.’ Paving on Highway 37 and road construction work on Highway —
16 between Terrace and Prince Rupert remain on schedule but
road work planned for the Immediate Terrace area by the
department of highways has been delayed a year. Highways
district officials. blame the delay of the paving of the Kalum
Lake Road and the curbing of Highway 16 on budget cuts, but
note that several planned projects. are. delayed each year. |
Local, highways manager Bill Stanley said less work Is being ..
“done this year than usual but sald he’ expects the delayed
' projects to be Included in the 1983 paving program. - oo

_ Business supports budget

‘OTTAWA (CP) — A

Who's Who of Canadian.

business threw qualified
support Thursday behind

the government’s inflation-—

fighting measures: but in-

. _ stability-on other. financial

' fronts indicated tte road to.

a. economie pecovery Femaing

Tyre gest rer cyenbia$
“And a procedural: kin
mish ..in the Commons
marred the vote to give
general approval to the
June 28 budget.

About 40 business titans .

agreed to try td match the
government’s .. _ restraint
program after a four-lour
meeting. with. Prime
Minister Trudeau, Finance
Minister Allan MacEachen
and Treasury Board
President Donald Johnston.

» They said they like new
budget measures limiting |
public servant pay in-
creases -- six per cent next
year and five per cent the
following year.

But they’ admitted they
aren't certain. they can
follow the federal lead.

' “The private sector is not
a monolith,” Jack Barrow,

chairman of the Business

‘Council on National Issues,
said’ in a- statement
delivered at the meeting.
-“Cireumstances in the
case..of individual -com-
panies vary according. ‘to
dates — ‘of:- . collective
‘agreements: iv effect,

_— profitability,” ‘special labor

market’ conditions ~ -and.

_ productivity.” we ay *

f

stents.

+ made -,

The businessmen ‘algo’:
' glear - their’
with

displeasure.
$19.6-dillion

projectéd

the.

federal deficit for | fiscal

‘year 1982-83.

MacEachen countered
that the: deficit is - an.

— once the economy. comies
out of: the : -Soldrinia,: the. -

budget will move closer to ee
_ balanced spate.
ey ‘i but W

Wililatn
“Boggs, chalrman of the

-Canadian Manufacturers’
Association, said it’s not

enough: to blame the
’ recession for the deficit.
“If it was our business.
and our reveriues dropped,
we'd ‘go after expenses.'”
intreal. ‘financier Paul
paral, head of the giant
Po er. “Corp, ‘said _ the
busi ;communily . sup-

ports MacEachen' 8° ap-

_. proach — but he admits it

” has little choice.

Demarais also said he. .
doubts that wage increases
will be -within the limits *

- geross the board by next

year, but added: “You have
to-- make a. start
somewhere.” “

_ Jan Sinclair, chairman of |
Canadian Pacific Enter-—
prises Ltd.,- said’ there is
“great support for the ~
position, adopted -by the ©
minister of finance.””
The federal government

- wants-inflation, now about

11.8 per cent, down to six
per cent. next year and five
per cent In 184.

But opposition politicians —
say MacEachen's “six-per-,

cent road to recovery" is a

‘pipe ‘dtéam.’ ot

While it: seems the ‘em-
pérors’ of industry. and
government liked what each .
other said, news from the

financial. front-line wasn’t -

similarly encouraging
Thursday.
The. enjbattled | ‘dollar,

an -Which has been wavering.
outgrowth of difficult times

since the budget, edged up
slightly to 77.97 cents U.S.
from TIA Wednesday.

“peventh ‘atrafghtdey.
losses and fell to its lowest
‘level since Jan. 10, 1979. “The

composite dropped 5.0 ‘to’

1346.95,

. ‘And although ‘the: trend- .

setting Bank of Canada rate

fell slightly to 16.60° from
16, 58-from.a week: ago, the

‘drop won't bring down in- -

terest ¢ * rates. Many
economists ‘predict
widespread business
failures if the rates don’t

come down soon.

” A Royal Bank’ survey also
‘said’ Thursday —
“economic . indicators . show
recovery is far. off, while a
recent Conference Board of
Canada. survey found
confidence in the business
community is low.

Meanwhile, the Conimons
gave its general approval
Thursday. night to the new

federat budget in what was.

‘Supposed ‘to be a routine
vote that turned out to be
anything, but that,
Normally, votes -at the
end of the traditional six-

day budget debate are voice.

~ votes ‘instead of recorded:

But the Liberals forced the.
lengthier recorded: vote!
~ Thursday, and touched off”
another Commons’ feud in:

the process,
The Progressive Con-
servatives

vote, Which requires each

; MF in the House to stand

Letter to Editor
‘World of sports.

“INSIDE”

‘Comics, horoscope

‘Classifieds — ”, ao
EI Salvador soain_

page 2

_ pages: 687 .
pages: B&S 7
_ page |

an

WHY BUY NEW? .
“WHEN USEDWILL Do!

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won't allow It? Beat the high cost of new parts with

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1

and be counted. :
* When the. bells started

- ringing, they went. into a.
caucus meeting to plot their
. strategy, expecting the bells
to: continue until ‘they
' returned.

"pages 435 ;

- Normal Commons

procedure is to let.the bells

_ ring -uatil- the party whips
enter « the; House... ‘and

b acknowledge - they” have -
enough * “members... to ‘vote. .

_ Speaker Jeanne.
vineinn,: Sative siopped . the ‘bells
. oN after 15 milnutes, with the

Nt - New ©

‘ Democrats Ih the Commons
. and the. Conservatives :

But
* Liberals’ “and.

upstairs. .

- Opposition: Leader Joe.

Clark, obviously upset after

. the Conservatives ‘had. to -
__ scurry back‘inte the House
_ to'make thé vote, said his’

party was misled and

thréalens fetaliatory action

over the, budget.

-<But/-the Toronto. : Stock,
xchange, gultered © i fhe
‘of.

ai . pec
Lecrsbarrve 1 LIBRARY

‘PARLIMENT BUILDINGS

Victoria, “B.C,
Vay 124

y. duly % W982

25 cents:

o

Established 1908 |

Everyone blames the other for layoffs

. Herald Statt Writer

PRINCE RUPERT-- With ‘lay-offs ani -
rollbacks looming, unionofficials at B.C...
Timber's Watson Island pulp mill are blaming

management practices for the problems.

- Pulp and Paper Workers of Canada (PPWC)

Lacal 4 executives have levelled accusations of
“poor management" at the company because

of the length of the shutdown planned for this .

Bummer.

“There is no other pulp mill that is ex-"

‘periencing such a lengthy shutdown,” said

- Bruce Burn, a :PPWC. executive member,

“People don't believe its necessary and the
result will be animosity.”

Watson Island leads provincial, kraft mills in
shutdown time’. this. year, something
management officials Name on deteriorating.
market conditions.

. ‘Phemill shutdown began July 7 and has been
extended by the company to Sept. 7. The nine
week shutdown exceeds ‘that of other millg in
the province. which ranges from three to six.

weeks, , .
About Oo positions atthe mill were eliminated |
just before the shutdown with management

’ officials saying more lay-offs would probably |...
- be announced in the near future.

At the -
beginning of this week the company announced
that salaried employees would be cut back 0 a

; ‘shortened work week,

- The union says management has. to -take .
some of the blame for the situation at the mill.

’ Bura’'s characterizes the situation as one of
“total mismanagement" and says

- management is blaming~- workers for the

pretiom. He notes the shutdown comes on the

“heels of an extended production push at the mill
in May.

Union officials. saya communication at the
plant if poor and say many workers are worried

_ the shutdown could be extended even further. .

Milt manager Reg Lighfoot has denied the
- shutdown will be extended saying only
“unexpected” economic events could force its
continuation.

The union is also upeat with ‘wutetanding —
health and safety issues at the mill and appears
to be worried the company ie involved In a:

’“goftening-up” process leading to next sum ©

mer's contract negotiations. .

Terrace. area sawmills, which had been
operating: to ‘supply the Watsons Island mill
with chips, have also been shutdown. The mills
are scheduled to re-open in September but any
extension of the Watson Island shutdown could

. force i a ‘delay in their start-ip.

~ Regional district officials face charges

Herald Staff Writer

’  TERRACE— Pesticide Control Branch of-

ficials in Victoria’ are waiting for the sub-

mission of an inspection report before they can

decide whether to go ahead with the laying of

_ charges against regional district officials in-

volved in the recent spraying of the Kispiox
-Rodeo Grounds with the herbicide Tordon 22K,

The Regional District approved the spraying

of the grounds June § apparently on the un-
derstanding thal the grounds were privately
owned and did not require a permit from the
Pesticides Control Branch to do go..

' Bob. Hlatky, a. Pesticides. ‘Control. Branch ;
official based in Prince George, has carried out

_an investigation into the spray incident and .
hasprepared a report for Branch director Ron

Kobylnuk.

-Kobylnuk said-he has not ‘yet received the

report but saya Hlatky has met with officials of
the

. were privately held,
Crown Counsel's oltice, in Prince, George te. as

discuss. poseible charges,
‘ According to the Pesticides Control Act,

spraying without a permit could involve a —

$2,000 fine or six months in prison or both.

Kobylnuk says it-ia the first time the board -
- . has been invalyed in such a situation invelving _
a8 regional district. Hesaid municipalities often

are not aware of the restrictions on spraying
involved in the Act but said regional district are
usually. familiar with the proper procedures,

"although the Pesticides Control Branch has |

been working on improving various sections of
" the act. pertaining to agricultural spraying,

Kobylnuk said it would be unfair to assume the
regional board went ahead of the spraying
because of ambiguities in the Act,

Instead he says the board appears to have
erred in deciding the Kispiox Rodeo Grounds
According to” the
Pesticides Control Act, spraying ont public land

requires a permit while spraying on private
land does not.

Kobylnuk said that based on his con-
versations with Hiatky the incident “looks like ©

‘a possible serious contravention. of the
.. Pesticides Control Act.’

He is especially.
concerned with the speed at which tiie spraying

was carried out after an authorizing resolution ©
‘was obtained from the Kispiox Community

Association.
The resolution approving the spraying was

. brought up as the last itern of new business at a

meeting of the association held June 8 The
spraying itself was carried out early in the

- morning of June 9.

. \
The regional district has said the’ Kispiox
Community Association must take seme of the

responsibility for authorizing the spraying
_ although regional administrator John Pousette

‘has said the courts might find him ‘ultimately
responsible for. the decision.

nbn aed WABI e oe Oe | ‘

Israel ready to storm PLO. ‘strongholds _

that -

weren't |
prepared for a recorded

The mediator said today
the Palestine Liberation
Organization has dropped

its demands for a political _
and . military presence in -

Lebanon, but that Israel’s
Defence Minister Ariel

Sharon atill wants to storm

West E Beirut. .

“They have dropped the
- conditions,” former ‘prime.
minister. Saeb Salam told

“The Associated Press at his’

West Belrut mansion. “The

more they drop, however, |

the more Sharon asks.
_Sharon js totally-intent on
his military plan. He wants
to exterminate the PLO and
thousands of people in
Beirut.”
As he spoke, Israeli tanks

and PLO rocket launchers
intermittent .

“exchanged
barrages around Beirut's
paralysed airport and the

nearby Bourj el Barajneh °
Aviv.

camp. The Tel
military command said
Israeli: forces also traded
sporadic

‘Lebanon. -

Most of the $0,000 Syrian
troops dispatched.
Lebanon six years -age ‘to

police the armistice that”

ended. the 1975-76 Moslem-

Christian civil war’. have -

regrouped in” eastern

Lebanon following: bloody. ©
‘ elashes..with the Israelis

. during the firat weeks of the
‘invasion. ;
Salain said the PLO. wants

. to-go overland from Beirut

to Syria, but the group's

military leader, Saad Sayel,..
* told the Voice of Palestine.
“The PLO. and. its”

radio:
leaders'are resolved to stay

~onvin Beirut and- ‘Lebanon: ‘
“even at the ‘cost of mar-

tyrdom.” :
+ When’ ‘Israeli. forces. in-

“yaded on: June’ 6- it. was”

helieved:.the operation

-would ‘bea limited’ to
pushing the PLO troops -
‘ back from the border, but

Israel’s-deputy chief of
staff, Maj.-Gen.
Levy, said. Thursday’ that
Israeli forces are. girding

for a long stay.in Lebanon, |

possibly through tLe winter.

There was ne.commient on -

‘dispute -
presidential ‘envoy Philip
Habib over when an in- -

gunfire with
Syrian “trodps . ‘in eastern.

to~

evacuation - of
Arafat's - PLO: Vroops to
Syria,
President” Reagait. “toi
: firmed ‘earlier. this- week -

USS
multinational
“oversee -a peaceful with-

Moshe |

- the yeported dropping of
‘PLO Conditions either from
Asrael-or the” Palestine
' Liberation -

‘Organization,
which has been negotiating
through’. Salam “and

‘Lebanese ‘Prime Minister
Shafik Wazzan to arrange a
‘pullout. of. the estimated

8,000: guerrillas in Moslem .

| West Beirut to stave off an
assault by Israeli forces,

Istae] had: rejected PLO
demands to have a political

bureau in Beirut and two
units in the Lebanese army.

and -communicated the
rejection to the negollators .
at the presidential palace in
Baabda, outside Beirut.
Wazzan drovefrom his West ‘
Beirut office to the palace

“today, ending a five-day’

boycott of the talks in a
with U.S.

ternational  peacé-keeping

-force should Shisfajd.

Israeli forces at the
behest of Habib let -Waz-
zan’s. motorcade through ©
the’ “Galerie . Semaan

crossing ‘point on - Beirut’s °

southern edge, -then closed

it, ‘maintalning a: fuel and

food. blockade of West
Beirut. a
.:-Wazzan and Habib
declined - public . comment
after ~ their one-hour
meeting, but. Lebanon’s
state radio sald-one new
proposal they discussed was
a -three-quarter-kilometre

israeli. pullback from the —

Beirut-Damascus highway
to allow an overland

that he is. willing to commit
troops. to a
force - to

drawal ‘of, PLO. members -
from West Beirut by sea ‘to
the Syrian port of Latakia.

Arafat rejected Reagan's
offer and Israel welcomed |
it: But the PLO chief did noi

‘reject -a fulure. peace-

keeping rote for U.S. forces
in Lebanon, =~

In Washington, Reagan

administration officials
dismissed a Soviet warning
“to keep" U.S. troops out of
Lebanon, but expressed
doubt whether all parties
invelved could agree on
ground “rules for. a. US.
presence there.
“Everything could fall in
place or everything. could
fall .apart,’’ Pentagon

; spokesman Henry Calto

. “We-flist don’t know . .

. we are a long way from a
decision to go in.”

.. Eighty~ kilometres off

-Beirut’s shore in the

-Mediterranean Sea, U.S, 6th

Fleet warships carrying

1,800 marines “were ‘within
three hours’ cruising time of

the Lebanese ‘capital for a”
mission to.

possible
evacuate PLO members.

’ Habib spent Thursday
conferring -with Lebanese —

officials in Beirut over his

dispute with Prime Minister. -

Shafik. Wazzan . about

deploying a joint. U.S.- .
' French peace-keeping force
in the capilal’s besieged

western sector. .

Wazzan publicized their
argument earlier,saying he
was shocked Habib wanted
the force deployed, only

after the PLO. left. The .

-ding
‘members from ‘attacks by

“prime minister’ “contended
this would render the peace-
keepers useless in defen-
departing . PLO

Israeli forces and their
Lebanese-Christlan allies.

The Christians — have

welcomed the Israeli In- -°

vaders because they share
the goal of evicting the PLO
and Syrian forces from
Lebanon. Syria deployed
20,000 troops in Lebanon to
enforce an armistice that

-ended: the 1975-76 Moslem-

Christian civil war.

Yasser:

Unemployment record set _

persons were unable to find work in June,

a poat-Depreasion high of 10.9 per cent of
the labor force once seasonal adjustments -

are taken into account. :
‘ Today’s Statistics Canada figures show
Unemployment is 52 per cent higher than

last June’s 855,000_and ‘the: seasonally: ~
adjusted rate up from 10.2 per cent in May .

~ and 7.4 per cent in June, 1981.

The news was released less than two
‘hours before Prime Minister Trudeau met
_ Tabor leaders to seek their support for his
government’s. new wage-and-price

- restraint program,
“What else is new?" remarked Dennis -

McDermott, Canadian Labor Congress
president, as he entered the meeting with
United Auto Workers’ union | president
Robert White.

expected little out of the meeting. .
“He (Trideau) better have a magic

wand,” if he expects. to sell his restraini: a
; _ program: to labor, McDermoit said. ‘S

‘He’ ‘got. the” -endorsation of the -
- businessmen yesterday. . .they‘re going | to:

_fighl to the Jast drop.of our blood.”

Thureday about 40 of the country’s top.
business leaders met Trudeau and offered ©

qualified support for his plan to keep wage.

_and price increases to six per cent: this

year and five per cent-next year. -
Today’ srigbless figures show that it was

"the 10th consecutive month that jobs have’
disappeared — another 62, 000 vanished in

June.

Said David Crombie, Progressive -
Cy.
_. massive amount of human misery Kies «

Conservative employment critic:

behind those figures. " 2.

OTTAWA (CP) — A record 1,303,000 -

“That's what the monetarist policy is
‘designed to bring about — it's doing avery.
good job,” said McDermott, who added he

The government has shown it is unable
to muster confidence in the economy and

MP.

‘Nelson Riis, New Democratic Party .
finance critic, said the bleak: figures were
expected because the budget failed to

~ provide any hope of economic recovery -

“and did. nothing to reduce high Interest

. rates.

.’ “Tt think what we're seeing today is an.
indication of what’s to come —.that these
figures are going to continue to aC-
celerate,”

‘While the decline ‘om May was mainly

’ 38,000 jobs disappeared, employment in all ~
other industries declined | or showed little
change. .
” The ‘unemployment rate increased for
; all age and sex groups: It was up by 1.0 to
21 per cent for males aged 15 to 24; by 1.1 to
.. 15.8 per cent for females 15 to 24; by 0.9 to
-. 8.0 per cent for males 25 and over and by -
~ 0.1 t 8.6 per cent for females 25 and over.
~The rate increased In all provinces
‘except. Prince Edward. Island where: it.

. New Brunswick where it dipped by: 051014.
per cent,
“The tate increased in’ Newfoundland by °
: 6.6 to 16.7 per cent; in Nova Scotia by 0.Lto.-
13.7 per cent: In Quebec by 0.7 to 14.3 per .
cent; in Ontario by 0.7-to 9.0 per cent; in ©
Manitoba by 0.7-to 6.2 per cent;-in
Saskaichewan by 0:4 to 6.1 1 per cent; in
” Alberta by 0.4 to 7.6 per cent and in British
Columbia by 16 to 12.4 per cent. :

student unemployment was 19 per cent in
- June, compared to 15.2 per cent a year
earlier and up from 16.2 per cent in May.

should resign, said the Toronto Rosedale -

in ‘the manufacturing industry, where |

“Not adjusted for ‘seasonal variations, .

A

‘declined by.1.9 to to 13.6 per cent and in we o

Lae TT