, 13 Theatres......7 TV .........6 Weather....... 2 LOW TONIGHT 45, HIGH THURS. 85; SUNNY. 'We aio waiting to see how the nesohat'ons turn he paid. "Any intervention is abso- lutely out of the question tor the time being The three men butst into tie embassy about 10 a m and neighbois heard shots fired in the two-storey building located on a quiet s'ueet rear the head- quarters of the Organization for Economic Ca-operation and De- velopment First reports .said a niadma" ban leaded m one cf the offices About an hour later a man jurrreed from a second-floor vmdow and was apparently se- riously injured. Police said he v. as a memoer of the embassy staff. A sobbing young v.oman who said her uncle and father were trapped inside the building esti- mated that 16 to 20 persons are normalh working m the chan- cellory befoie noon. A number of them are French employees. Tne Saudi Arabian ambassa- dor, Sheikh Mohammed Ali Reza. was not in his office when the terrorists arrived He had trouble getting any information because the switchboard oper- ator would reply only: "The embassy is closed; please call later'' Sh'ilteis weie closed at the upsiaiis of the em- bassy but from time to time one shutter w-culd go up Fl'ghtly and one of the thiee men would sfiek out his head to talk in Arabic with the Saudi and Ku- wait ambassadors, who served as interprete' s for the police Many of the police carried grenade launchers and some wore the space-type plastic hel- mets of the ciack riot squad. Pickets up fit Calgary today By THE CANADIAN PPtESS Railway employees in New Westminster, B C voted Tues- day to continue strike action against Canada's railways along with some employees in Ontario, although Labor Minis- ter John Munro says the strike has been "settled to all intents or purposes About New Westminster workers, belonging to the 5fi 000- member Associated Non-Opei- atmg Railway Unions, the 000-menibcr Shopcraft Feder- ated Trades and the member United TransponaUon Unions, adopted a resolution to remain off work on a day-to-day basis. They rejected a motion to set up picket lines but called on Mr Munro to come to Van- couver to explain the back to- work passed Saliu- day by Parliament. In Ottawa, Mr Munro told HIP Commons the strike has boon settled despite work slop- p., v, Vancouver, Thunder Out. and a few other cen- tres. Union leadership and rail companies involved in the strike should bo complimented for complying with the legisla- tion, he said. Sporadic pockets of lesistancc to the law should be "rectified" before too long. STAY OFF JOB Besides the workers at New Westminster, about rail workers in British Co- lumbia remained off the job Tuesday, crippling all but iso- lated mil At, Capiool, Ont, near Sud- bmy, a stake by workers of all three unions blocked Canadian National's transcontinental rail services Further west, at Thun- der Baj, a combination of non- ops and shopcraft workers also cut CP Rail's cross-country service. Picket lines were also up at Fort Erie, Ont, Winnipeg and Calgary Spokesmen for both railways said operations were near nor- mal in central Canada and trie Atlantic provinces although it 11 '11 take five dsirs to clear up the backlog caused by the regional and national strikes. By DOUG SAIALL OTTAWA. (CP) Pnme Min- ister Trtideau has announced battle plans for an assault on in- flation Mcr.day. calling for a tempoiaiy fieeze on petroleum prices, increased familj allow- ances and higher bread and milk subsidies to combat rising prices. The steps mid-way between those advocated by the major opposition parties, de- nounced immediately by both Conservatives and New Demo- Still, thev appear to guaran- tee continued backing lor the government by the New Demo- crats who have maintained the minority Liberals in office un- der a policy they say means working for the most progres- sive social legislation possible. Mr. Trudeau told the Com- mons the government will seek a five-month freeze, until Jan. 30, 1974, or prices charged do- mestically for petroleum prod- ucts. As well, through fundamental changes m petroleum policy, it would attempt to control future prices by an export tax. na- tional oil board or other meas- ures following discussions as soon as possible with tne prov- inces and the industry. Similar talks would be undertaken on the question of extended pipe- line facilities to Montreal, car- rying Western Canada crude. No time or place was set. Under policy laid down in the late 1950s. Montreal and areas east cf the Ottawa Valley used imported oil while the rest of the county depends on Western Canada rude. Effective Oct. 1, there would be an interim increase to in monthly family allowances. As with current allowances of sr 10 a month depending 01 the age of the child, they would not be taxable. But in January, when family allowances would rise to an erage a child, under pro- posed legislation already before the Commons, he government would tax allowances. Under the bread subsidy, the gov would bccst to 25 from a bushel the amount ii pays farmers for the roughly 100 million bushels of wheat consumed domestically as bread and other products. Two months ago, the subsidy was reduced to from a bushel, but Mr. Trudeau said the new increase is necessary to offset a five-cent-a-Icaf price increase for bread expected next month. Similarly, under the milk sub- sidy, the government would grant provincial milk marketing boards a five-cent-a-quart in- centive to maintain current milk prices or even reduce them. A similar five-cent-a- package subsidy would apply to powdered milk. Drinking, or fluid, milk sub- sidies, are generally outside federal jurisdiction. While the government spends about million a year subsidizing the production of cheese, butter and powdered milk through the Ca- nadian Dairy Commission, fluid ir.'lk prices are controlled by provincial boards. Tuesday's measures follow other anti-inflation efforts an- nounced Aug. 13 following a summer-i ecess cabinet meet- ing Then the government called for limited export con- trols on beef and psrk. strength- ened the food prices review boaid and announced plans to increase benefits to people on fixed incomes. Bills that would implement pension increases Viere in- troduced Tuesday, providing the basis for debate later m the day and todaj. It passed, the bills will pro- vide coa-ol-hv'na increases old age pensions even tiiree months, rattier than annually, and eliminate an annual tvvc- per-cent ceiling on such benefit increases. PROGRAM IN BRIEF O1TAM 1 (CP> High- lights of the government's anti inflation program an- nounced Tuesday by Prime Minister Trudeau: month price freeze on domestically used petrol- eum products. I V Increased subsidy on wheat used domestically by millers, to a bushel from si. I tt Fne cent a quan milk subsidy to proiincial mar- keting boards who maintain or reduce prices during the next jear. Intei un increase to S12 non-taxable in the aicrage family allowance pay- ent prior to a further raise to S20, which will be taxable. Jan. 1, 1974. JS St Controls possible on gaso- Jine and oil prices through an export tax. national oil boaid or other measures fallotting discussions with provinces and industry. t Talks planned with indus- try and provinces aimed at extending pipeline delivery of Western Canada crude to Montreal. Father, son found dead at Coleman COLEMAN A 34-year-old man and his son were found dead early this morning at the bottom of a 20-foot well. RCMP say Albert Leonard Thody and his 12-year-old son, Albert, Jr., were attempting to clear a water line between two on thair property near here using an automobile's ex- haust Other details are not known. Coroner Dr. F. S. Radford is undecided whether to hold an inquest. Blairmora RCMP is m- vestieatinff.