Winnipeg Free Press

Winnipeg Free Press (Newspaper) - December 12, 1979, Winnipeg, Manitoba 4 Winnipeg free december 1979 the i t i Wii budget hinges on Oil pricing from Page l Jar Ritten on the Assumption that the Federal government will get its Bat All that is firmly on paper at this a flirt is that Oil will go up by a barrel i exactly As the former Liberal government without the crucial Price increase next followed by larger increases to the the Bottom Falls out of Crosbie economic and Are the finance minister to Cut the governments annual spending Defi Cit in half within the next four which Means knocking about billion off the troublesome deficit every year until Crosbie intends to entice thousands of Ordinary canadians into investing their savings in the Stock so grown companies will have a new Pool Wayne free press of funds to expand and hire More he expects the Economy to hum along at a respectable fou percent annual rate of growth far the next four despite life warnings that the United states is headed into a deep and prolonged recession and the fact that the Economy has been Able to Chalk up Only a disappointing 18per growth rate so far this the main source of funds to bring about Crosbie comfortable scenario for the 1980s is the billion he Hopes to raise by taxing Oil and natural Gas revenues in the next four corporate surtax another important source of Cash which came As a Surprise to Many observers a five percent surtax Crosbie is imposing on the corporate sector for the next two he expects this to yield million by the end of the tobacco and liquor taxes Are minor sources of yielding about million apiece next in contrast to cd spies optimism about his ability to get the govern ments deficit under cent Fedij he appeared unsure and worried about the prospects for reducing the country foreign which he estimated at close to significant change although this is the same prediction the finance minister has been making since a significant change has occurred since Crosbie first made the his original deficit did not take into account the fact that Canada would decide to sell of natural Gas to the United states next instead of reducing the staggering imbalance in foreign As one might the massive Gas sales left it exactly where Crosbie had put it five months improving this International problem ranks second Only to reducing inflation in the governments economic Priori Crosbie despite the nagging Burden of watch ing the nation fall Ever More in Hock to foreign Crosbie was confident that better times lie ahead for Cana reaching Back into history for a powerful phrase to convey this opt Crosbie reminded fellow maps How sir Wilfrid Laurier had promised the 20th Century would belong to Cana so it Doest look that he looks to 1990s but if our fiscal and Energy policies Are the 1990s will indeed be Long to the Only group Likely to share his budget night enthusiasm is that Fortu Nate segment of the population with sitting around to invest in the Stock Crosbie introduced a new which works much the existing registered retirement savings to allow Ordinary taxpayers to avoid paying taxes by investing in Canadian Corn Ken Hildahl and wife Judy watch television coverage of finance minister John Crosbie budget last conservative budget offers no cheer for Middle class Winnipeg family by Bob Cheshire Ken Hildahl Shook his head As the 18centagallon increase in gasoline prices flashed across his television screen last night As he watched live coverage of the Federal governments budget Thall add another a month to our Gas Hildahl said like thousands of other Winnipeg the instant Gas Price increase will have the most immediate Impact on his family a 29yearold juvenile coun Wellov with the Manitoba and his wife currently on mater nity leave from her clerk position at the health sciences Are typical of upwardly Mobile Young they have two Niney Earold Jeff and three Montgold two older cars arid a older two bedroom Home in for the new Federal budget did not have much to help Cope with the daily spiral of it really kicks the hell out of the Little Doest it Hildahl the effect of the budget he will be pressure for higher wage settlements from working with offers of eight per cent increases simply not Good enough when Gas prices jump 20 per cent and inflation is predicted to run at 11 per he said with the Large jump in Gas prices and More increases they will have to watch How they use their cars in the Long distance trips May be he the Hildahl have a 1971 which was considered a midsize car when they bought they also have an six Cylinder questions credit while the Gas Price increase will have the most immediate the Hildahl doubt whether they will be Able to take much if of the one big Relief measure in finance minister John Crosbie budget a planned Energy tax credit of per adult and per Hildahl questioned How Many families would be Able to qualify for the Given the maximum an Nual income level in order to collect full when most families must have both husband and wife working to meet rising Hildahl said Given the Cost of babysitting and other expenses it May not be worthwhile for wives to continue but both agreed the increase in taxes on cigarettes and alcoholic beverages is probably since they Are although Hildahl wondered Why governments always want to increase the Price of the Hildahl could see other effects of the they very handily wiped out the effect of the mortgage deductibility Hildahl he said they May be Able to qualify for the mortgage interest deductibility scheme this but the effect of increased gasoline higher Alco hol and tobacco taxes and other inflationary expenses Means its out of our pocket even before we got he was also concerned with the in direct Price increases which will such As the effect of higher transportation costs on the prices of food and other store its not just the Cost of its things like lettuce As for the five per cent surtax on corporation Hildahl said this also would probably be passed on by companies to accepts need he said he could accept the need for higher Gas prices to provide the Money needed to develop new Energy re but he questioned Why the excise tax had to be increased in one fell swoop and whether Crosbie is funnelling some of Revenue into deficit rather than into Energy in not an Hildahl but i really wonder whether this is the year to begin reducing the de he said since the country is begin Ning to slip into a perhaps something should have been done to stimulate the encourages investment the taxpayer is allowed to set up a known As common Stock invest ment into which he can place up to next year and each subsequent when he withdraws the the government would per Mit him to do it without paying capital gains the government is using this Gener Ous tax deferral scheme to get Money into the hands of corporate unlike his Crosbie decided to do this by offering his incentives mainly to would be not to the corporations As a second enticement to canadians to buy common Crosbie offered a new tax break on resp resp put into common will qualify for a tax exemption when the taxpayer decides to Cash in his the largest business incentive in the budget which appears to have been a response to the outcry against High interest rates imposed by the Clark government a new plan to help Small businessmen borrow Money without paying crippling debt Crosbie has decided to allow Small businessmen to Issue Bonds Worth up to instead of approaching their banker for a loan at the current 16per cent interest instead of making interest payments to the the businessman would be allowed to make so called dividend payments to the these div interest payments would not be taxed by the this effectively cuts the Cost of borrow ing almost in half for the Small Busi Farmers get break Farmers also were offered a tax once in a if he agrees to sell the farm and Transfer the gains into a registered retirement savings he will be Able to defer capital gains taxes on up to Iran students insist Shah must return continued from Page 1 and said we have not been informed about any meeting arranged with the if anything comes up Well announce it ourselves and nobody else can be our the students say they will not release the 50 hostages until the United states extradited deposed Shah Mohammad Reza in related developments d emphasizing that no hostages will be released before the deposed Shah is said in an interview broadcast yesterday that the ruling revolutionary Council sees no purpose in holding hostages who Are innocent of fights economic d the 79yearold Khomeini announced the dispatch of an investigative Mission to Clamp Down on anarchic elements among his revolutionary guards he Are seizing Homes and land in some unspecified Khomeini made no mention of involvement in the latest trouble first open criticism of the paramilitary Force set up after the february d in state department officials said they cannot account for the whereabouts of about 20 hostages and said it is possible they Are being brainwashed in preparation for a d the House of representatives foreign affairs committee approved a Resolution urging extra pay for the hostages when they Are released and that the state department should ensure their career prospects Are not impaired by the Vance visits Rome d state Secretary Cyrus Vance visited Rome and Bonn on his tour of Western european capitals to Dis cuss economic measures that could be taken to pressure Iran for release of the d a Chase Manhattan Bank spokes Man said in London that International banking syndicates have decided not to declare in default two Loans guaranteed by the Imperial government of Chase has declared the government to be in default on a loan arranged in d the International court of Justice in the Hague began considering in private session the suit seeking an order that Iran release the hos Tehran radio broadcast a foreign ministry statement saying an International commission will study the Dos sier of crimes in Iran from the 1953 coup to the present Day and expose those crimes to the in diplomats said that Cana Dian ambassador Taylor has visited charge affairs Bruce who has been held at the iranian foreign ministry along with two other diplomats since the embassy was they did not say when the visit took the disturbances in the East azerbaijani capital of Tabriz have been triggered by azeri opposition to the new islamic Constitution giving Kho Meini absolute Power for life and deny ing the azeris the measure of self Rule they expected from Rhodesia restores British Rule continued from Page 1 country has Whites and Mil lion parliament debated late into the eve Ning before adopting the measure that says Zimbabwe Rhodesia shall cease to be an Independent state and shall become part of her majesty do the measure then went to the largely ceremonial where passage was virtually several senators questioned Muzorewa closely on the Wisdom of stepping Down be fore the ceasefire is James Leader of Britain labor also said in London that sending Soames to Salisbury before the ceasefire May place him in great Peter the party for eign affairs called the decision to Send Soames the Zimbabwe rhodesian Parlia ment also approved an increase of million in the defence budget on top of the billion already earmarked for the the military command reported 16 More bringing to 117 the num Ber of people killed in the Bush War since terms of the ceasefire were announced in London last soviets from the news services new York a bomb exploded in a garage at the soviet Mission to the United nations late shattering windows on both sides of the Block and injuring six officials the injured included four policemen and two both clerical workers at the a Man saying he was from Omega an anti Castro terrorist claimed responsibility for the blast in a Telephone Call to the the associated the caller read a statement saying the group opposed soviet colonialism which threatens our hispanic America and the free he also denounced the communist tyranny of cuban president Fidel Council member held Pakistan a Mem Ber of Trie Hyderabad City Council was arrested yesterday for leading Paki stans first official demonstration of support for executed former prime mews Roundup minister Zulfikar Ali Aftab a Shah who proposed five minutes of silence to Mark the death of Bhutto at the councils first meeting on faces a jail sentence and police said that who was dismissed from the has been charged under martial Law regu lations with making an objectionable political execution delay sought opponents of the death penalty and lawyers for con fessed murderer Joseph Shaw Are seeking new avenues of delay for Shaws scheduled execution on Fri Shaws lawyers went to Federal court tuesday seeking a stay until the supreme court can Rule on a request for a rehearing of the which it turned Down and Pat a lawyer for the american civil liberties said her group will enter the fight for Shaws freighter regains Power Copper a great lakes freighter proceeded under its own Power yesterday to Thun Der after being adrift on storm swept Lake Superior with engine a coast guard spokes Man said the Crew of the freighter earring tons of Iron Ore restored sufficient Power for the vessel to proceed without Assis Tance from a tug which had been stand ing the which was in route from Silver to Ashta was battered by High winds and five metre Waves monday As the Crew worked to repair an electrical fault which caused the engine to haitian refugees rescued the Crew of a soviet Tanker rescued 61 haitian Refu gees whose wooden boat was sinking Early the coast guard re Mission injures six the soviet vessel was bound for with a Load of liquid ammonia when it encountered the haitians about 280 Kilometres Southeast of the 49 men and 12 women were to be turned Over to the immigration and naturalization ser vice in West Berliner jailed Berlin an East German court sentenced a West Berliner to 10 years in prison yesterday for helping citizens of the communist state flee to the the official adn news Agency adn said a court in the East German City of Frankfurt theoder found Dietmar Strube guilty of hostile activities against the German democratic fire injures 10 persons Baltimore at least 10 persons were taken to the Shock trauma unit of University of Maryland Hospital late last night and Early today suffering in juries from a four alarm fire at a chemical reports conflicted on the number of police said 13 were mostly by smoke inhale Hospital spokesman Marianna Herschel said Only eight fire men and two civilians were Baltimore county officials said some residents were evacuated from their Homes due to the burning chlorine at the Baltimore Pool landslide derails train Prince a land slide five Kilometres South of this North coast City derailed eight Ca Nadian National railway freight cars monday and wiped out rail transportation to the railway officials said it will take up to four Days to repair the there were no the derailed cars were part of a train Load of Wood chips bound for the Canad an cellulose pulp Mill at Watson Island East of the 12 die in revenge raid new Delhi bandits killed 12 including six women and three in what police described yesterday As an apparent revenge raid on a Village in India Northern utter Pravesh they said the gang was probably seeking to avenge the action of villagers who Cut off the hand of a Bandit Leader when they caught him two years the using Auto Matic set fire to five houses in the Village sunday and opened fire when the villagers fled from their burning school mishap Burns boy Toronto a 13yearold boy was critically burned yesterday and his teacher suffered minor Burns when he tried to smother flames engulfing the boy after a Model steam engine exploded and caught fire during an Industrial arts class at an elementary police said Adam was taken to Hospital with numerous Burns to All parts of his he was reported in critical Adams William suffered minor Burns to his Back and Chest and another student was burned on his right t ;