PROVINCIAL LIBRARY PARLIAWENT BLDUS- VICTORIA ’ tt rae alt, we a 3 wildlife. Kemano projec VANCOUVER (CP) — The effects of Aluminum Co. of Canada Ltd.'s proposed fult- scale expansion of its Kemano Power Plant could have disastraus downstream effects on fish and wildlife, a spokesman for the Save the Bulkley Association sald Tuesday. _The Bulkley River, with its tributaries, the Morlce and Nanika rivers, and the Nechako River which la part of the Fraser River system, afte among the main concerns of environ- mentalists who say the project would drastically reduce the rivers’ flows and damage fish and The company said the power generated by the expansion in northwestem B.C. would supply. three new aluminum smelters. It says ent: project is “‘of massive proporticns.” . “We are going to ask the provincial govern- ment to undertake a legal review of the water rights granted to Alean in 1950 by the B.C. interview. government ‘for the exparsion of Kemano," David Gillesple of Smithers, a Save the Bulkley Association spokesman, said in a telephone Under the agreement, Alcan is allowed to develop the watershed of the Nechako River above the Kenney Dam and to divert the water from Nanika and Kidprice lakes and drainage system inte (he Nechako reservoir. “We are golng to press for a series of public with the Kemano plan," ; surplus power from Alcan already has a contract with Hydro to sell Ita existing Kemano facilities. Hydro exports at least some of this power to the U.S. Gillespie said a 10-volume flow analysis commissioned by B.C. Hydro of the Nechako and Nanika rivera said in part: minimum flow seq there will not be sufficient water available from, t slammed as fish killer hearings," Gillespie said, “We want Alcan and B.C, Hydro to make public statements of their intention to proceed "If fisheries: uirements are respected,- the Nechako and Nanika Rivers." . ~~ “Thoge are the rivers that Alean holds leences. on,” Gillespie sald. : . The Kemano expansion would include a dam on Kidprice Lake, two tunnels, six turbine generators and new transmission lines. f L RUPERT STEEL & SALVAGE. LTD. Seal Cove Rd.. Pr. Rupert 624-5639 WE BUY copper, brass, all metals, batteries, etc. Call us - Wa are open Mon. through Sal. 8 a.m.-5 p.m. ‘\ om TERRACE-KITIMAT dai 20¢ \_ Wednesday, December 12, 1979 ~ id Volume 73 No. 238 aa! q 6:30am -11 pm Westend Food Mart Open 7 days a week 635-5274 Chevron Service| Chevron 24 Hours “We Satisfy Tummy & Tank 365DAYS A YEAR” ~: Westend Open 635-7228 Ji Gas, oil, booze up » By KENSMITH | OTTAWA (CP) — Bad mews immediately, more bad news tocome, and only a few words of cheer. That's the budget presented Tuesday night by rookie Finance Minister John Crosbie as he promised Canadians “an era of now realism and an economic climate to provide Improved opportunities and = in- centives,” The budget means gasoline costa 1B cents a gallon or four cents a litre more today, with further sleep increases In the price of gasoline and homeheating fuel to come during the next three years. Alcohol and tobacco will coat more, as will payments by both employees and employers into the unemm- _ployment insurance fund, Businesses will pay a five- per-cent surcharge on corpo- ration taxes. But there will be a special tax credit for low-and middle-income families to help offset the increased energy prices and unin- corporated businesses will be able to deduct as business costs salaries pald ta the spouse of the person operating the business. Opposition parties zeroed in on energy price increases , for their first attacks. Debate on the budget for- mally opens today and continues Thursday, then Students say they’re \ . : wo ocecy “ i ht eh 1 r jae’ fa 5 ~ a eae 5 of hostages : TEHRAN (AP) — The etu- dents holding 60 hostages at the U.S, Embassy say they know nothing about foreign observers interviewing their Iranium protesters threatened SAN ANTONIO, Tex. (AP) — A day-long dispute that feetered on the brink of violence ended when police whisked five Iranian protesters away from an _ qngry mob that taunted and - threatened them. _ The San Antonio College students, completing the second day of a hunger strike ‘on the steps of City Hall Tuesday night, were hustled through the building, out a back door, and into an un- marked police car at their own request. They were taken to the police station for protection. ; It wasp the most serious @ispute here aince the deposed shah of Iran arrived Uranium deal said . in jeopardy VANCOUVER (CP) — A $200-million agreement to. supply British Columbia uranium to Korea could be jeapardized if government approval does nat come by Dec, 31, 1081, the royal commission on uranium mining in B.C. was told _ Tuesday. Noxcen Energy Resources Ltd, aubmitted a copy of its provisional agreement to commiasionera. - References to the pricing formula were deleted from the public submission, but Norcen officlala aald the formula would be provided te the commissioners on a confidential basis. The contract calls for Norcen to deliver 4,320,000 pounds of uranium to the Korea Electric Co. during a 10-year period beginning in 083 1983, The uranium will come feom Norcen's Bilzzard property about 50 kilometres sguthenst of Kelowna, B.C. captives, promised by Foreign Minister Sadegh Ghotbzadeh, and that Ghotbzadeh doesn’t speak for them. "We are not here to con- firm or deny anybody's statement,’ a student leader said of Ghotbzadeh’s pledge. “We have not been informed about any meeting arranged with the hostagea. If anything comes up, we'll announce it ourselyes and nobody can be aur spokesman.” The foreign minister made the promise at a news conference Tuesday, saying: “We are going to have in- ternatlonal observers to go and visit the prisoners in, [ hope, a very short time, and afterward [ hope that visits will be (made) regularly.” However, he said he has not conferred with UN SecretaryGeneral Kurt “Waldhelm’s special envoy, Zuhair Yamin of Lebanon, who arrived in Tehran Monday hoping to visit the hostages seized at the U.S, Embassy Noy. 4 by students demanding that President Carter send the shah back to Tran for trial, Tehran Radio said today that Senator Edward Ken- nedy, a critic of the shah, . sent a letter to Ayatollah Ruhollah Khomeini ex- pressing support for his ‘revolution and asking per: mission to visit Iran. But a spokesman for the senator denied he has had an contact “whatsoever” wi! the ayatollah ‘‘or anyone In the Iranian government.” Meanwhile, Khomeini’s domestic difficulties ap- peared to be increasing. He announced that he was sending an investigative commission to‘clamp dcewn on what he called ‘‘anar- chic" elements among his ‘revolutionary guards who he sald were selzing gov- ernment land and buildings. The ayatollah did not say where the land graba were taking place, There was no indication that a peace misslon Khomeini sent to northwest Iran was making any progress toward quieting the rebellion of the Azaris, the ethnic Turks who selzed control of Tabriz, Iran’s third-largest city, in a revoll against Khomeini adjourns until after the new year. Liberal Herb Gray called the speech a cruel joke, while New Democrat Bob Rae said it was the‘ budget that stole Christmas. Social Credit Leader Fabien Roy joined the chorus blasting energy Ces, The immediate tran- sportation fuel tax intrense _ affects more than See page 2 OTTAWA (CP) Spokesmen for all three opposition parties In the Commons castigated Fi- nance Minister John Crosbie’s first budget Tuesday night, but many reserved their harshest criticisms for rising energy prices. “Itisa cruel joke on the Canadian people,”’ Liberal Herb Gray said moments after Crosbie finished his speech. "It is ‘the budget that stole Christmas,’ New WHAT DOES IT MEAN? ‘Democrat Bob Rae told ‘triumph of dogma over reporters. "It is a common sense,” Even Social Credit Leader Fabien Roy had nothing good to say, singling out the increase in the excise tax on gasoline and diesel fuel as the worst feature of the budget. Meanwhile, Liberal Leader Pierre Trudeau See page 2 JIM FULTON: - A kick in the gut dim Fulton (NDP-Skeena) today termed the new budget as ‘“‘a kick in the gut for the ordinary JIM FULTON... VANCOUVER (CP) — Metal chimneys in free standing fireplaces are not & fire hazard lf properly serviced and maintained, says the major consumer testing organization which has certified them. “Weteated them. If we had found them dangerous we would not have put our name on them,’’ Reg Wright, Underwriters Laboratorles of Canada spokesman, said Tuesday. Gordon Anderson, B.C. Fire Commissioner, with- drew his approval of some insulated metal chimneys widely used in new home fireplace and stove systems last week, causing wide- spread concern among thou- sands of homeowners and widespread anger within the induatry. But Wright, whose organ- . Lack of sno Canadian,” Characterizing the new budget as inflationary and regressive, Fulton said the budget brought down by Finance Minister John Crosbie failed to deal with the problems in the farming, fishing, and lumber in- dustries. “About 9,000 people are being laid off in the lumber _industry,!!hegaid: ‘There is. no-doubt-that-is directly related to the high interest rates.” The Skeena MF said the government had made a committment to the high interest rates in its budget, despite its dampening effect on the housing industry. The excise tax on gasoline will hurt the farming industry in the Bulkley Valley, he said. Fulton also thought the high fuel cost increases will “have a particular effect on smaller fishermen in Prince Rupert.” Fulton said the fuel cost hike will be a particular hardship in the Northwest where mass transportation is not readily available. Fulton expressed his disappointment over the failure of the government to come up with a com- . prehensive energy policy. While hitting the budget on what he sees as regressive economic policies, Fulton said there were some good provisions for small businesses. "One of the positives points in the budget was establishing small business salaries of spouses as tax deductable.”’ he said. On a sarcastic note, Fulton noted Crosbie had gas hike huris removed the duties on bird scaring devices. Metal chimneys said safe by test agency ization is responsible for testing and design standards for home products, said his organization has had more complaints and problems with the traditlonal fireplace syatem. : “In the great majority of instances they are doing a great job if they are cleaned, inspected and maintained properly,'"’ he said, “If you fill your stoveat night and let it go and do this day after day, however, there may be trouble,” Problema occur with certain chimneys which are not perlodically cleaned and build up an Inch-thick cake of creosote, which can be flammable, he said. Creosote is a tar residue byproduct created by fires which, if allowed to build up to a twoinch layer within a chimney can be a factor in By ED YUDIN creating fires, he said. Underwriters is reexamining its standards and will eventually issue new ones to prevent any possible fire hazard in cases where home owners do not clean them regularly, Wright said. All fireplaces need to be periodically cleaned, and modern freestanding ones may require frequent in- spection to make sure there is no creosote bulldup, manufacturera and Un- derwriters agreed. Different makes have different requirements, which manufacturers, spokesmen said can be easily checked through dis- tributors. Fireplace manufacturers and retailers were to meet today with Anderson, whose warnings have put a damper sales, Tory budget: Little Christm as cheer Opposed, realistic By SCOTT WHITE The Canadian Press The federal budget presented Tuesday was the first by a Progressive Conservative government in 16 years and the consensus among politicians and labor leaders was that it wasn’t worth the ‘wait. The concerns were twofold: an immediate increase of 18 cents a gallon, or four centa a litre, in the price of gasoline caused by a jump in exclse tax to 25 cents & gallon from seven cents; and oil prices that will rise by $1 a barrel next year and $4.60 a barrel a year thereafter until Jan, 1, 1884. Each §1-a- . barrel increase adds about 3.5 cents a gallon to the price of gasoline and home heating oil. Ontario Premier William Davis criticized the oi] price increases and said the jump in excise tax on transportation fuels can not be justified. rapidly-rising oil prices next year will take: more money from consumers, he said, and: place it primarily in the hands of federal and: producing governments. : The premier predicted this policy would: mean higher inflation and fewer new jobs,: but stopped short of predicting that: the: the U.S. . budget would Jead to a recession, saying: much will depend on the economic health of. The Ontario Federation of Labor called the budget “sheer folly.’ President Clif Pilkey said Finance Minister John Crosble presented “a string of regressive tax measures the government admits will lead to Increased unemployment and Inflation.” Commenting on the tax increase on liquor — 11 cents on a 25-ounce bottle — Pilkey. sald: ‘Firat they drive us to drink, then they: raise the tax on the drinks.” He told a news conference that Ontario opposes price increases that do not change the distribution of revenues. The policy ¢* Budget may hurt the | renters, loggers here “VANCOUVER (CP) — The federal government. is tind apartments in'B.C., saya ~Taaking, it more. difficult to - - Finance Minister Hugh | Curtis. Eliminatidn of the capital cost allowance ior multiple- unit dwellings and lack of action against high interest rates have removed all in- centives to build new apartments, he said Tues- day. ; In the first federal Progressive Conservative budget in 16 years, Finance Minister John Crosbie said he is eliminating the allowance because the pres- pure on vacancy rates is not as serious as in the past. “From B.C.'s point of view, that’s ridiculous,” sald Curtis, “I can only assume someone told him vacancy rates were low in Ontario and perhaps Quebec, but in B.C, it's exactly the reverse.” The vacancy rate in Greater Vancouver is now less than twotenths of a per cent. Curtis sald the forest in- dustry will also be hurt because of the drop in apartment construction. He said the budget is a courageous one for a minority government and said the increased taxes on gasoline, Ilquor and tobacco point out the serious fi- nanclal situation Canada is in. The budget is a dieaster, said Dave Stupich, provincial New Democrat finance critic, and will only fuel inflation and drive the unemployment rate higher. “He (Crosbie) is predic- ting double-digit inflation and in the face of that ls taking more moeny out of the economy. It seems he Is taking the wrong steps to try to get the economy moving. This budget is leading to a disaster for the working people of the country." Business leaders agreed blamed the increase on funds spent to get the hill Herald Staff Writer The poor snow conditions in the Northwest are creating more financial problems for the Kit- sumkalum ski hill, According to figures released in the preliminary 1980 budget for the Regional District of Kitimat- Stikine Saturday, the 1979 ski hill deficit has now climbed from $29,000 in October to $47,000. Harold Reay, the treasurer of the regional district, ready for this season’s operations. He said the district has spent around $10,000 just to ready the hill and for inspection of the T-bar and chair lift. However, since the hill has yet to open, none of those costs have been recovered. He said the additional deficit can still be recovered, if snow conditions pick up considerably. He admitted the ski hill operation budget had to be balanced by eliminating. a depreciation reserve fund earlier allocated. the budget is reasonable and realistic,: ga BE ie #4 fi » Mana is director of the Vancouver Board of Trade, sald the general thrust of the budget is good and represents a more modest demand on taxpayers than might reasonably have been ex- pected. He said the new 18-cent-a- gallon excise tax on gasoline is modest and most Canadians should be able to handle it. The president of the Employers Council of A.C. said the government has presented a realistic budget which recognizes the dif- ficult domestic and inter- national economic situation. Bill Hamilton, postmaster- general in the John Diefenbaker government, sald the council is par- tleularly pleased with the emphasis the budget places on curbing government ex- penditures. He sald the five-per-cent suttax on corporate income _ See page 2 tax and increases in unemployment jnsuranca deductions will not win overwhelming acceptance, but are necessary, The B.C, Chamber of Com- merce agreed businesses will not like the aurtax, but is pleased that it expirea Dec. 31, HSL. Allowing — unincoporated businesses to deduct income tax from spouses’ salaries is good, the chamber said. The organization representing B.C.'s §7- billlon-a-year foreat industry argued that the rebate to protect farmers and fishermen from the full brunt of fuel price increases should be extended to fuel used in the production of forest products as well. Norman Dusting, of the Council of Forest Industries, said forest products are big- ticket export items that help reduce Canada’s un- favorable balance of see page 2 Harold Reay. district. DISTRICT BUDGET GOES UP ONE MILL The provisional 1980 budget adopted by the regional district directors Saturday calls for close to a one mill increase. The regional district is budgeting for a total expenditure of $1,694,317. The total expenditures for administrative and planning functions are up . only $79,000. However, since last year’s surplus funds are exhausted, a total of $122,000 more or .84 mills must be raised according to Treasurer Reay pointed out Tuesday the budget was only provisional, so as to provide funding for the months of January and February. He said the proposed expenditures have traditionally been cut back somewhat before the final budget is adopted sometime in March. The $122,000 increase does not include such localized functions such as the Kitsumkalum ski hill or the MK Bay Marina. If deficits are in- curred there, it is the immediate area which must foot the bill, rather than the entire regional w hurting ski hill here The regional district had hoped to put aside those funds for future equipment maintenance and upgrading. The poor snow conditions so far has eliminated that allocation. Kitsumkalum will begin operations as soon as there isa foot of snow on the T-bar run, and three to four feet on the chair 'ift. Currently there is only six to eight inches of snow on the hill. The hill is ready to open as soon as the necessary quantity of snow arrives...