Paga 2, The Herald, Friday, July 2, a9 0° + T Published: every weekday at 3010 Kalum Street, . Terrace, B.C, by Sterling | Publishers. ‘Utd: _- Authored a ‘second _ “+ ‘Number 1201! ostape . “Brian Grego _ at iit Pho rv ~ ane * Sportai “” hilling and the introduction of user fees, _ Keith. Alford "Don Schaffer. 7 Racoption-Classitid: "Circulation: CarolynGibson Sue Nelson - «NOTICE OF COPYRIGHT _ The Herald retains full, complete and tole cépyright "In any advertisement produced and-or any editorial or photographic content published In the Herald. | “Reproduction Is-not permitted without the written. permission “t the Publisher. 7 re Recovery. weak "At the last minute, a 4ill-million shuffle has ‘deal Brazil | anew hand In the world debt crisis, But around the table, - the players are growing edgy about this dangerously ex: plosive game they cannot end, © Last year, after Mexico brought on the’ global banking . emergency by missing ita loan payments, Western ” governments ‘and bankers predicted - that- worldwide. ' economic recovery and falling interest rates would Tift the. debt-loaded poor nations out of their slide.. But the recovery remalns weak in much of the world, interest rates are atepping upward and private banks are - increasingly reluctant to make new ‘loans to- developing — Countries, For the money men of New York, London and other . financial capitals, a frightening prospect remains — a: big ‘debtor country refusing to continue paying its debt. In Brazil’s teeming citles, angry voices are calling’ for just such a move. The dimensions of the world debi crisis have grown since - Mexico disclosed its plight last August. Developing nations and Soviet-bloc govertiments now owe . Western banks, governments and international indtitutions about $700 billion, one-third of it due to the US. government a and U9S. banks. «. Two dozen of those countries — from Brazil, to Poland, to : Nigeria — have fallen behind on their payments. “They owe — a total of $250 billion. The reasons for the crisis are complex: ' Poor nations borrowed-heavily in recent years to buy oil: md other imports whose prices were driven up by inflation. The redoubling of. oil prices in 1979 kicked the world economy over into a deep recession. other raw-material exports at prices’ ‘and i in amounts they needed to.pay for their imports. On top of that, interest rates skyrocketed, making loans still more costly ; One after another, developingeountries aniiounced they were broke. THE International Monetary Fund, the - - Western-lominated. institution that acs as the world’s emergency lender, jumped i in with quick cash — and tough: guidelines. ~ In Brazil, for example, the INF granted the government, o increased employment and economic growth remain _ positive — but the federal agency also warned renewed 4 $5.9-billion loan. to help it catch up on its '$90 billion in _ foreign debts, biggest in the developing world. But in return the Brazilians had to raise taxes, double gasoline prices, cut _ government spending, and reduce runaway inflation. When Brazil failed to meet all these IMF targets, the IMF . withheld a $411-million payment due in May. That money . - was needed to repay another $400 million emergency bail- . oul the Brazilians obtained earlier from the industrialized nations” central banks. =~ “In mid-July, Brazil's government again gave in, agreeing to @ still-tougher conditions — that workers’ wage in- creases, previously automatically adjusted to inflation, be held below the inflation rate. The IMF then came through with the Joan instalment, But the Political cost is un-. predictable Brazilian workers are rallying under the slogan “IMF. get out!’’ And rioting has rocked industial San. Paulo. Prominent Brazilians, including a former finance minister, -. advocate an open break with the IMF and a moratorium, on debt payment. Brazilian officials heatedly reject this option. But the . possibility, however remote, sends a shudder through the _ International banking community. If one nation freezes its’ debt others might follow, threatening the stability of ‘the world banking. network. “The snapping of domestic resilience in Brazil or- Mexiéo ’ could threaten the system,” says William Cline, a senior fellow at the Institute for International Economics in Washington, D.C... - Flashes of defiance can be: seen elsewhere in ‘Latin America, the most heavily indebted region, In Venezuela, which may need IMF help with its $28- billion foreign debt, President Luis Herrera: Campins . declares he cannot accept demands by international bankers that would severely affect ‘the Venezuelan . economy, In Argentina, ‘weighed down with $40 billion in foreign ; debt, the labor movement demands’ sharply higher wages and lower priceg for public services — stéps that would violate Argentina’ & emergency-loan agreement ‘with the IMF. National egos scheduled in Venezuela and Argentina later this ye: coujd make thé debt question stil more volatile. =~ Domestic politics in Latin’ ‘Airlerica i is 5 Tot the only’ un- certainty. . od Although the U.S. economic: recovery ‘is stronger than. many expected, elsewhere the climb back from recession Is slow. Internationaleconomists foresee - only . 1,5-per-cent © economic growth-for industrialized countries in 1983, not enough to revive the market for the Third Warld’s exporls. DETERMINED BY U.S. At the same time, the debtor countries are ‘ti paying | double-digit interest rates, levels largely determined by U.S, policy. - Corrimented Ichiro Tso, president of Japan s Sumitomo Bank: “U.S. interest rates should be lowered by another two per cent or three per cent. : . to help reduce debt Bur, dens of Third World nations.” Instead, Tates have edged “P : one percentage point in two months. Aaa gg aligherelé : federal’ government over money, or the lack of. it’. authority, to-do'so: she is forced to. act indirectly. ~ "in iajue to help revive ite sagging popularity, The. developingcountries suddenly could not sell their crops and‘ wots ane | : tp). “SMedioal care | Cankda. hi _ become a political, battleground with the ‘provinces: L, doctor’ and alent groupe, figh “Ottawa fired the latest-salvo with ite annoiincsment ‘of. plans‘ to reduce: federal payments ‘to provinces. which”. permit extra billing by'doctors or charge hospital user fees. Federal Health Minister Monique Begin would like to ban - sich extra’ ‘payments. but since Ottawa doesn't have’ th al plan, “which: has provoked angry. “‘provizices and medical: groups, .will be con sidered’ by the: cablnet and Introduced: in the House of Commons this fail... Some Progressive Coniervativés h have argued the ‘move. But the {éderal proposal is only. the latest in a series of. moves by Begin to counter proviclal approval: af extra. ‘All. provinces but Quebec now permit extra-billing On. e. " charge user fees, Quebec has‘ banned extra-tilling bai. -_ levies a charge on chronic care patients. .. : - CALLED TAX ON SICK _ ‘ Emmett Hall, the retired ‘Supreme. Court ot gianna . justice whose atudles set the stage for medicare in the mid: 1980s, calla hosplial user fees a tax on the sick, - “I think the tax support system is the only: one ‘that is fair,” he-said in a recent interview. But Halj'is optimistic about the long-term health ot medicare, saying ''these who tamper with the system will be thrown out of office.” The federal Liberals obviously | agree and are hoping to take advantage: of public support. for medicare. In-his 1966 review. of the country's health-care system, Half wrote: ' “The practice of extra billing is inequitable, Not only does it deny access by the poor but it also taxes alck persons who,- besides paying premiums, are also paying the major coat ot. -the system through thelr taxes.”--.< * In recent years the. federal government has paid a decreasing share df rising medical costs, In the: 1970-80. fiscal year It paid 45,2 per cent of total health costs but in 108243 It-contelbuted just 40 per cent.-.. ‘ The Canadian Medical Association argues this drop, not “extra charges, is the real threat. to the medical and hospital : system. BLAMES ECONOMY . ow . Begin blames fough economic thes, rather than any baste failure of. Canada’s medicare’ ‘system, «for the existence of user fees and: extra: billing... ; And she doesn't buy. the: arguments: of doctors, their medical associations and some provinces that user fees and extra, billing deter mistise of the health care system. © Instead, the federal minister says, i's a simple question” of money. 7 _ - “There are too many doctors forthe population i in Canada which means the pie-is amaller,” she says. “Somewhere, we have to find the’ resources to pay for a. rapidly - increasing medicare program," says “Alberta Hospitals Minister: David- Russell.” “It’s either fees or. taxation.There is no free lunch.” * “No one in Canada will go- bankrupt getting inedieal. care,” pays Dr, Wallace Mydland, president of the Alberta _ Medical Association, ——- Compared to Britain, with its highly centralized medical eareprograin and the United States, with its hodgepodge of” private medical insurance schenies and public and private”” hospitals, Mydiand says Canadians have- a pretty good system, - . LIMITED TO ELDERLY . At: present, only elderly Americans have access to a publity funded medicare system. ‘The rest must look after @ Growth positive "Statistics Canada proclaimed Thursday that propects for inflation could abort the country’s recovery. “A _major- concern for the longevity. of Hh recovery , remains the possibility ‘of a renewed acceleration in in- ‘flation, a concern (real) interest rates,” the agency said, referring to interest rates after inflation has been accounted for. evident in the ‘continued high levels of - Amajor concern about the durability of the recovery, the . agency said, is the possibility of renewed inflation. . Meantime, Statistics Canada said foreign-controlled enterprises accounted for 35 per cent of $102 billion in Canadian wholesale'trade in 1979 but they represented only: 13 per cent of the $77, ‘billion retail trade that year. Tt releaged.the findings in its first ever examination of enterprise concentration and foreign control in the two trade sectors. The: figures. are only for 1979. Of the volume ‘of trade in the wholesale sector, foreign. enterprises accotinted for $36 billion. _ FOREIGN ENTERPRISES DOMINATE Their activity was most noticeable in petroleum pr products with 75 per cent of the total $14.6 billton volume of trade. in . that area. 7 oe _ Canadian companies dominated the food industry with 4 i, . per cent of the total’$15 billion volume of trade. Overall, the leading 100 wholesale enterprises — 58° Canadian ‘and 42 foreign _ accounted for 48 per cent of all trade volume... Dofasco . Inc.," Canada’ 8 second: largest ‘steelmaker, reported Thursday a profit of $32.5 million or $1.72 a share for the three months ended June30, more than. double the $14.8 million or 59. cents a shate during the same period last year, - _ FH. Sherman, hairman and chief executive, said in his message to shareholders the sharp increase resulted from " improved demand throughout the period. . The same could not be said for: Steleo Inc., Canada’s No. 1 © steelmaker. a Earlier this week Stelco reported a second-quarter loss of. - $378,000, compared with a profit of $7.5 million in the same ’ three months last year, : For the first six moniths, the loss | amounted to $15 million, compared with a $13. 2-million profit in the firat: six months of 1882. GRABS CONTROL The holding company controlling Landon Life Insurance Co. will grab almost 42 per cent of Royal Trustco. Lid. of Toronto to become the largest single shareholder alter completion of two deals announced ‘Thursday. Trilon Finasicial Corp. of Toronto said it is acquiring a - 23.9-per-cent interest in Canada’s largest rust’ company ‘froin Olympia and York Holdings Corp. for $144.4 million and 17,0-per dent of Royal Trustee from Brascan Ltd. for $108.0 tnillion. Trilon, which holds 96 per. ‘cent of London Life as its principal asset, had previously announced Its intention to ‘Incréase its stake In-Royal Trusteo. ° * Earl Orser, Trifon president, sald that with the holding of “London Life and now its. control of Royal. Trusico, his company has taken a major atep in achioving Its objective of becoming Canada's ieafiog diversified financial services ~scorporation: - Mydland say the British aya f . Oe, La ‘of Medicare, suggests the proviaice ‘Offset cacalating Site ‘, Heritage-Savings Trust Fund. __ With the result-that-most: people at ’ elective t surgery 3 and the country new. hospitals. . ry” Mydlantt: belleves patlents: hula: “contri ate thing “over and-abdve' their: tax’ dollars tor’ ‘medical ‘care,’ Extra charges make: ‘both patients and peters. raore Fespanalble, "Don Aitken, prenidoat of the Aiberta lobby group Friend cate costs . through’ corporate. ‘taxes “or thi Under Alberta's proposed user. fee system, J 5 ‘take effect Oct. 1, hospitals -will be allowed to. charge ~ selected patients up to $20 a'day. There wilt-be ‘an-annual ..” ceiling on the fees — about $150 for Individuals and $300 for - ’ farnilles. The ceiling is Hed to the average cost of a one-tay . : “hospital slay, ) . - Admission fees.can double, to $10 from 6. hospitals can , “ charge a new fee of $10 for emergency.and outpatient care and charges for a semi- -private room can be doubled to ad B day and $16 for a private room, ~. MANY EXEMPT ; The fees will not ba mandatory.” They vil be imposed at - the option of-locat hospital ‘boards. Newborn bablea, children up to age alx, people with chronic conditions, ‘auech.. as those requiring kidney dialysis, the elderly ‘and several other categoriés will be exempt, In British Columbla hospital patlents pay. 97. 501 a day. On Sept. 1 that charge will-incréase to $10, but no one ia (urned: away if they: cannot pay and such losses are absorbed by the . ‘hospital, In Newfoundland, there Is a Seaday ‘ward charge for the ~ fhrat 15 days of- admission. But that is walved if a patlent Is readmitted for the same illness. Senior citizens, the Hoot , ~’ ser charges interfere with: the medical decision-making: ’ and those on welfare ara exempt irom the charges; ~ ~ Quebec, ‘Saskatchewan; X Manitoba ‘and Nova Scotla op- f na ‘ong time for : ee . - accessible health c care ‘and don’t save monéy:* governmett ¢ ter abuse of the medleare, aystern “Contrary tothe: claima of thelr supporters, ier chavs - donot, save money by. discouraging, ‘unnecessary’ neo. oe -health services. : a “In fact, the evidence indicates’ that’ health. nyetern woe which ;permits direct patient charges coat more than:a. medicare-style system funded entirely. from. the publi. purse," 7 -Thereport riotes the only savings | from user charges come. . in the form of additlorial private revenue for. governments, -_ and doctors and the: cost of collecting: the fees has ta. :be ‘subtracted from that sum. challenge the logie-of medicare by “resurrecting. the.Jn- “tolerable contradiction of cash-register medicine: Those. who face ‘the highest. health risks — the’ poor,.the: chronically il! ani! the elderly can lent afford the ‘heal _ ‘care ‘they netd: 0 Gecale “They violate the’ ‘promise of medicare to quarantee: : Canadians from all income levels free access. to a come. “prehensive range of prepaid health services, Far.from: “improving the efficiency and economy of the health syatem, Procens and Increase rather than reduce: health spending." " It rained water balloons and flour as well as rain around this bed. . aan The National Councilof. Welfare report, anys such charges oo