05 Sep 1973
Page 1
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Newspaper
Medicine Hat News
Location
Medicine Hat, Alberta, Canada
Date
Sep 05, 1973
Page
1
Calgary reports oil spokesmen attack federal proposals for a price freeze on petroleum products as a political move. They warn it could curb exploration, affect provincial revenue, and trigger supply and energy-shift issues while debating voluntary compliance and provincial jurisdiction.
The Canadian Press reports rail workers across New Westminster and Ontario continue strike actions despite back-to-work legislation. About 1 000 New Westminster workers and 6 000 BC colleagues stay off duty while Ottawa says the dispute is settled. Picket lines appear in several cities as unions urge compliance with law.
Ottawa Premier Trudeau announced a package to curb inflation including higher old age pensions and accelerated family allowances while freezing oil prices for five months and considering export controls. Subsidies raise bread and milk costs relief and tax treatment for child benefits.
Ottawa Reuters report notes Otto Lang says a five to seven year program would set domestic wheat prices between 3.25 and 4.50 a bushel. Farmers would get less than export prices above 5.50 but would benefit when world prices fall below 3.25.
Three Arab gunmen stormed the Saudi Arabian embassy in Paris taking at least five hostages. They demanded a bus to take them to an unnamed Arab capital in exchange for freed hostages and the release of Palestinian leader Abou Daoud. Negotiations continued with police mediation.
Prime Minister Trudeau announced five month price freezes on domestically used petroleum and new subsidies for wheat and milk. An interim raise to 12 dollars non taxable in the average family allowance payment is planned with a later step to 20 dollars taxable. Potential controls on gasoline and oil prices are discussed with provinces and industry to extend Western Canada crude delivery to Montreal.
In Edmonton the Alberta Federation of Labor condemned the Liberal price policy as limp and late while the NDP called it worthwhile. Leaders urged targeted controls, subsidies cautions, and broader wage watch, noting oil prices and inflation as stakes.
Prime Minister Trudeau announced a revised wheat subsidy raising the aid to $1.25 a bushel for about 100 million domestically used bushels. The plan sets a $3.25 cap for millers and farmers, with subsidies fading as world prices fall, and ties the program to a multi year grain stabilization effort starting in October.
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