Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 1, 1978, Winnipeg, Manitoba Winnipeg free press wednesday March 1, 1978 travel expenses legitimate Moss continued r.-. Or recall that Moss said. Moss said permitted on one1 Occa Sion within the last year to act on behalf of Archibald brokerage ltd., a company he a cd to own but now owned by his son while he was chairman of the Femc. He Suid the Timpany was in financial difficulty at the time and the situation was acted for the company of if i uhf a or 10 Days until it was determined the financial trouble was not As severe As originally thought. T in Davils were released after allegations of were made against the Femc by the free press. Whit Way Ren ewed Call a the House of commons for an inquiry into the marketing procedures of the corporation but Leblanc rejected the request because he said the evidence was in sufficient. Moss confirmed some of the accusations made in the free press including allegations that a rabbi s initials were signed on shipments of fish without his permission or knowledge and that packaging dates on fish boxes were altered. On Ilie question of changing packaging Dales Moss said the practice occurred on some occasions when portions of Frozen blocks of fish developed mild traces of Freezer Burn a form of dehydration on the edges. The damaged part was shaved off. Moss said and the or St of the Block was packaged in a new Box Wilh a different Date. He said the fish should have been packaged with the original Date listed on the new Box. He said she practice was slopped As soon As it was discovered. Management should have been closer to the Plant on that Moss said. There Are areas where we could tighten Label changing could also occur when used boxes were recycled Moss said. On the matter of the rabbi s initials Moss said he will take Steps to ensure the practice never occurs again. He said he was not aware that a rabbinical stamp had been made and was being used by employees and that he into the situation immediately. That should not he said. I doubt seriously whether that has Ever been done by the free press accounts also said that equipment Worth thousands of dollars was left unprotected outside the corporation s Plant in Transcona and at another facility in Selkirk. Moss said the equipment at the Transcona Plant is in need of repair and will be shipped elsewhere after being fixed by mechanics. He said the machinery was stainless steel and no danger existed of rust. I admit it looks Moss said. At the Selkirk Plant Moss said much of the machinery left outside was damaged in fires several years ago and that the Corpora Tion Hopes to Salvage some of the parts. Moss said other allegations made in published reports will answered in the near future in a statement from the corporation s Board of directors. Commenting on the controversy created by the reports Moss said the accusations gave us an Opportunity to look at ourselves to Correct ourselves where we went however he said Many of the allegations Are untrue and will be refuted by the Board. By Gerry Hart City ambulance attendants remove the body of Walter Bolsky 72, of Bolsky was hit by an eastbound Hill Security Van driven by Bradley 130 Hallet Street after an Accident tuesday afternoon on Portage Waterman 22, of 95 Manitoba Avenue suite 15. Bolsky was taken Avenue. Police said Bolsky and his 62-year-old wife Eliesabeth were crossing Portage at Dominion Street about . When to Hospital where he was pronounced dead on arrival. Mrs. Bolsky who was uninjured was also taken to Hospital suffering from Shock. Decl to lose on fee stagnation hits Economy continued fishermen unhappy with Femc statement Thompson Man. Northern fishermen a very unhappy with North Ern affairs minister Ken Macmaster s statement that he is satisfied with explanations regarding alleged mis management and irregularities in the Freshwater fish marketing corporation. Macmaster is report to have made the comment Fol lowing meeting with corporation directors Asid Man Peter Moss. Veteran Wabowden Fisher Man Alex Jonasson a director of the Inland fishermen s association representing Northern Ontario Prairie and Northwest territories Macmaster to meet with sask. Ministered Bowerman minister responsible for fishing in the Saskatchewan government is expected to hold a special meeting with Northern affairs minister Ken mama scr of Manitoba in Winnipeg thursday to discuss the Freshwater fish marketing corporation John Solomon Bowerman s executive assistants Iii topics of discussion will include the possibility of the province withdrawing completely from the Curci in corporation a Federal Agency responsible for markctin.1 in the Prairies the Northwest territories and of North Western Ontario. Solomon said the possibility was considered seriously by the Saskatchewan government last year. The Saskatchewan minister also plans to discuss cur rent status of the corporation Solomon said. He has no Confidence in the management of Iii corporation or in the Structure As it currently Solo Mon quoted Bowerman. The corporation s Board of it a a pc Cial meeting earlier this week to allow Board Peter Moss to respond to allegations of mismanagement and to discuss a consultant s report prepared for the Mani Toba government critical of the Femc s marketing poli cies. W. R. Parks corporation president meeting that the Board had Given management a of Confidence. Macmaster said Bowerman will be in Winnipeg for Only a few hours before returning to Regina. Fishermen said tuesday "1 can t understand what Mac Masler Vosis Haik big about. Only on sunday old me a consultant from new York found irregularities in the Way Femc is Selling and marketing Jonasson fell Macmaster might be holding Back to keep Femc together for at least another year to Sec if the corporation can be made to work. There Are rumours that Saskatchewan Fisher men arc ready to Bolt Femc. I m very unhappy be cause mama scr had All the fishermen behind him in his stand to have Hie corp rally Jonasson said. Then just when we thought we were going to gel Someth Coj we seem to run Inlo a damned husband held in strangling Winnipeg police have taken into custody the Hus band of a 22-year-old woman who was found strangled to deals in her fort Garry Home tuesday. Police Are withholding fur ther details of the Inci Donl which occurred Aboul 7 ., until their investigation is Complete. More rain mudslides hit . Los Angeles Calif. A rain weary Southern californians donned their slickers Shull Rcd heir Homes and Kepi watch for floods and mudslides tuesday Asar ofe punishing storm moved in. By Early evening Aboul five centimetres of rain had fallen in downtown los Angeles almost Aboul 7.5 Cenlin Mercs in the sur rounding mountains. The National weather service said the worst is Yello come with up to is centimetres expected in some Hillside areas by Lale today. City fire officials said at least one ome had been damaged by a mudslide in the la tuna Canyon area of suburban Sun Valley. The House and several nearby residences were evacuated. No injuries were reported. Evacuations also were advised in a num Ber of other Hillside areas North of the City. An evacuation Centre was set up at a school u Sun Valley and at another school 24 Kilometres to the Easl in la Crescenza where Hillside Homes Hil by a River of mud and rocks in a major storm three weeks ago were again threatened sheriffs deputies said. Last month a series of storms caused extensive damage. Ottawa up atomic Energy of Canada lid. May not be Able to gel full value for the million ii already has paid Oul for Post contract services on a reactor Sale to South Korea decl chairman incas said tuesday. Campbell said the Money was paid in april of Isug As an Advance to Shaul Eison Borg of Tel Aviv the a genl involved in the Sale for future services. Little such work has been done so far since construction is just gelling under Way Campbell said and in is possible the contract will be jul filled. Bul lie added the whole climate has changed As a result of tin controversy Over decl s payments to agents and perhaps Bolh sides would Dpi k o Imi logo working together. Of course if circumstances Permell we would or will attempt to get the million in services from the Eisenburg firms. The Money was part of a million payment to Eisenberg. But whatever happens it s still a lot less than Campbell said. Eisenberg originally was to receive a fall fee of million before his contract was negotiated to make pan of its accountable As expenses. Campbell made the comments As he discussed the report of a commons Commilles highly critical of his government owned company s dealings Wilh agents. He said most of the recommendations in the report have been carried out. Lightening up financial control of the company. The incidents by the committee included payment of Inlo a Swiss Bank account at the request of an italian partner on a Sale to Argentina. Decl said in does l know the name of the agent or whal he did for the Money. Payment of million to Eisenburg on the korean Sale for which the auditor general says there is insufficient Locum nation to Back million. The report criticized Campbell s renegotiation of the con Kracl Wilh Eisenberg which he undertook soon after he was appointed chairman of decl. The commit lec said he had failed to put the Agency agreement on a better i find in difficult to Campbell said. Are they saying the old arrangement was he repeated earlier comments thai the problem was renege Xialing an existing contract with Eisenberg thai gave him a fall million fee changing Illo require him to account for How Parl of the Money was spent. After Eisenberg submitted invoices for million of the Money paid to him the auditor general complained Hal in was insufficient. Included was the first invoice to be cred led against the million Advance payment for Posl contract ser vices. It was rejected by Campbell and he said no others have been sent in. The company chairman said he was glad the report had been issued and Hopes now the whole incident will die Down allowing decl to get on with its work of Selling nuclear readers both at Home and overseas. Talks currently Are in Progress Hal could Lead to the Sale of 18 or More reactors under proposed Licens ing agreements to Italy Romania and Japan. Campbell a 59-year-old former ambassador to Japan says he is not discouraged Over the controversy Hal has swirled around decl since he was appointed chairman in 1976. He was brought Home from his diploma Lac Post Al the request of Energy minister Alastair Gillespie to Sara lighten out what was then a worsening financial Silva lion Al the company. However Campbell said in is Digap polling after iwo years of work trying to put things in order to see the report which he fell men cloned Only in passing changes made in decl to improve its operations. Last week in the commons Chretien said growth in the second half of 1977 would be about five per cent a five per cell Rale is the i i wit inti to make a Deal in the Jos loss now about one Mil lion. The government has also an annual average growth target of 5.5 per cell Over the years to 1981. Sinclair Stevens conservative finance critic said he was damned disappoint i Houghl would be he said. Stevens said Canada s prospects for 1978 appeared devastating if the country had to depend for growth upon exports to the . Devaluation of the Dollar in recent months in now islands Al about 89.5 cents . May have made Canadian exports cheaper and More competitive but the world Market is shrinking Stevens said. To gel the Economy moving the Federal government should Cut its sales and per Sonal income taxes aim tax incentives Al inducing greater Industrial productivity and convince business it is serious Aboul spend ing restraint he said. Max Salesman nip finance critic said he was nol surprised the growth rate was lower than government . The govern men has been Over optimistic in its recent guesses Aboul the economic growth and the inflation Rale he said. Canada cannot rely upon exports to the . And other countries to Puli the Economy Oul of the doldrums he said. Waiting for other economies to recover is totally unreal he suggested governments should invest heavily in capital pro cols to provide jobs. Seal Islic Canada said the Economy last year was dominated by the Dollar devaluation. External demand for Canadian goods pushed real exports 7.7 per cell higher in 1977 than in 1976. The country s surplus in goods Trade was billion Ripic Hal of 1976. But the reverse Side of the Coin is thai higher priced imports made a significant Contr Bulion to inflation. Statistics Canada estimates import prices Rose by 16.6 per cell Between the final Quarter of 1976 and the last three months of 1877. While Export growth buoyed expansion sluggish consumer and government spending held the Economy Down. Seal Islic Canada said Bolh a colors grew Well below their average Long term rates and in the final Quarter spending was Down in both categories. In addition Bolh Cap Leal and inventory investment fell substantially. Labor income including wages salaries and fringe benefits Rose at about the same Rale As the Gnu. Corporate profits were up 22.8 per cent in the final Quarter from Levels of a year earlier. The inflation rate As measured by slats tors Canada s imply ill Price Index was 5.s per Cuni. Lowest since 1972. On the other hand the consumer Price Index also a statistics Canada measure showed a 12 Monelli inflation Rale in january of nine per cell. Over 1977, the country s economic performance varied considerably beginning with 2 Strong output in the first Quarter. A decline in consumer spending Ros ulling from Low Confidence resulted in an actual output decline in the second Quarter. In third Quarter the Outlook brightened with a growth rate of 5.2 per cent largely due to a renewal of consumer spending. Anti-. Image costs study continued Mckenzie said that not Only is the Federal government driving Oul invest men bul is scaring off tourists. Ii was no wonder that the country was heading for a billion deficit. He said massive publicity campaigns by the government alone Are not the answer. The opposition my proposed a reduction in sales taxes on promotional literal Urc to the United slates and income tax Rcd Lions for canadians who i Ravel within Canada reduced Federal sales taxes. He said thai Otla a and the provinces should agree on a promotional package instead of each pres enting a different picture of Canada As at present. He noted thai Canada recorded a fourth Quarter tourism deficit of million thai was a record compared Wilh a shortfall a year earlier of million. The tourism deficit for 1977 was also a record totalling billion compared Wilh a 19 billion. Maurice Harquail. Parliamentary Secre Lary to Urban affaire minister Andre Ouel Lel accused Mckenzie of being the Cham Pion at spreading doom and he said tourism is very important to the government. Ii is concerned because of the negative trends in that Industry. More than jobs arc involved directly and in directly widely dispersed across Canada. Speaking for the government he said the Cabinet has directed thai an intense co oper alive Effort be carried on Wilh the provinces and Industry to find Why Uherc has been a negative trend in the tourist Industry. Special study projects Are in process the results of which the government expects to be consid ering Over the next two months. This should Lead to further actions to support the tourist Industry he said. Civic works estimates reduced by More than by John Sullivan operating funds for wire sri Peg s works department slashed by More than tuesday and a civic commit lace chairman has warned the same treatment May Avail every other sector of the City s establishment. Emerging from a Day Long budget review which left and gasping for breath works and operations committee chairman Gary Filmon said City Council s three other standing committees Musl be told to Cut their 1978 budgets to the Filmon citizens election committee Crescent Heights called last week s fail ure by finance and environment committees to make heavy cuts in the City s proposed Mil lion current budget Inex Cus he repeated an earlier warning Hal works and opera Lions would not Bear the Brunt of spending cuts alone. Finance committee pared Only from about million in spending under its Juristic lion while environment added Aboul to its budgets. Parks and recreation Commilles will review their part of the Bud gel a Cal week. It s obvious that the others Haven t done Ihler Filmon told his Commilles. He said he would personally ask policy Commilles thursday to order a second review by finance and environment and Tell them to come Back with substantial cuts. We be got to Tell Ihm we re not satisfied with the treatment inc other comm laces have Given ills he said. They can l just assume that works commit lec will take care of it and they Don t have to do any Filmon s Commilles first re viewed on a line by line basis most of inc million in spend ing under us jurisdiction paring an initial from miscellaneous accounts. The largest cuts were a reduction in regional Streel Snow clearance off Street maintenance from District six Snow Clearing for Mobile radios and off District five sidewalk maintenance. The committee then ordered another in Over All cuts to the Central and six District works budgets. The City s administration will decide How to reduce Street maintenance by Snow clearance by sidewalk maintenance by and garbage collection by the reductions in Snow re Moval will be concentrated on the period Between storms the committee instructed. A Cut in the cily s storm sewer budget was Defeated. Over All the cuts amount to Aboul a half Mill reduction in the projected 8.8-Mill, property tax increase envisaged in the original budget statement Filmon called inc reductions the difference Between the essential and the desirable in a year of but said they should t reduce cily services measurably. Works commissioner Nick said the Impact of. The cuts would have to be assessed Over the next few Days. He called inc budget a very diff Euk one for the City to Cope full Man said the commissioner had Iii he would have Iron ble convincing his Slaff to Cope Well with the budget cuts unless other were Given the same hard scrutiny. Asked if in foil the budget should be tossed Back to the other standing committees for further reductions Diakiw Only smiled and said this was a political the Ray s Board of commissioners mde in preliminary across Lac Board budget cuts in the works and operations department before it went to works committee ;