END SELLOUT OF NATURAL GAS

~ Take over Westcoast

By SEAN GRIFFIN

If you didn’t get invited to
Frank McMahon’s $100,000 wed-
ding for his daughter, don’t feel
entirely left out— you helped pay
for it.

And as long as Westcoast
Transmission— which operates
a pipeline supplying natural gas
to the U.S., to Inland Natural
Gas Company and B.C. Hydro—
continues to be owned by Frank
McMahon and U.S. oil and
banking interests, you will
continue to pay—as wellas sub-
Sidize the export of millions of
cubic feet of cheap natural gas to
the U.S.

On October 18 last year,
Premier Barrett announced in a
press conference that his govern-
ment would, at some unspeci
fied time, consider the acquisi-
tion of a number of companies,
among them Westcoast Trans-
mission. Although it was only a
Vague position, it reflected the
views of many people in B.C.
who had long opposed the sellout
of Canadian natural gas and sup-
ported government takeover of
the transmission system as the
first step in repatriating B.C.’s
energy resources.

. Barrett’s statement also
“evoked a response from West-
Coast’s president, Kelly Gibson,
who announced the company’s

intention to defy any takeover ©

bid by the provincial govern-
ment— not a surprising position
when Westcoast’s profits and
Preeminence in the energy
Tesource field are revealed.

_ Originally founded in 1949 by

Frank McMahon with the able
assistance of U.S. interests,
Westcoast floated its first share
at 5¢. Within a few months after
the granting of franchises for
gas transmission, the share
value had multiplied 100 times.

One of the U.S. oil interests
was Pacific Petroleums Ltd.
which presently owns 27% of
Westcoast Transmission. The
influence which Pacific Petro-
leums exercises in Westcoast’s
corporate decisions is evident in
the fact that the two companies
share four directors. And
although McMahon— while still
retaining a position on the West-
coast board—is retired from the
board of Pacific Petroleums, he
was the original founder of
Pacific.

But it doesn’t stop there.

Westcoast Transmission is a
classic example of the concen-
tration of wealth and corporate
decision-making in the hand of
an elite few who operate in the
interests of all companies
involved.

The president, Kelly Gibson, is
a director of a number of oil and
pipeline companies and when
Frank McMahon goes toa board
meeting of the Royal Bank of
which he is a director he meets
C.N. Woodward, the depart-
ment store tycoon — who also
sits on the board of Westcoast
Transmission.

There is also considerable
sharing of directors between
B.C. Telephone and Westcoast,

including the president of B.C.

Tel, J.E. Richardson.

YGL welcomes left
trend of NDP youth

Tee Young Communist
¥ gue, Monday, welcomed the
oung New Democrats week-
ene convention as showing posi-
ive signs for the youth move-
ment in British Columbia.
aN The underlying militancy of
© convention,’ said Fred
Mees Provincial Organizer of
act L,” showed that the YND
with going to be complacent
i an NDP victory, and they
€ going to demand that the
ee yernment allow them to parti-
meee in policy making. The
fan shortcoming of the conven-
iste was that it failed to stipu
ana any definite socialist aims,
that it did not find the need

to discuss the i
3 important ques-
tion of left unity.” P q

sauaen cited the YND’s resolu-
the son Vietnam, andespecially
fe commitment to investigate
a Possibility of sending a work
atc North Vietnam, along
ave sound resource develop-
Sry Policies of nationalization
ae asic industries, and the

€nsion of secondary indus-

tries,’’ as the highli ;
convention, ghlights of the

Se same time though,
et ions concerning pay
hota and nationalization of
ae S and restaurants, are in

tr estimation, indicative of a

jcttain political immaturity,”

© noted. ‘“‘We are particular
disappointed with Phe ND
see on unemployment.
ie \v proposal for the govern-
nt to meet with the unem-

‘Ployed to discuss what type of

jobs they would like is a liberal
approach. : Be

“They must remember that
there are presently close to
50,000 young people, under the
age of 25, registered as unem-
ployed in B.C. They need action,
not another discussion upon the
multitudes that there have
already been. The type of jobs to
be created must necessarily be
determined by the province’s
economic prospects— not by dis-
cussions of likes and dislikes.
This attitude seems to be a carry-
over from the very middle class
notions of ‘‘creative unemploy-
ment,’’ which were previously
entertained by the YND,”
Wilson said.

“Overall, the YNDhasmadea
shift leftward, but are now
faced with the problem of
finding the patience for the
government to catch up. How-
ever, it should be understood
that a patient approach plays
directly into the hands of
monopoly, who are presently
pressuring the NDP govern-
ment to renege onmajor partsof
their election platform. The
YCL believes that the YND can
be of decisive importance in
holding the government to
policy commitments to deal
with the problem of the working
youth of B.C. Butthis canonlybe
done if the basis can be laid fora
united youth movement, encom-
passing all progressive youth
organizations. The objective
possibility for such unity around
basic issues is here— so lets get
on with it.”

The McMahons themselves
don’t miss a bet, either. Frank’s
brother John is president of
Inland Natural Gas Ltd. which
buys gas under contract from
Westcoast Transmission. An-
other McMahon, George, is
former president of Pacific
Petroleums.

Another factor emerges inthe
gas fields in the Canadian north.
Of the wellhead sources of gas
for Westcoast Transmission,
Pacific Petroleums is the
largest. When prices are
increased for supplying gas to
the pipeline — which is
presently happening— it results
in increased operating expenses
for Westcoast which is then able
to pass its increased expenses all
the way down to the consumer
by using the argument that it
must maintain a constant rate
of return on capital.

Under those conditions Pacific
Petroleums gains twice: once,
by the increased revenues,
through the sale of gas at a

Frank McMahon, friend of WAC
Bennett and golfing partner of

U.S. President Nixon, was the _

chief architect of the sellout of

B.C. gas to the U.S.

CANADA ELECTIONS ACT
Electoral District of Vancouver-Kingsway

“SUMMARY .OF RETURN OF ELECTION

EXPENSES

There is below set out, as required by
Section 63 (5) of the Canada Elections Act,
a summary, signed by the official agent,
of the return of election expenses made to
me by him on behalf of William John
Turner, one of the candidates at the
recent election of a member to serve in
the House of Commons of Canada held in
the above-mentioned electoral district,
which said return is on file at my office
and may, on payment of a fee of twenty
cents, be there inspected and extracts

taken therefrom at any reasonable time

during the six months next after the 2nd
day of January, 1973, being the day upon
which the said return was furnished to me.
Dated at Vancouver, this 2nd day of

January, 1973. 4
A. Walker, Returning Officer

Summary of Return of Election
Expenses of William John Turner.
Receipts
contributions, etc. $938.72
Promised unpaid
contributions, etc.
Total 938.72
Payments
Candidate's personal
expenses Nil
Portage Nil
Telegrams Nil
Petty claims | Nil
Hire of premises Nil
Services 20.91
Travelling expenses
and hire of vehicles ua
“Goods supplied i
aa yectisin 701.01
Tota 738.92
Delayed Undisputed Claims: NIL,
Disputed Claims: NIL

Dated at Vancouver, this 2nd day of
January, 1973.

H. Bird, Official Agent .

Transmission

higher price and again through
its substantial ownership in_
Westcoast.

by the year 2000. And as long as
Westcoast Transmission re-
mains the property of private,

Westcoast now pays 13 to 16° U.S. capital, B.C. will continue

cents per thousand cubic feet of
gas, sells it to B.C. Hydro at
approximately 35¢ and by the
time it reaches the consumer the
price has jumped to an average
$1.20 per thousand cubic feet..

That’s how Westcoast man-
aged to rack up a 9%6%
increase in profits for the first
nine months of 1972. And with
prices being negotiated upward
at the wellhead sources, con-
sumers can expect to pay more
in future.

But because rate increases to
consumers involve applications
to various government com-
missions — too slow a process for
the fast-buck monopolies —
Westcoast prefers to negotiate
new gas deals with the United
States as a means of covering
price increases at the wellhead.
And that is the real danger. of
private, U-S. control.

Every day more than 69% of
the total throughput of the West-
coast pipeline pours across the
border into the United States. In
fact, Westcoast exports of
natural gas amount to one-third
of the total volume of gas
imported into the U.S.

But the real sellout lies in the
fact that all that gas — 809
million cubic feet per day — is
sold to the U.S. at a price sub-
stantially lower than B.C. Hydro
pays for its gas. After all,
Richard Nixon is an old golfing
buddy of Frank McMahon.

Theoretically, proposed in-
creases in natural gas exports
must go before the National
Energy Board for approval.
Approval is based on surpluses
that are economically within
reach.

But because Canadian needs
are based on the present indus-
try— without taking into account
establishment of new second-
ary industry-surpluses are mis-
leading. A planned program of
building up the steel industry in

‘B.C., for example, would radi-
cally alter the present figures
for consumption of natural gas...

The U.S. estimates thatits gas
consumption will double by 1975
and show a seven-fold increase

to funnel Canadian gas across
the 49th Parallel — at bargain
basement prices.

Significantly the postpone-
ment and possible cancellation
of an agreement that the United
States had negotiated with the
Soviet Union to buy $40 billion
worth of natural gas at $1.50 per
thousand cubic feet, coincided
with the announcement that
further reserves of Canadian
natural gas were ‘‘within
economic reach.” d

In reply to the U.S. latest
aggressive thrust of continental
policy, Premier Barrett stated
that he ‘‘rejects completely that
there is any argument for a
continental energy resource
policy’ and that Canada’s
resources are to be ‘‘managed
for the needs and uses of the
people of Canada.”

There isn’t any argument for
a continental resource policy.
But then as long as U.S. inter-
ests continue to own Westcoast
Transmission, they don’t need
an argument — they just keep

ouring the gas across the line.

The ‘‘unspecified time for
acquisition of West Coast Trans-
mission’’ is not something that
can be determined by the govern-
ment’s readiness to act. Every
year that goes by will see the
further alienation of one of our
most vital energy resources.
Time is running out.

OBITUARY _

- Robert Daniels

Robert Daniels, age 57, active
in recent years in efforts to
organize welfare recipients in
Vancouver, passed away on
December 30, 1972. A memorial
service in his memory will be
held at Boag Memorial Chapel,
1505 Lillooet Rd., North Van-
couver, on Saturday, Jan. 20 at

“IPAM.

Born in B.C., Daniels took an
active part. in the Hungry
Thirties in organizing the single
unemployed. Always in frail
health, Bob nevertheless devoted
himself untiringly to the

struggles of the working people.

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January 27 — January 27th
Come on a TOUR OF ENG-
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February 4th — KEEP THIS
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ING — UKRAINIAN SUP-
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PACIFIC TRIBUNE—FRIDAY, JANUARY 19, 1973—PAGE 11°

Ut AVGAI——-CATE AS PARTIAL ,

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HALLS FOR RENT

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— Available for banquets,
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UKRAINIAN CANADIAN
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Pass this paper on
to your friend

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