20 Dec 1975
Page 1
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Newspaper
Medicine Hat News
Location
Medicine Hat, Alberta, Canada
Date
Dec 20, 1975
Page
1
Canada’s anti inflation board reports a 1.75 percent weekly drop in the food price index for home consumption with pork and beef prices easing due to larger winter supply. It cites seasonal factors the program and freezes as key influences while noting diet costs stabilized.
The Commons meets on a rare Saturday session to finish consideration of unemployment insurance premium hikes and MP and public servant pension increases. Progress noted on housing bill, while NDP blocks final consent for jobless benefit amendments. Premiums rise January 1 with worker rate at 1.65 per 100, employer 2.31, max employee 3.30 and max employer 4.62.
The 18 nation International Energy Agency urged a seven dollar per barrel floor price to shield investments in exploration and alternative energy as talks on energy and raw materials proceed. Four commissions will study energy, raw materials, development aid and finance with Canada and Venezuela chairing meetings in Paris.
Prime Minister Trudeau leads a nationwide restraint program aimed at altering inflation psychology among Canadians. Officials say the showy rollout, including a 8 p.m. TV address and a 10 percent surtax warning on higher incomes, is designed for maximum impact and to signal government resolve.
The Canadian press report notes the NDP blocked an adjournment for a five week Christmas recess over belt-tightening unemployment insurance changes. Finance Minister Macdonald said the export tax in the anti inflation program should have little effect. Conservative David MacDonald criticized subsidy cuts as insensitive. Andre Ouellet condemned a court acquittal of three sugar firms on price fixing. The Supreme Court issued a special tie breaking decision on a rapist appeal. The Commons met at 11 a.m. EST and the Senate at 12 noon EST in an unusual Saturday sitting before recess.
Ottawa notes the anti inflation board vice chairman Beryl Plumptre welcomed the government spending restraints as a modest start and urged further cuts to align spending with revenues. She cited December borrowing and a potential one year surtax on high income earners as tools and said MPs and civil servants pay freezes show shared burden.
In Havana a Canadian Communist delegation led by William Kashtan and including Bill Stewart and Jeannette Walsh was cheered by about 800 workers at a cigar factory. They were welcomed with gifts and declared to foster revolution and solidarity while Kashtan noted Canada’s wealth yet persisting poverty and unemployment.
Ottawa reports that gifts under 25 dollars are tax free unless the donor deducts the cost as a business expense. If deductible, the value of Christmas turkeys is treated as a taxable fringe benefit. Spinrite Yarns and Dryers Ltd. of Listowel had turkeys given to workers for 22 years without reporting income.
Alberta plans to repeal the recent rise in family allowances after Ottawa froze payments. Intergovernmental Affairs Minister Lou Hyndman said Alberta sets only the size of increases. The Legislature approved a monthly rise of 2 to 3.70 dollars last fall, effective January 1.
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