Page 2, The Herald, Tuesday, December 11, 1979

Budget may cost Tories points

By PAUL GESSELL

OTTAWA (CP) — The gov-
ernment’s anticipated com-
mitment to reduce federal
spending and increase
energy costs in today's
budget could further erode

OTTAWA (CP) — The
Progressive Conservative
government had no trouble
winning approval in the
Commons Monday night for
a motion to limit commitlee
debate on its mortgage in-
terest and property tax
credit plan.

The motion carried by a
margin of 120 to. 85, with four
Social Creditera voting with
the minority government
against Liberals and New
Democrats. A total of 76
government and opposition
members did not vole.

The vote cleared the way
for MPs to spend one more
day to get the tax credit bill
through detailed clause-by-
clause study and on to third
and final reading.

The legislation was given
approval in principle by a
vote of 139 to 114 last week.

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declining Progressive
Conservative popularity
with the electorate,
Finance Minister John
Crosbie has already
predicted many Canadians
will be unhappy, at least

The bill provides for home-
owners to receive up to $375
as a deduction from federal
income taxes payable for
1979. The maximum tax
credits wotld increase each
year untll 1992, when the
plan would be In full force
and give home-owners
benefits of up to $1,500.

Meanwhile, Privy Council
President Walter Baker told
a reporter he is intent on
having the bill become Jaw
before the end of the year.

Baker acknowledged that
benefits for 1979 could
legally be paid even if the
leglalation is delayed beyond
Dec. 31. He made the
statement in an interview
after being accused in the
Commons of lying.

“T auppose we could walt
until Easter, legally,” Baker
said, but quickly added it

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initially, with the budget he
presenis to Parliament and

* a live television audience

at 8 p.m. EST,

The budget is not expected

to contain a $2-billion income
tax cut promised by Prime

would unfair to keep home-
owners in the dark that long.

NDP finance critle Bob
Rae accused Conservatives
of lying by saying the
legislation must be passed if
home-owners are to claim
benefits when they file their
1979 Income tax forms,

Rae was forced to with-
draw the word lying after
Speaker James Jerome

tuled it was un-
parllamentary.
Following Monday night's

vote, the Commons resumed
detailed study of ‘the bill,
Liberal housing critic

: Lloyd Axworthy of Winnipeg

Minister Clark during the tax to about 90 cents a gallon
May 22 election campaign from seven in a bid to en-
because Crosbie saya the courage conservation.

government cannot afford It.

Home owners are expected

Instead, motorists likely to be allowed to deduct part

will be faced with an in- of their mortgage Interest
crease In the gasoline excise payments and property tax

Gov't gets action on tax debate

proposed an amendment
that: would give Parliament
the right to decide each year
whether the tax credit
_ program~ should continue,
Axworthy’s motion would
not require any changes in
1979 tax forms, which have
already been printed.
’ The opposition parties
have complained that the tax
credit plan is of litle or no
help to renters, home-owners
who pay no income tax and
those who have no mor.
tgages on their homes.
The two parties are also
concerned about the cost of
the program, estimated by

the government to be $575
million in lost revenue next
year and §2.67 billion in 1982
and subsequent years.

Eymard Corbin (L —
Madawaska-Victeria) asked
Crosbie if the government is
considering making family
homes subject to capital
@alns tax or whether Ca-
nadians would lose the tax
exemptions they now enjoy
by contributing to registered
home ownership savings
plans.

The finance minister did
not answer the questions, but
urged the opposition to halt
ita delaying tactics.

from one

discouring effect of the dol-
lar on export sales.

Statiatics Canada reported
that the Jabor foree — which
includes those working as
well as those seeking jobs —
fell to 11,287,000 from
11,334,00 in October.

in November, 1976, it said
839,000 people were out. of

work and the seasonally:
- adjusted unemployment rate

‘was 8.2 per cent, There were
10,910,000 people in the labor
force.

The - seagonally-adjusted
rate, which takes Into ac-
count employment trends
such as seasonai hiring
patterns -of particular in-
dustires, had been edging
downard since then until

October. :
The officia} ‘jobless .rate

secutive months since last
winter,

The decrease was slightly
smaller in British Columbia
where It-went from 7.1 per
cent to 6.8 per cent.

In the other provinces the
seasonally-adjusted rate
dropped by 0.1 per cent or re-
‘mained the same,

In Nova Scotia the rate
-.Wags consistent at 10.2 per

cent, In Quebec it remained

at 65° per cent and in

Saskatchewan the rate

stayed at 4.1 per cent,

In New Brunswick it
dropped from 10.7 per cent to
10,6 per cent and in Ontario it
fell from 6,7 per cent to 6.6
per cent.

The Progressive Con-
servative government is to

x . present its first budget today
SHES ngatenedaeneieeniianacaaneenteced? hasn't increased In-con- _ and ita thrust will be im-
TUESDAY, - § p.m. to midnight
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JOBS

portant in. determining
future employment levels,

Both government and
private economists are
predicting, to varying
degrees, slow economic
growth inthe coming yaar. A
sluggish economy would
affect the job creation rate
and the opposition Liberal
and New Democratic parties
are urging the government
to stimulate the economy
and ease the jobless situation
by spending more money,

But there aresigns that the
government hasn't been able
to arrange much room to
manoeuvre in’ and might
forsake some of its electlon
pledges to deliver a tight-
fisted,  inflationfighting
budget.

The government, however, °
“has said it will Include in the

budget job creation
programs for young people
and women, the hardest hit
by unemployment.

Other measures in the
budget, especially some
expected to tackle the

ena ik also
i might:

ae

levels. ;

em ofstimulating small
; wablem ots ah g have . deserts provide nourishment

omangispinent for plants that grow close to

from income tax but op- |
position housing critics say
the steady rise in interest
rates will wipe out much of
the benefit. -

Although Clark promised
during the election cam-
paign his government's fLrat
budget would be stimulative
~~ ereating a picture of more
cash and jobs for taxpayers
— Crosbie says federal
spending must be reduced
Instead,

Crosble inherited a
apending deficit estimated at
$12 billion this year .and a
national debt of $52 billion.
Interest payments. account .
fer about 16 cents of every
fovernment dollar spent.

He saya astimulative
Géficita cause Inflation.

Inflation is running at an
annual rate of 9.3 per cent
and is expected to go higher
before it goes down,

Both the Liberals and NDP
aay federal expenditures
should. be increased to put
the faltering economy back
on the rails and ease the
country's 7.4-per-cent
unemployment rate.

Clark has promised to
implement programs to help
those hit hardest by
unemployment — women,
youths and natives.

He also promised to in-
troduce in his first budget
various corporate tax breaks
such as:

—Changes in capital gaing
fax on small businesses to
allow transfers within a
family unit. .

—Tax credits to permit in-
flation accounting in com-
panies.

—Tax incentives to en-
courage research and
development.

—Elimination of taxes for’
a limited time for companies
investing in poor regions.

—Elimination of capital
gains tax: on shares of
Canadian-controlled com-

nies,

—Increased tax incentives
to mining companies.

—Freight rate subsidies of
about $30 million to key in-
dustries,

=A $15-million shot in the
arm for the fishing industry.

DEW HELPS DESERTS
Thedew occurring in some

the ground.

hy

/ Dec. 5:and Dec. 12

WINSBAY

tickets g

‘TOTAL OF 500 OF $1,000.00 EACH

ood for

NEWS BRIEFS

TORONTO {CP} — Lealle
James Bennett wanted
nothing to do with the world
of espionage when he en-
tered it, and when he left it 22
years later, he felt the same

way.
But the years between saw
Bennelt develop into ane of
the RCMP's top espionage
men, ot spies as they are
more commonly known.
His depature from the fleld
in 1972 was a bitter one, His
reason for quitting was an
intensive interrogation by
the RCMP because of ils
suspicion Bennett might
have bean a security risk.
However, RCMP officials

later aaid no evidence was

found to support those sus-
picions.

Rennett’s career ag a spy
and the xeason for hia
leaving are outlined Ina pre-
trlal testimony report, part
of a civil action in the On-
tario Supreme Court,

Bennett's testimony
describes how he felt obliged
to seck a medical discharge
and leave his‘ sensitive job
with the RCMP’s security
service after he was
questioned about eight
counteresplonage
that occurred during his 13
years with the force.

Tax man wants share

EDMONTON (CP)
Revenue Canada officials,
anticipating the compliance
problems they say come wilh
economic growth, are
stepping up their income-tax
Investigative activitles In
Alberta.

George Mitchell, chief of
audit operations at the
Edmonton district office,
expects the number of tax
investigations to triple this
year compared with the last
two years.

The office carried out 12 to

15 full-scale tax in-
vestigations In the year
ended March 31 and suc-
cessfully prosecuted six
cases, Theré now are 90 full-
scale investigations in
progess and Mitchell expects
as many as 25 will lead to
convictions. .
The tougher stance is more
a product of the province's
changing economic climate
than a personnel switch.
"In the past there does not
appear to have been that
much tax evasion in
Alberta,” Mitchell sald.

- Gold goes up again

LONDON (AP) ~~ Gold
soared $15 to hit a record
$446 U.S. an ounce in Zurich
today. The U.S. dollar rose
against the Japanese yen but
fellinEurope.: «. =

In London, the metal was

1, "NG
Gold closed Monday”

at $aguizg. (be

The previous high for gold,
an investor's: traditional
haven in times of monetary
uncertainty, was $444, hit in
Zurich Oct. 2 amid a crisis of
confidence in the U.S,
currency.

Dealers said the gold price
was boosted by Iranian plans
to cut oil production next
year, the expectation oil
_producers will increase the
price latex this manth, and a
weaker dollar.: |. y

In Tokyo, the dolla tett'to
a low of 229 yen during

trading today, then rose to
close at 235.95. On Monday it
closed at 231.25. my

In Europe the dollar
dropped against foreign

' gurrencies in:generally thin

tradi

ng. ¢
quoted at $443.75, "5.0; fe Mornings U8) dollar rates
in “i

Zurich at $431 and‘jn Lotidon

compared with
Monde’ an bfe‘rates:
“eeannhet “= 1.7456 West
‘German maki, down from
17514, .
Zurlch — 1.6075 Swiss francs,
down fram. 1.619.
Paris — 4.1067 French
francs, down from 4.112,
Milan — 916,25 Itallan lire,
down from 817.95.
Amaterdam — 1.9345 Dutch
guilders, down from 1,036.
In London it cost $2,1945 to
bay, 3. a oe com
‘pared with $2.1683,” :
win Montes Ma oe
U.S. dollar closed ‘SP $1: 1685,
up 1-20. ;

Economy confuses seers

MONTREAL (CP) — The
Parti Quebecois has not
called for tariff barriers
between an independent
Quebec and the rest of
Canada, but if they were set
up, they could cost the prov-
ince up to 209,000 jobs rand
cut its annual economic
output by up to $3.2 billion, a
Concordia University study
forecasts. -

The findings of the study,
to be released later today,
were published in The
Gazette,

Its conclusions were based

o1 a computer model of
Quebec's economy, basing
the size of the province's
ecanomy in 1978 on Con-
ference Board in Canada
figures. ;
The Quebec government's
white paper‘on so#ébelgnty-
association, relensed last
month, called for free trade
between a sovereign Quebec
and the rest of Canada, and
the study did not compare Its
findings with a scenario in
which Quebec and Canada
shared a common currency,
free trade and common
external tariffs. :

Harder for the hoggers

OTTAWA (CP) —Beef and
hog farmers face an un-

certain year as producers

cabaret,

ZZL wn.

That's the sound most often heard at Slumber Lodge
Motels. Because at Slumber Lodge we're not in the Cabaret
business. We olfer clean, comfortable, and quiet surroun-
dings in fifteen locations throughout British Columbia. And
at budget rates. Before your next trip out of town, call ahead
' to Slumber Lodge. We'll even tell you where to find a

Smithers, Terrace, Kamloops, Cache Creek, Prince George,
Hope, Williams Lake, Victorla,. Vernon, Prince Rupert,
Coquitiam, Penticton, Revelstoke, Kelowna, Courtenay.

SLUMBER LODGE

For reservations call any Slumber Lodge or (112) 682-6171
And have a good night's sleep.

rebuild cow herds and try to
cope with overexpansion in
the hog business, an
agriculture department sur.
vey indicates,

elea: Monday during
the first day of the annual
agriculture outlook con-
ference, the survey says
cattle prices could rise in
second half of. 1980 and that
means more expensive beef
in the grocery stores.

Hog prices are expected to
drop al least for the first half
of the year as producers try
to reduce herds in light of
faillng prices

See Our
BUSINESS
DIRECTORY
| on

* PAGE 11