as_ Castlegar News August 9, 1989 BUSINESS August 9, 1989 Sewn © OTTAWA (cP) stamps hunting licence be taking a bite He'll be nibbling too when you pay for piano lessons get a haircut His reach will cleaning I's all part of nine-per-cent federal sales tax, the 1002 Columbio Castlegar tickets or get a the taxman will soon go to a movie or | funerals and a Big Mag 365-2887 | om FEDERAL SALES TAX Bite will be felt | almost everywhere If you! buy which Minister Michael Wilson explained Tuesday totails of Finance But all was not gloomy car will likely technical The price of a new drop. says the paper re ased by the So will the extend to dry ry Financa Department cost. of a new. kitchen ge or refrigerator. And rent won't be taxed Wilson time how he the — proposed explaining for the first will collect $24 billion a said it will good and and make the year under the new tax apply to almost every service in the country tax system fairer Compare The Us FOR FAX and COPIERS tax. scheduled to be 1991 a confusing. flawed sales tax that Wilson has next implemented Jan. 1 will re placing manu facturers called OF the We know that in an economic sense 1 silent killer of jobs new tax he said Tuesday it is absolutely the right thing to do finance minister said in the document he won't charge tax on Won't Rust Custom Built ALUMINUM RAILINGS" The Baked on Ename! — Wooden Railing FOR FREE ESTIMATE CALL PETE 365-7086 residential rents, but people staying in_hotels will have to_pay the federal their government ecnt of bill nine per federal_government—will_not charge tax on basic groceries. but LORDY, LORDY, LOOK WHO's “440” ON SATURDAY! Hoppy Birthday Mom! Love, Dad & The Kids! uh ‘es United Way Member Agency PARENTS! Returning to Work or School? 749-11th Avenue, Castlegar 365-7280 * NOW ACCEPTING REGISTRATIONS * Quali ages 3-5 Nursery Sche al Needs Services ¥-hobbit hill CHILDREN’S CENTER WARM AND FRIENDLY CARE Columbie ons Man. VIC BYRC RUBBER STAMPS CASTLEGAR NEWS 197 Columbia Ave. Phone 365-7266 Will collegt tax on restaurant meals or a pirza delivered to your home To confuse the issue more, Wilson won't merchants separately on will have the federal existing prices federal foree to calculate the tax Retailers hiding the each sale option of sales tax in provided , they government post signs in. their stores The bottom line for Wilson's: new sales taxywill be more money for the federal_kovernment, $5.5 _ billion than would have bectrcollected under’ the old manufacturers sales tax in T991 But Witson-said-he-will wash down of tax rebates and a surprise per middle morc the tax with a liberal dose credits sonal income tax cut for income Canadians The result fairer is a tax sys: tem,"* Wilson said in the document A single Canadian jot yet 65 years old and earning $20,000 a year would end up paying $15 a year more in tax under the $435 more receiving $375 new system, after paying in federal sales tax and in benefits through sales tax credits and changes in the income tax system, Wilson said But a family of fotir earning $30,000 a where ne parent works would end up $214 better off The family would pay $550 a year which would be with more in sales tax more than offset higher_sales. changes to family credits and and child tax tax credits allowances income taxes In all, Wilson said he increase tax credits to lower-income $2.4 billion. And he also cut the personal income would Canadians by would tax rate to 25 per cent frorh 26 per cent for earning between $28,700 and $57,400 a year labor groups and consumer organizations immed those Opposition critics. iately denounced the new plan as the biggest tax grab in Canadian History Liberal industry critic Jim Peterson Wilson's couldn't be as high interest rates slow the “At a time when we face and a this tax said timing worse economy challenges cession in Canada major economic possible is the last straw for business and consumers The Canadian Federation of Indep endent Business, representing more 80.000 businesses across the country, has already that Wilson will spark a tax revolt with his latest revenue grab than warned PUBLIC NOTICE CITY COUNCIL MEETING CHANGE OF TIME Mi The August 15, 1989 regular meeting of City z r Council will be held at 4:00 p.m. in the Council Wilson faces tough se CP News Analysis By GORD McINTOSH OTTAWA. (CP) — It’s hard to sugarcoat the economic upheaval caused by a $24-hillion tax grab. Just the same, Finance Minister Michact Wilson did his best with the technical paper Tuesday on the Proposed goods and services tax. But, as Wilson himself told reporters, it's not going to be easy. to sell this tax The paper was supposed to explain the nuts and bolts of the tax and how it will be implemented on Jan. 1, 1991, but key details — like the all-important definition of exempt groceries — weren't included. ANALYSIS the paper reads more like an-election document covering for promises and sensitive spots on the body politic. The opposition is also being kept guessing on some key details In the promises-owed department offering income-tax reductions. The Instead Wilson is middle income tax rate goes down by one percentage point to 25 per cent from 26 per cent In layman's language. a $50.000. income would pay single person with $341 less in annual income tax as would a family of four with one person But a family of four. with two carners taking in $50,000, would only save $23 TAKE IS HEAVY The income-tax reductions will cost the govern ment $700 million in a year while it implements a new levy that will take in $24 billion In his earning the same’am “revenue neutral" policy, Wilson. pro: mised in 1987 that the new tax would replace some of Ottawa's voracious dependence on income tax But after the single taxpayer earning $50,000 has paid all federal taxes at the end of a year. he or she would still be paying $459 more in taxes because of the new goods and services tax The government federal is also replacing its existing with a. slightly enhanced goods and services tax credit for which taxpayers sales-tax credit earning $24,800 and less will be cligible.instead of the current $16,000 Because sales tax for the new houses will be subject to: federal time. the that first paper promises rebates to some homebuyers will cost the zevernment $900 million Overall, the government families incomes of less than $30,000 will be better off as a On the that the government is putting its best foot forward look selling campaign ahead Also to keep a Wilson said the government will make sure this tax will be visible to says with result of offsetting sweeteners. assumption those numbers modest. suggesting a tough promise consumers. unlike its predecessor. by encouraging merchants to post signs advising of the nine-per-cent MICHAEL WILSON . . . difficult job ahead That seems to be keeping a promise by passing the commitment on to, someone else SORE SPOT A sore spot with the government are complaints that this tax will be felt most outside Central Canada because consumers who live away from the factories of Ontario will pay more than their share of the new tax on transportation of goods The technical paper says regional industries will benefit because sales tax on many of their capital purchases. such as plant equipment. would be nine per cent instead of the 13.8 per cent under the existing manufacturers’ tax The argument here is vague. like so many other clements of government plans. and the question of cost to consumers in regions is ignored Wilson acknowledged that the introduction of the tax will mean a one-time in jump in the inflation As a result will be partially indexed rate of 2% per cent the new tax credits Not surprisingly. both opposition parties hated the new tax, but so did everybody from the Canadian Chamber of Commerce to the National Anti-Poverty Organization, suggesting very tough selling == = ——a = = = = = = 4 = = = = = Woodland Park Shell's tea: of Debbie Hart, Kim Tassone and Marnie Llewlyn-Thomas finished third in th - serve category of Shell Canada's annual on attendants from across B.C. judged on all aspec rvice quality and safety. Monday to Saturday, INOUSTARIES Manutacturer of PARTRBOARO’ LOW GRADE PARTICLE BOARD SALE!! — Sale Ends Saturday, September 2 — OR UNTIL PRODUCT IS ALL SOLD — WHICHEVER COMES FIRST! ————_ HOURS OF OPERATION Price: $1.00 Per Sheet Cash Only SPECIAL NOTE: Large Quantity pick ups — flatbed trucks or more — please contact sales department for prior arrangement. Phone: (604) 442-5521 CANPAR INDUSTRIES industrial Parkway, Grand Forks, 30 a.m. to 6:00 p.m. Few like new nine-per-cent levy announces the appointrr Network tenay f Vic Byr Manager for District. Chambers at City Hall CITY OF CASTLEGAR n, Mr Celebrate Gods Love VACATION BIBLE SCHOOL Grace Presbyterian Church Next to the Nordic Hall Mon., Aug. 14 toFri., Aug. 18 9 a.m. to 11:30 a.m. AGES 5& UP... ALL WELCOME! anada di Arabia. He ret rce for the Gon: ational Ette yrarr ointed Administ: nager for the Or pport Group. Prior to joining E Mr. Byrom was with Manitot Telephone for seven He is a member of tt anbrook Ct Commerce BC Tel wv ( Aoerane tae ee By CLYDE GRAHAM The Canadian Press Michael Wilson was as lonely as well The minister hadn't ex pected a lot of support for his planned nine-per-cent sales tax And he wasn't disappointed Tues a tax collector finance day when he released details of the new levy. which will pluck an est imated $24 billion out of the pockets of Canadians, beginning in 1991 Most provincial governments cal led the new tax on almost all goods and services either unacceptable or inflationary. Small pred- icted a taxpayer revolt skeptical, labor was confront and the opposition was in business consumers were ational censed “This is yet another coffin that threatens to see the average Canadian buried in taxes,"* safd Nancy Riche nail in the vice-president of the Canadian Labor Congress In Alberta, which prides itself as being the only without a Treasurer Dick Johnston said Wilson is making a mistake by forging ahead with a tax most people don't want: I think that the way this tax has been designed, consumers and small business are going to be so frustrated province sales tax at the process that you will have a lot of angry people."* said Johnston BACKERS CAUTIOUS Even backers of the tax. such as the Canadian Chamber of Commerce. said Wilson has to do a lot more work to make it palatable Chamber president Roger Hamel Wilson failed to meet the chamber's three concerns about the tax should be visible for consumers, simple for business and equal for all products. But Hamel said major that it said replacing the GO TEAM BC. August 13-26, Saskatoon. 350 Team B.C. athletes represent British Columbia at the 1989 Jeux Canada Summer Games. The Province of British Columbia is proud to boost our athletes to the highest levels of national and world competition Good Luck Team B.C Go for the Gold! Ministry of Municipal Affairs, Recreation and Culture Hon. Rita M. Johnston. Minister existing, outdated 13.5-per-cent sales tax on manufactured goods with a fairer tax system is too important to abandon The new tax would ease an unfair burden on manufacturers and ex porters by shifting more of the load to fast-growing industries such as fast food restaurants service the Canadian Manufact urers’ Association, with probably the most to gain from tax reform, rallied around Wilson, saying it will fight to and end to the existing which Wilson has dubbed a silent killer of jobs However. ensure 65-year-old sales tax “We have been requesting a change in taxation for about 30 years and we are not going to pull back said Eric Owen, a spokesman in Toronto But most of the reaction to Wil son's tax scheme goods a now,"* which would tax every stage from factory to checkout counter, was lukewarm to negative BREAKS PROMISE Havi Echenberg, executive director of the National Anti-Poverty Orgs ivation Wilson has fa keep his promise that lower-income Canadians would be better off under the new tax She credit that a family of four earning than $24,800 a 1991 said said the promised $750 tax less year fully indexed and would hurt larger families She said trying t from a regressive would receive in isn't collect more revenue sales tay instead of a fairer income-tax svstem is Iunaey Bulloch Canadian Federation of Indep, santthe John president the dent Business Technical paper has not changed his opposition to thi Quarter profits rise for forest company Continued strong selling prices of pulp, combined with a slight increase in lumber selling prices, has allowed Crestbrook Forest Industries Lid. of Cranbrook to record 1989 second quarter net earnings of $9,086,000, an increase of 18.4 per cent from the previous year’s figure, the company says in a news release. In their interim report to shareholders for the three-month and six-month periods ending June 30, 1989, Sakae Hosaka, chairman of the board and chief executive officer, and Stuart Lang, president and chief operating officer, said, ‘Net earnings increased in the second quarter of 1989 to $9,086,000 or $1.19 per common share compared with $8,639,000 or $1.13 per common share for the first quarter of 1989 and $7,675,000 or $1.01 per common share for the corresponding period of 1988. “Similarly, net earnings for the six- month period ending June 30, 1989 in- creased to $17,725,000 or $2.32 per common share compared with $13,568,000 or $1.78 per common Utility giant announces net income increase UtiliCorp United has announced that second quarter net income, operating revenues and primary ear- nings per common share all showed modest gains over results in the same period last year, the company says in a news release. Net income was $5.5 million, a 25- per cent increase over 1988 second quarter net income of $4.4 million. Operating revenues for the three mon- ths ended June 30 were $134 million, versus $125° million in last year’s period. Primary earnings per share were 21 cents, up from 20 cents a year ago., All figures are in American dollars. Average common shares outstan- ding increased to 20.8 million in the 1989 second quarter from 18.6 million in the 1988 second quarter. The in- crease is primarily due to a public of- fering of two million shares in August 1988, the company says. For the first six months of 1989, UtiliCorp reported net income of $23.1 million, versus $19.8 million in the same period a year ago. Operating revenues were $354 million, compared to $352 million. Primary earnings per common share were $1.03, versus $1 in the first half of 1988. “The results we've achieved in the first two quarters of this year were built on continued quality performances by share for the six-month period of 8,"’ Hosaka and Lang said Sales for the three-month period were $68,810,000, an increase_of $5,577,000 over the 1988 second quar- ter sales of $63,233,000," they added. “Sales for the six-month period were $132,064,000, up substantially from sales of $123,994,000 for the same period of 1988."” Total net sales of $68,810,000 during the second quarter, with 1988 comparable figures in brackets, were comprised of $39,099,000 ($32,732,000) pulp and $29,711,000 ($30,501,000) lumber and plywood. Total net sales of $132,064,000 for the six-month period were comprised of $78,671,000 ($62,519,000) pulp and $53,393,000 ($61,475,000) lumber and plywood. “Improved sales and profits are at- tributable to the continued strong selling price of pulp during the period and a slight increase in lumber selling prices, reflecting improved product mix and sawmill yields,” Hosaka and Lang said our regulated and non-regulated divisions and subsidiaries,’’ Richard C. Green, Jr., chairman and president of UtiliCorp said in the release. Second quarter results reflect the following: *A strong performance by UtiliCorp’s PSI subsidiary in its natural gas marketing and gas gathering activities. °A 6.7-per-cent rate increase gran- ted to the West Kootenay Power sub- sidiary. The increase in the amount of $3.8 million annually received final approval early in the second quarter. *Continued economic growth in areas served by the Missouri Public Service division. Kilowatt-hour sales have increased steadily in the past four years. Continued strong sales to large volume customers by the Peoples Natural Gas and Northern Minnesota Utilities divisions. UtiliCorp’s newest division, Michigan Gas Utilities, contributed one full month of operations to second quarter results. Because of the seasonal nature of the utility business, Michigan Gas Utilities is not expected to contribute to earnings until later in the year, the company says. UtiliCorp acquired the gas utility on May 26 ina Sur y” Your satisfaction is our main concern Valu Operating costs and expenses during the second quarter were $54,105,000, up from the 1988 total of $50,480,000; while the six-month figure also rose to $103,449,000 from $100,652,000. During the quarter, operating working capital increased to $20,164,000, com- pared with $10,487,000 for the same period in 1988, while assets rose to $188,093,000 from $160,035,000. Long-term debt at the end of the period decreased to $21,505,000 from $29,231,000 “Signs of weakening paper markets are occurring,” said Hosaka and Lang, ‘‘but we do not anticipate a reduction in the selling price of pulp Wood product markets are expected to remain constant through out the third quarter.”” Crestbrook Forest Industries Ltd. Harvests the forest resources of the Kootenay region in southeastern British Columbia and is a fully in- tegrated forest products company directly employing over 1,325 persons in logging, lumber, plywood-veneer and bleached kraft pulp operations of UtiliCorp has declared a regular quarterly cash dividend of 36 cents per common share, the company says The cash dividend is payable Sept 12, 1989, to shareholders of record on Aug, 15, 1989. Meanwhile, UtiliCorp has requested approval from the U.S. Federal cut from Canada grade ‘A’ beet round steak 1 89 roast 5.4.17 w. s B.C. grown *no. 1 blue- a ah berries wa coke or sprite 2L. plus deposit DELI SPECIALS PLAZA STORE ONLY or Bavarian Meat Loaf 100g. @ 1 | Beer Sausage 8 8 or Honey Ham 1009. w Roast Beef, Pastrami, Turkey Roll or Black Forest Ham 100 g. m Dinner Ham Northern Country * frozen orange juice| side bacon 500 g. pkg. .99 Campfire * sliced 12 pack case 7.49 works out te only 62 each every $25.00 in groceries purchased, entitles you to GET ALL 4 ge price of these products at these super low prices get | of each with $25; get 2 of each with $50; get 3.of each with $75; etc., etc., etc. Grea Pricat Hothouse grown * no. 1 long english assorted hea ith bread cucumbers 49 | .49 Prices effective Aug. 6 to Aug. 12 PLAZA SUPER-VALU OPEN SUNDAYS 10 A.M.-6 P.M. Two locations to serve you: Downtown and Plaza! Energy Regulatory C (FERC) and various state regulatory agencies for a private placement of $50 million in unsecured notes, the com- pany says. The proposed issue would havea coupon rate of 9.21 per cent Prudential Insurance Company of America would be the sole purchaser of the notes, the company says. The proceeds are expected to be drawn in October and would retire short-term debt incurred for the com- pany’s construction program and general corporate purposes. UtiliCorp, based in Kansas City, provides electric and gas service to eight states through its divisions, Missouri Public Service, Peoples Natural Gas, Michigan Gas Utilities, Northern Minnesota Utilities, Kansas Public Service and West Virginia Power. West Kootenay Power in British Columbia is a Canadian sub- sidiary. UtiliCo Group, PSI and EnerGroup are non-regulated sub- sidiaries special in, utility and merger with Energy Resources Company. In other news, the board of directors energy related investments and ser- vices. Fail to yield on green arrow; Red flashing Yellow flashing light at interséttion; Yell: flashing light; Disobey construction sigr driving; Speed in municipality; Sper against area sign; Speed against m Speed in playground zone; Fail to Unsafe lane change; Lane change Right turn from wrong lane; Illegal line; Fail to pass at safe distanc: Increase speed while being passed. Unsafe pass on left; Pass without c Commercial vehicle follow too closely; t Leave controlled access highway; Impropt Improper right turn-no intersection; Unsafe U- signal on turn Mp. Westar Timber We welcome Mr. oy LN Westar Timber Southern Wood Products WELCOMES THE WORLD! H. NIIMORI, manager of Production and Quality Control of OKURA HOME COMPONENT CO. LTD. from CHIBA, JAPAN. Mr. Niimori will be visiting our sawmill and the Castlegar area the week of August 7, 1989. Setting the standard for quality lumber products worldwide. - WESTAR SETS THE STANDARD! intersection; Disobey yield sign: after stop; Fail to yield to vehicl yield; Fail to yield for emerger pedestrian; Disobey school gaz railway crossing unsafely; Drive stop sign unsafely; Commerci intersection; Reverse when unsai. motorcycle; Motorcycle passenger not law. motorcycle over 2 abreast; Follow fire truc Drive on sidewalk; Open door while unsafe. * Source: ICBC 1988. Direct costs BC All moving traffic violations now carry a fine! Drive vehicle wit. * to yield on let ~ stop; Er aie ; plus penalty points. British Columbians pay $905 million a year in health and other costs related to driving accidents.* It's too high a price for the people of the province and the victims of accidents to pay. From now on, bad drivers ar ranging from $35 to $200. Our roads mus‘ MINISTRY OF SOLICITOR GENERAL Traffic Satety Directorate The Honourable Angus Ree. Solicitor General -rsection; Red flashing light-no intersection; light-no intersection; Fail to yield at green ~ Drive over newly painted lines; Slow peed against highway sign; Speed ticipal lane; Speed in school zone: ep right; Slow vehicle not on right t signal; Left turn from wrong lane; vadway; olid double line; Cross solid broken te pass sai. y; Fail to yield to passing vehicle: safe pass on right; Pass on right of roadway; traffic sign or signal; Follow too closely; ‘wider; Enter controlled access highway; n; Improper left turn-no intersection: ‘urn; Unsafe start; No signal on turn; ce; Fail to yield at uncontrolled aid to left turn vehicle; Fail to yield ail to stop; Emerging vehicle fail to estrian; Pass vehicle yielding for to stop at railway crossing; Leave sbey railway stop sign; Leave railway ay; Disobey stop sign; Reverse into < not on seat; Passenger unlawfully on ermit unlawfully seated passenger; Operate y; Park near fire truck; Drive over fire hose; going to face fines be made safer.