VEV-1i4 ‘ (BOTTLE DEPOT Beer & Fuo Bottles 4438 Lazelle Ave, Terrace, B.C, Open 10 4.m.-6 p.m. dally except Sunday i “TERRACE. ETIMAT Fri, till 9 p.m. FREE PARKING Bill McRae of Price-Skeena Lumber explains the legend of the Vancouver VIPs touring the area - PeEtacs.. and. Kitimat various __ engineering, were visited by VIP's consul from the. Vancouver firms from the lower Board of Trade -yester- Mainland and Alberta. day. These people were Herald staff writer Don here as part of a Schaffer accompanied weeklong trip around the ‘the executives on their north of B.C. to examine tour , along with mem- business and industrial bers of Terrace and opportunities open to the Kitimat municipal major money-movers in councils, the Kitimat- the lower end of the Stikine Regional District province. office and prominent The entourage was businessmen, and he will composed of some very have a photo-report in high-level executives of tomorrow's paper. teat cet TL OU Wi ee at Sepa i “What did this fish mean to Jim McFadden? See page 2, oe Valume 73 No. 175 7, yy fs RUPERT STEEL & SALVAGE LTD.. Seal Cove Rd., Pr. Rupert 624-5639 WE BUY copper, brass, all metals, batteries, ete. Gallus - Wo are | open Mon. through Sat., 8 a.m.-5 Pom.) ting “anid “financial Report urging oil price hike OTTAWA (CP) — A confidential government report on energy security and self-sufficlency, ordered by Prime Minister Clark, recommends immediate and more rapid increases in domestic ofl prices. The report, prepared by a 32-member caucus of Con- servative MPs who worked through the summer, was discussed by Clark’s inner cabinet as they grappled with energy policy at their Jasper, Alta., strategy session last month. A spokesman for Energy Minister Ray Hnatyshyn said Monday the report’s recommendations are under review. Hnatyshyn is to receive the committee's final report by the end of the month. The committee also recommends the “recycling of petrodollars into the national economy” by the creation. of a Canadian energy bank financed in part . by annual, billion-dollar, - Jow-interest loans from the Alberta Heritage Fund. The funds would be used to finance projects aimed at making Canada energy self- sufficient by 1695. The committee also made the following recom-_ mendations while stating that provincial jurisdiction over resource ownership should be honored: + The price of oil should never exceed 95 per cent of the average Chicago price. - All production from heavy oi] and oil sands deposits should be sold at present world prices, as should production from frontier regions. Reasonable increases would be allowed. - Natural gas should continue to be priced at, or lower than, 85 per cent of the value of oll until the end of 1994 ‘and should then be moved into line with oil prices over the following five ars, - Fonds from the federal share of higher oil prices should be used to defray the cost of of] imports into Eastern Canada and for specific tax incentives for oil - and gas exploration and for unconventional production. The committee's findings have broad-based support ‘through representation on the committee from all regions of the country. Members included Ron Ritchie of Toronto, former vice-president of Imperial Oil Ltd., and Bill Yurko of Alberta, Mortgage rates following a | : Lank rate TORONTO (cP) — Mortgage rates have joined the upward revision of bank rates which have brought the Canadian lending rate to a record 13 per cent, A flurry of ‘interest rate annoucements came Mon- day from the five major chartered banks and some trust companies following a move Friday by the Central Bank of Canada raising its prime lending rate by one -- half of one per cent to 12.25 - per cent, The tecord 13-per-cent prime rate, the rate charged to the largest and most creditworthy companies, is up one half of one per cent from Friday and 4.75 per cent since January, 1978. The banks also announced a record interest rate for nonchequing savings ac- counts of 10,25 per cent going to 10.5 per cent on Oct, 1, up from an average of 5.75 per cent at the start of 1978, Gerald Bouey, Bank of Canada governor, said in an interview that the increase in the bank rate — the ninth since March, 1978 — was needed to protect the foreign value of the Canadian dollar. Bovey sald keeping the interest rate high will keep the Canadian dollar's ex- change rate strong enough to prevent a potentlal outilow of inveatment funds caused by inflationary pressure from rapidly rising prices in the United States. He said the Increases were also needed to contain the growing demand for money and credit in Canada. The Royal Bank, Bank of Montreal, Toronto Dominion Bank and the Bank of Nova Scotia ralsed their mortgage rates by three-quarters of 4 percentage point. REZONING Alderman’s— ‘protest fails Committee to study secrecy complaint — By ED YUDIN Herald Staff Writer Terrace Alderman Helmut Giesbrecht’s attempt to challenge the legality of last month’s Birch Avenue rezoning bearing failed Monday night when the district council voted 4-1 against the amendment. Biesbrecht had requested a legal in- terpretation of cauncil’s decision to hold a closed- door session during the public hearing. Giesbrecht ‘felt the closed-door session contravened the spirit and legality of a public rezoning hearing procedures in the province. “It's my impression that the ministry of municipalities put in that sort of clause (that rezoning hearings be public) to protect against just such an occurance,” he said. “‘Maybe we are kind of overstepping our authority.” Alderman Alan Soutar was quick to rebuke Giesbrecht. “I really don’t un- derstand Alderman Giesbrecht’s — concerns over the legality of the hearing,” Soutar said. ‘'L don'tunderstand why this group (council) can’t make decisions as they come up, And I fail to see why there should need to be any legal — in- terpretation necessary very practical concern,” he added. When council met in closed session on Aug. 27, Giesbrecht walked out of the session, protesting its legality. After the closed meeting,—council- an- nounced it was recom- mending the rezoning of lot A-1 into residential land = with — certain provisions for the upgrading of the streets and water systems. Most concerned residents appeared satisfied with council’s decision. Alderman Alan Soutar defended counci}’s decision to hold the closed door session. He won- deredif Giesbrecht would have protested the meeting, if he bothered to attend the closed session. Earlier Giesbrecht asked why his concerns were not recorded on the minutes of the hearing. After the legality amendment was defeated, a motion to send the recom- mendations on the rezoning to a committee for study was passed by a vote of 3-1. Giesbrecht voted against the motion, while Alderman Jack Talstra who =ihad seconded Giesbrecht’s amendment, abstained from both votes. Later in the evening, Terrace Mayor Dave Maroney got into a shouting match of sorts with former Alderman Gerry Duffus. Dufius wondered why Maroney, who was absent from the Paving here is questioned By ED YUDIN Herald Staff Writer Birch Avenue hearing hadn't bothered to familiarize himself with what had occured. Maroney denied the ‘charge. Is the District of Terrace receiving its money’s worth for the numerous paving contracts awarded the past few years? Terrace Alderman Alan Soutar ex- pressed his concern on just that question at the district council meeting Monday evening. Soutar says the municipality, in its eagerness to improve and upgrade the streets, has failed to properly monitor the quality and costa of paving Jobs. “Tm not blaming anyone or any party, but in many cases the paving jobs have been done haphazardly,” Soutar said, Soutar called for more quality contro] of paving pro. : “What I'd like to see is council review the standards, upgrade them, and set up a program where we award paving contracts in larger chunks," he recommended. Soutar says the paving jobs in Terrace are more expensive and lower in quality as compared to other municipalities such as Kitimat and Prince George. Part of the problem, he sald, is the contracts are being second session of the awarded in “piecemeal fashion". British watching LONDON (AP) — For the last four weeks, a card bearing just 30 words has replaced all programs on screens tuned to the com- mercial half of Britain's television service, It reads: “Independent Television. Because of the present in- dustrial dispute we are sorry that there will be no “programs on this channel” today, We will give you more information when we can,” Behind the words lies unemployment for more than 1,000 actora and ac- bresses, 13,000 technicians and other off-screen television workers and hundreds of newscasters, interviewers, reporters, musicians, researchers and others, and lost advertising revenue of about $2.2 million a day. The dispute began Aug. 11, when 6,000 techniclans and electricians belonging to the Aasociation of Cinematograph, Television and Allied Technicians walked out in a pay dispute. Independent Television, or ITV, comprises the 15 firms which make up the In- dependent Television Companies Association. It represents the com- mercial half of British television. The other half is made up of programs put out by the British Broadcasting Corp., which bans com- mercials from ita network. The BBC is not affected by the strike. Two other unions, the Na- tlonal Association of Theatrical, Television and Kine Employees and the Electrical and Plumbing Trades Union, with a com- bined ITV membership of blank TV screen 7.000, supported the strike. The strikers want a 25-per'- cent pay increase. Fish talks eR eee are set WASHINGTON (CP) — A meeting has been set for Wednesday in Ottawa to try to resolve a disagreement between Canada andthe U.S. over maritime jurisdictions, a U.S. official said Monday, The dispute flared recently with the Canadian seizure of 19 U.S, boats taking tuna off British Columbia. Canada, basing ita position on the United Natlons Law of the Sea Conference, clalms jurisdiction over fish within 200 miles of its coasts, in- cluding tuna. The U.S. position Is that a migratory, high-seas fish like the albacore tuna should be managed Internationally. When it adopted a 200-mile limit, the U.S. specifically exempted tuna from U.S. control outside of 12 miles from shore. And it refuses to recognize the claims of other countries to jurisdiction of fish more than 12 miles from their shores. After Canada began seizing U.S. boata following tuna in Canadian waters, the U.S. imposed an embargo on the Import of Canadian tuna products — valued at some $170,000 a year. Last week, Canadian Fish: eries Minister James McGrath satd Canada has no intention of dropping charges agalnat crews of the WS, ts, What will the raise in bank rates mean? by ED YUDIN 7 Herald Staff Writer The decision to raise the prime lending rate to a record high of 13 per cent may have an adverse effect oa amall businesses in the Terrace-Kitimat area. The concensus opinion among bank managers in the area is that the interest hike will not achieve its goal of slowing down consumer borrowing and spending. “Small businesses may find it more difficult to get money for expansion or just tc operate with the in- terest rates so high, certainly larger companies won't feel it as much,’’ says Murray Robbins, the manager of the Bank of Commerce in Kitimat. He did downplay the impact of the % per cent in- crease in the prime lending rate, ‘I don’t really think it’s goir.,, tohave a great impact on the economy here. It seems everytime rates go up the people react a little but it doesn’t slow down the consumer lending especially.” Ralph Ceombs, the manager of Kitimat’s Bank of Montreal, took a different position, saying the record interest rates should slow down the spending habits of consumers, " upposedly when bank rates are raised, it should siow down borrowing, it hasn’t happened that way in the past. This time however the 13 per cent figure may be a psychological barrier.” Most area bank managers contacted said people will continue to borrow as long as they could afford to do so. However, as one spokesman put it ‘the consumers look at how much they can afford to spend a month srather than the actual rate, whereas a hike in the rate cuts into the actual profits of a small business."' The prime lending rate goes up at most banks today. In addition the deposit interest has or will rise in ac- cordance with the prime rate hike. What it all seems to mean is that you'll make more money if you don't spend it, and it'll cost you more if you do.