+. Sf Panne aaa oe Page 2, The Herald, Friday, January 2, 198) TORONTO (CP) —A federal sales tax measure that went into effect Thursday will cost affected for sale. A business that has someone else perfarm any of these operations must start paying lax as companies thousands of well, dollars — and some do not Previously, marginal evenknow aboutit yet, the manufacturers bought Canadian Organization of Small Business says, And at least one Toronto . company may relocate ta the United States because of the measure contained in Finance Minister Allan MacEachen's budget of Oct. 28. The provision requires ‘(marginal manufac- turers" to pay federal sales tax effective Thursday. Marginal manvfacturers are defined as businesses that assemble, blend, mix, dilute, cut to size, bottle, package, prepackage or otherwise prepare goods their goods at a price that included federal sales tax of nine per cent on most goods, paid by the original manufacturér or importer. As of Thursday, goods bought by marginal manufacturers are no longer subject to the sales tax but the goods they sell are taxed. Although the tax rate has not changed, marginal manufacturers must pay the tax on the marked-up price — that is, the same percentage of a larger amount. Joan Clarke, an cfficial in the excise branch of the TROUBLED BY HIGH PRICES? STAY AND SAVE AT THE MAYFAIR HOTEL stil only From $25.00 up Mostly with full kitehens + at no extra cost. Free patking Downtown location Weekly, manthly & family: rates For brochure and reservations write: THE MAYFAIR HOTEL : 845 Hornby St. Vancouver, 6.C. V6Z IVI oF Phore oreo 404-887.6751 . federal revenue ministry, said the measure will in- crease federal revenues by about $25 million in 1981-82. It is intended 'toclean up “the strong competitive dis: advantage there has been up to now for Canadian companies who do the wholejob of manwacturing and packaging for them- selves,” But the Canadian Organ- ization of Small Business - said the measure could severely damage many firms, especially those - working ou long lead times _ which initially will have to absorb the whole cost of the tax increase. In addition, the organization said, “many . , companies affected by the ‘ changes still haven't been informed of the changes that could cost them thousands of dollars in extra lax , assessments.” -Clarke said the revenue ~ general New tax will cost thousand: ds to. small | business ministry has ‘done its it ; most to inform businesses affected but ‘there are still some who are unaware” that they must collect tax and semd it to the Bor ernment. Some companies, faced for the first tlme with haying to pay the sales tax, are worried about its effect * on their prices and sales, Robert Moorhead, x manager of | Mursatt Chemicals Ltd, of Toronto, a maker and: distributor of swimming pool chemicals, said he has - written a letter to: MacEachen complaining: outside of Canada." that ‘the increase in Moorhead -sald in an federal sales tax is ‘- interview that unless the’ equivalent to 50 per centof : measure is altered, his our gross -Profit before. turers, manulacturers and Canadian retailers will force Canadian packagers and manufacturers out of . business or to relocate company ‘wouldn't have taxes.” any choice but to move * operations fo the U.S.” “Should this tax be levied Another Toronto com. ‘ onlyon Canadian manufac- pany, which imports and then U.S.. installs communications systems, estimated it will. ‘ have to raise prices at least . four per cent because of the sales tax change. , The company is bidding on a contract worth $500,000 -—- and for that reason asked for anonymity — and sald the tax would add $0,000 to the price. i “That's if we have to pay the tax,” a spokesman said. “We're so confused we don’t know for sure,” | PALESTINIAN GUERRILLAS BLAMED IN HOTEL BOMBING THAT KILLED 19 NAIROBI (AP) — Speculation mounted today that radical Palestinian guerrillas: may have bombed .a Jewish-owned - Nairobi hotel:in apparent . retaliation for past Kenyan help for. Israel. The death. toll in the New Year’s Eve blast and fire climbed to 1," including one - American,. -with eight other Americans © still missing. ‘ The Palestinian theory “was raised Thursday by Arab’ sources in -Beirut, . who -are familiar with . _ Buerrilla strategy and claimed Palestinian radi- ' cals hold two grudges &gaihst the government, One stems back to the government’s 1975 transfer of five suspected Palestinian terrorists to Israel. The five men — three Palestinians and two West Germans’ — were arrested in Kenya and Kenyan - boring Nairobi accused of plotting to blow up ane of Israel's El Al jetliners at Nairobi. The suspects, alleged members . of Dr. George Habash's Popular Front for the Liberation of Palestine, are -beligvedto bestill in Israeli prisons. oY The Arab radicals also were: enraged by the unofficial ‘assistance Kenya provided during Is- rael’s daring hostage - rescue raid at Uganda's Entebbe airport on July 4, 1976. After freeing the hostages from PFLP guerrillas at Entebbe, the raiders were allowed to re- fuel their aircraft in neigh- befare returning to Israel, The Arab sources said either: or both of the in- cidents could be grounds — for a, Palestianian reprisal, such as the bombing of a Jewish-ovned target in Kenya. Spokesman for the ..” radical Palestinian organizations in Beirut refused comment on the. speculation. Kenyan authorities in- dicated Thureday that-they | suspect terrorists were responsible for the ex- plosion and fire at the land- '* them Getli put the tall at Is dead and “85 injured, most of non-Kenyans. However, other police "sources said there were 12 dead, and Mrs. Jack Block, wife: of ome of the two ‘brothers “who own the - resort, said searchers reported finding 19 bodies, No official list of victims mark_Norfolk Hote)__byt they gave no possible motive. Observers -said there was nothing in receut Kenyan events that gave grounds for a solid theory. G.G. Kariuki, President Daniel Arap Moi’s top — ‘internal security aide, called for calm while police work to ‘bring the culprits to book.”’ Army demoli- tions experts picked through the rubble at the timber hotel, which was sealed off by police. Police Commission Ben pow x - 7¢-year-oldstone and waod- was available, and - authorities said the task of identifying bodies and notifying relatives was go- ing slowly bacapse many of the victims were badly burned. : ; The U. S. Enjbassy said one American was killed, eight’ were missing and eight were injured, A British diplomat said BND Britons:—. a 10-month- "old infant and ‘3 4-year-old child — were killed; three were missing and 19 in- jured. The Italian Em, bassy listed one Itallan missing and two injured. Nairobi Hospital, which took in ‘most of the seriously injured, said it was treating four Belgians, two Frenghmen, two Ger- mans, one Australian and . 12 Kenyans, The hotel, which has counted former President Thecdore Roosevelt and Ernest Hemingway among ' its guests, was.packed with , New Year's Eve revelers when the blast sripped - through the main dining room, a lounge, kitchens . and some upstairs guest roars. Mrs. Block said it ap- peared .the blast was centred in a guest wing atop the dining room. Holel ’. employees said gas cylin- ' ders in the kitchen did not explode, apparently erasing one possible cause of the blast, 12 is the magic number ik aiaiiaialeataipiiaiiateinaiainisiatniaioiel” Jee THEATRE § PASSES 4028 Hwy..16 W. Terrace as 915) as VANCOUVER, B.C., CANADA 3 DAYS -2 NIGHTS English Bay neat sianley Park 1755 Dave Street Phone: 682.189] a eee ee oe ee oe oe ee ee ' DOUSLE OCCUPANEY ' SINGLE OCCUPANCY #2 people - | bed ' . . $47.50 | 69 50 . ° ‘ e - per persan t plus 5% room taxa ! bh St room fax September 30, 1980 thru May \, 1981 based on availability (by reservation onty) Y cedtarte Lurhodest *% Beautiful Guest Room * Breakfast (2} Mornings . 4% Steak or Seatoad, Dinner at HY’S at the SANDS Ww. ; _ EAA don ty yhyt QOUBLE /PER PERSON i ia ie iim 1750 plus tax at: - id : a TOLL FREE Ite 5 1-900.528-1234° CANADA 112.800-266-8993 VANCOUVER (CP) - ’ With ' consumer vices standing more than 11 per cent higher than a year ago, the magic number for contract negotiations in B.C. this year is 12. Mast unions with master agreements expiring this year view 12-per-cent wage increases as just the beginning. Those coming oul af twoor three-year agreements are more likely to shoot for js per cent, say labor analysts. A recent example: Top tradesmen will make * $35,000 or more, ‘barring layoffs in 1983, under terms of a three-year contract: just ratified between eight ‘| Vancouver area United Steelworkers of America “locals and the Metal In- dustries Association, The association says the ‘eontract provides an in- ; creage of 14 per, cent im- og TM ADULTS - 5375 Be “MOUTHS . $2.75 mediately, 11 per'cent, Jan. I, 1982 and nine per ‘cent one year later, for a total of H per cent. Alop tradesman's hourly rate now is $13.55. In 1992 it goes to $15.05.and when the agreemenl concludes in ‘January, 1984, the rate will be $16.40. - Doug -Smythe, economist with the In- ternational Woodworkers of America, says the union’s need to be com- petitive in international ° markets will be a bargaining position management will find hard to ignore when three. master agreements af- feeting about 49,000 workers in the forest in- + dustry expire this summer. “There is probably no in- dustry in this province that willbe in higher demand in the next 10 years than ours.’" and. Teamsters’ spokesman Peter Wilson said the Steelworkers’ agreement likely won't have much ‘affect on talks involving his various. locals this year. . “We don’t, as a cule, go outside our own,” he said. We usually don't have to look: beyond the various groups we represent because they are so var. ied," “Our locals are telling us, ‘One year contract; two at the most.’ They're really concerned about the way inflation is going'‘and even though 14 per cent looks pretty good this year, there's no way of knowing "how it'll look next year." Unions representing other trades shouldn't expect to do as well as the . Steelworkers, says Michael Walker, director of the Fraser Institute, a Van- . =" 4n-B.€. contract talks # couverbased non-profit economic: research organization, “What you're probably Seeing is the lead edge of the megaprojecis due to Slart Soon, -especially in - Alberta's and PetroCan’s oil developments, for which ‘enormous numbers of skilled tradesmen will be required,” he said, “Unions will: find that other industries aren't golng to be able to meet Wedlfed elie ; demands for real wage... increases because the real productivity increase of the average Canadian worker | is' running about zero per cent or Jess.” Wage increases of more. than today’s Il-per-cent . inflation mean Ottawa must either allow inflation . ' tolncrease so an industry survives, or hold inflation, leading to the industry's demise. icum Twin T heatres Ltd. yo eee noice of film ntertainin MATINEE . $1.00 CHILDREN’ oe $1.50 | 7&9 MON. - SAT. 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