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Uh ar om : aan s0Beys0> ‘so000s YOR - £Z1L IHASIS IONVENSNI 3L71dWOD V ONIDIACSd a Sai ws at - i ti a , caves wt) eumorg sonyonr s26us _peinpeu Ss8izi8s8. ie a yt ¥ES9-S9E S1qQuin}o> BLO! ; i le 3it wi He ar ue i ie, ii ie u i ri | ; i : | FA i ei ile aH ih in nig tie i ite ee an ail gat 7728 i 18 pi Tite i LF 28 rd 8 bile Hg 7 ii; Ree ait z Ndi: ara i 3 aT eae BE mh ‘a Fut dint ligt gil af iz Tite, fy! pe quanta! wT 2 te ae ell ot en at za. i le Hie Hi ii g mre ig G08 zs* 8 a ny ae ng _ Fe sehce ie NG el : ii mm itlae ait mi sl? te rie ri “fea fthseadt i ‘i'n Hd b tia i I i NE A 2 ofS 0% Uae parsiyiy ali if HH pity ! igs 206014805 ‘sous yin - £Zit Bez 2) ereWUM, Lo s0Beyso> ‘soouss yer - £211 ell i sy rH lie ~ t MIM SAVO XIS N3dO ONVUNSNI J0HOD ASW3 JONVENSNI re it uh H = (penuyuo) Aopinyos Z1 yasow ‘Anpseupeyy 0; yBnosy; 9 yu0w ‘Aopsuny) Z| y2u0w ‘Aopseupeyy 0; YBnosys 9 yos0W ‘Aopsunys 70 HH if Re i 223? fl i 4 < = m bd o BUDGET FORECASTS N T RE BETS \UCHESNE OTTAWA ry — Despite all the hullabaloo, two tough budgets and an 18-month spending witch-hunt, Finance Minister Michael Wilson has yet to show he has shaved one cent from the federal deficit. That may be a shock to people who have seen their taxes rise steadily since the Conservatives took power in September 1984; heard repeated stories of government spending cuts and freezes; and heard Wilson proclaim last week he'd finally gotten the deficit below the magic $30-billion level. Canadians will have to wait until Oetober for proof the deficit has been reduced even to the $33.8 billion Wilson forecast for the fiscal year ending March 31. That's when the public accounts which give the final deficit figure for the previous year come out. And they'll have to wait until the fall of 1987 before they learn whether the deficit really drops below ‘$30 billion. All the public has so far are forecasts of what tax and ding cuts are to produce and federal forecasts are not sure bets. Forecasts — both Tory and Liberal — are based on old accounting rules, which were in effect until the current budget. In February 1984, then Liberal finance minister Marc Lalonde forecast the 1984-85 deficit — the last fiscal year for which there are final figures — would be $29.6 billion. Nine months later, Wilson, using the same people as Lalonde to put his forecasts together, came up with a 1984-85 deficit prediction of $34.5 billion. Six months later, Wilson added another $1.3 billion, pushing it up to $35.8. FINAL FIGURES HIGHER Six months after that, the. final figure came in at $36.9 billion — $1.1 billion higher than Wilson had predicted six months earlier; $2.4 billion more than he had forecast originally; and $7.3 billion more than Lalonde’s prediction. The discrepancies raise serious questions about Wilson's claim in his latest budget that 70 per cent of his deficit-cutting measures will come from government spending cuts rather than tax increases. In an interview with The Canadian Press, Wilson said his spending-cut claim is based on what the level of spending would have been had the Tories not taken any action. Asked if his spending cuts were based on the February 1984 spending projections, Wilson replied: “Yes. This was the spending track that was presented to us when we came in.” His aide, Richard Remillard, added: “It’s a non-change spending track, based on the economic assumptions that were in place in 1984.” If Lalonde's spending projections are used, not only has spending not been reduced from levels he forecast, it has increased and will continue to do so until 1987-88. Lalonde forecast that in the coming fiscal year — 1986-87 — Ottawa would spend $107.8 billion. Wilson is predicting Ottawa will spend $108.6 billion. And it’s not until the 1987-88 fiscal year that Wilson gets his spending projection below that of Lalonde’s. In 1987-88, Wilson predicts Ottawa will spend $112.1 billion, $2.1 billion less than Lalonde forecast. But even then Wilson's deficit projection of $27.9 billion is still $1.7 billion higher than forecast by Lalonde for the 1987-88 fiscal year. It is small wonder that, as Wilson told The Canadian Press: “There's a cynicism out there in the private sector that says . .. projections made by politicians don't mean a damn.” Tories add to spending plans OTTAWA (CP) - government has another $1.6 billion to its spending plans for the cur. rent fiseal yéar ending March $1 but Treasury Board Pres- ident Robert de Cotret says it will still spend.more than $1 billion less this year than originally estimated The added budgetary disbursements will total less than $104 bil lion.” More than half of the $1.6 billion in new spending plans is to cover the $875 million Ottawa has agreed to pay uninsured depositors at the Canadian Commercial Bank and a related firm CCB Mort; Investment Corp. “For the first time since et 1979-80, the government's budgetary spending will be lower than forecast,” de Co tret said Tuesday in a news release after ae bead final and Northland Bank, which collapsed last year. The balance includes in creased spending in a variety of areas. Last week de Cotret tabled es main i for the coming fiscal year which show total spending will rise to $116.7 billion under new accounting rules suggested by Auditor General Ken Dye. timates for 1985-86. “When the main estimates were tabled last year, that forecast was $105 billion,” he said. “It is now expected that Budget change affects TORONTO (CP) — A small orphans” investor's favorite securities — preferred shares. Ottawa borrows $2.5B OTTAWA (CP) — The government's defence of the dollar in recent months currency it not been for massive bor. rowing to replenish the fund. Finance Department fig- ures released today show Ot- tawa borrowed a record $2.565 billion U.S. last month to add to its dollar-defence fund of international reserv- es and spent $1.3 billion U.S. of that defending the dollar. The massive borrowings, both at home and abroad, inereased the government's holdings of reserves to $4.484 billion U.S. at the end of February, up $1.25 billion U.S. from the end of January. Yet, last month's borrow- ings, combined with out- standing loans, have pushed the debt of the reserve fund to $4.265 billion, almost as much as is held in the fund. The $2.565 billion U.S. borrowed last month exceeds the previous record $2.35 bil- lion U.S. borrowed by the previous Liberal government in June 1982 when the dollar was trading at what then was a record low of about 77 cents US. At that time Finance Min. ister Michael Wilson, as op- position finance critic, criti- cized the government for its actions, warning that the fund's debts to al- taxes it charges on dividend income from Canadian seeur- ities effective Jan. 1, 1987. Preferred shares, the main type of di share, are a relatively con- servative form of security traditionally favored by in- vestors who want to hold shares for their capital gains potential but also want the security of a fixed income shares because they can raise capital at a slightly lower cost than straight debt in- struments such as bank loans or debentures. TRANSAFETY DRIVING SCHOOL Now Operating in Castlegar DRIVER TRAINING FOR THE BEGINNER Mon. & Wed., March 10 & 12 6:30 - 8:30 p.m. at S.H.S.S. 7—2-Hour Theory Classroom sessions 5—1n Car practical sessions Fee: $155. instructor: Patty Johnson sored fi Selkirk College © PRIVATE LESSONS AVAILABLE FORINFORMATION gon Romer COURSE 352-3522 365-7292 Crestbrook reports fourth quarter loss By CasNews Staff on-stream during the last Crestbrook Forest Indus- quarter of 1985. tries Ltd. of Cranbrook has The startup resulted in lost reported a loss for the fourth production of 20,000 tons or quarter of 1985 of $4.77 mil- almost $8 million in revenue, lion or 63 cents a share on the release notes. sales of $33.13 million. “During the last two ‘A news release from the ™onths of the quarter, the company says the fourth Company commenced a sal- vage program with timber affected by the forest fires previously reported in our ber continue to gain in im- portance and contribute to the company’s profitability, all-time yearly low during the quarter and remained at very depressed levels during the quarter loss brings the con- ited loss for the year 1985 to $18 million or $1.05 mid-year report,” company president and chief operating officer Stuart Lang says in the release. “The logging associated with this salvage program, unprecedented in size in the country, began in the early part of the quarter. “The Canal Flats sawmill, fully converted to a salvage wood operation, commenced sawing this wood towards year-end. In early January, the mill began operations on a full three-shift basis.” Lang says the other solid wood facilities operated at capacity during the quarter. entire year. But Lang added: “We now foresee de! im- provements in pulp prices and anticipate further in- creases for the second quar- ter of 1986." Lang says 1985 was a diffi- cult year for Crestbrook. However, he adds the de- cision to invest heavily in up- grading the pulp mill facility per share on record sales of 42 million. SPRING — Sale Ends Saturday, —— 15 SAVE 4 15% - 20% ON ALL FABRICS neluded in the loss for the quarter was a non-recurring cost of $4.98 million, asso- ciated with the startup of the pulp mill optimization pro- gram, the release says. Included in this unusual item were additional cooking and bleaching chemicals, fibre loss, and higher energy and labor costs incurred dur- ing the startup. The basic equipment and process changes provided under aryl program were to reduce costs and improve production was very timely and will contribute to the company’s profitability. “The costs associated with this program are now behind us and we look forward to ! &N UPHOLSTERY most half the value of the fund itself. However, New Democratic Party Leader Ed Broadbent said it's “an extraordinary situation, terribly bad news for the minister of finance but worse news for Canada. “What today’s news means is that this borrowing is going to add millions of dol- lars again to the tax bill that ordinary Canadians are going to have to pick up.” he said. While the fund also in- cludes gold holdings, which are held at a book value of $813.4 million U.S., about a tenth of their market value of $8 billion, the government is limited in how much of the gold it could sell off in a short period as a surge in gold sales would depress the value of the metal on world markets. FRANK’S SHARPENING SERVICE CASTLEGAR, B.C. (Behind “Castle Theatre”) SERVICE 365-7395 eeaanamasinasmaatein [8 \RFERCARD he Lor) eit wnaby, B.C. VSC 324. ailal CA we "295 CORRECTION RE: MARCH CIRCULAR VOL. 18, No. 31 ell Shower covered ’ reduced to for i EXCEPTIONAL VALUE 2428 - 11TH AVENUE — Three bedroom, sundeck, carport, driveway and 94x100 lot. — Originally offered at $74,500. Now Only $52,900 Contact Dovid Daniel or. Jordan full basement, two brick concrete Century 21 Mountainview Agencies Ltd. 365-6892 residence or 365-2111 business Added value products such as machine-stress-rated lum- 1986 with enthusiasm,” he says. ing September and aught 502 Front Street, Nelson * 352-9419 the rate of return on the last four series of Canada Savings Bonds (S 37 issued November 1982, S 38 issued November 1983, S 39 issued November 1984, and S 40 issued November 1985) has been increased to 10’ for the 4-month period ending June 30, 1986. All other terms of these series remain unchanged. Both Regular Interest Bonds and Compound Interest Bonds of these four series earn the new rate of return. As a result, on November 1, 1986 each Regular Interest Bond will now pay $90.( The increased value for a $1,000 Compound I Bond will be as follows: interest at the rate of 10%% of 10%% is also the minimum ra years to maturity. FOR ADDITIONAL INFORMATION Additional information is available wherever you bank or invest. $1,489.43 for Series 37 issued in 1982 $1,329.85 for Series 38 issued in 1983 $1,212.63 for Series 39 issued in 1984 $1,090.00 for Series 40 issued in 1985 CANADA SAVINGS BONDS Canada