| Wasteful C

' By HOWIE COLLINS

OTTAWA. (CP)- Energy Minister
Alastair Gillespie says he has to
convince Canadians that shortages
of oil may. occur as early as 1985.

He said in an interview that only if
consumers are convinced they face.
serious energy problems will they be
willing to accept federal measures
to cut down demand and increase
supply,

.The government intends to con-
tinue with such politically unpopular
moves as higher prices for con-
sumers and tax cuts:
roultinational oi] companies as part
of its energy policy.

Gillespie said that the Western
industrial countries “are confronted
with a serious supply situation that

for the .

comes to a head in the mid-1980s.”

He will be the chairman of a
meeting in Paris early next month
of the International Energy Agency,
an orgapization of 14 Western in-
dustrial countries. Thé meeting will
discuss reports issued during the
last year forecasting that sometime
in the 1980s the rich oil fields of the
Middle East will no longer will be
able to meet rising world oil

. demand.

“] gee this as more than a con-
ference to endorse principles,” the
minister says. ‘Tt will focus world
attention on the seriousness of the
situation.” a

Meanwhile, the Canadian
government is moving to increase

4

and electricity in Quebec and the.

Atlantic provinces, now dependent
on imported oil for most of their
supplies. .

If voluntary measures to cut
consumption and increase domestic
supply fail, Gillespie says-he will

‘urge the federal government to

impose controls on oil imports,
rationing its use.

“The government hasn’t taken
any decision to impose controls, but
it is an option,” hesaid.

Other measures include the ex-
tension of the interprovincial
natural gas line that now reaches
Montreal into the rest of Quebec and

Serving Terrace, Kitimat, the Hazeltons, Stewartand the Nass

‘the herald

} (VOLUME 71 NO, 95

Price: 20 cents

FRIDAY, SEPTEMBER 16, 197

wy,

pAQVINGIAL LIBRARY
| VARLIAMENT BLOGS
YLCTORIA BC

GOVT PENALTIES WILL CONTINUE
onsumers will cause o1

perhaps the Maritime provinces.
Greater use of domestic gas in
Quebee could cut $750 million an-
nually from a balance of payments
deficit expected to rise steadily with
the world price for oil.
Only two years ago the oil industry
said It feared natural gas shortages
could occur by the late 1970s. But

now, after the price has more than |

iripled, they say a surplus of gas is
developing in Alberta and more
markets are needed.

The government also hopes to
encourage greater production of
thick, heavy oil deposits in Alberta
and Saskatchewan and the ol] sands
of northeastern Alberta.

Anew deal with Alberta, lowering
nd feder

ra

| shortage

ry te taxes for oil companies
ding oil.eands plants, still is

being negotiated and may be an-

nounced in about one month.

Gillesple hopes the new tax cuts
encourage the industry to dust off
its plans for oil sands plants. In fact,
Shell already has shown new in-
terest in such a project.

Gillespie also hopes to get a better
rating this year for the country’s
consrevation efforts from the IEA,
which last year blasted the govern-
ment for a weak commitment.

Since. then, the minister says,
domestic oil prices have increased
and the government has embarked
on a home-insulation program that
he says is unique among the IEA
members.

IsSeaaeeeetetettitetaitet lo ncaa tee

WAC Bennett:

NDP delays
ruined BCR

VANCOUVER (CP)-
Former premier W.A.C.
Bennett Wednesday blamed
the uncertain future of the
British Columbia Railway
on the. former New
Democratic Party govern-
ment’s decision to upgrade
construction standards.

A 16 page statement from
Bennett was read into the
record the royal com-
mission investigating the
railway .as it resumed
sessions in Vancouver.

Bennett said the vision of
a railway to open up the
north has become clouded, if
not lost, because of

- misdirected politics, per-
sonal. greed, an
questionable railway ad.
ministration.. 7

Bennett said the B.C. Rail

th Groh,
eat if aens:
Deatads. t ds ane eas

warranted,

He said if his policies had
been adhered to, there
would now be an operating
railway.from Vancouver to
the Yukon. He accused the
NDP of upgrading con-
struction standards and
delaying as costs soared.

The former premier
rejected as “scandalous”
allegations of fraud in the
letting of contracts for the
Dease Lake extension. He
said the contractors were
the victims of inflation, not
deception, and he appealed
to the royal commission to
Jet the extension proceed.

. Bennett said if the Dease
line had been finished,
Canada would have had a
stronger hand in recent
northern pipeline talks with
the United States and B.C.
would have recieved direct
benefit by the railway
carrying materials to
Alaska and the Yukon.

“It was apparenta decade
ago that the north would
become a dramatic arena of
economic activity,” hesaid.
“The only possible B.C.
involvement in this modern-
day goldrush was through
the railway.”

Bennett said. when the
NDP came in ‘the project

d- collapsed because of in-

flation, unbudgeted cests,
deliberate change of con-
struction principles and the
‘NDP’s firing of Joe
‘Broadbent, BCR's vice-
president, an “authorily...

‘Phe loss of this man was
anexample of prejudice and
incompetence by the new
government,” he said.

Bennett urged the present
Secial Credit government,
led by his son Bill, to reopen

.work on the extension from
Fort. St. James and to write
off.the losses incurred by the

on the construction of
frontier railyoaday- =," °

Tailway since 1972,

He also attacked BCR

‘Management, which he

supplies of domestic oil, natural gas

Sore

said, “has clearly lost ©

control of the entire
situation.” .
“Nothing illustrates
more than the reported loas
figure of more than $125,000
Continued page 2

this -

Trading
in one

BRUSSELS (CP) — The
British Columbia govern-
ment makes sure that the
province’s trading eggs are
not in one basket. 3

Premier. Bill Bennett told
reporters Thursday that
B.C, needs “to secure long-
term markets, not just
short-term markets, and we
must.ensure that our trade
is divergent among sub-
stential blocs,. such as the
U.S,, the Pacific Rim and
the European Economic
Community, to give us

Storage
- halted

CHILLIWACK, B.C. (CP)
— RCMP halted Thursday
the stockpiling of 4,000 tons
of sulphur on Fraser Valley
farmland,

The action came after a
protest by an environmental
group and after NDP en-
vironment critic Bob Skelly,
(Alberni), raised the issue
in the legislature.

Skelly. said the sulphur
‘was being illegaliy stored
and. threatened to con-
‘taminate adjoining! creeks
and land.

The sulphur was being
salvaged from the site of the
‘Aug. 90 Canadian National
Railways train wreck near
Hope, B.C., 144 kilometres
‘east of Vancouver.

eggs not:

basket

confidence in the stability of
secure markets and not a
total dependence on a single
area,’

Bennett, who is in Europe
on an 18-day economic
mission, made his remarks
following .a meeting with
BEC president Roy Jenkins
of Britain.as well as other.
EEC officials. ;

Bennett noted that his .is
the firat provincial mission

. to meet with EEC officials

since the Community.signed
a contractual link with
Canada -in ‘1975 for com-
mercial and economic co-
operation.

Bennett .said. he had
“wide-ranging discysetons’’
with Jenkins and Etlenne
D'Avignon, head of the EEC
international market and
industrial affairs division.
The premier said the
discussions concerned "how
we would identify specific
trading goals so that the

member states could take.

advantage of investment in
B.C. to supply technology in
the development of our
country and to guarantee
markets for our products.’’

He added that his meeting
with Jenkins was suc-

cessful. . =
Bennett said the B.C.

Economic mission led by-

him also. is “talking

’ finances” for .B.C. Hydro.

which he said needs between
about $400 million and $700
million a year.

inte

On the run |

Some of the 30-odd members of the. Terrace Reds
hockey.team rounda corner in lower Little Park while
on their .three-mile run yesterday evening.. Coach

Bennett on tour

Gord-.Cochrane says. his team hopes to make up in
stamina what it lacks in experience and weight.

~ Canada a model for European federation

BRUSSELS (CP) — The
European Economic
Community (EEC) is
looking to Canada as a
possible model for a new
type of federation, British
Columbia . Premier Bill
Bennett said Thursday.

The premier said business
and political leaders ‘“‘have
suggested that the Canadian
federation is, unique in the
opportunities that it.allows

SEATTLE (AP)- Canada
is minding its own business
when it expresses concerns
over Cherry Point or Port
Angeles oil port sites in
Washington State} the legal
counsel to Canada’s West
Coast Oil Ports inquiry said
Wednesday.

Russell Anthony. was
responding to remarks by
Washington Governor Dixy
Lee Ray who advised
Canada to ‘“‘mind your own

ours” in discussions over oil
transportation.

“We're only an oil spill
away from either Port
Angeles or. Cherry Point,
Anthony said. “This is not
only healthy, it is im-
perative.” oO

Anthony was one of two
keynote speakers at the

opening of a two-day session

—— Jurisdiction disputes

U.S. ports are Canad

business and we'll mind po

provinces in the division of
powers between the federal
and provincial govern-
ments,”’ :

They see that with further
refinements, a similar
constitution could apply to

their situation, Bennett said.

The premier is in Brussels
on the second phase of a
five-country. 18-day
economic mission through
Europe.. ;

The. mission held. closed
meetings .Thursday with
EEC officials, including a
meeting with EEC president
Roy Jenkins of England.

Bemett said his. strong
appeal for Canadian unity,
made in London, was not
made to promote investor
confidence in B.

Cc,
“we found that the British .

businessmen were more
concerned with the actions
of the former B.C. New

*

Democratic Party govern-
ment in regards to in-
vestment in B.C, then they
were to the possibility of
Quebec seceding.”

Bennett said the
European leaders, who are
working to expand the
economic association to
include political and social
association, find it “quite
surprising that when the
rest of the.world is coming
together in associations.

both provincial royalties a

, delays”

LSE eat ence

An official of the ministry
of health in Victoria con-
firmed in a telephone in-
terview with The Herald
that full construction would
commence in March with.
the final completion date .of
the $3.1 million facility
scheduled. for June, 1979.

The building, which will
have 44,000 square feet of
floor space, will house all
health unit personel in the
area including. the main
administrative staff
currently located in Prince
Rupert, as. well as mental
health, regional and district
offices of the department of
human resources and
district probation offices.

Active discussions are
currently underway
regarding the inclusion of
native health unit personnel
‘mrthe-centre. - Soe

The ‘health |. official
described the facility as “a
one stop. shopping. centre”
for social service and

- medical people in Terrace

and the regional district.

Construction had been
slated for this month, but
because of some “unusual
due to the
changeover from public
works to the B.C. Buildings
Corporation as the body
responsible for the un-
dertaking, work will not
begin until March.

Plans for the centre date
back several years when the
region and the previous
provincial government

Centre get
go ahead

By Donna Vallieres .

Herald Staff Writer

Construction on the long-awaited health and human
resources centre for Terrace will
despite fears that the facility would suffer further delays
and the end product would be ascaled down v

begin early next year

ion.
began discussions on the
project.

After a long wait, Premler
Bill Bennett announced
approval of the health
facility as one of five in the
province which would share
$i4 million to construct the
services centres. .

Land for the facility,
which will be located on two
acres on the corner of
Kalum and Olson streets
near downtown Terrace, Has
already been purchased by
the provincial government
along with two houses on the
property now being rented
out.
Architectural plans are
completed and _ site
preparation will begin
within the next few months,
readying the land for a full
building season beginning

as early in the spring 98 ©

weather will allow. ;
Inside work will continue
throughout the winter of

1978-79 and the building is .

expected to be ready for
staffing by June, 1979.

Status of the health and
human resources centre
was questioned recently
when Ald. Vie Jolliffe raised
the point at a council
meeting this week.

At that time council
members were confused as
to when construction would
actually begin and rumours
were traded that a scaled
down version only $1 million
would be constructed.

But were fat

and

BRUSSELS (CP) —
Canadians have become “a
little fat and lazy,”. British
Columbia Economic
Development Minister Don
Phillips said here Thursday.

‘*We have to sell our raw
materials on the world
market if we. want to
compete,” Phillips told
reporters. following
meetings with officials of
the European Economic
Community.

on oil _ transportation
sponsored by the University
of Washington Institute for
Environmental] Studies.
‘State Senator Ted Bot-
tiger, the other keynote
speaker, said 50 percent of
salmon entering the Juan de
Fuea Strait are bound for
the Fraser River in British
Columbia and is a resource
controlled by an_ in-
ternational . commission
because of its great im-
rtance to both nations.
Anthony said if Canada is

‘being asked to “share the

risk” of an oil spill, it is
entitled to ask what the
basic needs for such a
project are, what alter-
natives are being con-
sidered, how traffic will be
controlled and how Canada
will have access to liability
claims. for oil spill damage.

Bottiger said the state
legislature felt that the
primary way to reduce risk
was to locate the oil port at
or west of.Port Angeles.”
Ray has said she favors the
Cherry Point site.

“Tt seems to me that since

a’s concern...

the risk must be taken in the
Straitof Juan de Fuca under
either scenario, it makes
little sense to add to the risk

by allowing tanker traffic
beyond Port Angeles,”

Bottiger said.

80 1s Trident

VICTORIA (CP) — An
American law professor has
dismissed Washington
Governor Dixy Lee Ray's
support of the. Trident
nuclear submarine base,
and said the Trident missile
system should be resisted.

Richard Falke, of Prin-
ceton’ University, said
Wednesday in a speech at
the University of Victoria
that the Trident system was

part of a technology that
endangers civilization as
well as all future life on the
planet.

In an interview prior to
the speech, Falke termed as
“silly” Ray's suggestion
that Canadian’s out of
mutual defence treaties if
they didn’t like the Trident
base. He said Ray was nota
spokesman for U,S. defence

‘policy.

He is currently on an 18
day economic mission to
Europe headed by B.C.
Premier Bill Bennett.

Phillips complained that
Canadian businessmen
“have _ not been a8
aggressive as have been, for
‘instance, the Australians...

“We have gotton a little
fat and lazy in Canada
because we have great
brother, the United States
next door, which is willing to
buy selected items.”

The minister said the B.C.
economic mission is not in

searching for short

term solutions to the
province's economic
problems.

‘We are interested in
long-term policies,” he said,
adding that the B.C.
government “doesn’t work
from election to election. We
are trying to bring in
policies that will last five,
10, 15 and 20 years,”

Phillips said: “We would
like to see some of the pulp

Bh ae

teats Red en Lal aay

currently coming out of B.C.
coming out as refined paper,
and will work towards that
end.’

He also noted that B.C.
has room for “two or three
more pulp mills.”

“We certainly have an.
abundant supply of fibre.
We're one of the areas in the
world that is not over-ctu,”

Uni
e . .
jected
VICTORIA (CP) — Labor
Minister Allan Williams
rejected a request Thursday"
for an industrial inquiry
commissioner into a dispute
between British Columbia
Hydro and the International
Brotherhood of Electrical
Workers.
Williams told reporters
that both parties should
to resolve their dispute wl
the help of a mediator.
Doug Cronk, business
agent for Local 258 of IBEW,
had sent a telegram to

Williams asking for the
appointmnet of a com-

missioner.

Cronk said a strike by
Hydro employees was
imminent because Hydro
refuses to bargain in current
contract negotiations.

ded ff ee