15 Dec 1989
Page 1
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Newspaper
Medicine Hat News
Location
Medicine Hat, Alberta, Canada
Date
Dec 15, 1989
Page
1
Ottawa plans 1.4 billion in savings over three years to cut red ink and tax, with cuts starting on Parliament Hill. The package includes freezing Ottawa capital projects, ending a Canada Post subsidy, raising park and visa fees, and trimming cabinet travel.
The federal government will provide 150 million dollars to about 1,250 Canadians infected with AIDS via tainted blood or products. Each recipient will get 120 thousand dollars in four annual tax free payments of 30 thousand. The program aims to reassure the public blood supply and offset lost income for victims. The Canadian Hemophilia Society welcomed the aid though it had sought more.
Alberta government files five million in claims against Peter Pocklington using two properties as additional security while Gainers Inc. faced a 31.8 million debt to Lloyds Bank. The secured assets include an Edmonton apartment office building and 146 hectares of Calgary farmland with existing mortgages and other liens.
Six oil companies form an alliance to push a Mackenzie Valley gas export project aiming to begin construction after NEB approval, with an initial pipeline to Norman Wells and a potential cost of 20 to 40 million dollars, part of a broader five billion dollar megaproject.
Ottawa MPs push two Commons committees to review MPs rights and privileges after RCMP Commissioner Inkster disclosed 15 parliamentarians are under investigation. A special all party panel will examine the Parliament of Canada Act and powers of the Board of Internal Economy with a report due by March 15.
In Prosperity Alberta a planned 1.3 billion pulp mill splits the town. Supporters see prosperity while opponents fear environmental harm and oppose site selection. Residents testify to potential job gains and displacement as officials demand fisheries studies before any decision.
Bank of Canada governor John Crow defended high interest rates as necessary to control inflation despite Canada posting its first merchandise trade deficit in 13 years. He told Winnipeg businessmen that lowering rates soon is unlikely until inflation falls, and dismissed a marginal rate cut as insignificant.
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