Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 27, 1978, Winnipeg, Manitoba Winnipeg free press monday november 27, 1978 business finance 11 g. R. Albino president of Rio Algol Ltd., the giant uranium producer is optimistic about expansion of the company s Elliot Lake ont. Operations and the future of the Industry. Rio Algol is gearing for an expansion that Albino anticipates will increase the Elliot Lake work Force from to in 1987. Guidelines credibility vital if they Are to work by Hobart Rowen Washington there is a growing tendency to write off the Carter wage Price guidelines program As a probable failure even before it gets started. And if the test of Success is to be whether wage increases Are held within a rigid seven per cent guidepost it probably will be a busted program. But there Are signs for the first time that the administration is taking a More realistic non rigid approach which offers the Hope of a meaningful wage limit that can be accepted grudgingly by labor. You can be flexible without being flaccid because if you re absolutely rigid you May encourage absolute the harried wage Price Czar Alfred Kahn told reporter. Under discussion is a formula by which workers would be offered a Choice of a Flat seven per cent wage boost or a 6.5 per cent wage boost plus an unlimited catch up on the Cost of existing fringe benefits. This possibility has t yet been Dis cussed with Union leaders who say brusquely they re not prepared to negotiate with the Carter administration through a newspaper column. But clearly flexibility can open the door to a new posture by the unions. In All previous control programs including the late lamented Nixon Effort in 1971-1973, so called maintenance of benefits were not counted against allow Able wage increases. Moreover the Nixon wage Board which set a 5.5 per cent guideline allowed an extra .7 per cent for new fringe benefits. What May be even More important in softening labor opposition is recognition at Kahn s Council on wage and Price stability that for some major Early settlements the wage pot will have to be specially sweetened. Thus this is tile thinking regarding the bellwether teamsters Case their con tract runs out in March a package of seven per cent in Money plus an allowance for old fringe benefits plus the Cost of living adjustment to which the teamsters would be entitled under the old contract is about the minimum face Sav ing bargain the Union could make. To be sure that would add up to significantly More than seven per cent. But it s not realistic to think that the first big settlements can Cut 1978 s High average of 13 per cent for the biggest unions in half. The transition toward an approximate seven per cent Standard will have to be gradual. A degree of imprecision on the wage Standard will of course complicate the question of the proposed wage insurance tax rebate plan. But without some Spon Giness in the wage ceiling there won t be any effective control at All. There remains the problem of the Price guideline. There the program lacks total credibility and businessmen Are understandably confused on How to calculate a fuzzy Price target defined Only As a 0.5 per cent "deceleration1 from a base period. The Hershey chocolate bar decision allowing a 9.4 per cent increase does t sound like a serious Effort to control prices and adds to labor s reluctance to play Ball. Kahn s willingness to Bend the rigid seven per cent guideline handed to him by the designers of the Carter program he was t one of them is a hopeful note. On the other hand what i find disturbing is a sense of Madcap manage ment at corps with Kahn As he himself acknowledged running around like a Chicken with his head Cut he con fesses to hot feeling very knowledgeable in dealing with collective bargaining issues and plans to hire an aide who can speak the unions language. Kahn has to Settle Down to the Job and do less shooting from the hip. He acknowledges that he made half of the people in the administration nervous by talking about a deep deep depress Ion in his Effort to induce cooperation with the anti inflation Effort. What he was trying to say Kahn explained was to say honestly that a mild recession was not an alternative to controls if the voluntary program fails. He feels that to wring a double digit inflation out of the Economy by a consciously restrictive government policy would mean a real depression not a re cession. More difficult to comprehend is Kahn s determination to put some distance be tween himself and the administration of the guidelines which he plans to leave largely to corps official Barry Bosworth who is located in a separate office build ing. He argues that excessive attention on his part to guidelines will cast doubt on the administration s Promise to avoid Manda tory controls. But the guidelines Are in fact the Centrepiece of the program. Every Effort should be made to establish them As credible and acceptable because if they go Down the Drain the mandatory controls that Kahn fears will be a virtual certainty. Hollinger mines Ltd., nine months ended sept. 30 1978, 59 cents a share 1977, Hudson s Bay co., nine months ended oct. 31 1978, 78 cents a share 1977, 76 Cenis. Hat Leigh corp., class a 22.75 cents class a 22.75 cents both payable dec. 29, record dec. 8. Hudson s Bay co. 22 cents an increase of 4.75 cents Jan. 31, record Jan. 10. Classified in the free press see Coupon on Page 38 uranium giant gears for Elliot Lake expansion optimism expressed on nuclear Outlook Toronto up g. R. Albino president of Rio Algol Ltd., the giant uranium producer is optimistic about expansion of the company s Elliot Lake ont. Operations and the future of the Industry. The pendulum is swing ing from an anti nuclear feeling to a recognition that nuclear Power is essential to the world s Energy he said in a recent interview. Uranium is used in nuclear reactors. Fears for the Canadian Industry were expressed recently with the launching of major uranium develop ments in Australia. But Albino said austra Lian uranium is needed to assure adequate supplies. Also Australia believes in orderly resource development and i imagine that policy will apply in uranium he said. While it is True that the Price of any commodity will not go one Way forever i see no fundamental weak ening in uranium meanwhile Albino s company is gearing for an expansion that he Antici pates will bring the Elliot Lake work Force to about by 1987. It currently numbers about currently Rio Algol has two mines the Quirke and new Quirke operate under Street shop tenants sought by Jack Francis the City of Winnipeg has begun Public advertising for tenants for the Portage main underground Pedes Trian corridor which will include nine units for shops and offices. The under Street shopping area will House about Square feet of commercial space to be leased out in units varying from about 200 to 900 Square feet. A spokesmen said that the first advertisements published saturday seeking applications to set up businesses in the new con course were necessary be cause some of the proposals received to Date were not suitable. Limitations of ventilation capability mean some types of businesses must be excluded from operating in the underground space it was noted. The equipment is geared to handle air change mainly and not any major extraneous doors or chemical fumes that might be association with opera Tion of certain shops. There was also the desire to avoid having All stores of the same Type and to assure locating there a business with an attractive appear Ance to highlight the area. A fashion shop booking agent boutiques a camera store were the Type of operations suggested As among those which might fit in Best. A Good number of applications have already been received but a lot of them Don t meet the parameters. None have been confirmed yet and we Are still accept ing the spokes Man said in an interview. He added that the City As Complex owner would Honor its agreement with the above ground Corner owners to give them first crack at the space in the new when the project was negotiated the Corner owners got first Choice space rent Al agreements and up to four units could be leased by them if they pick up their options. Consideration of the proposed use of units will include these bids Al though not All four have been received As yet he added. Labrador mining and exploration co. Ltd., nine months ended sept. 30 1978, a share 1977, Large High Rise Winnipeg apartment Complex for Sale principals Only apply Box 153 free press immediate occupancy 1400 so. It. In Lakeview Square Plush 500 8 900 it. Renovations adjacent Ideal for Law yers insurance firms or other professionals indoor parking 5 private offices. Inquire at 956-1640 expanding company wishes to Purchase apartment buildings or. Collett pm. 944-7101 real estate investors tax shelter available flair Homes have a limited number of single family Allacher Homes in a prime residential area which has shown considerable appreciation in the past few years. These Homes Are Ideal for limited investors who wish to manage their own properties or flair Homes will arrange management great flexibility 10% . The Homes Are excellent for any investor requiring lax shelter and gain equity at the same time. Because these Are single family attached Homes built Wilh flair s Superior Quality and styling they Are easily re sold. Priced at the Homes come with fridge stove and landscaping included. Considerable soft Cost savings first year soft Cost savings can be attained if you act now. And invest before december fixed 10vj% mortgage rates available or a limited time Only till it i Sii Raury i dilution m Sallil Vii Sookil ing in Elliot Lake. Two others panel and Stan Leigh Are being reactivated to help Supply a major new contract from Ontario Hydro. Still inactive but await ing re opening if current negotiations for new uranium customers Are satisfactory Are the Milliken Lac nor and nordic mines. These three mines will be combined into a single mine if and when markets expand. Albino said the panel mine and Mill should be operating at a milling rate of tons of Ore a Day during 1980-81. Quirke s capacity is tons a Day. The Quirke panel sales contracts Call for delivery of about 80 million pounds of uranium oxide to utilities in Britain Japan and the United states into 1992. Stanleigh operated by Preston mines Ltd., an Al Goma affiliate will deliver about 72 million pounds to Ontario Hydro from 1984 to 2020. The Ontario Hydro contract caused a major controversy before it was approved by the Ontario government last february. Albino estimates that the Quirke expansion and panel reactivation plus housing construction at Elliot Lake will Cost about million. We expect that Stan Leigh will be in production during 1984, since site preparation work is expected to Start towards the end of this he said. Although not yet committed to customers or financed we Hope the Miliken project will be brought into production during the 1980s." 1928 Ford Model a 1928 Model a replica s produced in conjunction with Ford motor company built on 1979 Ford Chassis carrying full warranty. If you Are interested in investing your Money in an antique automobile do not hesitate because Only a limited number Are available. We Are the Only authorized dealer in Canada. 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