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The Four-Way
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EDITOR PUBLISHER

PAT O'DONAGHY

“ NOTE OF COPYRIGHT
a: The Herald retains full, complete and sole copyright in any advertisement produced and-o
= editoria! or photographic content published in the Herald. Reproduction is not permitted

‘ Address by the

: Honourable James R. Chabot

Aithough having discussed the mining industry on many
oceasions as an Opposition MLA in the Legislature, it gives
me great pleasure to have the opportunity of delivering my
first speech as the-new Minister of Mines and Petroleum
Resources te the British Columbia and Yukon Chamber of

ines.

I could discuss some of the technical aspects of your in-
dustry, however, at this stage in time I am on safer ground
discussing the political aspects of the industry.

[have had two months since being sworn in on October 29
as Minister of Mines to listen to the delegations and mining
people who have come to Victoria or written or presented

riefs during our Cabinet trips to the interior.

I want you to know that I have sensed and appreciate the
warmth and friendliness of your approach to such
discussions and communications — it augers well for the
work that lies ahead in ‘Rebuilding British Columbia’s
mineral industry to meet future challenges”. ;

This suggested topic for my address to your chamber is a
nice way of telling me that the building blocks are perhaps
slill tumbled down and need putting up again.

I have been part of the government's “rebuilding”
program since we were elected a year ago. I have watched
the “foundations” being laid by our Premier and Cabinet in
a very determined and efficient manner. .

So being part of the team I am happy to take over from
Tom Waterland to vigorously pursue the task of rebuilding
and restoring the faith of our industry.

Now let’s see how we fared in 1976 and then take a look at
some of these building blocks that need attention.

I have the 1976 mineral production estimated figures to
compare with those of 1976.

In metals we increased our production both in quantity
and value — the latter from $587 million in 1975, up to $659
million in 1976. That’s a 12 percent increase.

However, with over 60 percent of the total metais value
being for copper and the price of copper being so low I
believe that little or no profit was made by our copper
mines. betes

Coal production was slightly down mainly as a result of
strikes at the producing mines.

Petroleum resources were up in value from $320 million in
"15 fo $395 million in '76, mainly due to price increases for oil
and gas,

Continued expansion of our minerals in 1977 will be
dependent on the level of economic activity in our trading
partner countries like Japan, U.S.A. and Europe. But it is
imperative that we maintain our competitive position and
ability to perform if we are not to lose out to other producing

areas. :
“WOES” OF THE MINING [INDUSTRY

Much has been written and said of the troubles besetting
the mining industry.

Most famous recently was the “stick and the carrot”
address given by Ron Fraser of Hudson Bay Company to
the C.I.M. last month at Toronto.

I would like to take each of these “woes” or troubles and
put it into a building block — then by classification and
selection see what can be done about it here in British
Columbia for our industry — and by whom.

THE MARKET — METAL PRICES

We are hard hit because copper is over 60 percent of our
mines metal production — little or no profit can be made at
present prices by any producer in the world. There is an
oversupply of the metal. We are lucky to be able to sell all of
ours because it is in the form of concentrates and the
Japanese want it that way. :

We are also fortunate that the next most valuable com-
modity, molybdenum, is enjoying a strong demand and
record high price.

There is no problem with the market demand and prices
of the other metals and minerals that we produce.

To strike a note of optimism let me quote the Canadian
Imperial Bank of Commerce's commercial letter about the
world’s population explosion — “This population explosion
provides one heck of a market for the construction industry
of the world”’.

The growing needs of the increasing population of
developing countries should be a built-in assurance of an
economic upturn.

Unfortunately, so far, the socialist governments of these
countries are dictatorial and less consumer oriented — at a
time when free trade and enterprise are needed to satisfy

the needs of billions of new customers their governments do,

everything to stop developments — while demanding more
aid from the west.
TAXATION

Our province has put its taxation on the right basis — a
profit based tax. From a low of 48 percent for new mines
with capital expansion and exploration write-offs to a high
of 56percent for old non-expanding mines, this isin line with
other manufacturing and resource industries.

A fair sharing basis still has to be worked out with the
federal government but there is no longer any unfair
discrimination on mining companies in our province.

ROYALTIES

These were repealed and removed on all minerals except
coal, sand and gravel and a few other industrial com-
modities carrying token royalty taxes.

PROFITS — YIELD — DIVIDENDS .

Each and every business enterprise in this province has a
role to play in the efficient management ofits affairs to help
Canada to maintain its economic viability.

Donald McDonald, Federal Minister of Finance, said in
his Budget Speech last year — ‘‘If government alone is held
responsible for the performance of the economic system,
then government will be driven increasingly into the
regulation of the private sector, at the cost of. both ef-
ficiency and of economic freedom”.

Let us not forget that regulating economic freedom
means regulating our life and mine.

Private firms, labour: unions, private institutions and
associations, all of us, have a role to play — an important
role — in keeping inflation down. We have to think whether
we are going to be part of the solution or part of the
problem.

ai

GORDON W. HAMILTON

An Award Winning Weekly ee:
Published by Sterling Publishers Ltd.

Published every Wedrlesday at 3212. Kalum St., Terrace, B.C. A member of Varified Cir- —
culation. Authorized as second class mall. Registration number 1201. Postage paid in cash,

Of the things we
think, say or do.

Is it the TRUTH? |

Is it fair to ali
concerned?

Will it build GOOD
WILL and BETTER
FRIENDSHIPS?

Willitbe  -
BENEFICIAL
to all concerned?

20,8808 09,8,
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ADVERTISING
MANAGER

RALPH KERMAN

a Rebuilding B.C.'s mineral industry

_ ANTI-INFLATION BOARD CONTROLS

Premier Bennett early last year committed our province
to supporting the federal anti-inflation Program. ~

What we must all understand in British Columbia and in
Canada is that the future security for all our wages, income,
economy as we move ahead in this decade.relies on our
ability as a nation to deal with the inflationary spiral in our
economy, and it is towards the achievement of that goal
that this government is committed and our industry support
is requested. - ;

There is evidence that the anti-inflation program is
working.

From 11 percent when the controls program started in-
flation has dropped to a 5.6 percent rate.

Average wage increases have dro
to 9.7 percent. The industrial selling price index has
dropped from 8.4 percent to 3.6 percent. Profit control has
forced some businesses to lower their prices.

The Anti-Inflation Board has worked its way through the
worst of the wage settlements that involve special con-
siderations and historical relationships.

The word irom the experts is that the Anti-Inflation Board
is going to aggressively enforce its program this year.

Under second year guidelines bargaining units are en-
titled to a basic 6 percent increase, plus 2 percent for a
share of national productivity, plus or minus 2 percent
depending on the unit's past wage experience.

Unfortunately there are a lot of loopholes and un-
controllables — there are examples of huge price increases.
Admittedly some of it has been generated by government

agencies.
: NATIVE RIGHTS — INDIAN CLAIMS

The native rights question must be resolved soon. I am *

alarmed at the news that the grand council .of Crees (in
Quebec) have brought an $8 million suit against 12 mining
companies. They are seeking compensation for alleged
damages caused to Indian property by operations of the
defendant companies. :
_ + for alleged loss of enjoyment of life

- for alleged pain, suffering and incapacity said to have »

been experiences by the natives asa result of mining and
other resource activities. i

The Crees are also challenging the authority of the ©

Quebec government to grant mining, exploration or other

mits for the development or processing of resources on
lands over which the Indians claim the provincial govern-
ment has no jurisdiction,

The government of British Columbia is today negotiating
with the federal government, the British Columbia native
claims, with a view of an early resolution of this problem.

PREDICTABILITY — STABILITY — UNCERTAINTY

This is the building block most likely to cause most
’ trouble unless it is dealt with firmly and anchored to the

very foundations.

This ‘‘uncertainty” is the woe singled out by Mr. Ron
Fraser in his “stick and carrot’ address as being the
biggest single dis-incentive to investment.

He quite rightly hangs so much importance to the

stability of “ownership” of mining properties. — a clearly
defined title and interest in their exploration finding.
- This is “mineral policy” and unfortunately it can be
changed by elected governments with different
philosophies or ideology —as we well know from what the
N.D.P, did in 1972-75. It is “reversal” and Mr. Fraser is
quite right about its consequences and how it affects bank
confidence towards making capital loans. :

Dealing with predictability and stability is a matter of
legislation — much of which has been done already and
there is more to come. ,

BUILDING TO MEET FUTURE CHALLENGE

In the short time.that I have been minister I have been |

made aware of the continued concern of the industry
regarding taxation and royalties.

I have also learned and am concerned about the
bureaucratic control imposed on the industry and the need
for a (lear government policy regarding the role of this
ministry.

I expect to take steps this year to clarify both these
concerns. -

Some of you may be aware of the fact that we are
reviewing the Mineral Act with a purpose of consolidating
the many changes that have been made in the last few years
— minimizing the uncertainties regarding mineral title and
producing a clear statute that can form the basis for a
stable exploration and development climate well into the

uture,

A minor issue which may interest some of you is the
matter of Assayets Certificates. Amendments to the
Department of Mines and Petroleum Resources Act in 1978
eliminated the authority of this ministry to continuing the
assayers examination and certification. It is expected that
this will be reinstated to encourage young people to
establish themselves in this business, to standardize
analytical work and to continue to recognize those people
who in the past have been certified. i

All incentives for mine development were eliminated by
the former government — I am presently giving serious
consideration to the restoration of incentives to the industry
at the forthcoming session of the Legislature. _.

This will provide financial encouragement for the mining
industry to pursue its expansion and diversification with a
feeling of approval and appreciation by the taxpayer that
mining brings benefits to the people of Britis Columbia.

Another problem left over from the former ad-
ministration is that of the rights of mineral claim owners in

rovincial parks. This matter is still being reviewed and

opefully a satisfactory conclusion will be-reached in the
near future. . .
PROSPECTORS' ASSISTANCE PROGRAM

I believe that it is almost traditional that Ministers of
Mines in this province pay tribute to our prospectors for
their part in the achievements of our mining industry.

I personally have great respect and admiration for the

- yole they have played and the part that they are still playing

in the search for our new mines. I have lived in mining
country with these prospectors and count man
friends among them, I know the hardships of their chosen
life and realize that ever increasingly the advance of

a

Dear Editor: .

I certainly’ got some in-
teresting replies and stirred
up some. old memories. in
reply to my letter to the

tor in your paper of
December 15. Let’s hope
more oldtimers write about
their experiences and sc add
first hand facts about those

‘early. days.

The writers appeared to
think my calculations in
analysing Jack Mould’s
figures were a complicated
attempt at algebra. Nothing

thousand swings of the
broadaxe to hew that length
of timber seemed a bit out of
line. I changed the 640 feet to
inches, 7680 of them and
right away the error was
apparent. Then 1 wondered
how long ‘it would take to
make this many axe swings.
So I sat back, yes Thor, in
my easy chair, shut my eyes
and drifted ‘back through
time into the bush,’ _

Of course nobody thought
about how lon,
swing an axe when we were

it took to:

from 18.7 percent

of my .

of the sort. The ten thousand
axe cuts to score 640 feet of
soon to be ties and six

all doing it every day but it
was interestiig to try to
figure it out. First, I tried

science and technology has loaded the dice of rewaras
against them — and as if this wasn’t bad enough the last
government introduced legislation changes that increased
the hardships of staking their claims and in particular the
cost of keeping them in good standing until the right
moment for setting up a working deal.

You know that a lot of these disadvantages were put right
and alleviated by the legislation intraduced and passed last
summer as promised by your new government,

However. it has been brought to my attention by many
prospectors, and this chamber on behalf of the prospectors,
that there are still some unnecessary hardships in the
legislation and rules and regulations that can be changed.

‘These I am reviewing and accept as an important aspect of
my work this year. . .
STAKING

On the matter of the modified
must say that we have been receiving and evaluating much
evidence and opinion regarding its effectiveness and

workability. I know that it is not popular with most old time
prospectors who do not wish to change from the ald method
of locating and staking their discoveries.

Idonot wish to create further uncertainties, instability or
credibility in our mineral titles system by reversing
legislation of this newly established method of staking that
was’selected for many specific reasons that are technical
and not political. However we do acknowledge that there
are some adjustments to the method that can be made to
improve it and eliminate some hardships.

_ Tam presently examining ways of improving the system
in an attempt to alleviate some of the concerns that have
been expressed to me. .

New programs within the government are being prepared
to encourage the orderly development of the mineral
resources of the province. ;

The terms and the conditions under which the rights to
minerals are held and under which mineral deposits are
brought into production will be clarified to provide the

Stability on which the industry depends for raising capital.
Within tha. Ministry“of Mines and Petroleum Resources

new programs for the control of coal mining and new coal

development, mine reclamation, energy resource
evaluation and prospectors’ assistance will be initiated.
A YEAR AGO AFTER Tom Waterland’s address to this

Chamber of Mines promising to help put mining back on its

. feet, the speaker for the chamber in thanking Tom very

aptly said: “We are very willing to accept Tules — give us
the proper legislation — we will do the job”.

For rules we ask you to accept, we have published the
“Coal Guidelines”. We have said that similar guidelines are
being prepared for hardrock mines.

_ Incoal exploration expenditures for 1976 are estimated to
- be almost

ree times those for 1975. .

Several coal deposits are entering thé final feasibility
stage. In the Peace River coalfield there are the Carbon
Creek property of Utah Mines, the Sukunka-Bullmoose
Mine of Teck and the Quintette property of Denison Mines.

In the Crows Nest coalfield the Elk River property of Elco
Mining, the Line Creek deposit of Crows Nest Industries,
the Hosmer-Wheeler hydraulic underground mine of Kaiser
Resources and the Sage Creek deposit of Rio Algom are all
in final stages of feasibility of production.

In addition B.C. Hydro are continuing their studies.of the
Hat Creek thermal coal deposit.

In concluding this work and conforming to the en-
vironmental guidelines for ceal development production
decisions will be made during the year which will involve
huge sums of capital investment in British Columbia —

illions of dollars. ;

No “uncertainty” of, government. policy on taxes,

royalties or ownership of assets can be tolerated if this.

capital for investment is to be found. Legislation is not the
only réquirement — there must be faith, trust, un-
derstanding brought about by honest communication,
dialogue and negotiating between private enterprise and

. government who will be sharing the costs and benefits.

The very thought or suggestion of “reversal’’ of these
foundation policies is abhorrent — and essentially political.
Only a change of government at a future election to a
Socialist philosophy in control would embark on such
reversals of taxes, royalties or ownership policies, _

It is the well known chicken or egg thing. You could wait
the three years until the next election to see who wing — no
expansion, no jobs, the econonty slumps. Then the voter
says there must be something wrong with free enterprise —
their government can’t persuade the industries to go ahead
with the new projects
money because of the risk of “reversal”. What's left?
Socialism, state ownership?

The mining industry in this province has a responsibility
to show faith and trust in the intelligence of our people — by

_ developing our ore bodies and by creating employment for

the unemployed who will respond by giving an indication of
faith in our political system — failure to accept this ap-
proach will bring on reversal.

The coal development is goin ahead,

Let's have a look at the oil and gas in British Columbia.
Exploration and drilling activity which declined to its
lowest level in 20 years in 1975 has increased significantly in

Footage drilled moré than doubled from 421,000 in 1976 to
920,000 in 1976. :

Although. exact supporting data is not available,
geophysical exploration has increased greatly and is ex-
pected to continue during the winter months.

The announcement of the construction of the Sukunka-
Grizzly Valley pipeline will provide the incentive to in-

dustry to develop the natural gas reserves in that general.

area, .
CONCLUSION ;

In conclusion let me say that the days of an Associate
Deputy Minister being the super czar of this ministry in
charge of accounts, ling, library, personnel, public in-
formation, mineral statistics and economics, mineral
development and evaluation, prospectors assistance,
resource roads, freehold mineral titles and mineral revenue
are over, Super bureaucrats have no place in this ministry.

ros

grid system of staking I .

cause the banks won't ioan the.

cutting the undercut, Here,
in the bigger timber, we
sawed out the undercut as
deep as we wished to go,
then, one man on each side,
we alternately swung our
axes td cut out the undercut
to the depth of the saw cut.
How fast did we swing?
They say if you jump out of
an airplane, you should
count to ten before pulling
the rip cord on your
parachute and to prevent
you rattling the digits off in
a couple of seconds you
should say “one thousand",
and so on. I have no In-
tention of jumping out of a
plane, but I used that
system. As, in my minds eye
I swung the axe, I droned
“one thousand, two
thousand’, and on and on
and soon decided that we
completed a swing every
two Seconds. Any slower and
we wouldn't have got the
needed rhythmic action -or _
the speed to make the axes
bite deep into the wood.
Then I climbed onto an
imaginery log and started
scoring. Ah, this was dif-
ferent. Here the axe had to
be lifted high in the air until
our hands were at face
level, then bend your body
forward as the axe
descended to get your
weight behind the swing
which ends up in the log
below the level of your feet.
Here your hands are both at
the end of the axe handle
and you have to slide one
hand down the handle to get
the leverage to lift the axe.
for the next swing. I soon
decided that three seconds
would be needed for each
swing, considering you
would be swinging that axe
for several hours. While I
think that would be fast time
for swinging a broadaxe I
decided to use that timing.
Then J added the six and ten
thousand axe swings
together for a total of six-
teen thousand, multiplied

them by three seconds for a. .

total of 48,000 seconds,
which works out to 13 hours
and 20 minutes.

I wondered where Jack
got his figures and after I
mailed the letter to the
paper I continued won-
dering. Then a thought
struck me. Had an unseen
hand guided Jack’s pen,
causing him unconsciously
tocreate a superman for the
northwest tie hackers and
loggers? A legendary figure

. to match that hero of the

eastern Canadian lum-
berjacks, Paul Bunyon, and
his blue ox? Remember

Lost

Dear Editor:
Earlier this month we lost
two men in the bush, They
had left at 9 a.m. to go ice
fishing at High Lake.
Around 10 p.m. we asked
the R,C.M.P. to help us look
for them but we were in-
formed that they would not
go out looking until mor-
ning. They also informed us
that if the men were injured
when we found them, we

. were to leave them there,

~ Heritage

To the Editor: © -

All About Us and Heritage
Canada invite the people of
your community and
especially the students, to
jom the “Great Canadian
Heritage Hunt.” .

February 21, 1977 is
‘Heritage Day across
Canada, a day to appreciate
the surviving ac-

complishments of earlier ’

community builders, and to
talk with the people who
were young when our
country was young. ° |

Each community has its
own heritage visible in the
buildings, craftmanship,
customs and values of older
times, These treasures can
be discovered, particularly
if our youn people will lend
their considerable energles
to the search. We invite
school-age Canadians to
record their findings in
original drawings, pain-
tings, stories, poetry and
interviews, and send them
to All- About Us. They will be
published .and exhibited
across Canada.

Paul? He and his ox. scooped
out a big mill pond, now
known as the Great Lakes
and endless other fantastic
feats were told of him.-_

We also need a big hero'to
represent us to the world,
and I am sure there are
thase among us who can tell
just as big li—oops, I mean
tall tales, as our eastern
counterparts. We can call
him “Snoose”’, or
“Pickaroon” something: or
other. Maybe one of the
interior papers could pution
a contest to come up with a
suitable name. As for tall
yarns, I understand the area
around Burns Lake used to
boast some real storytellers,
so maybe they could polish
up a bit and turn out some
unbelievable ones. As‘'a
sample. “Snoose needed a
new handie for his peevee,
Nearby stood a tall straight
birch.: Taking his axe he
split the bark from top’ to
bottom, peeled it off and
threw the 40 foot strip on the
ground and went ahead
making the new handle. The
bark was soon covered over
with a mixture of pine
needles, horse manure, bits
of bark, moss and other
junk. In-the summer sun the

ark curled up, as birch
bark does, forming a tight
tube around the forest junk.
Come fall with sleet storms
and bitter wind and
“Snoose’”’ decided to build a.
fire to keep warm while
eating his lunch. He piled up
a bunch of trees and decided
the birch bark would help to
start a fire. So he lit one end
of the tube but it wouldn’t
burn too well. I decided to
‘put the other end in his
mouth and by sucking and
blowing drew the fire into
the tube and so get a better
fire. The idea worked but
the smoke he drew through
the tube was such a new,
exciting experience that,
forgetting the cold, he sat
down and smoked that tube
down to a short stub. And
that, dear readers, is how:
the. cigarette came Into
being”. That is a toned down
version of what would he
expected of ‘‘Snoose”.

Yes, hats off to those early
settlers, the last generation
before the machines took
over. When there was a job
to be done, no matter how
big, they were equal to the
task, I feel proud to have
been a part of at least some
of that uncertain,
sometimes harsh, but ex--
citing period in history
along the north line.

F, Frank |

men

come out of the -bush and
notify the R.C.M.P. so they
could go in and make. a
heroic. rescue. :

‘ Thank you, R.C.M.P., for.
at least answering . the
phone.

Ungratefully yours,
Var Turner” ¥!
Sandra Alexander, —
Note: We found the men
around 2:30 a.m. with the
help of relatives,

Canadas

All About Us and Heritage
Canada are- both “non-;’
government, non-profit
organizations working.
together to encourage’ ‘the .

appreciation of Canada’s .: °

heritage and the con: ©

servation. of the best of our °
buil€ and natural en- .
vironment, “

Please send materials -
about your community's .
heritage or write for an |
information kit to All About .
Us, Box 1985, Ottawa, ~

’ Canada, K1P 5R5, We want

to discover how our young
people view their country, .
or it is they who will carry -
the good things of the past
and present into the future,
Heritage Day is' a time |
when people of ali ages can .
share in appreciating their
own heritage, Join’ the
celebration! ve

Betty Nickerson =. .
National Coordinator «;.

All ‘About;Us,  ‘/) -

:  JPlerre Berton . oe
Acting Chairman: “
Heritage Canadas’: