A6é

CASTLEGAR NEWS, September 2, 1981

Resolution of federal-provincial dispute

Oil industry is cautious about settlement

By Steve Mert!

CALGARY (CP) — Like a
child caught between two
quarreling parents, the oil in-
dustry has landed smack in
the middle of the federal-
provincial oil-pricing dispute.

Alberta has been pulling in
one direction; Ottawa the
other.

Now the two sides have
decided to pull in the same
direction, dragging the in-
dustry along, willingly or
otherwise.

Industry is unsure that's
the way it wants to go but at
least it's better than being
wrenched limb from limb.

Spokesmen for the indus-
try have greeted the pricing
agreement, signed by the Al-
berta and federal govern-
ment’s Tuesday, with guard-
ed optimism.

They're encourage by the
resolution of the stalemate
that has hamstrung the in-
dustry and the Canadian
economy as a whole for al-
most two years. The very
fact the agreement exists re-
stores some harmony to the
economy and a sense of pre-
dictability to investment pol-
icy.

The national energy pro-
gram, brought down by the
federal government about 10
months ago, purported to
lend the same kind of stab-
ility to Canada’s energy in-
dustry. But there was on
critical flaw — the policy was
drawn up without the con-
sent of the dominant domes-
tic oil and gas producer.

OPPOSITION GREW

Instead of clearing the air,

the national energy policy

crystallized Albertan oppo-
sition, The government of
Premier Peter L heed saw

berta counterpart Merv
Leitch, said Ziff.

Jack b the Royal

Stan Roberts, president of
the Canadian Chamber of

it not only as a crass revenue
grab but an attempt to wrest
effective control of resources
from the provinces,

The stalemate sent ec-
onomic shockwaves through
the Canadian economy, says
Paul Ziff, oil and gas analyst
for Greenshields Inc., an in-
vestment brokerage firm.

It was not until the Lib-
erals lost byelections in the
Quebec riding of Joliette and
the supposedly safe Toronto
riding of Spadina that the
government realized the
depth of popular frustration
over the economy, said Ziff.

Those defeats, more than
anything else, pressured En-
ergy Minister Marc Lalonde
to come to terms with his Al-

But consumers face price hikes

Bank's senior vice-president
in charge of the global energy
and minerals group, said the
agreement will be good for
the industry and the country.

One likely effect will be a
bolstering of the Canadian

OIL AGREEMENT

dollar, hurt on foreign money
markets by uncertainty over
the Canadian investment cli-
mate.

But Stabback said just as it
took time for the effects of
the national energy policy to
sink in, “I suspect it will take

said he feels
optimistic about the agree-
ment at first glance. The
former president of the Cal-
gary-based research group
Canada West Foundation
said the oil industry seems to
be getting a fair shake under

the new
plan,

Despite the mostly upbeat
reaction, individual oil com-
panies will not go beyond a
general endorsement until
their

revenue-sharing

Most importantly, they
worry it may not provide
them with a high enough net
return, or “netback,” to make
Canadian oil and gas explor-
ation and production worth-
while.

Spokesmen for major firms
say they are studying the
agreement. As with the na-
tional energy program, de-
tailed reaction likely will be-
gin seeping from the Calgary
oil patch within a few days.

In terms of foreign in-
vestment, Ziff said the high
prices for new oil should
serve to attract exploration
firms back from the U.S.

GAS BENEFITS

Ziff pointed out that gas

get a little-noticed

and com-
puters have analysed the

a time to re-
cover.”

Bi 's effects on their
firms,

Leaders happy with agreement

OTTAWA (CP) — The
Canadian dollar jumped al-
most half a cent and Finance
Minister Allan MacEachen
predicted lower interest
rates in the wake of Tues-
day's Ottawa-Alberta energy
agreement.

The deal also will likely
speed economic development
and ease federal-provincial
tensions, business and poli-
tical leaders agreed in a rare
display of unanimity.

But consumers will have to
pay higher prices while much
damage has already been
done by the protracted dis-
pute, federal opposition
spokesmen charged.

And there could be some
hidden problems, a few en-
ergy and manufacturing com-
pany officials warned after
Prime Mnister Trudeau and
Premier Peter Lougheed an-
nounced the accord.

The dollar jumped to 83.58
cents U.S. by noon, up 0.45
cents from Tuesday's close
and more than one-third of a
cent above the summer's
previous high of 83.22 cents,

Many benefits

reached July 2.

MacEachen said the en-
ergy pact will likely mean a
stronger dollar and a better
balance of pay — both

the deal's positive effects.
This will almost certainly

ease pressure on interest

rates and speed economic

of which should ease the
pressure on the record in-

said Bennett,
spokesman for the premiers
this year as host of their

terest rates now pi
this country.

But Ian Waddell, New
Democratic
critic, said thé Canadian con-
sumer, who will have to pay
greatly increased prices for
gasoline and home-heating
fules, is “the big loser... who
must pay for this windfall” to
the oil companies.

British Columbia Premier
Bill Bennett said successful
conclusion of the pact was the

gin

Party energy

annual

Ontario Premier William
Davis said he is “very en-
couraged” by the deal but
urged Trudeau to convene
quickly a meeting with the
premiers to deal with the
country’s remaining econ-
omic problems.

New foundland Energy
Minister Leo Barry told an
Ottawa news conference the
pact shows difficult problems
can be worked out in a spirit

cor of the nine-point
economic recovery plan ad-
opted last month by all 10
provinces during their annual
meeting in Victoria.

The provinces and most
financial community experts
believe this will restore in-
vestor confidence in Canada,
bolstering the dollar, which
had climbed back above 83
cents U.S. in anticipation of

of Pp

He called on the federal
government to apply the
same pricniple of “equitable
treatment” to coming dis-
cussions on the continuing
dispute with his province
over jurisdiction over off-
shore resources.

A spokesman for Manitoba
Premier Sterling Lyon said
the agreement “is a major

West can applaud deal

By John Ward

OTTAWA (CP) — The
energy-producing provinces
of the West all have some-
thing to cheer about with the
signing of the energy-pricing
agreement between Ottawa
an Alberta.$

The sharply higher oil pri-
ces negotiated hetween the
two governments apply to all
the provinces and the agree-
ment says the export tax will
drop to zero in any “agreeing
province.”

Alberta Premier Peter
Lougheed and Merv Leitch,
the province's energy minis-
ter, said at a news conference
the pact will encourage the
petroleum industry in the
West.

Leitch said there will likely
be more drilling rigs boring
into the Prairies. Many drill-
ing companies moved to the
United States in search of
better profits in the wake of
the national energy program.

“I do not think that this
will bring the rigs that have
left back to Canada,” Leitch
said. “Once you're down
there, you tend to stay there.

“On the other hand, we
have a building capacity in
Canada. I would expect the
drilling fleet to build up
rapidly and activity to build
up rapidly.”

Lougheed said the suc-
cessful conclusion of the en-
ergy talks also bodes well for
other issues that have
strained relations between
the federal government and
the provinces, such as the
discussions over new fiscal
arrangements.

“Obviously, in a federal
system there are naturally
going to be tensions,” Lou-
gheed said. “The (agreement)
has got to be a positive
factor.”

The West is not the only
beneficiary. Leitch said he

‘feels that the agreement

means that the country can
become self-sufficient in en-
ergy.

“I think we've lost. some
time... during the last year
or so,” the minister said. “I
would certainly remain opti-
mistic that we could reach
energy self-sufficiency within
the next 10 years.”

One reason for his opti-
mism is that the agreement
gives the go-ahead to Al-
berta’s two massive oil sands
plants at Cold Lake and Fort
McMurray.

Construction of the two
mega-projects is bound to
give the Alberta economy a
solid push forward, but ben-
efits will also accrue to the
rest of the cduntry. »

Ontario and Quebec will
get billions of dollars as the
companies, Esso Resources
Ltd. and the Alsands consor-
tium, seek contractors for the
multi-billion-dollar projects.

Both sides finished winners

By John Ward

OTTAWA (CP) — Alberta
Premier Peter Lougheed
says the successful conclu-
sion to the energy-price bat-
tle with Ottawa is a triumph
for federalism, but it seems a
victory for Alberta as well.

In fact, federal Energy
Minister Marc Lalonde called
one federal concession a price
for peace.

Lougheed said at the post-
signing news conference he
does not want to reduce the
event toa matter of winners
and losers, but the province
has gotten satisfaction on
most of the key points it has
stressed over the last 10
months,

For instance, Ottawa has
agreed to take off its natural
gas export tax, a major
Alberta concern,

Alberta took Ottawa to
court on the gas tax. The de-
cision has not yet come down,
and the province will let the
suit stand in an effort to bury
the tax once and for all.

Although Lalonde also in-
sisted there were no winners
and losers, he was a bit rueful
on the gas tax issue when it
was pointed out the principle
of the tax was an important
issue in Ottawa's last budget.

“We've had a war with a
very important province for
a year,” Lalonde said. “You
have to be ready to pay a
price for peace.”

Lougheed noted Alberta
has gained higher pricés for
its energy resources and the
agreement will also mean the
big oil sands plants, projects
which have been stalled in

uncertainty for a year, will go
ahead.

“We were looking for a
year, will go ahead.

Building
to benefit

KAMLOOPS (CP) — The
federal-Alberta agreement
on oil prices will have a major
beneficial impact on new.
housing starts in Canada,
RD. Flitton, national sec-
retary of Housing and Urban
Development Association of
Canada, said Tuesday.

Flitton said the agreement
can only have a beneficial
impact on the present ex-
tremely high bank interest
rates.

step on the road to energy
self-sufficiency . . . (which)
will have a positive effect on
manufacturing and industry
in general in Manitoba.”
William Mulholland, presi-
dent and chief ive of-

represents “a massive be-
trayal of election commit-
ments by the Trudeau gov-
ernment,

Former Tory Energy Min-
ister Ray Hnatyshyn said it is
obvious will even-

benefit from the agreement.
The so-called “gate price” for
natural gas has been moved

back from Toronto to Al-
berta, meaning producers no
longer have to: bear trans-
portation costs through pipe-
lines out of their gross rev-
enues. The distribuotrs, east-
ern industries and utilities,
will bear the brunt of charges
levied by TransCanada Pipe
Lines Ltd.

Ziff also said increased
cash flow from higher prices
should offset the effects of
higher petroleum and natural
gas revenue taxes for gas
producers.

"I know the PGRT (pet-
roleum and gas revenue tax)
is pretty painful but the
dollar increase (in price) is
pretty staggering,” he said.

There were more quali-
fications in the generally op-
timistic statements from the
backers of two major oil

sands projects in limbo for
the last 18 months.

The Alsands oil sands
project near Fort MeMurray,
Alta, and the Esso Re-
sources Canada Ltd. project
at Cold Lake, Alta., both will
get provincial approval soon,

Spokesmen for the two
projects, which are each
worth about $12 billion, say
only acceptable royalty pack-
ages from the two levels of
government are needed to
get the plants back on track.

If there is a loser in the
agreement it is the Canadian
consumer, although industry
and business spokesmen say
users have gained and not
lost. They are being asked to
trade far higher prices for
petroleum products in return
for the promise of energyself
sufficiency.

Exact price increases
impossible to calculate

OTTAWA (CP) — How
much will a litre of gasoline
or healing oil cost in 19867

You can't tell from the
agreement between Alberta
and Ottawa signed Tuesday,
in spite of detailed charts and

ficer of the Bank of Montreal,
said the agreement is “the
best news we've had in a
year.”

Jack Stabback, first vice-
president of the Royal Bank
of Canada, said it will be “im-
portant for the whole coun-
try,” and hopes it will lead to
increased oil exploration.

ROAD OPENING?

John Bulloch, president of
the Canadian Federation of
Independent Business, said
the deal may finally open the
way to some relief from
record loan rates — now
more than 22 per cent a year
— for consumers farmers,

small businessmen and farm- ,

ers.

Even the federal Conser-
vatives welcomed the deal as
being in the best interests of
the country, although they
had some criticisms.

Tory economic develop-
ment critic Harvie Andre
said the “tremendous cost” of
the 18-month dispute was
“too large a price to be paid”
for the Trudeau govern-
ment’s politican pride.

Former Finance Minister
John Crosbie, whose budget
proposal to add an excise tax
of four cents a litre, or 18
cents a gallon, to future oil
price increases toppled the
former Clark

tually pay more under the
new agreement than under
the tentative deal he nego-
tiated shortly before the
Clark government fell in De-
cember, 1979.
PROTECTION LOST

At the same time, low- and
middle-income Canadians will
not have the protection of the
energy tax credit proposed
under the Crosbie budget, he
added in a telephone inter-
view from Saskatoon,

Trudeau, Lougheed, fed-
eral Energy Minister Marc
Lalonde and his Alberta
counterpart, Merv Leitch,
said the agreement will mean
an extra $10 billion for the
petroleum industry over its
five-year. term.

But others weren't so sure
of the benefits.

Wall Street oil analyst
Bruce Lazier, who admits he
is bitter over Trudeau's
energy policies, said the
Canadian petroleum industry
will be “hurt, not helped” by
the agreement because it re-
duces its share of over-all
future revenues.

Grant Warner, vice-presi-
dent of General Motors of
Canada, .warned recently
that higher energy prices —
and the likelihood of a
stronger dollar — could hurt

said Tuesday's agreement

Canada's position
in international trade.

AGREEMENT'S
MAIN POINTS

OTTAWA (CP) — Highlights of the oil agreement reached
by the federal and Alberta governments Tuesday:
. * ©

The price of gasoline and heating oil to the consumer will
skyrocket in the next five years. Because of the complicated
formula involved and the fact that provincial taxes are in some
cases piggybacked on federal taxes, it is impossible to state

-what new prices will be.
a * 2 «
The price of, oil now being produced in the western
provinces will jump by $39 a barrel at the wellhead. That by
itself amoun ts to about 30 cents a litre for gasoline and
heating fuel. The two parties undertake, however, to keep the
total increase at no more than 75 per cent of world prices,
which are presumed to keep on rising.
* 8 &

Because there have been increases already this year and
because the g ici lower pay on the
subsidy it pays on foreign oil imports, the agreement means a
further increease amounting to about a half-cent a litre for
1981.

4
The price for oil yet to be discovered and for oil produced by
the Alberta oil sands will be determined by a formula taking
into account several things. But it can reach the level of world
prices.
*“ #8 «
The federal and Alberta g * share of oil
will jump while that of the industry will be lowered.
o 8 6

Natural gas prices will increase 25 cents a thousand cubic
feet every six months but federal Energy Minister Marc
Lalonde says they will remain at less than two-thirds the price
of home-heating fuel.

*

The federal government is giving up its controversial
export tax on natural gas, a tax that was strongly opposed by
western provinces.

* * «

Premier Peter Lougheed of Alberta said the oil production
cuts imposed by his province will be ended and the bar on oil
sands production will be lifted.

* 8 «

Prime Minister Trudeau said no one was the winner in
prolonged oil ‘ions and that the ag is gocd for
Canada. Premier Lougheed said it is a positive development
for the country.

showing how var-
ious kinds of oi will rise in
price.

There are many variables
and unknowns, _ including
rises in the world price of oil,
provincial taxes’ and special
federal taxes, all of which
push up the price to the con-
sumer.

Further, the Canadian
price is a “blended price” of
various oil sources — con-
ventional or “old oil” and tar

sands and “new oil” from
frontier areas and new oil
wells,

Conventional oil, while
priced lower, now is the
largest single source of dom-
estic oil. New oil, tied to
world prices, will become
relatively more important
and will push up the blended
price.

Some of the variables:

— Federal taxes. The
agreement says the price of
conventional oil will rise
$2.50 a barrel on Oct. 1 to
$21.25 a barrel. It doesn't
mention additional federal
taxes that will push that up
to about $28.70. That in-
cludes a $6.20-a-barrel Petro-

leum Compensation Charge
to pay for subsidizing the
price of oil imported into
Eastern Canada.

By July, 1986, the agree-
ment says conventional oil
will be priced at $57.75 a
barrel. But these federal
taxes would also apply to
that price.

— Provincial taxes. Sev-
eral provinces, such as On-
tario and Quebec, have
switched from fixed petro-
leum taxes to a percentage
tax — the so-called ad val-
orem tax. This gives the
provinces increased revenues
with each increase in well-
head prices.

Saskatchewan oil :

More negotiations slated

By Joe Ralko
REGINA (CP) — Saska-
tchewan will begin negoti-
ations Tuesday with federal
representatives in an at-
tempt to reach a separate oil
agreement, Premier Allan

Blakeney said today.
The meeting in Ottawa will

he said, but it is a fair
breakdown of division of rev-
enues for the provinces, Ot-
tawa and industry.

“We need to know how it
will affect us and the oil
industry in Saskatchewan...
we plan to pursue how the
new agreement would affect

new taxes are confusing,
especially when applied to
marginal oi] wells. He said
Saskatchewan would have to
review its own complicated
tax structure and confessed
“it may require some adjust-
ment.”
Saskatchewan's 1981 bud-
i income from oil

involve federal and p
officials and the discussions
will continue in Regina later
in the week, Blakeney told
his weekly news conference.
Federal Energy Minister’
Mare Lalonde and Elwood
Cowley, Saskatchewan's min-
eral resource minister, may
be. brought into the discus-
sions at a later date.
Blakeney said Saskatche-
wan. is analysing the Alberta
agreement on oil prices

+ signed Tuesday, but he indi-

cated the province is happy
with the pattern fo distri-
bution of revenues.

“I'm not suggesting all of
our difficulties have been
resolved by this agreement,”

heavy oil

Blakeney said he is con-
fident the Ottawa-Alberta
accord will be followed by
agreements for British Col-
umbia and Saskatchewan.

The Alberta agreement
deals with the broad issue of
oil pricing and revenues, he
said. But the B.C. and Sas-
katchewan governments
would try to get specific
concerns resolved.

Blakeney said he held tele-
phone conversations with Al-
berta Premier Peter Lou-
gheed during the protracted
energy talks, the last a few
hours before the Ottawa an-
nouncement Tuesday.

The premier noted some

get
will be $600 million this fiscal
year.

Blakeney also said the
province will continue to
challenge in the ocurts two
federal taxes — on petroleum
revenue and natural gas rev-
enue — contained in the na-
tional energy program last;
October. :

Provincial lawyers are dis-
cussing the possibility with
justice department officials
in Ottawa of arguing the case:
before the Supreme Court of
Canada, he said. Originally
the province had indicated it;
would challenge the legality
of the taxes before the Sas-
katchewan Court of Appeal.!

Agreement sets precedent

Provinces strengthened

EDMONTON (CP) — Pre-
mier Peter Lougheed said
today the new eneregy pric-
ing agreement means that
“never again can a federal
government estalbish poli-
cies, taxes asnd pricing with
regard to resources owned
by a province without nego-
tiating with that province
first.

“You can't work in a fed-
eral state unless you're work-
ing co-operatively,” Lou-
gheed said in a telephone

interview.

“When our rights are being
trampled on as they were last
October we have to respond
and we have to respond
strongly.”

The premier said the ag-
reement eliminates a federal
tax on natural gas exports
“which is important to our
exporter_sand to the people
of Alberta in terms of future
revenues.”

“Our revenues will in-
crease about $2 billion each

year or 25 per cent better
than what we would have re-
ceived under the Ottawa
budget of last October.”

Indicating that Alberta
now will approve two mas-
sive oil sands projects
planned for the province,
Lougheed said “there would
be some advantages if the
two plants were not peaking
at the same time . . . that
would put less inflationary
Pressure on the Alberta
economy.”

C of C leader is impressed

TORONTO (CP) — It's a
rare occasion when everyone
wins, but that seems to be
the cse with the energy-
pricing and revenue-sharing
agreement signed between
the federal and Alberta gov-
ernments, Stan Roberts,
president of the Canadian
Chamber of Commerce, said
Tuesday.

Admitting he is impressed
with the agreement an-
nounced in Ottawa by Prime
Minister Trudeau and Al-

berta Premier Lougheed,
Roberts said there may be
something in the fine print of
hte agreement that, will mae
him change his mind but, at
first glance, he feels good
about it.

Roy Phillips, president of
the Canadian

ment with Ottawa.
The projects, involvin
+ a
total of more than $20 billion,
offer the Opportunity to cre-
ate employment and econ-
omic stimulus, Phillips said,

But he noted inte: :
mental i evere

Association, said he hopes
the agreement opens the way
for work to resume on two
major oil-sands projects
which had been delayed by
Alberta pending an arrange-

gling about an
agreement has frittered
away extraordinary develop-
ment opportunities and left
the energy-supply industry
economically uncertain and
confused.

Mixed blessing

As more Albertans find
their income slipping be-
hind the cost of living, they
are increasingly taking ad-
vantage of accommoda-
tions arranged through the
province's housing author-
ities. But as one Calgary
couple has found, it’s a
mixed blessing: For one
thing, it doesn’t allow them
the luxury of laying down
permanent roots, (Fourth
of a series.)

By Jeff Adams

CALGARY (CP) —
Some parents look forward
to the day when their older
children move out, leaving
more room at home for
those who stay behind.

But for Dale and Bev
Harte a shrinking family
means a shrinking home.

Together with their
three teenagors still living
with them — two sons and
a daughter — they share a
four-bed:

Government housing

high demand for similar
low-rent homes.

The housing authority,
one of 40 across Alberta,
now has about 1,000 appli-
cations for its 3,000 units,
says general manager
Frank Betts, 4

The recent rise in mort-
gage rates — including
those for provincially as-
sisted mortgages — has
forced many Albertans to
look at subsidized rental
housing.

Betts said that to qual-
ify, renters must have less
than $7,200 in total assets
(there is no limit for senior
citizens) and be prepared
to pay one-quarter of their
gross monthly income in
rent, 3

Many Albertans now
pay at least half of their
income towards housing,
so the one-quarter figure is
attractive.

“We have noticed an

in northwest Calgary.

They pay just $240 a
month in rent to the Cal-
gary Housing Authority, a
provincia"'~ °° .aded group
(Ss + -~-rental accom-
 . vation.

Dale, 45, and Bev, 41,
say that after almost 10
intermittent years living in
similar housing they are
happy — except for one
thing: The housing author-
ity stipulates that the size
of the family must match
the living accommodations,

“That means we're not
permanently in this place,”
says Harte, looking around
his home. “If my sons or
daughter move out we'll
have to go-to a three-
bedroom place.”

“That's not very nice
hanging over your head all
the time,” his wife added.

But they agree the rule
is necessary because of the

flow’ increase
from about 100 a month to
500 or 600 a month because
people can't afford normal
housing,” said Betts.

The Hartes first moved
into government-assisted
housing in 1970 when they
found Dale's trucking in-
come could not keep up
with Calgary's rising ren-
tal rates. :

He said the first place
they lived in with six
children at home was
“quite a dump sometimes
— it got to be kind of a
ghetto, so many people
compressed into a small
area.”

There was not a lot of
poverty or crime, but it
was “definitely a rougher
neighborhood.”

“We didn't really want
to move in there but even
back then rents were aw-
fully high. Public housing
was all we could afford.”

in another part of town.

Two years later, the
family moved into a better,
government-assisted home

They stayed there until
1971

8.

By that time, although
Harte was not working
steadily because of a back
injury, they were earning
enough money to drop out
of the assistance program
and rent their own de-
tached home.

RENT SHOT UP

But two years later, af-
ter a job accident forced
Harte to retire on a fixed
disability pension, their
rent suddenly rose to $500
a month from $400.

“It was too much, so W6
had to give it all up.
Luckily they (Calgary
Housing Authority) had
this place for us.”

The Hartes are reason-
ably. happy in their town-
house. It is situated in a
normal ‘residential area
with no “public housing
stigma” attached, he said.

But they still miss all the
space they had in the place
they rented on their own.

“T had a big garden there
and a two-car garage
lots of room to tinke:
around,” Harte said.

Thoy sce themselves as
part of a growing trend in
Calgary and throughout
the booming West — peo-
ple whose income is falling
hopelessly behind the: cost
of living.

“For a lot of us this is the
only kind of housing we can
afford,” said Bev, noting
that one of her daughters
lives in a government-
assisted home nearby. “I
don't know how most
young people make it on
their own today.”

Dale adds: “I've given up
on ever owning my own
place. It’s beyond hope.”

Test $ 1

“OTTAWA (CP) — -The

Columbia space shuttle's
$100-million mechanical arm
designed by Canada may be
left behind when the shuttle
makes its second flight next
month,

The arm was designed to
withstand tremenous forces
on lift-off but scientists ana-
lysing data from the first
voyage have discovered the
vibrations caused by giant
boosters on either side of the
shuttle are much greater
than originally predicted.

The shuttle is scheduled

00 million arm

for its second trip Oct. 9 a1
ers are trying to do-
termine by Sept. 15 what the
shaking will do to the arm.
“We built the thing to
specifications and now we
find it has an environment
worse than anyone dreamed
of,” said Dr. E. St. Clair
Gantz, the National Research
Council's manager of plan-

ning and control for the me--

chanical arm.

Gantz said the arm will be
left alone if modifications can
be made to the launching pad
allowing it to better absorb

we ee ee

the shock waves, but if not, it
will likely be removed and
modified.

Designed by the council
and Spar Aerospace Ltd., the
arm is scheduled to undergo
12 to 16 hours of tests moving
cargo in and out of the shut-
tle’s cargo bay.

The arm is the most im-
portant piece of equipment to
be tested on this flight and
Gantz said three other mod-

els will have to be modified if

$100. REWARD is being offered by B. A. Edblad to
anyone which will result in the arrest and conviction of
the vandals who have removed three flags from the
Realty World Castle Realty building at 1444 Columbia
Avenue during the past week with the latest incident

taking place Saturday evening. Edblad has also stated’
tl

vandals return the flags and poles or advise
where they can be obtained, no charges will be laid..

Surpasses last
year’s trading

VANCOUVER (CP) —
Trading activity on the Van-
couver stock exchange con-
tinues to run ahead of last
year’s pace, with 118.6 mil-
lion shares valued at $281.6
million changing hands in
August.

Turnover in the corres-
ponding period in 1980 was
115.2 million shares worth
$242 million.

USE volume in the first
eight months of 1981 was
1,119.4 million shares worth
($3,117.7 million. In the same
period a year earlier, 991.8
million shares with a value of
$2,144.56 million were traded.

Figures from the Toronto
stock exchange show trading
on’ stock exchanges across
Canada declined 18 per cent
in August from July to $2.6
billion worth of shares.

Surveillance

CASTLEGAR NEWS, September 2, 1981

Soviet warship in
Canadian waters

VICTORIA (CP) — Two
Canadian forces vessels are
keeping four Soviet warships
in Canadian operational wa-
ters under close surveillance,
a military spokesman said
Tuesday.

Capt. Tim Dunne said the
destroyer-escort KMCS
Kootenay and the support
ship HMCS Provider were
watching the ships Tuesday,
west of Vancouver Island,
outside the 200-rhile econom-
ic zone,

He said the Soviet vessels
include a Kara-class cruiser
— one of the Soviet Union's
most modern guided-missile
ships — two Krivak-class
guided-missile destroyers
and a Dubna oiler.

The U.S Coast Guard ship
Boutwell began shadowing
the Soviet Friday

ships are travelling south,
although he said forces per-
sonnel don't know where
they are going.

He said it is also unknown
when the Provider and Koot-
enay will be relieved by U.S.
vessels.

Canadian operational wa-
ters extend from a point west
of Kodiak Island in the Aleu-
tians south to the 49th par-
allel.

A7
Didn't realize

PENTICTON (CP) — A
Transport Canada Investiga-
tion has found a Cessna 182
crashed into Okanagan Lake
Jan. 19 because the pilot
didn't know his altitude. A
combination of low cloud, fog,
smoke and a glassy water
surface made it impossible
for pilot James Robert, Man-
ning, 23 of Edmonton, to re-
alize he was flying into the
lake, the investigation con-
cluded. The bodies of Man-
ning and passenger Gordon
Bruce Duncan, 28, of Pentic-

. ton were never found al-

though the aircraft was re-
covered,

During Our

17th

when it was spotted off the
Aleutian chain, Dunne said.
Boutwell was west of the
Queen Charlotte Islands at
the time.

The Provider and the
Kootenay relieved the Bout-

well on Saturday and were |

later joined by the American
destroyer, USS Fife. The
vessels were backed by
flights of Aurora
from the Canadian Forces
Base in Comox.

Dunne said the Soviet

THE MANAGEMENT OF ENERGY IN CANADA. ONE OF ASERIES.

FOUR SECRETS OFASUPER _
NEW FAMILY HOME THAT CUTS.
HEATING BILLSUP TO 90%

YOU CAN HEAT SUPER ENERGY.

“AYEAR-TO!

HOMES FOR $50 TO $200
DAY! <

It costs $500 to $1,000 to

heat a
house.

coming on the market

ical Canadian
it there are super
energy-efficient Hones ey

there are serious p'
with the design and con-
struction

1400 Block, Columbia Ave.
Sunday Services:

8a.m. and 10.a.m.

Sunday School: 10 a.m.

Robson Community Church

2nd and 4t!

Sunday of month: 10.a.m.
Rectory: Ph. 365-2271
Rev. Desmond Carroll

VENTIS 5
1471 Columbia Ave., Trail
364-0117

Regular Saturday Services
Pastor Dirk Zinnet:
64'

OF CANADA
2224-6th Ave.

1% Blocks south of
Community Complex
Summer Services: 10a.m.
Except July 26th and
August 23rd when
we worship at the
Robson Community
Church, 10 a.m.

CHURCH OF GOD.

. 2404 Columbia Avenue
Church School

9:45.a.m.
Morning Worship
Na

pm.
Pastor Ira Johnson

713 - 4th Street.

Worship Service 9.a.m. *

Sunday School 10:15 a.m.
“Vacancy - Pastor”

Ph. 365-7502 of 365-8354“)

Listen to the Lutheran *
Hour Sunday, 13:30a.m.
on Radio CKQR

below Castleaird Plaza
Phone 365-6317
Service for Summer
— 10:30 a.m.
Sunday School and
Worship combined.

7 p.m. Fellowship Service
Rev. Ed. Wegner, Pastor
Phone 365-2374
A Full Gospel
Church

2605 Columbia Ave. ©
Sundays:
9:45 a.m. Sunday School
1

WORSHIP SERVICE
11:00.a.m. — Junior
Congregation & Nursery
Rev. Harvey Self

Phone 365-6762

Phone 365-3816

a MOT;

809 Merry Creek Road
:Next to Cloverleat Motel
Castleaird Plaza
Family Bible Hour
9:45 a.m.
Morning Worship
11:00 a.m.
Evening Praise
6:30 p.m.
WED. NIGHT
Bible Study & Prayer
ervice 7 p.m.
Church Office 365-3430

767 - 11th Ave., North

Pastor Roy Hubbeard

Church: Ph. 365-5212

Christian Education Hour
:45 a.m.
Morning Worship
8:30 a.m. & 11 a.m.

Evening Service

7p.m.
Tuesday: Bible Study

:30 p.m.
Saturday: Young People
: 7:30 p.m.

Rev. Michael Guinan
Ph. 7143
Saturday Night Mass
7 4

p.m.
Sunday Masses at
8 a.m. and 10.a.m.

’ ST. MARIA GORETTI

Genelle — 12Noon : J

What they do have are innova’ Ho

in design and construction that.
have proven themselves through

frigid Prairie winters.

NEW SUPER ENERGY-EFFICIENT

HOMES-—TO SHOW YOU HOW
It’s time other Canadians shared these

secrets. That's why the Government of

Canada is supporting the construction of new

super energy-efficient homes as part of the
National Energy Program. Builders will
construct some in every province. Even those
ians who aren't in the market for a new
home can use some of these innovations in
their present homes. But the super homes are
le, too. They're meant for living, not just

for
show.

THE OPEN SECRETS OF A SUPER
ENERGY-EFFICIENT HOME

The four major items that make a home
super energy-efficient may add up to $6,000
or 5 to 10% to the construction cost of a new
home. But that’s an investment which pays for
itself in lower fuel bills, keeps on payi $
to come and
resale value of the home.

dividends for

Ceilings
Wall

aying,
ds to the *

THICK—AND

THICK WALLS-UP TO A FOOT (30 cm)
FULL OF INSULATION
Insulation. And morc insulation. That's one
of the big secrets. The super energy-efficient
house has two to three times more insulation
than the average new home.

WHAT YOU'LL GET
‘Super E:

‘Walls

Basement
(A’higher "RSI" factor means lower heat loss.)

you money.
IT’S AIRTIGHT BUT HEALTHY—
WITH FRESH AIR

The entire house is wrapped (on the inside)

with an airtight vapour barrier to reduce
excessive rates of air change, to keep out

drafts, and to keep
entering the walls. The vapour

carefully overlap

and crack is completely s

MOST WINDOWS FACE SOUTH AND

ARE ENERGY¥-CO)

‘The house is oriented to the sun with '""
0 y

quality double-glazed
to soak up free solar enerny, Fewer
and these may

minimize heat loss:

face

facing south
pat Dh) rhe
triple-zlazed to

NOW; WHO NEEDS A BIG
HEATING SYSTEM? . *

To complete the energy.
features of these houses, they are
equipped with automatic set-back
thermostats and the most efficient of

matching the space heat
e

demands

of the house. The water heater and hot

"water pipes are well insulated, and water

d. The

what to do:

BUYA SUPER ENERGY-EFFI (CIENT
HOME-OR JUST LEARN FROM ONE
If you're in the market for a new home, here's

Some super energy-efficient homes may be

built in your community within the next year
Sec: Fay one if-yeil can;

‘When loo!
+ features that
efficient.

‘at any new house ask for the
a home super energy-

Even if you're not in the market for a new.
house you can still save energy and money, in

‘The walls of a super energy-efficient home
are sometimes 30 cm thick to take the
abundant insulation. The attic is piled high
with the stuff, and there’s even insulation in
the doors, making them RSI/1.7 or better,
instead of the normal RSI/.35. You can’t see
super-insulation, but it’s there, silently saving

program.

coupon
“Energy Analysis”. questionnaire. It will help
you plan and complete your h

jome energy

barrier i

sealed.

windows are weather-stripped

tight. Air-lock vestibules

when doors are open.

provided. But even here, a unique
air-to-air heat exchanger devel

just for this ¢, or a smi
J purpos:

wasteful and haphazard.

is

and caulked at all joints

—even behind electrical boxes. Every joint
Doors and

ariel

In fact, the house is so airtight that
mechanical ventilation may have to be

we: LETT TTT TIT LT ;

rat
ferring

- EFFICIENT HOUSING IS A PART OF

SUPER ENERGY
CANADA'S NATIONAL ENERGY PROGRAM

‘Tetephone:
(Pisces As in your postal code. 1 le necessary for arapid return of

resco: CIT] CLIT

aa | Language proterred [1] Enguen’  () Prench —WO08 00 125

nad

ss