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Federal tax bill is "not so bad"

OTTAWA (CP) — The @overnment tax reform bill might not be as bad as il’s cTacked up to be, a series of experts suggested Wednesday.

The 707-page bill, introduced in the Commons last June, now is under clause-by-clause em- sideration in the House after re- ceiving second-reading ap- proval Tuesday.

Finance Minister E. J. Benson Wednesday proposed 95 amendments to the bill

Don Huggett of Montreal, a partner in McDonald, Currie which was one of the seminar sponsors, declined to say whether the bill was “a superb job or a monstrosity.”

But he did describe it as rep- resenting-perhaps the most per- vading change ever introduced in tax law anywhere,

Once the initial shock at the size and complexity of the bill wore off, he said, You find the bill contains the answers to most problems,”

The seminar worked out a series of suggestions for Canadians as a means of coping with the anticipated taxation changes. These included:

—Small businesses probably should raise salaries to avoid higher tax rates for business in- comes over $50,000.

—Individuals facing a 5§-per- cent taxation rate should form personal holding companies to receive part of their income, re- duce current taxes and spread them over several years. This would have to be done’ before Jan. 1, the intended date for implementaton of the bill.

—Pending increases in contribution limits to pension and deferred profit- “sharing plans and retirement savings plans should be used: to the maximum possible,

--Consider deferring exercise of stock options until 1972,

—Give generously to a wife before Jan. 1 and to all others after Jan, 1.

Finding elusive lobster

An executive of Wesmar, Seattle-based manufacturer of commercial sonar gear, recently back from a trip to Australia reports -the com- pany’s sonar is proving to be of great value to the lobster fishermen there for finding the habitat of the lobster.

Bud Heckenkamp, National Sales Manager for Wesmar's Marine Systems Division, said the value of the company’s $8150 sonar for finding the habitat of lobster was well demonstrated in the Gulf of St. Vincent while he was in Australia. Given the helm of the boat coming out of Port Lincoln into the Gulf, Heckenkamp used the sonar to scan the sandy ocean floor, trying to sight the occasional high rocks around which lobster cluster.

In fishing for lobster, fishermen traditionally have searched for these rocks witha recording echo sounder which showed them on paper, The drawback was that the rocks were not marked on the chart

until the vessel passed directly -

over them. Wesmar’s horizontal scanning sonar makes this search both more efficient and

precise because it gives an advance, two-dimensional location. The Wesmar sonar scans 360 degrees around the

vessel as well as directly under it.

About 4 or 5 miles from shore, the sonar began giving off an audible signal, drawing at- tention to the screen. An im- pression of rock appeared on the Cathode Ray Tube at 900 feet. (Targets are displayed instantly on the SSi50’s 10-inch CRT display in true range and bearing.) Heckenkamp steered directly for it and the rock, about ten fathoms high in about 20 fathoms of water proved the perfect lobster habitat.

In steaming back to port, the sonar picked up another audible signal at about 800 feet. ‘This rock had never been sighted before while using the con- ventional depth recorders. Even closer to shore, the 58250 picked up a third rock, also ‘never before sighted by this crew. They had spent five previous days out and five days back locking for rocks where lobsters congregate without success. With the SS150 a few hoyrs' survey promised months - of future success,

CAMP FIRE RULES |

To prevent forest fires, build * a camp fire only on rock, sand or bare soil, and only near water, ;

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THE HERALD - TERRACE - KITIMAT, B.C.

Fresh snow on Hudson Bay Mountain near Smithers.

SPEC CHARGES

Act "provocative, weak’

VANCOUVER (CP) -— The Scientifie Pollution and Envir- onmental Control Society (SPEC) says the government’s proposed water resources act is

> filled -with-autoerati¢-and “big... * brother: we OV ernment’ 2.

provisions, ° omitting adequate . protection for either the public interest or private rights,

SPEC’s attack on the bill is contained in a “critique” which has been sent to Ray Williston, minister of lands, forests and water resources, by Derek Mal- lard, executive director of the group.

Mr, Williston introduced the bill to the legislature last March explaining that he would not ask the house to proceed with enact- ment until the 1972 session, after interested parties had a chance to study it and offer their criticisms to the govern- ment,

He said at the time that the .

bill had been made deliberately “provocative’—but he did not indicate which parts he regarded that way,

inhis coments’ 9 Mr. Wil-

“Histon; Mr. mantis so Mr the *

government “for |ts democratic initiative that will permit public debate on proptsed Jegisla- tion’? He then went on the at- tack,

STATE INTENT

He said the bill should clearly state the government's intent in bringing in the legislation,

“Since there is a great need for wise management and con- servation of water resources,” wrote Mr. Mallard, ‘we could

applaud an act intended for this - purpose, — . . “Tf this is actually intended, |

Amport car prices up

By THE ASSOCIATED PRESS

Volkswagen and Datsun have announced ‘price increases for 1972 models, which coupled with the new 10-per-cent import levy will give U.S. minicars a com- petitive edge.

Volkswagen said Wednesday the suggested price on its Super ’ Beetle would go up $145 to $2,278, including a new import surcharge of $75.99 under Presi- dent Nixon's economic pro- gram.

~ Datsun snid its least expen-.

give model, the 1200, would go to §2, 114 from $1,866, including the import. surcharge, ;

For Volkswagen, the price in- crease without addition of the surcharge amounts to: 6.8 ‘per ‘cent, for Datsun seven per cent,

U.S.-made minicars’. will .

carry’1972 price tags: of $1,919 - for Ford's Pinto, $2,040 for American Motors’ Gremlin and _ $2,076 for GM’s Vega, Nissan Motor Corp., U.S. dis-

tributors for Datsun, said the

$3,463, and the 411 four-door, $3,512.

Datsun’s 1200 coupe will go to $2,114, the two-door 510 to $2,243, and the four-door 510 to $2,409.

CONSUMPTION DOWN

Australians are drinking 14 per cent less wine than a year ago,

DAMAGE SYNTHETICS EDMONTON (CP) — Insects wilt damage synthetics as well

as natural fibres, says Marilyn’

Hemsing, clothing and textile specialist, Alberta agriculture department. The best defence against insect -pests such as

moths, carpet beetles, sllverfish:

and crickets.is to clean all gar- ments. thoroughly . before

Storage as the pests cannot live.

on clean fabrics:.

provincial: _ proposed the bill asa means of

.“vacuum’ | in ; management, While the federal . i

we would recommend a title

MONDAY, OCTOBER 18, wa

"Bootleg barley" earns ticket. .

EDMONTON | (CP y= The

barley-laden ‘farm: truck . ‘with ” Saskatchewan licence plates: was pulled off the road ‘by an.

RCMP patrol car on the Trans- Canada Highway. just east: of Medicine Hat. =.

Minutes later, in a scene that

was repeated ‘often in 1968-69, *.

the truck. driver-farmer was holding a ticket... =. Speeding? Illegal use of tax-

free purple gasoline? Intoxica:

tion? The charge was none. of these, ‘The farmer had been charged

under the Canadian Wheat.

Board Act because he had been caught bootlegging barley— transporting it into. Alberta ille-

Bally across a Provincial bound: .

ary.

Under present regullations the farmer could have sold his-bar- ley either to the wheat board or to a farmer. within. his own

province, but transporting” it’ across provincial lines is not al- .

lowed,

CONCERN GROWS |

There is growing concern among western. farm leaders that this year’s bumper’ barley crop of 627 million bushels is going to generate fire-sale prices and result in another up- surge of such bootlegging.

The last time there was boot- legging to any degree was in 1968-69 when Saskatchewan farmers. sought al]: possible ways to get a little cash during

the period of meagre wheat -. received a eredit of 25 cents a

sales.

Last'year almost all the Bar: >

ley produced—about 381 million bushels—waa sold by the wheat

board in the, wake of.a disas- trous blight ‘which’ hit'the corn. crop in the United States. “= ‘- ~ With: the promise ‘of good’: ‘sales, prairie farmers boosted -

their barley acreage this year to a record 14.6 iillion: acres compared with. 9.5 million in

1970 but at the same time the“ U.S. corn crop made a remark-

able recovery this year and is. ~ expected to yield “6.3 billion.’ “bushels, a 31-per-cent increase over. 1970." - : . Now, the prospects ‘ofa bumper prairie crop of barley’

has producers, goverament offi-

cials, and wheat board adminis: ‘delivering barley. up’ to: ‘200:

_ miles’ away to feedlots. in AY: +, berta for: 50. or & cen bushel. °

trators looking toward a tough, highly competitive-year on the international grains market.

The wheat board emphasizes _

barley at this point is- moving. -

‘well—the -grain ‘selling ‘agency : still is filling orders placed dur: ing the world shortage last year ~ , ~-and, . one spokesman: said, . “there doesn't appear to be the

pressure that in other years re- sulted in a fair amount of boot-

. legging. ? But illegal sales already have

started, said a spokesman at the Saskatchewan. Wheat Pool,

‘and the: grain. is being sold at

fire-sale prices.

“At Swift Current two weéks ago, it was reported. farmers were buying- machinery and cars with bariey for which they

bushel.”

: This is the type of transaction

-whick has fart spokesmen wor-

ried because, they say, it under- mines confidence in the orderly.

_ marketing of grain—essential if

western agriculture is to ‘aur

Wives

‘Based on a production: cost, including taxes, seed, sawing andharvesting and land maitle-

nance, a Saskatchewan farmer

is lucky if he can produce bar ley at less than $12 an acre.

“It can be seen that if he ets: an average yield of 40 ‘bushels of barley tothe acre, that’s a %

‘return of only $10 an acre: at 25

. Determined to turn 5

" grain into money,.6ome Sasi

chewan’ farmers ‘are: reported

~ They” would get. 70 to 7 "a

‘a bushel for barley. on the com- “mercial market,, ~

The whest board has.

. can. sell. about 250 “million bushels. of -this- year’s -barley crop which will-leave.a‘surplus _ of |) more ‘than - 300 million’ “ ‘bushels. = - Huge beef cattle feedlot oper- of -ations in Alberta offer a ready {

‘market’ for- millions of bushels.

of surplus barley. |

‘Some of the court cases in- a

volving bootlegging in 1969 still”

_are unresolved. Those that were . §

convicted were given: mainly token fines as magistrates and [im judges apparently sympathized - :

with the Producers’ ‘economic * Bent - ;

changetothis act witha preface . ~

clearly Outlining its aims and intent.”

Mr. Mallard said some sec- tions of, the bill—especially

those giving the minister tight. controls over water. resdurce

surveys—“‘appear lo - place undue power in the hands of the government and the minister, thus precluding debate in the legislature and in the public domain,”

Other sections which permit

the making of “secretive deci-.

aions” on water resOurce man- agement should be deleted, he recommended.

ANOTHER SKAGIT?

The SPEC official said one section would permita repeat of such problems as Skagit Valley flooding by authorizing the

minister’ to enter into any

agreement he might favor for water resource or watershed

’ projects. This would appear to contra- -

vene the Canada Water Act, Mr.

“Mallard said, —

{After introducing . the: bill, government filling a federal-provincial government's Canada Water

Act empowered Ottawa (0 set up water management: areas,

Mr, Williston pointed out, the -

British North America clearly gives provinces control. over water as a resource.)

- Mr, Mallard termed the Can-

ada Water Act “weak in terms of international or boundary .

waters jurisdiction.”

water ¢

“Mr. Williston told-reporters the

-ahot Water reser Vor

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."Is. the provincial govern-—

ment’ therefore attempting to

reject the Canada Water ‘Act or <

force the federal government to

resolve: its weakness?"” ‘he. &

- asked,

:* Datsun price hike was due en- -f

tirely to upward revaluation of

the Japanese yen," The. .price increases . were

approved by the president's Cost .

of Living. Council.

EXPECTS: SALES: INCREASE - Datsun sold :153,000 units in _ the United States last year and

_ forecasta “U.S. sales, to. 280,000 . units this-year.: : "Volkswagen said ite, increases . “were a result of upward reval- . . _Wation of the German mark and’ van increase” in world market: :

"Prices.

+ Any baker who kneads the dough is in the

Both the mark and’ yen ‘went’ q : Up as @ result ‘of. Nixon's eco. ;

‘nomic program, °

.. Volkswagen sald it: expects to - - sell about: 575,000 ‘cars’ in the. : - United States this years. 7) “Volkswagen listed: these: new. - “-gputestod prices for ether mod... éle: Beetle $2,109; the | aquare-

back Ke, the’ btation ‘wagon’ :