Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 7, 1978, Winnipeg, Manitoba Winnipeg free press Tuest Fay March 7, 1978 c of c plan to boost Economy m sales tax urged Duclion would gel the econ omy moving and reduce the inflation rate by one per cent. The Only province that would not Benefit under the plan would be Alberta. The province has no sales tax. But that province has the lowest unemployment rate in continued the country and the most favourable Short term economic said the Cham Ber. The chamber also recommended a one per event annual reduction in the corporate tax rate beginning Jan. 1, 1979. That a special Issue of Canada savings Bonds be is sued this Spring this would allow the government to pcs renew Call for tax cuts enough and reiterated Calls for cuts in income and Feder Al sales taxation. Finance minister Jean Chretien responded by say ing the Oft repeated conservative Call for a billion Cut in taxation and a freeze on Public service hiring will not work. Continued he said conservative proposals will Cost jobs in Ottawa alone. He said he had tried and failed to convince provinces to reduce their sales tax. He was not convinced that a fed eral sales tax Cut Consumers. Calrk and de Broadbent new democratic parly Leader said the government is cooking unemployment and Cost of living figures As a Federal election approaches. Clark said Layoff figures were being changed so they will not show the full Impact of unemployment and Broadbent said the Cost of living figures Are being made to look less damaging. Chretien said he knew nil Hing Aboul any change in the statistics. But 1 Don t believe in is government policy to give to statistics defer payment of the billion in interest payments which will become due when existing Canada savings Bonds mature. That if the provinces arc unwilling to reduce their re Tail sales taxes As suggested the Federal government should reduce manufacturers sales taxes by 2.5 per cent to 9.5 per cent. The chamber said however that this was its second Choice. That the five per cent in vestment tax credit be in creased to 10 per cent and placed on a 10-year basis. The credit now stands at five per cent and expires june 30, 1980. That paperwork sur rounding the newly introduced employment tax cred it plan be reduced to avoid High administrative costs. Each year the chamber presents its recommendations to the minister of finance in a pro budget Brief. Finance minister Jean Chretien has nut announced a Date for this year s budget but has indicated it could be introduced at the end of Marci. Memos detail ramp tactics this group of croatians in Washington is protesting against Tito s visit. Yugoslavia s Tito flies to . For official talks in Washington continued photo Julie Simoneau 17, miss teen Quebec City was declared Winner of the 1978 miss teen Canada pageant in Toronto monday night. In her address to judges before the Winner was announced miss Simoneau spoke about the civilizing value of education. Miss teen Ottawa Hull Genevieve Moineau 16, was first runner up and Andree Morrison 17, miss teen Cape Breton was second runner up. The third runner up was miss teen Saskatoon Dawn Rutherford 15. Keable staff seeks to reopen hearing denied and he had t heard of false warrants. But when commissioner Guy Gilby re of Montreal asked him about them later he said the warrants might be used to get the person somewhere where we could talk to him and added we cattle Boycott disputed continued continued this Legal tactic opens the possibility that the inquiry headed by Quebec City labor lawyer Joan doable could go ahead while awaiting the High court s ruling pro Cess that could take months. Most observers had concluded that the appeals order for a Complete halt o All proceedings would shut Down the commission into the Spring or summer months even if Quebec wins its Case in supreme court. A commission lawyer said the special request was de signed to allow the commission to continue work in some areas but he declined to specify. He said he hoped the supreme court will agree to hear arguments on the request at the earliest moment that is perhaps today. Lawyer Michel Robert representing solicitor general Jean Jacques Blais promptly announced he would contest the commission s move along with counsel for Federal Justice minister Ron Basford and the ramp. Fred ship Lack 55, of can sa.sk., a victim of the Only picket line violence re ported remains unconscious and in critical condition at a Regina Hospital. . Has established a fund for Shi Plack and reports contributions so far of two other pickets suffered minor injuries with ship Lack thursday at the Saskatchewan wheat Pool s Stock Yards in Regina. Two men have been charged with As Sault causing bodily harm. Cha general manager Charles Gracey said in moo Somin sask. On the weekend that the answer to Low beef prices lies in taming the beef not in strikes and marketing boards. Gracey of Toronto told about -100 a three year de pression in beef prices resulted from Over Supply sparked by government subsidies in 1973. Now a smaller Canadian cow Herd has caused a Good balance be tween Supply and did not have the criminal code behind Goodwin said the mounties May have acted illegally in trying to recruit sources in seven cases. In one three ramp cars stopped a Motorist and took him to a hold for 15 hours against his will. I can l remember this Case As you describe ferraris said. But he identified his initials on a memo from Montreal outlining the incident in less detail. Ii was what we were try ing to develop As a disruptive ferraris added. He admitted there was no War rant but said he did t think this was illegal. Goodwin asked if the feb. 12 memo licensed false War rants to recruit informants. If it was necessary to prevent a criminal act ferraris said adding i would t let the end justify the such a warrant would be illegal he said. Ferraris said he approved or rejected funds Alx ivc a certain level for informers in the approach. Asked if using love affairs drug abuse and other person Al matters to create inform ers was t he said no. We were dealing with people who were Crimi nals or who were on the Way to becoming ferraris said John Starnes director of the Secu Rity service in the Early 1370s, asked him to set up g Section after the october Cri Sis of 1970 because the government decided National Unity was of prime import ferraris said. It was dubbed the ramp s dirty tricks Section last year As actions such As barn burning became Public. Washington a president Tilo of Yugoslavia the longest serving head of government in the world flew Here monday for a three Day official visit. He is inc first i immunise Leader to be received by president Carter. State Secretary Cyrus Vance was to Greco Tito on monday evening on ills arrival Al Andrews air Force base. An official . Delegation headed by slate Secretary Cyrus Vance was on hand Al nearby Andrews air Force base to Welcome Tilo and his party. About 50 yugoslavs also were present and cheered Tito s arrival. Six . Presidents have come and gone since Tito s dramatic break with thu Suvil Union in ims and All have considered Prisc Valion of Yugoslavia s Independence and Terr Lorial integrity to be a vital . Interest. Carter s inv Talion to he 85-year-Olri loader represented a continuity of that 30-year . Policy. This is Tito s first visit Here since 1971 and reciprocates trips to Belgrade made by former presidents Richard Nixon and Gerald Ford. Apparently concerned about a possible soviet Effort to return Yugo Slavia to Moscow s Camp the Carter administration has been discussing a modest expansion of . Military sales with yugoslav officials. Sources said Carter and Tito in meetings tuesday and thursday prob ably will concentrate on such global issues As detente the Middle East and the Horn of Africa. Despite their common views on strategic questions the two countries have Broad differences in other areas. Yugo Slavia has called at various times for the decolonization of puerto Rico Guam and he Virgin islands and establishing close ties with Radical Arab slates and the Palestine liberation organization. Tito s wife Jovanka has nol been seen in Public for the last seven months and is nol travelling Wilh him on his Curry no trip which will Lake him to great Britain later in the week. Belgrade has been Rife with rumours about a Rifle in the Tito household based on Jovanka s alleged political activities. In his first Public comments on the subject Given last week to the new York times Tilo acknowledged he has marital problems but said they Are not politically related. No ramp document my with search of his office and Home if he did not return inc document by i . Est last thursday. Raising the matter on a question of privilege Cossitt protested this interference Wilh his rights and privileges As a member of parliament. A fierce debate developed extending beyond the -1 . Deadline. Speaker James Jerome undertook to exam Ine the matter and bring in a ruling Friday. Friday he reported thai Cossitt and Blais had reached an agreement to hold the matter in abeyance until monday at 3 . Est. In the meantime cos Sill would consult his solicitors. Cossitt Rose in his place monday and read into the records of the commons a Teller he had received from Blais last Friday which for Mally asked him to turn Over to the govern Cal a Docu men entitled Canadian re lated activities of the rus continued Sian intelligence services. The document Blais wrote was dated March and was classified As top secret. It was published by the intelligence advisory commit tee of the government of Canada according to the Blais it scr. The solicitor general wrote that it was his information that Cossitt had a copy of that document contrary in the official secrets act. Members of parliament on both sides of the House had no idea How the delicate situation would be resolved. All they knew was thai co Silt was to Rise at 3 . Monday and make a statement either turning Over the con Rover Sial Locum Cal or refusing to turn it Over. No one had expected him to deny he had such a document. Specula Tion was Rife on inc Hill. The government was flabbergasted when the unas suming cos Sill Rose and for Mally denied he had such a document As named in Blais s loiter. After he had read his state mint a number of opposition maps made their Way to his desk to congratulate him and showed their pleasure at the discomfiture of the govern ment on the other Side. On the government Side Blais had quickly made his Way to sit and consult with Justice minister Ron Bas Ford. Cos Sill could not resist get Ting in some digs. He said he believed he had been singled out by the government because of the vindictive Noss of the prime minister. Otherwise Why he asked had nol other opposition maps who had said they had secret documents in their Possession received the same treatment he noted hat the prime minister had contended the interests of the country were Al slake. He suggested in would be More a curule to say the Indore Sis of the government were at slake. When asked outside the House if he had in his pos session excerpts from the document co Silt replied he could not answer on advice of counsel. He old the commons that at no Lime had he acted in a manner thai was prejudicial to the Security of the country nor will i Ever do he also sir cased that he would at All times protect the identity of canadians who had communicated to him information which showed they believed that the govern Cal had acted wrongly. The next move is now up to the government. Cossitt has been warned that if he did not return he document his Home and office might be searched under the official secrets act. Standing room crowd turns out to hear Cossitt speech by Paul Whitelaw staff correspondent Ottawa there s no mar Quee outside the parliament buildings to proclaim inc names of Canada s political stars. But Tom Cossitt would regularly get top Billing if there were. It was standing room Only in the commons galleries Mon Day and inc celebrity attraction was once again the enigmatic tory my for the Ontario Riding of Leeds. Thai Cossitt is a political Star with a major Impact on the Public and parliament rivalled is undisputed. The Only question is whether the 5-1-year-old Politi Cian is Hent or villain. Arguments about Cossitt s controversial contribution to Ca Nadian political life rage on More intense than Ever after his commons confrontation Wilh solicitor general Jean Jacques Blais Over top Mccrel so curly files. The crowd that queued Many in vain fora Chance of watching the Parlia Mcnary proceedings from one of the 313 Public Gal Lery seats came with expectations of tense drama. They were nol disappointed. What no one anticipated was the Surprise comic ending Al the expense of an embarrassed angry and increasingly hapless looking Blais. The commons galleries re served for the press diplomats senators maps guests and aides in government ministers and the opposition parties were also packed. After dominating the news for five Days Over the government s Threal to prosecute him under the official secrets act Over his Possession of sensitive so curly information co Silt dropped his Bombshell. But Insl cad of spreading Security shrapnel it strewed political egg on the faces of Blais and his govern Mcnol colleagues. Did co Silt have in his pos session a document entitled Ca Nadian healed activities of the russian intelligence daled March 24, 1976? if so Blais had demanded in a Leller the file Musl be returned unaltered or the my would face prosecution and a potential jail sentence up to 1-1 years. There was a hush in the frequently raucous commons As Cossitt Rose to give his reply. With the comic timing of a skilled stage pro former the my a wry smile on his lips provided his unexpected answer no. Opposition maps erupted in laughter and the eral was visibly startled. Cossitt a right Wing million Aire insurance agent from Brockville was playing by inc government s rules and win Ning. The my has admitted in effect that he has the top secret files the government wants re turned. Bui Blais had blundered in filing a specific title and a specific Date. A Wiser minister or Wiser aides would have drafted a Letler thai was Suffi Cinelly vague in its wording to prevent Cossitt s narrow legalistic reply. Compounding the govern ment s embarrassment cos an Eye to the Fine print of the solicitor general s Letler he had fulfilled the demand nol to dispose of any Mccrel documents until the response was delivered. If lie had any top Sercl Docu ments and there s no double he has the implication was Clear that he had a free hand for the time being to do with them what he wished. Of course that provided cos Silt Wilh the Opportunity to de stroy any documents to pro decl his sources a confidentiality he has pledged to maintain. Talking to reporters outside the commons the my replied to questions about the Fate of his confidential files with a cryptic no comment to Cossitt s enemies he is a paranoid cold Warrior who sees a communist under every they also Label him As a bigot who is anti French and hates the prime minister tru Deau because of it. As recently As last fall Trudeau said the my is mentally unstable and Flera charge that a soviet journalist in Ottawa is actually a spy re marked i never take Tom Cossitt seriously and i just Don l Lake this last accusation serious Bui cos Sill has shrugged off the epithets since he won elec Tion As a tory in 1972 after Boll ing inc Liberal parly he had served As an organizer for a Quarter Century because of objections to govern Cal bilingualism policies. Day in Day out Cossitt has been on his feet in the com Mons needling probing and accusing with the focus of his at Lack on one Man Trudeau. His political salves May be off Largel from Lime to time but he has been proved Cor rect often enough to earn a grudging credibility and the fear of the government the top secret files the government wants to locate were apparently the source of cos Sill s charge last month thai nearly half the Soviel officials pos cd in Canada Lead double lives As intelligence agents. He also recently told the commons that funds destined for Domestic terrorists were funnelled through soviet and French companies operating in Canada. The government maintains the my has jeopardized National Security. Cossitt is also the gadfly who demanded unsuccessfully that Trudeau reveal names of the Anonymous donors who paid for the swimming poll in stalled Al his official residence. The prime mini scr is known to have joked Aboul lolling the my practise his diving before the water is put the my has also raised questions in the commons and received grading answers about spending for furnishings at the Sussex drive residence and other prime ministerial Perks. Cossitt rejects allegations by his critics that he is a Stalwart of the paranoid right Wing in a one hour inc View at his parliament Hill office the my said he feels the economic policies of conservative Leader Joo Clark considered by some tories to be too Liberal in the "small-1" sense of the word Are of. He i armed As despicable the anti communist purge of the 1950s in the United sales led by senator Joe Mccarthy a Man with whom his tactics arc com pared by political enemies. Cossitt said his objections to the government stems from his View that Trudeau is arrogant with a Complete disdain for parliament ;