Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 3, 1981, Winnipeg, Manitoba 10 Winnipeg free september Energy Accord expected to ease budget tax blow Ento Ottawa up the federa Alberta Energy pact clears the Way for a slight easing in interest rates Over time and should soften the tax blow expected in this Falls economists but dont expect any sudden or Large drop in they warned adding that some tax increases Are still George Vic president and chief economist for greenshields said he Doest think the interest rate picture will change Rush to alter heat systems not expected Utility spokesmen say they cannot see any immediate changes in Consumers heat ing preferences because of tuesdays Energy pricing Jim Winnipeg Hydro director of business said homeowners will continue to switch from Oil to electricity or prompted More by a need to update their furnaces than the desire to evade rising Oil if a Guys got a Good heating system Hes going to hang in there for a said Manitoba Hydro spokesman Rudy Boi according the of heating Oil is expected to Rise to about 56 cents a litre or a gallon by the end of the Price of natural Gas will increase in a fixed schedule of 50 cents per thousand feet a year beginning the average Winnipeg Homeowner currently pays per thousand cubic feet of Federal Energy minister Marc Lalonde has said Gas prices will remain at less than two thirds the Price of substitution program greater Winnipeg Gas marketing manager Bill Salo said the agreement May cause More people to take advantage of the Canada Oil substitution program but could not say How the Gas rate increase would affect the Cost Grant covers 50 per cent of eligible conversion costs up to a Maxi mum of and is available to House businesses and Salo says he has received More than apply j cations for conversion to Gas As of the end of a 61percent increase Over last the government Accord also prompted a number of inquiries to Manitoba Hydro about conversion to Federal government statistics indicate that it costs a year to heat a on Storey Manitoba Home with Gas and to heat it Boivin said projections for 1983 have pegged the Gas Cost at while the electricity rate is the same due to the five year rate freeze set by the province in Winnipeg Hydro has estimated that a rate increase would be Nec Essary in 1984 to recover Revenue lost because of the Boivin said Manitoba Hydro rate increase once the freeze is lifted should not go higher than the inflation continuing High rates in the United states and the added Impact of higher Oil prices on inflation prevent any significant move in interest rates Saba said in a Telephone interview from if the constitutional Issue is settled and the Dollar strengthens to the Range it would give the Bank of Canada some leeway to ease he the Dollar yesterday reacted to the Oil announcement by jumping almost half a cent when the Market opened to the mid83cent Range then Rose a third of a cent More in morning trading before sliding Back to the mid83cent and one Money trader said he suspected it was Only a Short term rally because economic other than the Oil still Peter economist with Mcleod Yound Weir in also predicted the Energy Deal would push interest rates but this he would be in the area of one percentage Point and would take up to half a homeowners and potential Home buyers get a bigger finance minister Allan Maceachen told reporters yesterday the Oil Deal Means theres More room in the Economy to ease interest and he confirmed that Cabinet ministers Are looking at measures to reduce mortgage As for the billion extra that will flow into the Federal Treasury Over the life of the five year Oil pact Lightens the pressure on the Revenue hungry govern Maceachen said yesterday no decision has yet been made on whether taxes will be increased in the but taxpayers have been by Mac Eachen and other Federal politicians in directly and by economists to Brace themselves for tax according to what this infusion of Revenue will do is allow the Federal govern ment to be selective with its tax it Doest that there wont be any tax Saba can impose perhaps higher taxes on certain sectors of the Economy rather than across Leboard tax in i think it would be politically difficult now for him to justify a general tax Saba and Martin said he also expects tax in creases in the fall but they May be less than expected because of the additional the increases May Only be for one he then the Money really starts to under the Oil prices jump a barrel in 1982 and a barrel per year for remaining four in a dome Petroleum official said the Oil agreement the Federal government provides a sound basis to move Canada towards Oil the agreement will also provide an Essen tial contribution to Cash flows needed to finance Large Energy said a company statement released by Public affairs director Bill the substantial increase in Price paid for new although it will have Little initial Impact on consumer will provide a powerful incentive for Industry to develop new sources of fuel costs May Force seniors to give up cars by Sheila bean senior citizens and others on fixed incomes say this weeks Energy agreement will hit them hard and May Force some to give up driving in order to make ends in sure i will have to give up my said Fred a resident of the notre Dame senior theres no Way 1 can pay a i wont be Able to get around very Well because i cant walk too my legs wont let me and i dont like waiting for a an example a Manitoba pensioner receives slightly More than a paying a gallon for gasoline in the next five years Means a bigger percentage from his or her income than can be a senior at the Stra Brook senior who asked not to be agreed that the added costs would curtail her she want prepared to give up her she suggested people who Are younger and More Able should take some responsibility for the Energy what i think a lot of people Young people who Are driving should be on she get on a bicycle or or take the she finds the Cost of heating fuel a bigger in the Price spiral for Home heating Oil is forcing her to move to a less expensive Ive been trying to get into a senior citizens there Are lots in the but there Are waiting lists a mile and i cant get into Sheila coordinator of the senior citizens Job says Many of the seniors who work Par time Are not using their cars because it is too expensive even i honestly dont think theres any Way seniors can maintain their Homes and unless the pension but How can it increase wheres the Money coming from someone else would have to give a slice of his earnings to give the seniors Energy agreement applauded by automobile association Ottawa up the two million member Canadian automobile association has applauded the Federal and Alberta govern ments in reaching an Oil pricing and taxation finally puts an end to the Long and bitter confrontation a dispute that has Hurt the Canadian Economy Robert executive Vic president of the As said in a statement Erb said the agreement will encourage fuel accelerate research and development and pave the Way for Energy but Erb expressed concerned the Price increases will Lead to Windfall tax and revenues in excess of those required to ensure Security of Supply and Energy self All charges or taxes required to achieve these goals should in no Case be used by governments As general operating Revenue or to reduce operating he Erb said the association is continuing to urge Ottawa to remove what the association Calls a discriminatory tax on transportation fuel imposed in Lougheed says the Energy pact wont affect other areas of Lougheed sees no carryover Calgary up the Federal provincial agreement on Oil pricing Doest necessarily set the stage of favourable talks m the Constitution and Revenue Alberta pre Mier Peter Lougheed said Tel a news conference after signing the memorandum of agreement on Oil pricing in Ottawa on Lough eed said he separated the i really cant this particular situation affecting the fiscal or Constitution Lougheed Lougheed and provincial Energy minister Merv Leitch stuck to the line voiced tuesday that the Otto Tang package was a Victory for All canadians and there were no winners or losers ii the Federal or Alberta asked whether Alberta gained everything it asked Lougheed sidestepped the the National Energy policy forced Alberta to withhold approval of Oil Sands Meg projects and Cut Oil product Lougheed that leverage enabled Alberta to insist on its objectives that the province regain control of its that Ottawa rescind the Export tax on natural Gas and that Ottawa not impose the National Energy program unilaterally on the producing he said it was also important the Oil and Gas Industry receive sufficient Cash flow from the agreement to main Tain and expand its exploration the Only major Concession was a Compromise on the final Domestic Price of Canadian crude Alberta settled for 75 per cent of the forecast world Price in mid 1986 when die agreement expires instead of three Quad ters of the actual world Lougheed said Alberta Likely have won that Battle in the Long run because Ottawa could invoke a provision of the British North America act if prices Rose too the provision gives Ottawa the Power to override provincial rights in interests of the National Good to Safe guard order and Good were making an Only 3 Days left in our fall Home furnishing Sale to save you Money Check our flyer for More super buys modular 5 Wall units in Pecan Wood finish Short Glass door unit Long Glass door unit drop front in Mph Wall unit traditional swivel Rocker features solid Frame durable Commodore desk Palliser sofa suite this sofa chair has a durable Nylon cover in Elan Sony 20 color to embassy Dinette suite features 60 table and 4 Cane features Fri Citron color tone control 14button tuning Commodore double Ped swivel Tiller Arm chair with wooden Arm rests chair Tex wooden stacking chair features wooden seat Quantity discounts Avail chair j1085 Urr rcom microwave oven Spac Savins oven Mil of 1010 lets 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