ALT OC-COC IVNIMICIN

as Castlégar News _Febrvoy2!, 1990
CASTLEGAR’S ONLY

+e ete +

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7

BUSINESS

FULL SERVICE

INSURANCE OFFICE

Castlegar Motor Licence Office
Anderson Insurance Agencies Ltd.

WE SELL——

Autoplan * Permits
Recreational Vehicle
Coverage

Home Owner Coverage

Tenants * Travel Insurance’

Driver's Licenses

And a Wide Range of
Business & Liability Insurance
Financing is Available

Castlegar Motor
License Office

605 Col. Ave.
Castlegar

DID YOU KNOW...?

Did you know that changes to Autoplan for 1990 include
major adjustments to rating territories? Remember, your
vehicle has to be rated for the territory in which it is prin-
cipally operated. Has your territory changed? Be sure to
check with Anderson Insurance.

Anderson Insurance
=. Agencies Ltd.

365-3392

Your insurance Broker
Understands

Provinces to bear brunt

OTTAWA (CP) — A federal
budget without -tax increases may be

unusually good news for Canadians,‘

but not for provincial treasurers.

Finance Minister Michael Wilson
put more of the deficit-trimming load
‘on the provinces in it
delivered Tuesday, rai
higher provincial levies.

“The deficit >is a national
problem,’’ Wilson said in the House
of Commons. ‘‘It demands a national
solution.’"

He cut: $1 billion from transfer
payment increases to the provinces.
He'll save another $1.5 billion next
year. The money is for schools,
hospitals, health care and welfare.

Ontario, Bri Columbia and
Alberta were hit hardest, with poorer
provinces less affected.

These moves and a slowdown in the
rise of federal spending — dubbed his
expenditure control plan — helped
shave $2.8 billion in planned outlays.
He squeezed the deficit to $28.5
billion in the 1990-91 fiscal year,
down from $30.5 billion inthe current
year.

The deficit forecast was greeted
with cautious approval by investors
and businessmen. They had said that
a deficit of about $28 billion was vital
to prop up the dollar on nervous in-
ternational markets.

The shortfall is only $500 million
higher than Wilson predicted last
year.

Although there are no tax in-
creases, Wilson will get more from
taxpayers as a result of last year’s tax
increases, which took full effect this
year.

MICHAEL WILSON
. +» deficit a national problem

to help out.

He spared federal social programs,
including pensions, family allowan-
ces, veterans’ behefits and unem-
ployment insurance from his spending
control plan.

Laurent Thibault, head of the
Canadian Manufacturers’
Association, seemed to speak for
many of his colleagues: ‘‘Too little,
too late is the only way to characterize
this budget.””

The axe fell on a mixed bag of
Projects and programs:

Ottawa drops out of the OSLO oil
sands development in Alberta.

of Wilson's budget cuts

Deficit facts and figures

OTTAWA (CP) — Here are
some facts and figures about the
federal government’s annual
budget deficit and how much
money it owes in total:

Budget deficit: An estimated
$30.5 billion for the fiscal year en-
ding March 31, Finance Minister
Michael Wilson says he will
reduce the deficit to $28.5 billion
in 1990-91, leaving it $500 million
higher than he estimated in the
1989 budget: He predicts the
deficit will drop to $26.8 billion in
1991-92, and will be downto $10
billion in five years.

Net public debt: Ottawa's total
liabilities, minus its assets, stood
at $320.9 billion at the end of
fiscal 1988-89. It is expected to be
$351 billion at the end of this
fiscal year.

Interest payments on the net
public debt: $33 bi in 1988-89
and $39.4 billion this fiscal year.

The federal government spent
32 cents out of every tax dollar to
Pay interest on its debt in 1988-89
and expects to spend 35 cents of
every tax dollar on, interest this
fiscal year. Ottawa hopes this
spending will fall to 26 cents in
1994-95,

The Polar 8 icebreaker project,
ballyhooed as the flagship for Arctic
sovereignty; is sunk.

Crown corporations; including
Petro-Canada and Telesat Canada, a
telecommunications giant, are for
sale.

Grants to businesses are virtually

and tanks.

, There was no mention of help for
Atlantic fishermen nor -for western
farmers fearful of drought and—un-
steady grain prices.

There were technical tax changes.
Pension funds will be allowed to in-
vest more in foreign holdings. Annual

and. pri loans
will be harder to get.

Development programs for oil and
gas exploration end.

The CBC capital budget was
frozen, as were payments to Telefilm
Canada.

Defence, foreign aid, Indian affairs
and science and technology will get
five per cent increases, about the level
of inflation. The military will have to
ditch its wish list of new submarines

oO reg
savings plans will be limited. Poorer
families with three or more children
will be allowed easier access to
Prepaid child tax credits.

Wilson said it’s vital to get the
deficit under control, to save future
generations from a crushing burden
of debt. The overall net public debt is
forecast at $351.4 billion for the 1989-
91 fiscal year and is expected to rise to
$450 billion by 1995.

Wilson said the p have

been profligate in recent years, in-
creasing spending at a higher rate
than Ottawa and it was time for them

PREMIUMS

Auto insurance premiums
for 1990 have been increased by
no more than six per cent for |
two-thirds of B.C.'s claim-free
motorists as a result of changes
to Autoplan for 1990. In dollar
terms, this means variations
ranging from premium decreases
of about $15 to increases of
around $60 for these motorists.

Changes include major
adjustments to rating territories,
increased “No-Fault” Accident
Benefits and the annual “aging”
of some vehicles. The impact of
1990 claims cost increases is
also a factor.

These changes and increased
claims costs mean that ICBC
will need an estimated 4.8 per
cent- more money in 1996 than
in 1989. |

Other claim-free motorists,
such as those who have their

vehicles rated for pleasure use |
only or who live in some of the
newly defined rating territories,
will see their premiums rise
seven to thirteen per cent. ~

Premiums for Compulsory
and Extended Third Party Legal
Liability coverages combined
have been increased by six per
cent for new and renewal
policies as of January 1, 1990.
Underinsured Motorist
Protection and Comprehensive
Zoverage also rise by six per
cent. Premiums for Collision _|
and Specified Perils coverages
remain unchanged.

|
|
}
|

{

ICBC
a ebe

+ H4

__WHAT'S NEW?

Og Territorial changes mean
increases over and above the
general increase in some
communities and contribute to
either decreases in premiums or
less of an increase in other areas.
Om “No-Fault” Accident
Benefits have been increased for
auto-related claims, occurring
on or after January 1, 1990,
resulting in injury or death
Oar For those who qualify,
disability benefits for an employed
person have been increased to
$200 per week from $145
Oar The limit of liability for
medicgt and rehabilitation benefits
has Yen increased by 50 per
enyto a maximum of $150,000.
Og The maximum amount for
funeral expenses has been
doubled from $1000 to $2000.
Oar To reduce fraud, proof of
identity is now required for
most Autoplan transactions.

FINES &
DRIVER POINTS

Oa Motorists caught violating
traffic rules are now required to
Pay fines in addition to being
assigned penalty points and
charged Driver Point Premiums
O& Drivers with five points or
more are billed for points recorded
in a twelve month review period.
Up to December 31, 1989, the
twelve month review period
Starts fourteen months prior to
the driver's birthday (coming
forward twelve months) but as
of January 1, 1990, the review
period will start 17 months prior
to the driver's birthday to allow
for recording and processing time

CP News Analysis
By JIM COYLE
OTTAWA (CP) — The only winner in Tuesday's
federal budget was probably Preston Manning’s up-
start Reform party; the losers, the provincial treasurers
left to finish Finance Minister Michael Wilson’s dirty
work.
The way Wilson’s budget will likely affect Alber-
ta, Manning's forces — -already-prospering from a
sales tax rebellion and constitutional resentment in
Western Canada — could send more than just one MP
to the Commons in the riext election.
Wilson scrapped Ottawa’s role in the OSLO oil

ANALYSIS

sands project near Fort McMurray, Alta., yanking
$600 million in construction spending over the next
five years. —

He cancelled exploration incentives much ap-
preciated in frontier regions of resource-producing
provinces to save another $800 million by 1994-95

And along with the other so-called ‘‘have’’
Provinces — Ontario and British Columbia — Alberta
will endure a transfer-payment freeze that will shift
part of Ottawa's deficit to the provinces.

The seven poorer provinces — while also en-
during the freeze in established programs financing —
will continue to receive normal equalization payments
and benefits under the Canada Assistance Plan.

In all, Wilson turned in a splendid job of buck-
passing, leaving the provinces to cover lost revenues of
$870 million this year, $1.5 billion next and $7 billion
over five years for health care and post-secondary
education

The budget said nothing about help for hard-
pressed Atlantic fishermen-or for western farmers leery
about drought and soft commodity prices.

But it produced none of the kind of tax increases
or direct program cuts — to things like pensions,

Finance minister good
at passing the buck

or family
would provoke protests in the street

The tax changes are largely technical — a tittle
help on child credits for larger low-income families, a
little tightening on rules for registered education
savings. plans, the raising of limits for foreign invest-
ment by pension funds.

Big chops in planned spending — more than $1
billion over five years in defence and foreign aid —
came in areas that polls suggest are acceptable to
Canadians.

Outrage is likely to be minimal or decidedly local
on Wilson's nibbling at little-known Crown boards or
scrapping of an icebreaker project.

— that

In cutting the federal deficit to $28.5 billion next
year, Wilson likely did the minimum necessary to calm
financial markets. But the tough stuff is still down the
road, calculations likely to be thrown into chaos by the
next election.

For now, the hard part — finding ways to replace
the lost federal dollars — will be left to the provinces,
who were roundly rebuked as spendthrifts by Wilson.

The provinces have averaged spending increases
of 6.4 per cent a year — soaring to almost 10 per cent
in Ontario — while the federal government increased
spending by only 3.6 per cent a year over the last five,
his budget said.

And the provinces also had average civil service
Pay increases of more than five per cent while Ottawa
stayed below inflation.

For taxpayers, there were plenty of echoes in the
budget from Prime Minister Brian Mulroney's recent
peacemaking pilgrimages across Canada:

The belt-tightening’s not easy, but it must be
done.

However, should Mulroney decide soon to sum-
mon the premiers in a last-ditch bid to save the Meech
Lake constitutional accord, he _may want to call out
what’s left of the military for protection.

didn’t like it i ii

Recession fears raised

OTTAWA (CP) — The opposition

“It may calm some jitters in the

“My worst fears have been brought

financial

but it will in- to fruition,’’ said Manitoba Finance

and social groups worried that
Tuesday’s federal budget will shred
an already delicate social net. And
recession was the word on some
people’s lips.

“1 think this could push us over the
brink, into a recession,"’ NDP finance
critic Lorne Nystrom i

crease the jitters in the minds and
hearts of Canadians who won't ap-
Preciate being pushed into recession

Minister Clayton Manness.
He was responding to Wilson's
plan to save $1 billion by giving the
i Hler-th: i

Business reaction, page A7

by these misguided policies,’’ the
veteran Liberal said.

Opposition Leader Herb Gray said
the budget might shore up inter-
national confidence in the Canadian
dollar, but would likely lead to higher
provincial taxes. 3

Predi of a i were
matched by provincial governments.
They complained the finance
minister’s scheme for cutting the
deficit was just passing the buck’ to
them.

P in-
creases in transfer payments for
health care and post-secondary
education in the next two years.

While federal social programs like
old-age pensions and family allowan-
ces weren’t cut, social agencies predic-
ted transfer cuts will mean low-
income Canadians will suffer.

NOTICE OF FOUNDING MEETING

FOR THE SOCIAL CREDIT CONSTITUENCY
ASSOCIATION OF NELSON-CRESTON

For

Additional
information call
E. Mason
352-7245 Office
352-6973 Home

Savoy Bingo Hall
Nelson, B.C.

Persons

2:00 p.m.
Saturday, March 3, ‘90

ettending the

meeting must be members in

Registration begins
of 12:30 p.m

jeod standing of the BC
jocial Credit Party to vote

By The Canadian Press
Business groups have grudging ac.

Tuesday to Finance Minister *

ceptance

Michael Wilson's attempts to tackle
the deficit through cuts, but railed
against what they felt was inaction on
bringing down interest rates.

“He met the minimum standard (in
cuts),’’ said Michael Walker,
executive director of the Fraser In-
stitute, the conservative economic
think-tank in Vancouver.

Rules

VICTORIA (CP) — The B.C.
government is proposing regulations
that would force financial institutions
to maintain tighter controls that could
help investors cut their risks.

It’s designed to minimize con-
sumer risk, but there is no system in
the world that will eliminate it,’ Mel
Couvelier, minister of finance and
corporate relations, said Monday.

“There should be more comforts
for the consumer with these changes.
But I don’t want to create the im-
pression that we've solved all the
world’s ills. We haven’t, nor will be
ever be able to.’

The proposed changes include:

© Expansion and clarification of
rules relating to a financial in-

“He has very skilfully taken a little
bit from every area."’

Still, Wilson’s goal of reducing the
deficit by $2 billion to $28.5 billion by
the end of 1991-92 appeared to calm
many fears in terms of the Canadian
economy.

The dollar ended up at 83.31 cents
US in North American markets on
Tuesday, down only 1-100th of a
cent. Opening trading on the Tokyo
market was also uneventful.

Deficit reduction should also buoy
confidence in the country’s economy
and help spur investment, said Al
Cooper, vice-president of financial
affairs for the Canadian Bankers
Association.

“If the underlying assumptions are
correct and the projections are
correct, and it is a believable
document, then it will have a very

| Budget gets cool approval

Alasdair McKichan, president of
the Retail Council of Canada, called
the budget ‘‘just about right.'’

But other groups said historieally
high interest rates are a thorn in the
side of all Canadians and will remain
a prickly issue.

“While Mr. Wilson has been able
to hold to his forecast, the outlook is
still for high interest rates, which hur-

February 21,1990 CastlégarNews «7
a News 47

Tories axe
icebreaker

OTTAWA (CP) — Finance
Minister Michael Wilson tor-
pedoed the giant Polar 8
icebreaker in his budget Tuesday
before it got off the drawing
board.

In the process he may have vir-
tually finished off the domestic
ipbuilding industry.

positive effect in.terms of

to lessen risk ©

stitution’s capitalization and liquid
assets plus its lending and investment
activities.

© Increased disclosure requiremen-
ts about transactions among financial
institutions and closely related par-
ties.

Couvelier said in an interview.

Couvelier said ‘the proposed
legislation is not in relation to the
collapse of the Principal Group.

More than 67,000 investors across
Canada had nearly $457 million tied
up in First Investors Corp. and
A

. for licen-
sing of insurance sales people, agents
and adjusters.

©® Requirements for
financial products.

© Restrictions on financial in-
stitutions and insurance agents
sharing offices.

marketing

“We are continuing our process of

of Canada when
the Alberta government pulled the
companies’ licences June 30, 1987.
Principal, the parent company,
declared bankruptcy six weeks later.

“This is merely another step in a
Process we started two years ago,’’
Couvelier said.

The deadline for public sub-
missions on the proposed changes to

izing the dealing
with the whole gambit of financial in-
stitutions’ interrelationships,’’

the Act and the
Credit Union. Incorporation Act is
April 6,

Red Dog problems solved

VANCOUVER (CP) — Although
operations have been intermittent at
its Red Dog mine in Alaska, Cominco
Ltd. said Monday it expects the
milling~ plant will reach planned
production levels by the end of Mar-
ch.

The company said that since the fir-
st concentrates were produced Nov.
30, a number of plant deficiencies
have been corrected and the training
of the local labor force is continuing.

The concentrator is currently
operating at SO per cent of capacity
because of mechanical problems.

Cominco said planned recoveries
and grades are being achieved for zinc
but lead is proving difficult because
of oxidized ore which is confined to
the upper benches of the “open-pit
mine. This is considered a short-term
problem.

The company also said the mine is
operating well under winter wgather
iti pe of
concentrates has been‘ disrupted at
times by harsh weather.

Meanwhile, lead production at
Cominco’s Trail operations has been
curtailed by start-up difficulties being
experienced with the new lead
smelter, the company said in a news
release.

The new smelter started up Dec. 17
and has been plagued by boiler leaks,

problems in other parts of the plant.
In addition, metallurgical process dif-
ficulties have further restricted lead
bullion it i to

smelter is operating at 50 per cent of
its capacity until regular production is
achieved with the new process, the
said.

correct these deficiencies are currently
underway while the plant continues to
operate.

In the meantime, the old lead

Currently production from both
the old and new smelters
proximately two-thirds of the 1989
average.

is ap-

Science

VANCOUVER (CP) — The

bia report released Monday.

million hectares.

today’s level.

wilt change.

touts investment

dustex_should commit $100 million a year to forestry research and
= ceed i" : i
development in the province, says a Science Council of British Colum-

By spending the money, the report says wood yields can be in-
creased dramatically, the present number of jobs in the forest industry
can be sustained and exports can be expanded.

The council also says the industry can achieve these results on the
same 30-million hectare land base that is currently devoted to forestry,
or even if the land base was eventually- reduced by 10 per cent te 27

The report says an annual outlay of $100 million on forestry resear-
ch and development will lead to a potential annual yield of 120 million
cubic metres of wood within 30 years, an increase of 50 per cent over

The council says it is possible the current level of 90,000 people
directly employed in the forest industry can be sustained but some jobs

Council

provincial government and the in-

plus a number of minor

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ts the and i
particular,’ said Laurent Thibault,
president Of the Canadian Manufac-
turers’ Association.

The Canadian Chamber of Com-
merce said Wilson’s plan to reduce
the deficit to $10 billion by 1994-95
will fall apart if rates of 13 per cent or
higher don’t come down soon.

And the Canadian Federation of
Independent Business w: also
tough on Wilson, condemning the
planned $1-billion reduction in tran-
sfer payments to the provinces.

The cuts will merely shift the tax
burden onto the provinces, just in
time for the federal goods and ser-
vices tax to come into effect, said
senior vice-president Brian Gray.

“*We figure what we've got here is
short-term pain for long-term pain,"’
Gray said in an interview.

However, the federation said it was
not upset by the cancellation of grants
to small business as members viewed
their elimination as a legitimate means
of reducing the deficit.

Our Action Ad Phone
Number is 365-2212!

Polar 8 was promised by the
Conservatives in 1985 to assert
sovereignty in the Arctic, Other
than 12 navy frigates, it was the

only big contract for the industry.

In his budget speech, Wilson
said the cost of the ship, originally
estimated at $350~million, had
risen to more than $680 million.

Cutting it will save Ottawa $84
million in the present fiscal year
and $62 million in fiscal 1990-91.

The start of construction was
delayed by financial problems at
Versatile Pacific, owner of the
British Columbia shipyard where
the icebreaker was to be built.

Rossland Light Opera Players

Present
Glibert and Sullivan’s

Friday, February 23
Kinnajrd Junior Secondary School
ALL PERFORMANCES 8:00 P.M.

TICKETS AVAILABLE AT:
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$8.00 Advance * $10 At

Door

Sponsored by Castlegar Arts Council

Leslie Manson and the Staff of

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