British Columbia Privatization moves spur election call The demand for the resignation of the Vander Zalm government and the holding’ of an early provincial election received an important boost last week from Interna- tional Woodworkers president Jack Munro. In a statement following disclo- sure that the RCMP had been investigat- ing the premier’s relationship with businessman Peter Toigo, Munro said the Social Credit government had destabilized the province and that the people of B.C. are entitled to an election. Munro’s remarks came a few days after New Democrats leader Mike Harcourt repeated his call for a provincial election to resolve the crisis in B.C. politics. Munro’s statement is to be welcomed, and others should follow his example. The people of B.C. cannot leave it up to back- room manoeuvres by Socred power brok- ers and the Business Council of B.C. to work out a deal which would retain the Socreds in power and allow them to con- tinue with their privatization program and right-wing policies. The people of B.C. have a vital stake in ending the present political crisis by demanding a new election now on the policies of Premier Bill Vander Zalm and the Socred government. In an attempt to take some of the pres- sure off his government, Vander Zalm last week carried through what he called a Maurice Rush “reorganization” of the premier’s office. In a statement to the media he put the blame for his government’s troubles on an “overloaded” David Poole, his principal secretary. Poole retains his position as the premier’s principal secretary, but a second appointment was made to take some of the “load” off him. Vander Zalm also expanded his inner cabinet to eight from four members. The new appointees are all right-wing supporters of the premier’s policies. To call this reorganization anything but cos- metic would be an overstatement. It’s a sham aimed at giving the public and Social Credit party members the impression that the premier is doing something to meet the growing criticism of the government’s per- formance. The first action by the reorganized pre- mier’s office was to dissolve the B.C. Enterprise Corporation (BCEC), a Crown EGE PROVIN GE corporation established to privatize large government land holdings including the Expo site. The board was hand-picked to include some of the top big business types, but other wheelers and dealers like Peter Toigo,a friend of the premier, wanted in on the privatization spoils. It became clear in the struggle around who would get their hands on the Expo site and $200 million worth of choice lands throughout B.C. that the division of the privatization spoils was at the centre of the cabinet crisis. Vander Zalm has now moved to take complete control of the distribution of the privatization bounty, to the benefit of his friends and political hacks. Despite the sharp struggle in the Socred government, the privatization program is going ahead at full steam. Simultaneously with the reorganization of the premier’s office, Energy Minister Jack Davis province at heart. announced the sale of the profitable B.C. Hydro gas division to Inland Natural gas. This is one of the most disgraceful givea- ways in B.C. history, and will cost the public dearly in higher rates and more costly services. It’s by far the biggest giveaway in the Socred’s program. The selling price was supposed to be $741 million but a study of the details of the deal shows that the major financing of the takeover by the privately owned Inland Natural Gas is being paid for by the public. The cost to Inland Gas will be only $291 million. B.C. Hydro is lending the com- pany $300 million to be paid back over five years. The province is to sell $150 million in debentures (or shares) for the new com- pany, and $44 million of Inland’s income tax payments are to be added as part of the purchasing price. It’s a deal which ought to have the people of B.C. up in arms. The giveaway of the B.C. Hydro gas division demonstrates the need for the public to demand an early election. Vander Zalm has another two years remaining in his term. Little will be left of publicly-owned companies and public service if he is left in office. The damage done to B.C. will be enormous. That is why the demand for a new election now is vital to the future of B.C. and should be taken up by all who have the interest of the Hearings demanded for Hydro sell-off UFAWU strike defeats concessions demands 2, BOSS KIL oe, % Ane” —— Fishing industry workers attend rally at the Maritime Labour Centre July 21 after the 7,000-member United Fishermen and Allied Workers Union began a two-day strike that subsequently beat back company demands for concessions in wages and cuts in salmon prices. Companies had demanded cuts ranging up to 50 cents a pound for some salmon species and wage concessions. for tendermen and shoreworkers. The one-year contract includes a 13-cent hike for sockeye, two cents for pinks and cohos, one cent for chum and 20 cents for large springs, plus a 65-cent per hour, or five per cent, wage hike for shore- workers and tendermen. The union also succeeded in maintaining the “7-11” share agreement for boats crews. Companies had demanded concessions because of the federal government's acceptance of the General Agreement on Tariffs and Trade ruling that attacked Canada’s fish regulations protecting processing in the country, but the union maintained the issue is political and does not belong on the sap cla table. 2 Pacific Tribune, July.27, 1988 The broad-based Council for Public Ser- vices is demanding the provincial govern- ment hold full public hearings on the sale of B.C. Hydro’s gas division before the deal with Inland Natural Gas becomes final this fall. The coalition, consisting of several trade unions and community groups, charges that the sale will mean higher gas rates for consumers and that the enabling legislation overrides key public safeguards regulating utilities. In a press conference slated for Thurs- day, the group will also note that the public will be subsidizing the purchase of the lucra- tive gas division, and that the sale price is not as high as the government has claimed. The coalition charges that the sale itself is profoundly undemocratic. The enabling legislation, Bill 45, allows the government to override the usual requirement that such sales be the subject of public hearings under the auspices of the B.C. Utilities Commission. Section 15 of the bill states that the sale “shall be deemed to be in compliance of the - B.C. Utilities Commission Act and the Gas Utility Act and to be in the best interests of the public and B.C. Hydro.” All the usual functions of the commission pass to the lieutenant-governor, who has the discretionary power “notwithstanding Sec- tion 139” not to hold hearings and is not required to provide reasons for his decision. Jean Greatbatch, council secretary and staff member of the Office and Technical Employees Union (OTEU) which repres- ents B.C. Hydro gas workers, said the government likely wants to avoid the nega- tive publicity it received over the privatiza- tion of West Kootenay Light and Power to the Kansas based Utilicorp. Those hearings took about one year. “The lack of publicity around this sale indicates they’ve got something to hide,” she charged. _Greatbatch pointed out that Inland pres- ident Bob Kadlec until “very recently” sat on Premier Bill Vander Zalm’s economic advisory council. Two other Inland directors — Tom A. Buell and Gordon MacFarlane, who is also chair of B.C. Telephone — were also on the council. Greatbatch also said that although the sale supposedly generated $741 million for Hydro’s coffers, in fact the Crown corpora- tion will receive much less. Only $432 mil- lion will go to retiring B.C. Hydro’s large debt, while another $300 million — loaned by Hydro to Inland — will be ploughed into the government’s controversial “slush fund.” That fund, established at $450 million in the provincial budget last spring, will likely be used to reduce the provincial deficit shortly before the next election, thus allow- ing the government to “buy votes,” the council has charged. Additionally, the government has under- written the sale by issuing $150 million in debentures to be purchased by the public as shares in a new amalgamated company. But where B.C. residents will feel the pinch first is when electricity rates rise because the gas division, which earned $20 million yearly, will no longer be available to subsidize those rates. Last month MLA Glen Clark charged that Bill 45 and its companion piece, Bill 46, in fact allowed the province to sell off all Hydro’s assets, including dams: ‘“Every- thing but the wires,” the NDP member for Vancouver East charged. B.C. Hydro’s gas workers are supposed to get jobs with the newly privatized corpo- ration. But Bill 45 denies them the right accorded by the B.C. Supreme Court James Verrin decision to demand that the government retain their employment and give them jobs in the public service. Greatbatch said the Council for Public Services is demanding that “the public be given the full opportunity to scrutinize all finances relating to the deal and be able to voice their concerns about the impact on the future of B.C. in full public hearings,” before the deal is ratified Sept. 30.