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mann Tuesday of

VICTORIA (CP) — British
General Brian Smith accused

Attorney
Ombudsman Karl Fried-
eriminal by

+ subject.

going publie with an investigation of his'ewn on the same

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to April 30, 1983

Call or Write
Phone (604) 388-5463
Telex 049-7166

425 Quebec St.,
Victoria, B.C. V8V 1W7

Smith also said that release to the B.C.

fe men fp
requested by the Opposition.

derailing the public inquiry”

‘The ombudsman's report said that B.C. Forest
Products had been getting millions of dollars of timber
free of charge because the Forests Ministry was ‘not

last week of the ombudsman's special report on the
scaling practices of the Forests Ministry jeopardized the
right of the people involved to a fair trial if criminal
charges are eventually laid.

Smith said the criminal investigation began last
month after a government official received a letter
alleging fraud within the Forests Ministry.

Outside the legislature, where he is not covered by

gislative -ii ity, the -al ney general aceused
Friedmann of being “highly irresponsible” for making his
report public even though he had been told the
RCMP were investigating.

However, New Democrat justice critic Alex
Macdonald accused the government of trying to sidetrack
a public inquiry into the matter.

Attacks on Friedmann by members of the Social
Credit government are attacks on the messenger “in a
most unfair way,” said Macdonald.

None of the ombudsman's recommendations have
anything to do with criminal charges, he said, adding “the

the trees

The report said slipshod measuring by ministry
sealers had cost six small independent firms about $6
million and forced them to the brink of financia) disaster.

Friedmann said because the Forests Ministry did not
do its job properly, the government did not collect about
$2 million in stumpage fees: — the amount forest
companies pay for trees logged on government property.

He said the ministry did not bill for the uncollected
revenue when it discovered the errors because it was
afraid of the company’s reaction.

Smith said the RCMP commercial crime squad was
called in Jan. 26 by his ministry to look into potential
criminal conduct arising out of the scaling practices

mentioned in the report.

He said that Ian Mahood of Nanaimo, one of the
complainants, had sent deputy finance minister Larry
Bell a copy of log scale returns which he said were taken
from Forests Ministry files and which were “said to be

falsified records.”

scheme in the coming
than offset by a sharp
welfare rolls. ‘

it insurance
She more

‘Ottawa's con
program will d
beginning Apri

fons to the
ecrease to about $2.7 billion in the year
1 1, down $277 million from estimated

spending for the current fiscal year.

‘to build post
f this program.”
) ‘said the Tory re-
searchers broke down the
figures by government de-

partment.
‘The Conservatives had re

Program was spent in Lib
eral ridings, says Conserva-

Treasury Board President Herb Gray highlighted the
decrease as he tabled in the Commons details of how the
government plans to spend a total of $98.2 billion between
April 1 and March 31, 1985 — a 10.6-per-cent increase_over
main estimates of $88.9 billion this fiseal year.

If the government didn’t have other ideas and needs for
the money in what is expected to be an election year, that
$98.2 billion could buy almost 10 million Chrysler K-cars at
about $10,000 each or six billion cartons of cigarettes at
about $15.50 a crack.

But the increased spending, largely the result of higher
charges on the burgeoning public debt of $161 billion and
increased spending on defence and energy, is only 8.3 per
cent when compared to the revised estimate of $90.6 billion
in spending this year

‘The annual tabling of the estimates for the coming fiscal
year attracted less attention than in previous years because
Finance Minister Marc Lalonde had covered much of the
same territory in the federal budget unveiled last week

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B.C. sells b

VICTORIA (CP) — It took
six years, but the British
Columbia government is go-
ing out of the long-distance
bus business effective March
31

Human Resources Minister
Grace McCarthy announced
Tuesday that Pacific Coach
Lines will be broken up and
the pieces sold to three dif.
ferent companies for about $5
million.

The more lucrative assets
of the company, such as the
airporter service and the
Victoria Gray Line franchise
were sold off in 1978 for
about $450,000.

The company was formed
by the government in 1978
with the merger of Vancou-
ver Island Coach Lines Ltd.,
which was bought by the
previous New Democratic
Party government, and Paci-
fic Stage Lines, a division of
B.C. Hydro.

McCarthy said the sale also
will save the taxpayers $7
million in armual subsidies to
the bus line that provided
transportation on Vancouver
Island and the Fraser Valley,
and linked Vancouver and
Victoria and Nanaimo and
Vancouver.

She was unable to break
down the amounts paid by

each buyer, and” predicted

there would be only minor

changes in services and fees.
McCARTHY MUM

However, she refused to
give any specifics.

“It is unlikely that there
would be dramatic changes in
the fares because they want
to stay in business and that
will just be a question of
‘them wanting to provide a
service which the public will
pay for,” she told a news
conference.

And if they don’t provide
adequate service at reason-
able rates, then “the publie
will put them out of busi-
ness.”

McCarthy said the govern-
ment had no luck in selling off
the money-losing Fraser Val-
ley routes, but she is opti-
mistic that several of the
local bus companies will fill
the void.

She said.the Victoria-Van-
couver route has been bought
by two current and one for-
mer employee who will oper-
ate under the name of Pacific
Coach Lines 1984 Ltd.

Maverick Coach Lines Ltd.
of Vancouver, the second
largest privately-owned bus
company in the province, is
to take over the Nanaimo-
Vancouver route, she said.

uses

The Vancouver Island runs
have been bought by Gray
Line Victoria Ltd., whose
principals include the owners
of Conmac Stages Ltd. which
owned the bus that recently
was involved in a fatal
accident.

SERVICE ACCORD

McCarthy said part of the
agreement fequires Gray
Line to have its buses ser-
viced at the Victoria coach
lines’ garage and maintained
to safety standards for the
next three years.

She added that only two of
the Gray Line directors are
connected with Conmac.

The sale was negotiated by
John Kelly, a former treas-
ury board deputy minister,
whose consulting firm was
hired for $35,000.

Kelly said Pacific Coach
Lines has assets of between
$10-million and $12 million
which included $6 million to
cash.

This money, McCarthy
said, will be used to finance
the severance plan for any of
the 350 employees who are
let go, and for their pension
plan. Any outstanding cash
will revert to the taxpayers.

Kelly added that the com-
pany is being sold for more
than its book value.

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5

Hotel tax

praised

VANCOUVER (CP) — The
provincial government's de
cision to standardize hotel
room tax at seven per cent is
a step in the right direction,
says the president of the 435-
member British Columbia
Hotels’ Association.

Merle Schrader of Wil-
liams Lake, said in a news
release Tuesday that the
elimination of the two-level

system of hotel room tax an--

nounced in Monday's budget
is welcome news for B.C.
hoteliers.

“The two levels of tax

tive MP Jim McGrath. ‘
The Tory employnient’
critic said today that Con-

quested. breakdown of the
program grants on a riding
by-riding basis after alleging

servative shad
worked through the night
sifting through documents
tabled by Employment Min-
ister John Roberts on Tues-
day, and discovered that on
average, 85 per cent of the
dollars spent went to Liberal
constituencies.

“In some areas, the Liberal
ridings got as much as 100
per cent,” McGrath said in an
interview as he was going to
the weekly caucus meeting of
Conservative MPs and sen-
ators.

“Post offices, for example.
Libera! constituencies got 91
per cent of the money that

that g MPs and
senators had exclusive access
to the fund. They complained
they were not given details of
the $300-million program un.
til much of the mohey had
been spent.

ABout $98 million remains
to be allocated.

TABLES DOCUMENTS

On Tuesday, Roberts ta.
bled a massive bundle of
documents that included not
just the Special Initiatives
financing, but details of sev
en government-financed pro-
grams, none of them listed
riding by riding.

McGrath repeated charges

ADVOCATE CUTS
p for both opposition parties, however, im
diately-advocated eh the d ing by

several billion dollars.

While Progressive Conservative Don Blenkarn sug
gested cutting funds to Petro-Canada and the CBC, New
Democrat Nelson Riis called for an end to lucrative oil and

gas exploration grants and corporate tax cone

Gray told the Commons the lower federal contributions
to the $11-billion unemployment insurance scheme reflect an
improved economy and less unemployment, which is
projected to average 10.8 per cent in the coming fiscal year,
down from 11.4 per cent this year.

However, the thick blue books outlining the spending
also show a whopping 17.7-per-cent increase in the money
Ottawa expects to transfer to the provinces to cover its
50-per-cent share of welfare costs under the Canada Assis

tance Program.

The government expects its share of that costly pro
gram could rise by $556 million to almost $3.97 billion in the
coming fiseal year from an estimated $3.14 billion this year

This could suggest that more people are switching to

welfare after
benefits.

their

Gray steered clear of making that connection at a

sparsely attended news conference and simply said the
increased transfers under the Canada Assistance Program is
“a lingering effect of the récession.”

proved an i for
both hotel operators and
tourists,” said Schrader. “No
other jurisdiction in Canada,
to our knowledge, had this
system of taxation.”

The government § an-
nounced it was eliminating
the two-level hotel room tax
system as of March 1.

However, Schrader said
the budgét could have pro-
vided a further incentive to
the Tourism Ministry by
standardizing the application
of the seven-per-cent tax
currently charged on meals
$7 or over.

“For example, a three- or
four-per-cent tax on all meals
would achieve th:same level
of tax revenue for the gov-
ernment.”

Health
tax okay

OTTAWA (CP) — The
British Columbia govern-
ment has found a way around
the proposed Canada health
act, and there is no way to
penalizer the move, federal
Health Minister Monique Be-
gin said Tuesday.

A tax surcharge proposed
in the new provincial budget
to help defray health costs
will earn the province $97

says. '
And this would cancel the

penalized one dollar in fed-
eral grants for every dollar
they charge in user fees.

and icipal leaders have complained

repeatedly about the increaseds burden that high long-term
unemployment is putting on their welfare rolls.

PROVINCIAL

The $500,000 winning num-
ber in the Feb. 17 Provincial
lottery draw is: 2178808.

The most recent winning
numbers are: Feb. 10 —
2502223, Feb. 3 — 3867350,

Jan. 27 — 1362796, and Jan.
20 — 2097909.

Last six digits win $50,000,
last five digits win $1,000,
last four digits win $100, last
three digits win $25, and last
two digits win $10.

PAINTING @

STEELWORKER
CONTROVERSY
CAUSES DEBATE

TORONTO (CP) — The director of the steelworkers’
largest district in Canada says he won't alter his support of a
U.S. candidate for the union presidency who accuses
Canadians of making “a power grab” for control of the top
post.
Dave Patterson, Ontario director of the United Steel
workers of America, said Tuesday that despite a strong tone
of U.S. nationalism in the campaign by international
treasurer Frank McKee, he will do more for workers in
Canada than Canadian candidate Lynn Williams.

Patterson's support of McKee reflects his icy relations
with Williams, and bucks a trend by the union's other three
Canadian directors who are puzzled over the Ontario direc-
tor’s position.

“We couldn't understand why he would go that way
after Lynn extended his hand to all of us on an equal footing
asking for our support,” said national director Gerard
Docquier.

“Patterson has been erratic in his behavior, but perhaps
he has some Machiavellian plan.”

After winning the Ontario director's job stressing the
issue of more Canadian autonomy in 1981, Patterson said he
can understand™how workers in the mitls, mines and
factories of Ontario may be perplexed and upset by his
support of McKee.

But, he said, that should change by the end of the
campaign, which has already developed into a bitter battle.
REPLACES LEADER

About 750,000 North American workers are eligible to
vote March 29 to replace Lloyd McBride, who died last
November with two years of his term remaining. Patterson
represents about 105,000 members, including 25,000 on
layoff, in what also is the union's largest district inter-
nationally.

“I'm being called a traitor and other names, but I'm not
supporting McKee for nothing,” Patterson said in an
interview.

“He'll do more for us. Lynn Williams doesn’t have a
platform.”

Patterson said that during the next few weeks he will
join McKee in revealing how Canadian union members will
benefit from his election as president.

“He'll be coming to Canada to address that,” he said.

In one leaflet, McKee said Canadians are not satisfied
with their representation on the union's international
executive board, and want a “Cana president so that

DECORATING

2649 FouRTH
8

av
CASTLEGAR c enue

they would have complete control.”

McKee said 80 per cent of the union's members are
Americans, but “now the Canadians want the tail to wag the

that the Tories were given no
chance to take part in the
job-creation program, and la-
belled it a Liberal pork bar-
rel. “It all went to Liberal
constituencies, which I think
is gross misuse of public
funds.”

The Tory . employment
critis. said the matter would
be raised again in the Com-
mons.

“Poor old John Roberts
hasn't got a stitch of clothes
on, and he's going to be get-
ting all the slings and arrows
today because he deserves
to.

“He brought this program
in yesterday wrapped in a
red ribbon, very approp.
riately wrapped up in a red
ribbon.”

Conservative Leader Brian
Mulroney also expressed his
disgust with the Liberals.

“I think the whole exercise
yesterday was pretty de
meaning,” he said on his way
to caucus.

“It was an attempt by Mr.
Roberts to hide the truth.
But we've had researchers
working at it . and I think
you'll find that the object of
the exercise was to obscure
the reality of favoritism and
partisanship in dealing with
the expenditure of public
funds in regard to the un
employed.”

hae i Pa

shirking on acid rain

(CP) — Canada accused the United

States today treaty obligations by its delay in

adopting new programs against acid rain and stated

bluntly that further delay is unacceptable. early-morning meeting with William Schneider, state
A formal diplomatic note delivered to the U.S. State undersecretary for security assistance, science and

Department said the Reagan inistration's decision ry:

last month to p P bs The said Canada registered its “deep

pending more research flouts U.S. pledges to Canada and disappointment” with the U.8. administration's an-

by Canadian Ambassador Allan Gotlieb in a 10-minute

ignores international treaties.

nouncement Jan. 26 that efforts to combat acid rain

“The continued delay in adopting effective abate
ment measures is not acceptable to Canada,” said a
statement issued by the Canadian Embassy based on the

note.

“Acid rain is a grave threat unless both countries
reduce their emissions now,” the statement added.

Canada called on “our good friends” to act immedi
ately toward curbing industrial emissions blamed for acid

rain.

would be limited solely to research for the foreseeable

future.

Canada had been led to believe that the United Buy

States would introduce a

sulphurous industrial emissions cited as the source of
acidic rain and snow damaging land and water resources
in both countries. Canada stands ready to join the U.S. in
an additional program of emission reductions, the state-

ment said.

program to reduce the

~1984 SUNBIRD
ce 1 79° >

~ 1984 FIERO

Protesters camp by pipe

PEACHLAND (CP) — Six
members of a conservation
group spent the night eamp-
ed outside a 91-centimetre-
wide pipe near this tiny
Okanagan community to pro-
test plans by a mining com-
pany to dump waste water
into nearby Okanagan Lake.

The protesters, members
of the Kelowna and district
branch of the Society for
Promoting Environmental
Conservation, were joined
Tuesday by six members of
the Save Okanagan Lake and

Valley Environment Group.

The protesters said the
move was to buy time for a
society lawyer who is plan.
ning to seek a court in
junction that would ban the
discharge by Brenda Mines
Ltd. into creeks that empty
into the lake.

“I hope to keep our group
non-violent,” said Margaret
Undershute, head of the Save
Okanagan group. “It's to be a
legal form of protest, to stall
for time until we can get the
injunction.”

Brenda Mines is construc:
ting the $100,000 diversion
pipe and dam, upstream of
the Peachland irrigation dis-
trict's water intake and res
ervoir, so it can dispose of
water from its mountaintop
tailings pond before the
spring runoff starts.

Gordon Harris, manager of
the copper-molybdenum
mine, has said the 2,000-
metre-long tailings pond dam
could break above this town
if the water level isn't low-
ered before the runoff.

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The diversion pipe and
creeks will be flushed out
with clear water after the
tailings pond discharge. En-
vironmentalists say the local
health authorities still oppose
the plan.

Lawyers for the environ-
mental groups will argue that
Brenda Mines has created a
crisis and should be forced to
dump the waste water into
its open pit. They also plan to
point out that dumping the
waste water into Okanagan
Lake is irreversible.

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MIKE’S

Begin said this would amount
to about $35 million in the
case of British Columbia.

She told reporters the pro-
vinee is penalizing its voters
by charging both the sur-

and user fees.

“It's a joke,” she said. “The
whole thing’s a joke.”

But she said the issue is
“pure politics” and must be
resolved by the voters. The
federal government is power-
less — ‘it can’t penalize the
B.C. government for penaliz-
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The B.C. government said
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But Begin said funding has
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dog.

Williams, a former Ontario director, won the
international secretary's post in 1977 on a McBride slate that
also included McKee. The union's executive board selected
Williams as interim president by a 16-12 margin last
December.

Officials in the McKee camp say citizenship became an
issue early in the campaign when Docquier said Canadians
should vote for Williams.

Patterson said it is only natural for McKee to counter
that position by telling U.S. workers to vote for an
American.

CANADIANS DECIDE?

The votes of the union's 150,000 Canadian members
could be decisive in the outcome of the election if the U.S.
race is close. Williams has won the endorsement of 2,001
locals — including all but two of the more than 500 in Canada
— while McKee has a total of 958.

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