Se
A4 Castlegar News October 30, 1985

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Nas OTTAWA (CP) — The federal government hasn't lived
p to three of its most important promises about family
benefits, Manitoba~Deputy Premier Muriel Smith told a
Commons committee Tuesday.

Smith said a package of changes proposed in the May 23
budget speech flies in the face of statements by Prime
Minister Brian Mulroney that family benefits are a “sacred
trust” that would be maintained and even improved.

“If sacred trusts are indeed sacred,’they should not be
violated,” she said. -

Smith said the package also fails to meet two standards
put forward in a government paper issued by Health
Minister Jake Epp last January.

One was that scarce resources should be diverted to
people with the greatest need. The second was that any

359.

Please Make Note
of New

AMBULANCE
EMERGENCY
NUMBER
1-368-9192

(No charge to caller)

money saved from changes in family programs would not-be
used to reduce the federal deficit.

Manitoba's New Democratic Party government was the
only provincial government that made public represen-

tations to Ottawa before the budget about possible improve-
ments in family benefits.

Regrettably, Smith said, those recommendations were
ignored and the Conservatives opted for-a package worse
than the one that already exists.

Manitoba calculates that if the changes go through,
families in the province will get $12.1 million a year Jess by
1990 than. they would under. the current system. ,

“The average cuts facing Manitoba families will be $86,”
Smith said. “Only families who have virtually no taxable
income will benefit even slightly.”

Other Manitoba calculations show that the budget
would provide virtually no help for the poorest families by
1990, would impose large tax increases on families earning
between $7,500 and $50,000 a year and would give token tax
cuts to the very rich. =

Meanwhile, Smith said, the federal government has
seen fit to set aside well in excess of $10 billion over the next
five years to help the oil industry and wealthy investors.

Tories’ family benefits slammed

‘The package of family benefits proposed by the Conser-
vatives would provide for increases in the child tax credit
but cuts in the income-tax exemption parents can claim for
dependent children under 18.

Manitoba wants to see sweeping changes that would
include increases in the baby bonus, reform of the tax
system and a major federal commitment to family services
such as day care., ; ui

The Commons committee, chal
MP Bob Brisco, is hearing represéntations on proposed
amendments to the Family Allowances Act, the first bill in
the family benefits package.

It: would limit increases in benefits to rises in the
consumer price index in excess of three per cent a year. For
example, if the index goes up four per cent a year as the
government expects, benefits would go up only one per cent.

Sharie Sewall, of the Calgary Coalition for Support of
Persons on Welfare, said even that small amount does make

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AUDITOR GENERAL'S REPORT

Tax break kept hidden

OTTAWA (CP) — MPs
were kept in the dark about a
billion-dollar tax break for a
major oil company and Cana-
dian diplomats in Hong Kong
were treated to very ex-
pensive memberships in an
exclusive resort.

Those were two of the
more startling revelations ir
a relatively tame annual re
port into government finan
cial mismanagement releasec
Tuesday by Auditor Genera
Ken Dye.

NDP Leader Ed Broadbent

CALGARY (CP). — Talks
on freer trade between Can-
ada and the United States
should begin with the widest

U.S. Ambassador to Canada,
said Tuesday.

“Our preference is to have
as broad an agenda as_pos-
sible, recognizing that, dur-
ing the talks, we can't make
progress in certain areas,”
‘Niles said in an interview.

‘“It would be ‘unwise to
Start’ excluding areas from
the outset, because each side
can do that.”

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possible agenda, Tom Niles, ,

Prime Minister Brian Mul- 7

said the report, which covers
the 1984-85 fiscal year during
which both the Liberals and
Conservatives were in pow.
er, is further evidence MPs
receive too little information
about tax breaks to big cor-
porations.

Because of the early timing
of his report and the gov-
ernment’s delay in present-
ing its financial statements
for the past year, Dye put off
until later his version of the
government's financial posi-
tion.

roney proposed the talks last
month and on Monday in Cal-
gary U.S. State Secretary
George Shultz said negotia-
tions could begin as early as
January.

Shultz said statutory con-
sultation with Congress and
the private sector could be
wrapped up in November,
paving the way for official
negotiations early in the new
year.

QUELLS FEARS

There are more than ‘300
bills before Congress  de-
signed.to_protest American-
foods “from foreign

In light of Dye’s. previous
criticisms that the govern-
ment has been understating
its annual deficit by several
billion dollars, his view of the
deficit is expected to be much
higher than Ottawa's $35-
billion estimate.

As well, Dye said he origin-
ally planned to include in his
report a commentary on.his
battle to obtain cabinet doc
uments about the 1981 pur.
chase by government-owned
Petro-Canada of | Petrofinz
Canada. sooner

Niles calls for
broad trade talks

trade. But Shultz insisted the
protectionist sentiments: of
the House of Representatives
are vastl,

However, Dye told report-
ers he decided to withhold his
commentary on the Petrofina
because the case has not yet
been decided. The Federal
Court of Canada is expected
to rule Thursday on whether
Dye has the right to the
information.

Dye said MPs are not get-
ting the information they
need to have control over
government spending.

Parliament didn't know
when the former Liberal
government arranged, and
the present Conservative
government approved, a tax
dodge for a major oil com-
pany that could cost the pub-
lic $1 billion in lost tax rev-
enues, he said.

The External Affairs De-
partment, in a bid to ease the
“hardship” on its 34 staff
posted in Hong Kong, spent
more than $800,000 on mem-

Niles, who attended the
Monday morning meeting
between Shultz and External
Affairs Minister Joe Clark,
echoed Shultz’s confidence
Congress will recognize that
Canada and the United
States have the largest bil-
ateral trading partnership in
the world:

At the same time, Niles
said, the United States is
“not looking for pre-emptive
concessions from Ottawa.”

hips in the ive Ab-
erdeen Marina Club in the
British colony, Dye said.
Hong Kong is rated near the
bottom of the department's
list of serious hardship post-
ings.

Treasury Board President
Robert de Cotret blamed the
former. Liberal government
for the extravagance in Hong
Kong, which was not ap-
proved by Treasury Board,
and said the government is
investigating.

a difference to a poor family at the end of the month.

Dye said there has been

an increase in information
about, and control over,

Crown corporations, but that
"
overstuffed! improvement does not ex-

“Talk about

OTTAWA (CP) — Diplo-
macy is hard work, but it
has its rewards if you're a
Canadian diplomat in Hong

- General Ken
Dye’s annual report, tabled
Tuesday in the Commons,
says the Department of
External Affairs spent
more than $800,000 making
sure Canadian personnel in
Hong Kong had a means of
“escaping the tensions of
life in that city.”

The department bought

TAX MONEY
REWARDS
_ -DIPLOMATS

——signs 100 points to the

to its diplomats_at play.

Not only that, the de-
partment spent the money
without Treasury Board
approval and apparently
tried to keep it quiet by
spreading the cost over
three years.

* NOT TOUGH

And by the department's
own admission, the Hong
Kong post isn’t particular-
ly tough.

In a system which as-

postings with the most

entitling
Canadian diplomats to en-
joy the rooftop pool, the
terraced bars and the par-
asolled patios of. the ex-
clusive Aberdeen Marina
Club in. Hong Kong.

The memberships cost
taxpayers $773,500 plus
annual fees that now total
more than $27,000. That
comes out to $22,733 per
diplomat, plus the annual
renewal fees.

Dye and’ his investiga-
tors found 20 per cént of
the funds in a special pro-
gram to aid diplomats in
hardship postings was
drained to pay for leisure-
class amenities in the Bri-
tish colony.

The auditors found the
department didn’t analyse
the needs of the 34 Cana-
dians at the Hong Kong
high commission and didn’t
investigate less costly
ways of providing services

hip for Canadian per-

sonnel, Hong Kong rated
only 25 and was considered
46th among 64 posts with
recreational hardships.
* And there’s no guaran-
tee the treasury can ever
get its $773,500 investment
back. The debentures yield
no interest, and can only be
sold on the open market.

That value, one auditor
noted ruefully, is in jeo-
pardy because Britain
plans to return Hong Kong
to the Chinese government
in little more than a decade
and there is no way of
knowing what the Com-
munist government might
do with a luxury, Western-
style private club.

Treasury Board
president Robert de Cotret
acknowledged outside the
House of Commons that
the Aberdeen Club mem-
berships had been a mis-
take.

__=gency Program.

. . But not over priced! | tend to cor in which
Come sample our the government shares
le f del hip with others. Ot-

tawa has more than $500 mil-

lion invested in 13 mixed and

joint enterprises.

Dye also said MPs need
more information to under-
stand and assess the costs of
Canada’s public pension pro-
grams. He estimates the cost
of supporting the programs
will rise to $23 billion a year
by the end of the decade from
$16 billion last year.

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Native boy
kept in cage

EDMONTON (CP).— A
seven-year-old native boy has
been removed from his Bon
nyville, Alta., foster’ home
after it was discovered he

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“I've been devastated by
this,” she said. “He shook all
the time. He looked wild and
wouldn't let anyone near
him.”

The woman said the only
things in the cage were a
small blanket and what ap-
peared to be a piece of rug on
the floor.

Bonnyville RCMP were
notified.

“At first we thought it was
a joke,” said an RCMP
spokesman, who was not
identified in The Sun story.
“When we investigated fur-
ther we weren't impressed
and turned the matter over
to social services.”

A Social Services official in
Bonnyville, who was also not
identified, said the boy had
been locked in the cage to
keep him from wandering.

‘He said the cage was con-
structed by closing in one
side of the area under the
stairs and putting a gate
across the other opening.

Castlegar

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rejects
request

By CasNews Staff
Castlegar council has turn-
ed down a request from the
. Kootenay Doukhobor Histor-
ical Society for a grant.

Instead, council suggested"

the society submit its 1985
budget and any ‘building
plans-before the committee
considers the grant request.

Council added that “funds
available for grants and
‘donations are very limited at
this time.”

a a
: faa
October 30, 1985 AS

Corn Flakes

Kellog's
675g

Scotch Buy
QS Gitlin css. sos bese el cas

Pink Salmon |
sa i

ile, the Casth
ial C. ission has

turned down a request from
Elektro Dohmen Enterprises
Ltd. to pay for the legal costs
of the lease for the new
building at the industrial
park.

The commission said it
can't afford to pay for the
costs because of “budget res-
trictions.” ;

Elektro Dohmen plans to
move into the new building
Jan. 1.

The commission also plans
to purchase six videotapes of
the Venture Inland package
for promotional use.

And council learned that
Leo Sommers has_ been
named the deputy co-ordin-
ator for the Municipal Emer-
Sommers
replaces Ken Miscavitch.

Plans for cleaning up de-
bris on the Arrow Lakes look
promising, council was told.

Ald. Albert Calderbank
said he attended a recent
meeting with concerned par-
ties and said it appeargthere
will be “a lot of cooperation’

>in the clean-up. :

Ald. Carl Henne agreed,

. saying, “I really feel that

(Westar Timber) is trying to
do a good job.”

Henne noted that Westar
Timber spent $40,000 to
$50,000 on debris clean-up
last: year.

He added that B.C. Hydro
gave the impression at the
meeting that it will also try
to do.something about the
debris.

U.S. eyes
shingle
quotas

WASHINGTON (CP) —
The U.S. International Trade
Commission has agreed to
investigate demands by
American producers that im-
ports of Canadian wood shin-
gles and shakes be restricted.

A coalition of U.S. manu-
facturers‘argues in a petition
to the commission that in-
creased imports from Canada
are harming domestic pro-
ducers of. shingles’ and
shakes.

Canada shipped $182.6
million (U.S.) worth of shin-
gles and shakes to the United
States last year,up-22 per
cent from 1980, the coalition
said. The imports accounted
for about 67 per cent of U.S.
consumption last year, com-
pared with 57 per cent in
1980.

The five-member commis-
sion is a quasi-judicial, gov-
ernment-appointed body that
deals with U.S. industry
complaints about import com-
petition and unfair foreign
trade practices.

The commission has until
March 25 to decide whether
import protection is warrant-
ed and, if so, what form it
should take, either quotas or
tariffs. .

It then sends its recom-
mendation to President Ron-
ald Reagan, who has 60 days
to accept or reject the com-
mission's proposal or come up
with an alternative. ~

‘The complaint was filed by

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