PAGE 2, THE HERALD, Wednesday, September 21, 1977 B.C. Tel Monopoly could mean abuse VANCOUVER (CP) ~ The british iny has a ephone Company a stranglehold on the ‘provincial telephone siarket that could give rise to abuse, says a provincial transport and communications department spokesman. ut ‘when asked at an- to give a | inquiry Monda speci c example of abuse, Harold Page said- he couldn’t produce one. . Page, the department's director of communications system development and regulation, was testifying at a Restrictive Trade Practices Commission in- quiry into competition in the telecommunications Alcan Special to the Herald .MONTREAL - A con- tinuing strong future for the aluminum industry was forecast by John H. Hale, financial executive vice- president of Alcan Aluminium Limited, speaking to the Winnipeg Society of Financial Analysts today. Mr. Hale reiterated the outlook for the industry was more encouraging than it had been in over 15. years, with margins, particularly at the smelter, attaining much healthier levels after . a long period of costs rising : faster than prices. : “The outlook for the in- dustry for the next two to three years is good, once the remaining surplus __in- ventory is used up. It is a difficult world we livein, but I think one can say that given a position’, he-said. The improved outlook was: due to increased . world demand which by. ise end. of reasonably _ favourable - background, Alcan is in. a. vety ‘strong : profitability equipment industry in Canada, whichis not subject to government regulation. The commission will try to . determine if there is healthy competition in the com- panies’ buying practices ‘and whether the practices are in the public interest. Page said the B.C, overnment wants attention irected to the relationship between B.C. Tel and Automatic Electric Canada Ltd., a subsidiary | of General Telephones and Electronics Corp., which is B.C. Tel’s parent ‘firm. i PROFIT VARIES He said since Automatic Electric is wholly owned by the GTE group, and B.C, Tel only 51 per cent owned by General, every dollar of profit earned by Automatic is worth twice as much ‘to GTE as a dollar of profit earned by B.C. Tel. “The potential for abuse therefore exists in B.C. Telephone Co, purchasing from its affiliates.” Page added it was the government’s view that vertical integration between companies involved with providing monopoly utility services and their suppliers of equipment and services makes effective , regulation difficult, Best in 18 years forecasts strong market the decade would catch up with or even exceed production capacity. In the western. world a 2.6 percent annual increase in capacity would come on stream to 1980 while the demand growth was expected to be five to six percent per an- num. A further reason for Mr. Hale's optimism was the fact that the industry seemed to have learned to adjust inventory and production rates to match market conditions. Alean’s North American operations, taken as a whole, were performing well and the company’s Brazilian operation was continuing to prove a worth- while asset to the’ group. The Japanese subsidiary should break even or even contribute a small profit this year, representing a sub- stantial improvement over the past two years. In Europe Alcan’s ad remained satisfactory. The 12 month “period ending in the second quarter had seen good earnings from E both Alcan’s important U.K. and German operations. However the summer lull had created customer inventory liquidation which would result in weak third quarter shipments. Signs of economic pick-up in the U.K. and possible govern- ment stimulation of the German economy could mean the low point in shipments had passed. The company’s fabricating subsidiaries in Canada and the U.S. had not enjoyed the same margin improvements as the smelters basically because fabricated product prices had not increased as fast as ingot prices. In Canada price controls and a generally sluggish economy had stood in. the way of adequate profits. Mr. Hale said that while Alcan still believed a world shipment growth in 1977. of - seven percent’ was feasible for the industry. -‘a8.a whole, the company's: own ship- ments would not quite meet ° that growth. this’ year. However, Alean’s Ss Canadian NDP leads VICTORIA (CP) — A survey of 500 randomly- selected British Columbia voters conducted by the Liberal party indicates the New Democratic Party leads the Social Credit party in popular support at the provincial leve Joan Wallace, : chairman of the council of advisors to Liberal leader Gordon Gibson, said Tuesday in a news release that the NDP has 39.9 per cent support, the Social Credit party has 36.1 per cent, the Liberals 13.5 per cent, and the Progressive Conservatives B.3 per cent. VANCOUVER (CP) — The Sun says ina story from Victoria the provincial overnment is preparin egisiation which woul retroactively absolve five MLAs said to have violated accepting money from the government. The newspaper says it learned from__ reliable sources that the bill may be introduced later this week, although there are some who want it delayed until the house reconvenes, probably early in January. Attorney-General Garde Gardom, who would likely introduce such a bill, said he smelters were working at 95 percent capacity. Referring to Alcan’s expenditure plans Mr. Hale said that the capital ex- penditures for 1977 would be $250 million rather than the earlier projected . $300 million. The figure did not include purchase of the Revere Scottsboro, Alabama, plant for which Alcan has still to obtain U.S. anti-trust approval. the Constitution Act by ° ‘Barrett said an could not comment on legislation the government is planning to introduce. “But as I’ve said in- the - past, we have a ‘Constitution Act that was meant to do the job of Elizabeth the First and here we have it- doin the same job with Elizabet the Second, Gardorn said in an interview. Acting Premier Grace McCarthy declined to comment, Opposition leader Dave such legislation would show. the Social Credit government has no respect for the law. At issue is the possibility that four Social Credit Krishnas not disturbing peace VANCOUVER (CP) — A provincial court judge ruled Monday that eight members of the International Society for Krishna Consciousness did not create a disturbance by chanting last Thanksgiving Day in Stanley Park here. Charged with creating a disturbance were Peter George Chatterton, societ president, and Mar Lowrie, Mahidhara Dasa, Stewart Mark Grant, John Battgy Bush, Dennis Eric Law, Eric Martin Larson and Dennis Allen Mainieri, all of Vancouver. He said he accepted evidence of the “peaceful nature’ of the athering and added the re roup could not be jam for crowds the police had at- tracted. ft you wish yoiar listed for your customers New Business's Not listed in our B.C. Tel Directory. K & J AUTOMOTIVES - 638-8484 VILLAGE MEATS- 638-1765 He re! J TERRACE OIL BURNER SERVIGES- eer : Frea- for ON E month courtesy of the DAI uy HERALD: 1 + MLAs may be pardoned by retroactive legislation — MLAs, including two. cabinet members, along with : Progressive - Con- setvative: leader Scott Wallace,. may:. have ac: | cepted: ‘government funds Hegally ‘while. sitting in the legislature.’ e Social : Credit mem- | bers are _ Agriculture Minister Jim Hewitt, Recreation Minister Sam Bawlf, and MLAs George Kerster and Len Bavwtree. NDP CHARGES The first three were ac- cused. in- July..by the New Democratic Party of violating the act by ac- cepting reimbursement of expenses incurred while they sat-ona special internal housing committee set up last year by Municipal Affairs Minister Hugh Curtis. Wallace and Bawtree then came forward and said they may have unknowingly violated the act. The. Constitution Act states that no person receiving public funds for any service or. work, directly or indirectly, is “eligible to sit in the ‘legislature. Penalties can run as high as $500 a day for each day the individual held a seat. Wallace launched his own test case last month with the B.C. Supreme Court, He said in an interview Monday that his lawyer and a Fave not ae lawyer still ye not decided on a court _ Play The ~ Energy Game ENERGY TIP. 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Our facilities, staff and . elected members of the: Area Councils are prepared to assist in many worthwhile community projects, such as: . Legal aid/information services, Consumer groups, ‘Haridicapped groups, Wortien’s groups,. Rative/minority, groups, Environmental groups. * ~ We work here. We live here: We want to be involved wherever we can be of Servi vice. The Union that works for B.C, FOR INFORMATION . IN TERRACE, GALL 635-9128 bE: