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Guidelines promised for
green advertising

OTTAWA..<CP).-— The federal
government will bring in guidelines
for claims of

Most of the advertising claims
about so-called green products are
accurate, Heilik said, but

tally friendly products, because con-
sumers are being misled; says a@
spokesman for the Consumer Affairs
Department.

“Business has jumped on the en-
vironment bandwagon and some
marketers are using labelling practices
that may not be legitimate,"’ Jacob
Heilik said Tuesday.

It’s a bandwagon that’s proving
lucrative,

The Loblaw supermarket chain
alone has tallied up more than $60
million in sales from its environmen-
tally friendly Green product line in-
troduced almost a year ago.

NDP angry
over mill
licences

EDMONTON. (CP). — The Op-
position New Democrats are furious
that the Alberta Environment Depar-
tment issued new operating licences to
two pulp mills-in- the northwestern
part of the province.

Under the operating licences issued
Monday, the Procter and Gamble Co.
Ltd. mill at Grande Prairie and the
Weldwood Canada pulp mill at Hin-
ton will be required to reduce the
amount of poisonous dioxins and
furans dumped into rivers.

But the reductions are not enough
to staisfy John Mclnnis, the New
Democrat's environment critic. ~

Dioxins and furans are produced in
the chlorine bleaching process used at
some_pulp_mills. Traces of the sub-
stances—have_been_detected_in_fish
taken from several northern Alberta
rivers.

“1 think it’s a scandal," said
McInnis.

“Both Procter and Gamble and
Weldwood got exactly what they wan-
ted out of this government. They
sought a long-term authority to dump
millions of kilograms of these sub-
stances into the Wapiti and the
Athabasca and the Peace River
systems.””

McInnis said that the two new
licences were issued without the
provincial government first holding
public hearings.

PSSSST

when shoppers walk into stores ‘‘they
see two identicial products, packaged
by different companies, with one
carrying a label saying biodegradable
or recyclable.

“In the consumer's mind, that
product immediately becomes better
— an impression that isn’t factually
true.””

One of the most glaring examples
of misleading advertising is the claim
that foam packaging is free of ozone-
depleting chlorofluorocarbons, or
CFCs, Heilik explained. Foam
packaging must be CFC free by law.

“The companies doing this are

trying to gain a market share. They're
telling consumers their product is safe
without telling them that all such
products on any supermarket shelf
must meet that same standard."

Advertising may also tell only one
side of the story. The propellant in
some spray cooking oils is advertised
as containing no CFCs, But the
replacement propellant can contain
isobutane and propane — ingredien-
ts-research iridicates can contribute to
creating smog.

The department is in the first stages
of creating the guidelines, which will
be voluntary and won't carry the
weight of legally enforceable
regulations, Heilik said. It’s a process
that may take several months. ~

Briefly

fi} chosen by the

Democratic legislature convened

BUDAPEST (AP) — Hungary’s first truly democratic, multiparty
legislature in 42 years convened today in the stately parliament building.

In a gesture symbolic;of Hungary's transition to democracy from
communism, 384 deputies chosen in free elections in March and April
filed into a chamber newly stripped of the coat of arms of the old
People’s Republic.

The insignia of the old Communist republic, renamed simply the
Republic of Hungary in October, was removed last week.

The most important task facing the new legislature at its first,
largely ceremonial, two-day session is that of choosing a new house
Speaker, who also will serve as interim president.

He will replace Matyas Szueroes, a member of the Socialist party
created from the long-ruling Cé isty party that d itself last
year. It remains to be decided whether the president will eventually be

Lithuanian freedom promised —

TORONTO (CP) — Lithuanian Prime Minister Kazimiera Prun-
skiene promised that her tiny Baltic republic will someday be free of
Soviet rule as hundreds sang and chanted in support of her goals
‘Tuesday.

“We'll find the key, the answer, without losing the most importan-
t question, which is the ion of i ae iene told
about 600 Li jan-Ci i ina ity hall.

The Kremlin’s economic blockade of Lithuania won’t break the
republic’s spirit or force it to back down on its March 11 independence
declaration, she said.

““We can survive, both politically and economically,”’ the 47-year-
old former economist said through an interpreter.

As Prunskiene finished speaking, her audience broke into a chorus
of Lithuania’s national anthem.

Copps confident of support

CALGARY (CP) — Calling herself the first woman prime minister
of Canada, Liberal leadership contender Sheila Copps radiated con-
fidence Tuesday as she officially opened her campaign office in the city
where her fate will be decided next month.

“The notion that Mr. Chretien has the thing won is not a reflection
of reality and it certainly isn’t a reflection of the stuff I’m getting from
the grassroots at all,"” Copps told a handful of supporters.

**What our tracking is showing is not only is my vote very solid, but
both Jean Chretien and Paul Martin’s vote is very soft and I’m
everybody’s second choice.’’

Unity top problem, survey says
TORONTO (CP) — National unity is identified by Canadians as

the most important problem facing the country today, a survey by the
Conservative party’s polister suggests.

With the June 23 deadline for ratification of the Meech Lake con-
stitutional accord approaching, national unity was named as the most
important problem by 21 per cent of respondents in a March survey by
Decima Research, the Toronto Star reported today from Ottawa.

Taxes were cited by 13 per cent, the environment by 10 per cent,
unemployment by six per cent and free trade five per cent.

“It should be noted that concern about national unity issues has

never been this high before,’’ Decima says in a report to government

and corporate clients on a March 17-24 survey of 1,500 adults.
Even two months before the 1980 Quebec referendum on
soveriegnty-association, when the first such quarterly survey was taken.
In December, only five per cent of respondents cited national unity
as Canada’s most important problem.

Hogh Wilegn of
dardized booth:

More than 6,000 people visited this year's West Kootenay Trade Fair at the C
last year, sald trade fair chairman

sors the annual event. Wilson said

lex last weekend, an increase over
Selkirk Lions Club which spon:
s

di

their this yea

4
y Pp ir.
donations to worthy community causes, Wilson noted. — cosews photo

on the main floor — about 120 exhibitors
fees to the fair allow the Lions Club to make

Teck income down 15

VANCOUVER (CP) — Teck
Corp, net income dropped more than
15 per cent in the three months ended
March 31, the company reported.

Net income fell to $24 million or 29
cents a share from $28.5 million or 35
cents a share last year.

Revenue rose to $120 million from
$102 million a year ago, the company
said.

The company said its 50 per cent
share of operating profits from the
David Bell and Williams gold mines in
Ontario's Hemlo gold camp jumped

to $38.5 million in the latest quarter
from $19.8 million last year.

But its equity share in the net car-
nings of Cominco Ltd. dropped to
$1.7 million from $11.5 million last
year. Teck said the decrease was due
largely to lower zinc and copper prices
and reduced metal production at
Cominco’s smelter in Trail.

Meanwhile, Cominco Ltd. reported

aie ; 7 z

q
net earnings of $17.1 million or 20
cents a share, compared to $70.5
million or 86 cents a share in the com-

Mortgage demand
expected to drop

OTTAWA (CP) — Demand _for
mortgages will drop in the second half
of this year as the impact of higher in-
terest rates and a slowing economy
takes hold, Canada Mortgage and
Housing Corp. says.

Mortgage borrowing continued
growing in the last half of 1989, said
Mark Burchinshaw, chief economist
at the federal housing agency, partly
because ‘the demand for long-term
mortgages was very strong, especially
for five-year mortgage terms.

“Borrowers could take advantage
of the difference between one-year
rates of 12.75 per cent and five-year
rates at 11.75 per cent.”’

But the latest round of mortgage-
rate jumps has narrowed the spread
between short- and long-term rates.

Last week, most financial _in-

the potential homebuyer an oppor-
tunity to take advantage of the lower
rates,”” Burchinshaw said.

“Now that both one- and five-year
rates are relatively high, it will limit
options and work to reduce
demand.”

The impact of interest.and mor-
tgage rates can be seen in recent
figures showing a dramatic dectine in
home sales, he said.

MAKE

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parable period last year.

Company president Bob
Hallbauer blamed lower prices for
zinc and copper, as well-as reduced
production of refined-zine-and lead.
and-the-closure_of the Sullivan Mine.
in Kimberley.

The price of zinc has dropped 19
cents US a pound and copper 36 cents
US a pound during the last year.

Sales dropped to $309.6 million
from $400.5 million in the first quar-
ter of 1989.

Economy
shrinks
again

OTTAWA (CP) — The economy
shrank in February for the second
month in a row, and some economists
said Monday it may be too late to
avoid a recession.

The last time the economy declined
two months in a row was in June and
July 1982 when the country was mired
in~ the worst economic contraction
since the Great Depression.

“IT think it’s too late to push the
panic button,’’ said Doug Peters,
chief economist at Toronto-
Dominion Bank.

“The economy is slowing and
we've finally put the brakes on for
two months in a row and it has stop-
ped — that means the first quarter is
going to be flat or down.””

atistics Canada said the economy
shrank: 0.1 per cent in Februar,
following a revised 0.3 per cent con-
traction the month. before, after ac-
counting for inflation.

John Crow, governor of the Bank
of Canada, has pushed interest rates
to their highest level since 1982 in a
bid to slow the economy and squeeze
inflation out of the system.

But the latest economic figures still
don’t reflect the full impact of the two.
latest rounds of interest rate in-
creases.

Prime rate, generally charged by
major banks on loans to their cor-
porate top customers, rose to 14.75
per cent last year after rising in mid-
February to 14.25 per cent from 13.5
per cent.

“If we cut interest rates today, a
recession is already in the works,”’
said Jeff Rubin, senior economist at
Wood Gundy.

A recession occurs when the
economy shrinks for two quarters ina
row and Rubin believes that will
probably happen later this year.

“I don’t think this is really the
beginning of the _ economy
unravelling. I think that’s still about
two quarters away when all of a sud-
den we get a very sharp contraction in
investment spending,” he added.

So far, strong business investment

spending in new plants and equipment _

has been an important source of”
strength for the weakening economy.

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