\

Page Te Herald, Wediesday, April 20, 1983

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Economy died

OTTAWA (cP) — The Liberal government is tying its
political recovery.to economic recovery with.a crafty “give
now, take later" program that offers immediate help and

‘ -willlikely hold the bills until after the next federal election.

1
!

, We the other the political capital; <3). 5 4.2. bi
nt “But for the next few'years. the biggest task for thant. Te:

~ ‘their, successors: will be managing | on a ‘ight :budget, * a

- reality” almost sure to: be a factor in this

|.

And Finance Minister Marc Lalonde tried to look after his

, own job as well by making last-minute chages Tuesday to

his. budget to deflect charges that he allowed a leak of
original figures.-

More than half the money In Lalonde's $4 8-billion special
economic recovery program will be spent in the next year.
"to glve.the economy the early boost it needs,” * -

But Canadiana won't pay until the special recovery ‘tax- ~
which will boost the cost of liquor, cigarettes, construction

material -  andhundreds of’. _— other ‘items
mmmmrmmm cars to clothes — takes effect on Oct. 1, 1984.
That means the next government — and polls suggest it~

- would be a Progressive Conservative majority if an election

were held riow — could end up paying’ for. Lalonde's
promises.
If an election comes as expected before Oct, 1, 1984, the:

; “Liberals will be able to campaign on the benefits before
Canadians pay for them.

DEFICIT INCREASES

In the saine vein, Lalonde forecast increases in the record -
_ federal deticit this ‘year and next but promised It will be

‘pared — after the next federal vote.

Government spokesman argue there is an economic
rationale — the current recovery [a so fragile that-it could
be destroyed by tax increases before It gets a firmer hold.-
But they adnilt the poltticil”spinoffs work in’ titi. favor.

International Trade.Minister Gerald Regan denied there
was any political strategy Involved but agreed “it could
have that interpretation.” -

. Asked if he would rather run an election campaign with |

tax increases six months in the future or six months in the
past, he replied: “That's easy. If you could choose, you
would run without the tax increase.” . -

Another Liberal MP ouggested this was the : ‘last pre-

election budget and the next government can deal with the .

consequences.

television reporter who owamed eastern “oreeps, and buiti an

cote rca

in ‘the mayor's office Oct. 17 ;

’ Edmonton Mayor Cec Puryes will probably run gain too!
| trying to rise out of themesiy. slough of bickering int hich, .

Edmonton's ‘elvic politics. has’ fallen. :

Thair cities are bursting at the seams wits populations it :
ae the. nex

than 500,000, One is the financial capital

elections.”
‘Klein — visible and accessible during his first threé years

: + has stayed true tothe “common man" image that took

“him past. accountant*Ross Alger in, -the last election:
-He runs the white-collar half of big-city: Alberta: ‘the: half

“where civic pride was measured until this year in“the-
* number of construction cranes polsed on the akyline,' where

, bumpjacks suck oil from the ground between the runways
at a handsome, international airport. ; : a
‘Purves has been equally ; miscast. ‘He's: ‘been the
businessman mayor, dabbling in real‘estate speculation’ in
‘a more -working-class city where downtown .offices can
never quite block out the view'of the east-end refineries.
“Klein’s’ campaign organization is: already: “coming
together: Purves has yet to declare offically he: will be

_ Handicapped

KITCHENER, Ont. (CP) — On a hot summer day 16
years ago, Janet Gumbley. decided to walk home: rather.
than take the school bus...

’’ She was later reprimanded and ordered to take the bus,

.Gumbley, now 31 and living in-a ‘Kitchener group home.
with five other mentally-handicapped women, gays: she
hasn't forgotten that day, which she says. typifies.“the
treatment the mentally-handicapped face all their. lives,

: “We aren't token _ seriously,” ~ she, apy.
“wwwwe're treated like children.’ mo

"- “They've always spoken for me. I'm tired of that. 1 want
to have the right to. make my own decisions.” °°:

The fate of the handicapped has traditionally been ieft’ te
professional organizations and to parents, but a growing
number are saying that's not. good enough and are Joining
self-advocacy groups.

A group living in a Salem, Ore., Institution formed: the
first such organization about 10 years ago, namedit People
First and adopted the maito: “Label jara, not people."
VOICES CONCERNS -

People First now has chapters across North America,

and Ontario has a province-wide group which lobbies the |

provincial government. and organizations such as the
' Ontario Association for the Mentally Retarded.

There are also 38 local: Shapters in Ontario with almost
£00 members.

But leaders of the group say self-advocacy. isa challenge
for people who have never been encouraged to voice their

* concermns.:

Opposition House Leader. Doug Lewis argued “the next :

“governnient, which will be us, will have.to pay.”
- “The exemptions, the benefits come now: the increases _

come later.’?
MORE PRAGMATIC

_” Govermtients tend to make any radical reforms in the
early days: of thelr mandate and become more pragmatic as

The rhein who angered the oi] and gas ‘industry’ and the

~ United States with his Interventlonlat national . energy

program in 1980 now is touting the private eector'aa “'‘the

- economy’s main engine of growth’ and decrying the evils of

protectionism... -
Continuing efforts made in dozens of meetings with
business groups since he took the finance post eight months

enemies, -
The minister, who held a conference telephone call with
dozens of businessmen after his speech, will hit the road for

_ more meetings and a speaking tour with stops in Toronto,

Western Canada, New York and Washington.
Meanwhile, ‘the Tories will continue attempts to ‘eet
Lalonde's ecalp over the alleged leak.
- One MP admitted that’s about all they have ta criticize
because. the party agrees with so much of ‘the. budget's
content.

B. C. Tel criticized

VANCOUVER (CP) — Spokesman. for B. C’s forest and

ni industries lashed out. ‘Tuesday at B.C. Telephone
Co.'s proposed 11.3-per-cent rate increase,

Ronald Longstaffe, chairman of the Council of. Forest,
Industries of B.C,, and Clifford Grandison, treasurer of
Placer Development Ltd. and Gibraltar Mines Lid., spoke
against the proposed Increase in public hearings before a
panel of the Canadian’ Radio-television and
‘Telecommunications Commission.

_ “We are very concerned with reports, and our

’ aga, Lalonde. wrote a budget designed to..win: over old -

“experlence, which indleates thal regulated prices are.

increasing faster than general prices," Longstaffe said.
“We believe that the evidence indicates B.C. Tel’s rates

and costs are rising very rapidly and urge the commission:

to ensure that only the-most essential increases are passed

through to the users,” “ye

Lotigstatfe produced a table indicating coastal fhembers
of COF' achieved an average return on capital employed of
5.5 per cent from 1978 to 1982, while B.C. Tel: achieved:a..
return of 10.2 per cent for the same:perigd, :

Grandison said the: B.C.-mining industry . ‘sutfered an

~ -after-tax loss of $154 million In 1982. While some

_* improvements is expected In gold and silver production, he

said, there is no prospect for improved sales or prices of
. Copper. and molybdenum.

“We are very. concerned ‘about ‘all ‘coat increases,"
Grandisoi said, “We have fought hard to cut our own costs
and ask that. the commission ensure that only truly
necessary cost Increases are: permitted to form part of our
“fates,”

“We've always believed tat we didn’t have the ability to
think for ourselves,” says Gumbley, acting president of the

People First chapter.in:-Kitchener- Waterina, whish recently

marked Its first annlversary(:..- ---+ wnyecyt en
. "People have always expected us 0 ‘keep ‘quiet. M.
Some groups, however, have begun t to make | nolte.

always, been: ‘able to recov

. Social Credit’ party.

; ame “eheeps ry sre atafenieht buti he had ain mre ih

largely on his side In the city and he came back gracefully
with a speaking | tour which, not only explained | his position
but won: him, friends ‘in Ontario and Queber.’ :

ay ve probably. slipped . :on a few. banana. peels ‘but:
"Klein ‘said’ recently:
“He says he's getting all sors of offers‘of support, q
just becaissa: he’s’ the ‘ine ibent “E like to ¢

- Former mayor Rod Sykes may'be interested although he:

» fizzled in a two-year tenure ‘as leader of the provincial :
“He's - been * Working * the” “ethnic ms

communities hard,” “SAYS, an observer:

Ald: Sue Higghiig,” elty® ‘hall’ is" financial’ watchdog: shas: «

expressed interest. ‘No one: else . has. stepped - forward,
although Klein says other potential. éandidates‘are ‘circling

and watching; for the Moment ‘aking. ‘the vulture |

approach.” - °°
Purves has had to preside over a 3 notorious ‘ty: council
whose SUCCEeSses.. are overshadowed: “by persistent
backbliting end policy: stalemates.-. ; “
_._Healso has had to beat off a recent court challenge. Some
“council. members ‘argued Purves should ‘be disqualified
from. office for’ voting: on ‘an’ annexation: decision which /
affected ‘some of his Speculative Jand: Atlas :

demand rights”

A People Firat groinp i Ottawa is fighting a ‘recent edict
from the Oltawa: District. Assoclation for the Mentally

. Retarded prohibiting sexual activity between residents of
. group homes run. by. the association.

‘ “We have-to sneak “outside: or kiss when the staff’ A not
around,” said a inember. involved in the ‘dispute, “We're...

_ Just as normal as they are e and that’s ths way t want to be

treated.”

"Through - the: ‘efforts. of . People: ‘Bet. ‘tha ‘Ontario
Association for the Mentally Retarded will likely change ite

name later this years" >

"Members argue: thet: the’ current : name relnforees a.

" perception that-they want to discard, ©

“We've made some: progresa," © ay, Peter Park,

president of the Braritiord, Ont:, chapter of People First,

“But we've got a long ‘way to go.”

Park says society can expect to hear’ alot more noite on
issues ranging from housing and transportation to working
conditions In sheltered workshops to quality of training
programa.

Beverley Hershey, a helper with the Kitchener ‘group,

“says the organization fs keeping a close eye on. the

province's . plans to » remove the handleapped, from

. inetitutfons. - ee
“What seems to be happening in many areas is that some

‘of the service providers are ‘Moving these people around
swithout even consulting them,"' Hershey said, ''They'ra not

~- coming up to people like Janet.and saying ‘Where do you
want-to go? What do you’ want?'- These people are saying

*You have to. do this.””"
But'a slogan used by the group expresses thelr position.
>*a'thental hendhihip iniéaha not thinking quickly: bint Still”
thinking; It’ means being’a blow learner, but:still ldarnings”
Some People First members think soclety has a Tot to

. learn.

Economic recovery still good.

‘RICHMOND, B.C, (cP) — While Canada's economic
recovery is weak, it is sustained and not-.as bad as some

pessimists fear, the. head of the Economic Council of

Canada said Tuesday.

David Slater sald: that the latest estimates - from the.

- eounell’s economic model show Canedtens are in for both
. Some good and bad economic news...

Although the full impact of the federal budget. has not *.
been applied to the model, he told a marketing conference |

in this Vancouver suburb, “I believe the underlying trends -

(economic) are sound." ©

There will be a sharp decline in inflation over the mediuni
term, he said, but unemployment will remain in the double -
digits for the next several years..

Slater sald figures indicate Canada’s rods national:
product (GNP) will. expand at an average of slightly less -
than four per cent a year for the next three years and
perhaps one.to two per cent for this year, - f.

He pointed out that the GNP shrank about five per cent
lastyear.
“So taking last year into accoiunt, ihe average growth re rate *
drops to about :1.5 per cent. for® the 1082-05 period as a

whole,” and the economy does not reach its 1981 level of.
activity until mid-1984.

The slow recovery, said Slater,-helps to explain why. the .

council predicts that ‘unemployment. will. persist in the
double-digit range...

The economy also is still trying to catch ‘up ‘and new
people are entering the labor force ‘before we have. found
dobs for earlier entrants,” he said.

* The inflation. outlook is considerably. brighter, he sald,
“with price increases averaging about five per cent a year
between now and 1985.

~The imodel estimates that. real ‘investment, as a
percentage of GNP, will not begin to recover until 1984 “and
. even then it is nothing to get excited about,"

' He predicted that during the next two yeara the federal
* deficit ‘88 a percentage of the GNP will’ stay. above six per
fa and then start to decline as the impact of: recovery, ia

t , ™ . .

- Slater also said that productivity, following a decline in®
“1902, will rise steadily in the next few years... -

And he predicted that “the savings rate — now over 19 per
“cent ~~ will begin to drop in the next two years as consumers

i start spending again.

Trip brought man bad luck -

: VICTORIA (cP) —
telephone call was not reassuring, the capper ‘to a-

disastrous trip.
' “ve. got some bad news for you,” the London o
metropolitan police officer was saying to Michael Smith in a

Victorla. “We've destroyed your car."

Interlor designer. Who. frequently travels to England ori
business, |

theydexpected and found that the house they had leased for
their two-month visit had been rented to someone else. The.
pwner refused to refund Smith's $1,600 deposit. :

So the couple registered at the :-Sandrington Hotel at
_ Hampstead, where Smith normally stays.

Alberta. MLA. refutes Jewish:holocaust —

‘EDMONTON (CP) —A rookle member ‘of the Alberta:
legislature says he questions whether there is any evidence

to prove thal Jews were persecuted during the Second . -

_ World War.

~ "[ haven't seen - vanything. in terms of docunientary
evidence. to prove to me that they were necessarily

“persecuted,” Stephen Stiles (PC-Olds. Didsbury) said in an

interview’ Tuesday.

has: heen overblown.

“What was the Holocaust? I mean, the’ Hologaust was the °

“name of a movie, I sold and made a Tot of money for thie
people who produced it.

“T think what has happened here Is that over the passage “
of time it's become very profitable te exaggerate perhags “

-The ‘voice on the transatlantic ,

‘Bui there, they discovered that his car, which he bought
for. 600 pounds “four years ago, had been -stolen. in
September.

> Normally, Smith left the car with a relative, but because

he had expected to ba away only. a few weeks, he had lett the

_ car farked outside the hotel. While he was away;,: the
- The problems. began last fail for Smith, .a 32-year-old ‘.

registration: expired, so itno longer. was insured for’ theft.
Smith checked with the Hamstead Police atalion every

“" day, -but the ear did not turn up.
He and his wife arrived a few weeks later ‘than ve

“Then, dn the flight home, a box containing about $8,000

“worth of new clothes and a set of bluepr nts, the result of two
‘months' work, disappeared, They have not been found.
“Thea rline, Pan American World Airlines, refyséd to pay.
for the joss, because the couple flew on United Alrlines for’

the. final leg of their journey, from Seattle to: Victoria.

what “ oceurred = in- “films. and books ai
articles.” Conde. Bie o
- Siiles, 48, sald he was “not really. aware’ that Jewish

| magazine

people in Germay and other European cotintries were
" prsecuted, rounded up and massacred. by the’ Nails during ©
the Second World War...
“1 don't have: any éviderice ic thé effect that. ‘ti
. happened,” be sald.

Stiles, elected in November's. election, sald he. is hol
saying Jews were not Persecuted, but that the Holocaust ‘

“Stiles ‘is not’ unsympathetic to the hotrors ‘families

people in Europe, not just the Jews, he said.

for the Toronto-based Canadian Jowjeh h Congrens, said he

[

Tve| ” -Leaderah

- deported, have accepted the atrocities ag fact."*:
aulféred during the war. :But they were suffered by all 5

“*..P pealize the Jewish people are very tduchy about this,
“aiid they have a lot of documentation,” Silles said. "Bul, as
: I say, it's become very popular to exploit. this." |:

"Jim Diamond, assistant director of community relations .

7 4 the eauees to the er case reflect the’
‘permanest, diyialona among aldermen:

“They are polarized” sare!
“Hetween! Gne| factlon, which is, ‘pro-business: @nd.another

: hich finds ipl conetantly opposing proposal 0 tings
‘llke destroy historic buildings or put freeways.
-river-valley: parkland: in the: heart. of the city

what's at issue, says Laurence .
apreneur who sat on council, {br.one term
1977 mayoralty. race-to Pury eh
He, won't decide’until June whether. to run, ‘but he sees
a beifiij able to; unite the -aldérmanic factions: “I .
“Hike:to.think’'thiit: I'm ilddle-of-the-road politiciim that,
because of peas interests, understands tHe right but *
also has sympathy ¢ for fioge that dre community-orlented,””
“The ‘gradual’ briergence. ofa business-priented. citizens’
" comynittes: ‘whieh. may run an aldermanic slate 1s.als0 bad
news :for .Purvés; Décore said. He thinks it: “indirates
“dissatisfaétloh 4 the - ‘group froni which Purves. hi has

traddditlonally ‘drawn, his main suppork.
Tf en te Pirves run against each otlier tie race

coutd also boll diwn to a fascinating clash of porsonallties.
“Decore would, he tHe urbane, accomplished lawyer agalnst
the unpolished 1 ce-quy businessman; it was Purves -who

o ‘belore losing’

5 Introduced i black trader's hat intended to rival Calgary's

- White stetson as 8 civic Image- -bullder and dubbed it “black

‘gold with macho." -
There's a nrobiible third party in the race to ‘eomplicate

' matters, howaver. °

Ald, Bd Leger; council's lone wolf, has spent the tant three
" years oppasing Purves on important issues and crafting a Ty
+ limege as the trie. penny-pincher in city hall,
Some obsatvers fee) his:prickly personality could tum
“into aeliabillly in an election. but it could ‘alga : Help
Edmonton's mayoralty race turn into the more interesting
of the twa, a

Plants. banned?

WASHINGTON {AP) — The U.S. Supreme Court; ‘in’ a
“stunning setback to the nuclear power industry, ruled today:

_-that ‘states may ban new nuclear plants until the federal
_ government . ‘devises 4 safe method: for. ‘disposing ‘ot

radioactive ‘waste.

In a $-t0-0 ruling, the court upheld a. moratorium on new _

> mule plants enacted by California in 1976. “

The justlees, rejecting legal arguments by the Reagan™
‘adinistration, said that state power to limit development of
commercial reactors |s not completely pre-empted by. US.

federal law.

’ The decision comes ata time when the future ‘of nuciear
power (5 already in doubt because of costs to ‘bulld. new
plants and safety fears ralsed by the accident in cy at
Penneylvania’s Three Mile Island. Oe,

“Indicators rise

' Statistics Canada had more good news about the economy
Tuesday, annouticihg its leading economic indicators rose
for the fourth straight month in January, climbing 2.3 per.
cent from December.

| The federal agency sald that was.a record increase in ‘its

compotite leading indicater — a combination of statlitics

rg!

"measuring the health of the economy — which ‘atarted

moving alpina October affer:isatialght smondhi-of dediihe.
Stabilized dhtergat 'rates;-recovered:econonticlactivity:in
the U.S; and improved prospects for increases in .labor

. income indicate "the conditions for.a sustained recovery af

_ activity appear to be in place.’”’: .

. Nineof the 10 componentsin the composite indicator rote,
led by household spending and export demand. Sales ‘of
’. household: goods and appliances Increased 3.5 per cent
while new vehicle sales increased 1.3 percent. |

‘The agency reported a ‘sustained recovery of conaumer
- eontidence,"" fuelled In part by lower interest rates.
COMPANIES IN. DEBT " :

In another development Tuesday, Ontario Conaumer

_ Minister Robert Elgie sald two trust companies seized by _

, the province are millions of dollars in debt and had been
involved in-numierous “fllp” real estate transactions that
__ But hundreds of depositors’ funds at risk.

- Egle told the leglelatura that reports by. Touche Ross
Ltd, a¢counting ‘firm indicate Seaway Trusl Co. is’ $75
million in debt while Greymac Trust Co. has a $42-malllion

: ‘deficlency In assets.

The two companies, along with Crown Trust Co. af
Toronto; were seized this year by the province after they —
were involved In the flip sale of 11,000 Toronto apartment
units. The act sale — for $500 million — put the apartments
in the hands ofa series of 50 numbered companies said to be
controlled by Saudi Arablans.

Elgie also said Tuesday the grand court in the Cayman
Islands has issued a writ in an attempt to recover $109
million or more that the government feels belongs to the.
trust companies. That money supposedly was advanced by
Saudi Arablan Investors as a. downpayment on the |

Sparen.

Elgie said his officials aretrying to complete negotiations
to’ transfer operations of Seaway and Greymac to. other
- fiiancial {natitutions. Crown’s solid assets were sold. in
. February to Central Trust Co, of Halifax. =.

_ In other business news Tuesday; . , tes

‘= MeDonnell Douglas Corp, said: it will sign a 5 $225 tallion

-’ contract next Tuesday with Montreal-based UDT [ridustries

Ine. to produce wing parts here for the F-16 Jet fighter; Tho:
contract ‘involves. the transfer’ of high: technology,

“ numerically controlled machine tools, or robots, to: UDT
from McDonnelt Douglas. The Montreal firm. will supply

parts for the entire production run of the F-18.

— The Toronto Stock Exchange reported: the tive
Canadian stock markets registered a. cambined trading
value of $0.95 billion, up 113 per cent from the $4.66 billion

traded in same period Jast year, while total share volumes’

jumped 192 per cent'to 1.77 billion. The report showed, the

’ Toronte market posted a trading value of $7.4 pailon, 1 more

then foes Ae. ° figure,

he

aa
a:

‘tn ve

was shocked thiat Stiles would make the commenti; ii
. a opeeronit ‘ol about the atrocities, then hi he
must notre 88 Diamond, “Eth
been dtad for 40 years.: i sr that “ he ue
“The: whole. thing: fa: 80 abourd it’s "hare scth
commenting ‘about. There are: countless - hart ‘ahd
books on the subléct: Even the Ontario courts, by: fuling
that (acctised Nazi war criminal) Helmut Rayta should be

The Ontario:Court of Appeal recently ruled’ the ts Ra
can be deported to West Germany to stand trial ue
allegedly ‘murdering 11,000 Lithuanian Jews ating the

war,
- A> random ‘sampling of provincial

Conservative legislative “members | _Tailed to <<

sympathy for Stiles’ or vie

ihe

eho ly