Page 2, The Harald Virenw ts Prcembs > tate TERR ACE-AITIVENE Letters te SANTA Contest RULES Letters must be written by | Z children In thelr own hand- % , " writing. (Pre-Schoolers may 4, ~ ask thelr parents for help.) Limit: One letter per child. All letters will be published in our special Christmas Sup- plement Dec. 21, 1979. Lett Prizes awarded on a draw basis. Contest closes Dec. 14 at 5 pm. (Late letters will not qualify) Letters must contain Name, Address, Age and Phone Number. Only children 12 years and under qualify. Letters to be forwarded to North Pole after draw. : tas a hes 4A ty ate Sot SABA a tatte: og ee id _ + WIN | ~ 7 Prize $100 gift certificate at All Seasons - ND Pen 2” Prize $75 gift certificate at All Seasons 3” Prize $50 gift certificate at al All Seasons Mail to Santa c/o Terrace-Kitimat Daily Herald 3212 Kalum St. Terrace, B.C. V8G 2M9 and NDP Leader: Ed Broadbent said they expect thelr caucuses to vote against the govern- ment in budget non- confidence votes, — _ Debate on the budget begins today and the first yote is Thursday night on an NDP motion. : The budget speech confirmed earlier reports the government Intended to raise the wellhead | price of oil and natural pas toward world price levels by 1984 and of an increase In the federal excise tax on trans- portation fuels to 25 cents a gallon. To help offset higher gasoline and heating fue? prices, Crosbie’ an- nounced a refundable energy tax credit of up to #80 an adult and $30 a | child each year, Op- position critics were quick to say‘the tax rellef would fall short of the extra burden created, “It's going to coat the average Canadian family in 1980 some $280,” sald Broadbent. Ree said the govern- ment is punishing the auto industry and car drivers and Lorne Nystrom - (NDP =~ * Yorkton-Meiville) - said from one _ i ; WHAT the excise tax on gasoline would raise food prices. However, the budget provides for a rebate of 10 centa a gallon In the excise tax on gas used for farming, commercial fishing and urban public transit. Trudeau said the Con- servatives are preoc- cupled with the size of the federal deficit and can’t understand thal the economy has to be stimulated when it is not growing fast enough. Jean Chretlen, former Liberal finance minister, said the Conservatives, despite their tough talk, actually plan to increase federal spending more than the Liberals did in their last budget a’ year ago. . rloyd Axworthy (L. — Winnipeg-Fort Garry) said the government haa. not yet proven that higher gasoline prices will en- courage conservation. Art Phillips (L — Vancouver Centre) predicted increased Jabor strife because labor unions will fight for- higher wages to keep up withthe cost of living as it increases because of -. higher energy costs. from one automobile drivers, ex- tending to buses, trucks, planes, boats and trains. . Urban public transit systems and farmers and commercial fishermen will get a 10-cents-agallon rebate, but the effect will mean higher prices. _ Crosbie sald establishing realistle oil prices is the best way to achieve self- sufficiency in energy by 1990, the government's long-range policy, "Crude oil prices must - ensure an adequate return to producers to finance needed exploration and develop- ment, Retail prices to consumers must encourage conservation.” Admitting that rapid price increases will affect all Canadians, Crosbie said he plans to ease the shock for families earning less than $21,380 annually next year by 1a tax rebate of $40 far each adult and $15 for each child. In 1981, the rebate would double. The government estimates that it will collect $2.5 billion a‘year from the increased fuel taxes. In addition, it hopes to get haif of all cruce oil increases over $2 a year. Ottawa estimates the new pricing system will produce net revenues of $90 billion over the next four years. OF this, the provinces would get $40 billion, the oi] industry $33 billion and the federal government $17 bililon. Most of Ottawa’s share would be used to soften the impact of energy price in- creases, {0 promote con- servation and to finance the development of alternate energy sources, Crosbie sald, The industry’s share should give it enough money to pay for new exploration and development. But Crosbie said he and Prime Minister Clark were ready to fight an election on the budget measures, though he agreed at a news ‘con- ference after his speech that the Liberal party’s search for a new leader makes a vote in the near future unlikely. The speech presented a gloomy picture for those hoping to see reduced in- creases in living prices, basing long-range forecasts on an annual inflation rate of about 10 per cent a year through to 1984. . Although Crosbie talked of the fight against inflation and the need to reduce the government's recurring deficits as priority targets, the main thrust of the speech was, as expected, about energy prices. He said an immediate in- crease in the federal excise tax on gasoline to 25 cents & gallon from seven cents was needed to try to -force Canadians to use less, and to provide revenues to start financing new energy pol- icles. He confirmed speculation that the price of crude oil will rise $4 a barrel from $13.50 in 1930 — subject to final provincial agreement — with further increases of $4.50 a barrel each in 1991, 1992 and 1989. There would be another increase of $2.25 a barrel at the firat of 1994. Since each increase of $1 a barre! means a jump of 3.5 cents a gallon in the price of gasoline and home fuel, the increases would represent a total jump of 70 cents a gallon by that time. Crosbie sald the increases are projections and are subject to possible revisions depending on how in- ternational events develop during the coming years. Canadian prices would be reviewed in 1983 to keep them at 63 per cent of the: international or United States price, whichever waa lower. Under the government's projections, Canada will be able to reduce oll imports by 100 million barrels a day by 1965, resuiting in a saving of $2.5 billion at today’s prices, Croabie sald. - package Buried under the energy section of the 10,000-ward speech, longest in several years, were other major changes. The federal excise tax on tobacco js up 2.5 cents on a of 20 ‘cigarettes, While higher alcohol levies will mean an increase af about 11 cents for a bottle of Hquor, 12 cents for a bottle of wine and one cent for a bottle of beer. . Revellers should be able to get through the holiday season, though, since alcohol prices are not expected to reflect the change for about a month. ‘There were these other major changes: . —Higher premiums for unemployment insurance take effect In the new year, rising about $95 a year for employees and $48 for em- ployera. These would in- crease revenues in the fund by about $700 million next year to $3.5 billion, —A special $50 million would be set aside to en- ecurage employment in the Gaspe and the Atlantic provinces, areas facing from one Gerald Docquier, natignal director for Canada of the United Steelworkers of America, said the Clark government deserves to be defeated. “Faced with inflation and unemployment and the rea] danger of a recession in 1980, the Conservatives have decided to do nothing but pray.” Dennis McDermott, president of the Canadian Labor Congress, said he was shocked by the harshness of the budget, He said the 2.3-million-member congress plans to evaluate the budget further and ‘will announce drastic measures con- cerning its fundamental relationship with the federal government.’” Jim Kinnaird, president of the British Columbia Federation of Labor, said the budget was typically Tory in that it will hurt the working person. An $80-aweek tax credit for businessmen who create new jobs {s too little foo late for Canada’s chronic unem- ployment problem, he said. Gerald Yetman, Nova Scolla Labor Federation president, described the budget as “a farce that labor will not be happy with." And Paul Lepage, president of the said the rise New Brunswick Federation of Labor, said it © means. Ed Tchorzewskl, Saskatchewan finance ‘4s the worst I've ever seen." But reaction from Atlantic pollticians was generally favorable because Crosbie in- cluded some special recognition of the needs of the East. The budget provides the Atlantic provinces with subsidies to offset the higher cost of electricity resulting from increased oil prices, Most electricty in Newfoundland, Nova Scotia, New Brunswick and Prince Edward Island is generated by ollfired plants. OPPOSED Nova Scotia Premier John Buchanan was pleased the budget contained measurea to cushion the ol-price increase. But Joel Matheson, Nova Scotia finance mirister, said it was not going to have any major impact on Atlantic consumers, Angus MacLean, premier of Prince Ed- ward Island, called the budget realistic, but power rates in P.E.1. Finance Minister Fernand Dube of New Brunswick said the. budget contains “a cushioning aspect that will be of some comfort to New Brunswickers,"’ While the labor leaders and federal op- position politicians criticized the budget for being too harsh, Premier Sterling Lyon of Manitoba said it didn’t go far enqugh. He said Crosbie didn't go as far ae Manitoba's Conservative administration in culling government expenditures. “We would probably liked to have seen a grealer reduction in the deficit,” he said. But Lyon said the budget was realistic and was “the first in a good number of years that’s told the facts of life about how much, we've been borrowing and living beyond our GAS some of the highest uiem- ployment in Canada. Specific plans for spending the money were not spelled out, —Farmers will be able to put more income inte RRSP without paying capital gains taxes immediately to enable them to set up better retirement programs. But there were no general changes in personal income taxes and, despite some ad- vance speculation, no change in the indexing system that links income tax rates to inflation. in oil prices could increase minister, sald the federal government has no business raising taxes on gasoline to line its pockets, Taxes have traditionally been a : provincial means to raise money to main- courageous, rates. tain roads, he said, and the federal govern- ment should not invade the field. Hugh Curtls, British Columbia finance minister, described the budget as but was disappointed no measures were annowiced to lower interest Entertainment encouraged By JAMES NELSON OTTAWA (CP). — in: centives for venture capital in small business endeavors are Deing encouraged in Finance Minister John Crosbie's budget, but so far the encouragement stops short of show-business. Crosbie’s announcement Tuesday night was that federal tax law is to be changed to make room for so-called venture capital corporations which are set up under laws now applying in Quebec and Ontario. The laws are designed to dive lax benefits to investora in small businesses engaged in manufacturing, research and high technology. The provincial investment deals. don’t apply — yet, in any case — to show-business ventures. The Canada Council, however, is con- sidering a risk capital development fund for the- theatre, The idea is that private in- vestment in shows should be encouraged, even in the big statesubsidized professional theatres, Crosbie's budget does not. . do much for any of the cullyral industries — theatre, music, museums. One change is to exempt * from the capital gains tax any certified cultural object that {is donated to a designated art gallery, museum or public authority as consequence of the death of a taxpayer. Changes are made in the application of the exclse tax on cosmetics, to tighten up 4 loophole in the present law, but a government source said stage make-up je not covered under the definition of cosmetics, which are mainly to care for the body in the normal way, While the budget does Little for people in show business, it appears that the govern- nent is becoming more aware of the need to do something more for private enterprise in the area of the arts. Federal tax officials now talk about “the cultural industries" in a way they did not 4 few years ago. Pressure from groups outside the government, such as the Canadian Con- ference of the Arts, also are bound to keep the issue alive The conference, repre- senting most of the active arts organizations in the country, is mounting 4 campaign for public awareness of the needs in preparation for next year’s enquiry into the arts by 4 Senate-Commons com- mittee, The next big occasion for a government move towards easing the budget problems of many arts organizations will come in February or March when the government tables spending estimates for the fiscal year starting April 1, from ove BUDGET payments. Because the prices of many forest products are competitively set in world markets, producers will have to ab- sorb higher fuel costs, cutting profits and the amount of capital available for reinvestment and ex- panslon. Increased taxes on gasoline, and aviation and deisel fuel will make mineral exploration more expensive, saya the B.C. and Yukon ‘Chamber of Mines. "One of our blessings in the West has been highly innovative and competitive exploration and this will mean exploration managers will have a further spur to be even better at thelr jobs than they are today,"’ said Rick Higgs, chamber manager. Coquitlam Mayor Jim Tonn is concerned about the effect the increased gasoline prices will have on the funding agreement between the provincial government and the Urban Transit Au- thority for rapid transit. The agreement includes a piree-cent-e-gallon gasoline x. But because of the new excise tax, this will have to be increased to offset the increased gas prices buses will have to pay, said Tonn, an official of the Union of B.C. Municipalities. The budget is a typical Tory document that will hurt working people, sald Jim Kinnaird, president of the BC. Federation of Labor. He said the $80-a-week tax credit for businesses which create new jobs is too little too late for Canada's chronic unemployment, TWO KILLED CASTLEGAR (CP) - A mother and daughter died Tuesday in a head-on collision between their car and a tractortrailer truck during a heavy snowstorm. Florence Perepelkin, 39, and her daughter, Larisa, 15, both of Grand Forks, B.C., were killed in the accident on Highway 3 about 35 kdlo- metres west of this West Kootenay city. Driver of the truck, Detley Reinhardt of Vernon, B.C., was not in- jured. CRASH FATAL DELTA (CP) — Two men died Tuesday when thelr Pickup truck burat Into flames after it was in collision with a B.C. Hydro bus in this municipality south of Vancouver. Five passengers in the bus suf- ‘fered mittor injuries,