Ai f [ ing, taken by. stock markets around the world is going to eventually affect everyone, and. the severity of the effect will be determined by the attitude as- sumed by those who invest. . ~ by Michael Kelly “That was the assessment of . Marylou McDonald, an invest- -ment counsellor for Odlum . Brown, who spoke recently to” members of the Terrace and District Chamber of Commerce. “I don’t share the negative outlook being expressed by some analysts,”’ she said. ‘“There were - Many causes for the crash: the’ _ U.S. dollar, their deficit, their _ balance of trade, and the fact: that the value of the U.S. dollar _was not supported by the Group of Seven (the seven countries - with the most powerful econo- mies). There was also the ele- ment of computer-programmed trading, which turned the situa- tion into something like a frenzy feeding on itself.”’ “The. fundamentals ‘in the. economy are good, but the prob- lems have to be addressed,” she | said and noted that Canada is not exempt from those problems : with a. deficit ratio per. capita that is in fact higher than that i in the U.S. In declaring her continued support for market investments, McDonald revealed a compar- ison graph drawn by the Univer- sity of Chicago: school of eco- - nomics.The chart showed that a dollar invested'in Treasury Bills: (U:S.) in -1926, before: the ‘market ‘crash three years later, -- would: have yielded: $1.20 if the bill ‘were redeemed in 1985. The same dollar invested in govern- ment bonds would have yielded ‘$1. 76, but if it had been invested ‘im common stocks the yield would have been $45.16, McDonald urged the audience ‘not to be fearful of investment planning despite the sudden and dramatic market drop. ‘‘Quality over time. is the key,’’ she said and advised that the . potential return on categories of invest- ment is directly related to risk. At the bottom are low-return, ‘safe: investments like Canadian Savings Bonds, corporate bonds and debentures, then, in ascend- | ing order of risk, mutual funds, real estate, commodity futures, secured. options and speculative stocks. «Speculation is fine if you're . ‘prepared to lose the money you're risking,”’ she said. ‘“You have to determine your personal ‘thermometer of risk’, and the most reliable way to do that is to ask yourself: ‘Can I sleep at night?’ ” Deadline extended for special waste committee ‘The committee examining the management of special wastes in British Columbia will submit its: report in mid-February 1988. “This extension from the | original reporting date has been _ made at the request of the Spe- ~ cial Waste Advisory Committee, to allow the widest _ possible public discussion of this serious environmental concern,’ ‘En. Privatization —— continued from page 2 Hospital toa non-profit society which would be funded. through government grants. Vander Zalm said that, as part “of phase two, ‘‘Action teams. _ have been assigned to bring back recommendations by specific dates on selling or transferring four other areas of government operations to the private sector.’’ He said these would involve existing Liquor Distribution Branch stores with 10 or fewer _ staff members, the govern- ment’s warehouses, distribution the remaining operations of the Queen’s Printer, and the B.C. Second Mortgage program. Vander Zalm added that he had also appointed action teams to begin an ‘‘immediate review’’ of the Ministry of Social Ser- vices and Housing GAIN pro- gram as well as all the programs and operations of the Ministry of Health and Education. The objective of the review,. the Premier said, is to look for ‘ways to meet future: demands while containing costs. - “Our health, social service and education programs’ are | essential and we must protect © them by acting now to contain costs and- ‘increase efficiency,” said Vander Zalm. “We can’t afford to let spiral- ling cost increases jeopardize the kind of services we have right now.”” ‘He said action teams will also look into ways to control costs, including consideration of user fees onthe inland ferry system and reduction of costs for tem- porary clerical assistance to government. Vander Zalm said privatiza- tion will be carried out'itia plan: - ned, organized .and careful. operations. . _centers and. stores operations, : vironment . Minister Bruce Strachan said. ‘The ..committee’s chairman, Dr. David Boyes, said the addi- . tional time would permit a thor- ough examination of proposals | ‘ for” treatment and disposal facilities. “It will also ensure full con- sultation with communities in- Aerated. in considering. the facilities,’’ Boyes said. | establishnient of special waste The Special Waste Advisory Committee was appointed in February 1987 to review and as- sess the policy and technical op- -.tions for putting in place an ef- fective and comprehensive man- agement system for special wastes. . fashion, He stressed that af- fected government employees will be given fair treatment. - He said the government will favor employee purchase pro- _posais that emphasize job crea-: tion and job protection and that all employee bids within five: percent: of non-employee bids will be given preference. He added that special training | and advice will be made available to employees interested in taking over government ‘In addition, we are develop- . ing an attractive early retirement scheme and we will be offering a number of very fair pension op- tions for employees to consider,’’ he said, adding that ‘Where ‘its at... Northern Motor Inn the government will also pay ex- tended health, group life and dental plan benefits for employee purchasers for the first six months of their operation. © According to Vander Zalm, the majority of employees af- fected by phase one of the pro- gram work for the Ministry of Highways. He’said the program "will affect about 300 highways. employees in the Vancouver. — Island/Coast Development. Region and eventually a total of about 3,800 employees province - wide.. He said the overall total of 7,240 provincial employees in- clude 1,140 at B.C. Hydro, 500. at B.C.. Systems Corporation, — 400 nursery employees and 1,400 at Riverview Hospital. A guide to Terrace’s night life — the “who he where and when” for _ entertainment. Outstanding Entertainment nightly! _ Terrace Review — ‘Thursdny, November 2, “1987 17 | Market crash has implications for all | TERRACE — The recent ravag- investing, however, you're assets will be eroded over time by infla- tion, and you'll find yourself with a diminished lifestyle.in old age or, worse, among the elderly poor,’’ McDonald said. She also ‘noted that government pensions are no longer to be relied upon because of upcoming shifts in. ‘the. population age that will place far.greater demands on the Canada Pension Plan. . McDonald said savings can be illusory in value due to the con- tinual inroads of inflation, with a net annual return on.a'seven percent interest savings account being reduced to 0.2 percent after taxes and inflation have done their dirty work. In mapping out: the average . investment program, she advised the audience to begin by éstab- lishing an. emergency fund equivalent to six months’ wages, - Start a Registered Retirement Savings Pian (RRSP), purchase. insurance to provide for the family, and obtain clear title to a _residence. Once these safety nets: are set up, an individual is pre- pared for investment. ‘Investment is somewhat “If you don’t take the risk of i MARYLOU MCDONALD: Quality © over ‘time Is the key... | . risky,’" McDonald admitted, “but if you invest in quality, the: market ups and downs will. “hot. be a concern.’ “If - anything influences the market, it will be our attitude. Be positive, and we're going to © see good years,” she concluded. . In Terrace Court | In Terrace provincial court on | Wednesday, October 14. Brian Squires was fined $75 for a violation of the Narcotics Con- tro! Act, In Terrace provincial court on Friday, October 16 Marcus Pa- . . quette was sentenced to seven days in jail and given a second, 14-day concurrent sentence on two counts of theft. In Terrace provincial court on Friday, October 16 Jospeh Roy was sentenced to 60 days in jail, to be served intermittently and placed on probation for three ‘months or until the sentence is served for failure to comply with ‘an order of the court. S In Terrace provincial court on Friday, October 16 David . - Pfrimmer was fined $750 for assault. ce Lachance was fined $750 for -theft over $200. In Terrace provincial court on Friday, October 23 Eric Keck was fined $250 for theft. The charges on which he was con- victed arose from an.arrest for shoplifting tobacco products in the Terrace Safeway. RIGHT TTO CHOOSE fy FOR GROWTH ai °FOR PROGRESS il eFOR EMPLOYMENT Hy eFOR TOURISM ty °FOR ECONOMIC | DEVELOPMENT | FOR THE RIGHT TO CHOOSE “FOR THE COMPETITIVE EDGE FOR THE In Terrace provincial court on. . Tuesday, October 20 Raymond.