Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 14, 1981, Winnipeg, Manitoba 4 Winnipeg free press tuesday april 14, 1981 the Driver of this yesterday on Fermor front end loader Street. City work was shaken up when it overturned Crews were on Spring cleanup duties in rolling into Spring St. Vital when the loader its scoop rolled. But Spring cleanup continues. Of dirt swept from the Street three firms negotiating for Complex continued from Page 1 confirmed that they have been holding discussions with the government re Garding the Manfor Complex Joseph Kass president of the Montre Al based Recap has declined com ment but sources confirm the company also has been holding discussions with the government. Recap s chairman and chief executive officer is George Petty of Tembeck inc., located in Temiscaming que., and of Niter paper corporation in Ontario. He is also a leading shareholder in Acadia Forest products of Mon Treal and mixtec paper Ltd. Of Kimberly wis., which recently completed an expansion. Deputy Premier Don Craik minister responsible for Manfor has said the provincial government will make a final decision by the Middle of this year on whether to sell the operation. We Haven to in any Way shape or form said Sale is the sole option. We Are More interested in getting the product line Craik said in an interview. The government has vowed to preserve Manfor s jobs. If a buyer or partner is not found by mid year the Plant Likely will continue with its own modest expansion something less than million he said. It would not involve change in the main product line unbleached Kraft paper used for paper bags. Tariffs on United states pulp and paper products coming into Canada Are being phased out during the next eight years cutting into Manfor s competitive advantage. The major changeover for which the government is looking for a partner or new owner and which Craik has estimated would Cost million would allow the Complex to produce bleached pulp and paper used for a variety of White papers and which has a broader Market. Asked about possible court action by Kasser Craik said we Haven t had any cause at this Point in time to suggest they wanted in any Way to protest the government May have to absorb much of Manfor s debt close to million in capital debt and an Over All operating debt of million before it can negotiate a Deal. Any proposal we would contemplate would involve some treatment of said Adam h. Zimmerman executive vice president of Noranda. K. Linn Macdonald group vice presi Dent of Abi Tibi Price inc. Of Toronto who said his firm rejected an approach to buy Manfor said anyone wishing to buy the Mill would want it free and Craik agreed any Deal would have to take the debt into account there s no doubt about but he declined to say what the government would be prepared to do about the debt. Noranda has not made a firm pro said Zimmerman adding that the firm in t discussing outright Pur in our View the greatest service that could be done is a managerial role that could Lead to an investor s role but not necessarily to an investor s pm rebounds to score solid win in Quebec up photo Liberal Leader Claude Ryan comforts Young supporter. Continued from Page 1 the pm also ruled out an election on sovereignty association for at least three years. The Premier noted that while the boosted its share of the popular vote to 49 per cent from 41 per cent in 1976, the opposition still represents a Large num Ber of people per cent must be respected. Levesque switching briefly to English offered special thanks to Anglo phone and ethnic voters who in Many Ridings have Given us their support and joined in the mainstream of he said the pm will continue to provide Good government while defend ing and promoting Quebec s Funda mental interests. The theme of his new government would be1 development by Quebe cers for Levesque did not say Why he thought the party won although he said on the weekend it was because it had kept its promises from the 1976 Campaign. He also cited opposition to Ottawa s uni lateral action on the Constitution. However pollster Maurice Pinard who accurately predicted the election result saturday said the Constitution was Only a minor Factor. Pinard said the personalities of Levesque and Ryan were much More important. Polls showed voter satisfaction with the government Well Over 60 per cent and gave Levesque a crushing two to one Edge in personal popularity Over the More austere and conservative Ryan. Ryan offered no opinions on Why he lost but said one reason the liberals got so few seats despite increasing their share of the popular vote to 46 per cent from 34 per cent in 1976, is the elec toral system. He suggested the province should reconsider some form of proportional representation to better reflect each party s share of the total vote. Subdued As he spoke to 300 equally gloomy supporters in a near empty Hall in downtown Montreal Ryan added that the party has t lost the War. If we won 12 times during the Bielec tons and we re still Able to do the Liberal Leader added that the party will remain vigilant to keep the pm to its promises. Ryan who won the party leadership three years ago this week dismissed the possibility of any Hasty decision on his political future. I m available to serve wherever can be most useful. We will do an inventory we will try to see the reasons for the his was not the Only future in doubt. Roch Lasalle who quit As the progressive conservatives Lone que Bec my to take Over the Union nation ale Only to see its share of the vote fall to four per cent from 18 per cent in 1976, said the first thing he has to do now is find a Job. Other casualties of the election included one minister Public works minister Joceyln Ouellette who was beaten by Liberal Gilles Rocheleau in Hull and Solange Chaput Rolland a former member of the Federal government s task Force on National Unity. Macmillan Bloedel which has recently recommended that its share holders accept an offer by Noranda for effective control of the company submitted the outline of a proposal to the government some Little while its president Raymond Smith said. He declined to give any details of the proposal. Looking for purchaser Macdonald who noted Abi Tibi was approached More than a year ago said my memory is that the consultant was looking for a the Consul Tant was not asking a specific Price but wanted to sell it to a purchaser who would do something with it and that is Manfor s assets have been valued at million. Craik declined to say if the government has put a Botton line Price on the forestry Complex. The approach to Abi Tibi had been made by Woods Gordon and co., the Toronto consultants hired by the. Government to evaluate the controversial pulp and paper Complex recommend ways to improve it and to find a purchaser or partner for it. Woods Gordon is the author of a report on the Complex which Craik has refused to release. Last january Craik was quoted As saying that Ottawa had agreed to com Mit up to million under its Mill upgrading program toward changes in Manfor. But he said this week the figure was highly a spokesman for the office of Pierre de Bane minister of regional economic expansion said he was really sur a figure had been put on the Federal contribution. Won t release report Terry o Reilly Debane s executive assistant said discussions have Only been held and they Are confidential at the request of the Manitoba govern no formal application has been made for Dree funding he said. To the Best of my knowledge we be been Given a package of information for us to look he said. Meanwhile Craik said a standing offer by techno pulp inc. A Kasser company the Plant in t under any Active Slous said in july 1977, that techno pulp had offered an option to Purchase of million less the losses sustained by the project from its takeover in 1971 to the Date on which the option was accepted or the net Book value of Manfor on the Date the option was exercised plus the Par value of Deben Tures held by the province amounting to about million in 1977. Oil pact nearer continued from Page 1 each revealed that he had made an offer but both said they made a pact not to reveal the guts of their discussions. And both ministers qualified their enthusiasm by saying that despite a Good first round of discussions agree ment Between the two warring govern ments is by no Means certain. We accomplished today As much As we could Hope to accomplish in the Lalonde said at the end of a Day Long meeting Over Perrier water in Winnipeg inn s baroque top of the inn banquet room. One should not assume a Resolution is just around the although Alberta was in a receptive mood discussions were constructive and officials have been designated to work out the details Lalonde said. The discussions Are Complex and involve Large sums of Money the Energy minister added. Leitch was in a particularly upbeat mood coming out of the talks. I feel that we made some he said. Alberta proposed some new asked if Ottawa s shifts in attitude could be termed significant he re plied i would describe them As however Leitch added a caution to his comments on the Success of the talks. I be said i Felt we made some he said. It would be wrong to infer we be reached consensus. There s still a Way to the two governments have been unable to agree for More than a year on Oil and natural Gas pricing and How revenues resulting from increased prices should be shared among Ottawa the producing provinces and Industry. The oct. Budget and National Energy program imposed new Oil and Gas prices and taxation measures As Well As a significantly restructured Revenue sharing formula to More than double Ottawa s take. Alberta retaliated by cutting Oil production by an average of barrels a Day or five per cent of its productive capacity starting March 1. It also successfully challenged in the Alberta court of Appeal a new excise tax on natural Gas exports from provincially owned Wells and refused to give the final go ahead to two Alberta Oil Sands projects. The province has said the cuts will be increased by about barrels a Day on june 1 and a final barrels a Day on sept. 1 if there still is no agreement. As the talks were in Progress Justice minister Jean Chretian announced in Ottawa the Federal government is seek ing permission from the supreme court of Canada to Appeal the natural Gas decision handed Down by the Alberta court of Appeal. Leitch said he does not anticipate the Appeal will interfere with the negotiations although some of the principles involved in the Case have a bearing on elements of the Energy package. Alberta challenged the tax on ground it is an invasion of provincial jurisdiction. Cut concorde costs . Govt. Urged London Reuter Britain should either Cut its spending on the Money losing Anglo French supersonic air liner concorde or abandon it an All party parliamentary committee said today. The concorde has Cost the British taxpayer nearly billion since the project began in 1962, the parliamentary Industry and Trade committee said in a report. Committee chairman sir Donald a Berry told a news conference that the concorde has sped like a modern Frankenstein monster and burst through the restraints of All financial Only 16 concorde have been built and the British and French state air lines were the Only buyers. By Michael Doyle Premier Rene Levesque last night galloped to Victory on the heels of a Slick skilful Campaign built on strategy which would have made the Federal liberals proud. But the two thirds majority captured by the Premier the liberals Defeated in the May 20 referendum May come Back to haunt them. Tough questions Are going to be asked about whether prime minister Trudeau s unilateral plan to Patriate the Constitution helped Knock Quebec Liberal Leader Claude Ryan out of the boxing ring. Trudeau and his popular Justice min ister Jean Chretien always maintained they were changing the Constitution in part because Quebec was owed renewed federalism for its act of Faith last May. But que Beers from every segment of society including Many leading lib eral thinkers made it Clear from the Start that just because they chose can Ada it did not mean they also wanted to give Trudeau a free hand. In Ottawa that part of the Quebec message was largely ignored in the rhetoric used by Trudeau and Chretien. But now the question takes on new significance. Not Only did the parti quebecois grab a big Victory but it also managed to wipe out the Union National. It Means that Many whose loyally at one time or another has been preferred to this right Wing nationalistic parly switched to the new Democrat leaning economics of the Pequi stes instead of the liberals. And they did that despite dramatic efforts by Liberal Leader Claude Ryan to reach from the traditional Liberal stomping ground into an area of philosophical and economic thought much closer to Many Provin Cial conservative parties than to that of his Federal cousins. Forced to make a Choice Between vat ration plan defeat Ryan right Wing thought and nationalism Quebe cers picked nationalism. Many analysts had expected it to go the other Way and they had facts to Back up their Contention. In Many of the 11 by elections won earlier by the liberals it was the poll by poll Union National vote that made the differ the results however fit Well into a traditional Quebec voting patterns. Al most As if by design Quebec votes opponent governments to the Federal and provincial Levels. It Means Quebec holds Strong sometimes controlling Power in Ottawa and at the same time retains hefty bargaining Power by electing a provincial parly which won t be kicked around. It s loss of bargaining Power after the referendum that bothered Many que Beers and was dealt with extensively by francophone thinkers. Quebe cers argued not Only that their act of Faith was being misused by a wilful prime minister Trudeau but that the referendum Vole caused English Canada to forget Quebec As if they had come to the final chapter in the novel. Quebec was being paid so Little Atten Tion after it made its Choice on May 20 that several English Canada premiers reneged on statements and promises of intent they made during the hear of the referendum Campaign. With Levesque Back and carrying a powerful mandate in his hip pocket the rest of Canada can be expected to sit up and pay attention again. More than All this perhaps is the Good government Angle which Leves que played to the Hilt during his elec Tion Campaign. Even Many English voters were pre pared to admit that despite some of their objections to some of his Laws the one thing Levesque had delivered was Good government. In capital letters. If that were not enough the Provin Cial liberals mishandled their own Campaign so badly that the Don of Federal political activity in Quebec consumer affairs minister Andre Ouel let went to Trudeau late in the Campaign to beg permission to put the full Force of the big red Federal machine into action. Ouellet s mass of contacts throughout the Liberal establishment in the prov Ince gave him the right message but Trudeau is reported to have told Ouel it to forget his idea. After All Ryan had specifically asked that no help be Given and Levesque was already claiming the provincial Liber als were in the pockets of their Ottawa cousins. In any Case Trudeau does t like Ryan much and makes no secret of it. A Liberal strategist who advises tru Deau said privately that there was t much to pick Between the pair of them. Ryan would be just As difficult to Deal with As Levesque. But with Levesque the Federal government does to pretend to be friends. And at the same time the feds find it easier to sandbag Levesque with the charge that the reason he fights Ottawa is that he is secretly dedicated to the break up of the country. In fact Levesque has been fighting militants in his own party in an Effort to temporarily reduce the enthusiasm for separatism. In the Campaign he promised no second referendum and no snap elec Tion on the subject of sovereignty association. Levesque said Quebe cers had Given their opinion and he never expected them to change it quickly As if it were a soiled shirt. Al the same time Levesque has always pointed out that about 50 per cent of francophone voted yes to sovereignty association. The Edge which gave the no forces 60 per cent of the referendum vote came from Anglo phones and allophones people who speak some other language than French. Meanwhile that Section of Anglo phone Quebe cers which argues Leves que has been quietly abridging their rights can cry while those who say this just the Start of the vibrancy Quebec will show in the coming decade can rejoice ;