Winnipeg Free Press

Winnipeg Free Press (Newspaper) - December 12, 1981, Winnipeg, Manitoba 4 Winnipeg free december t Oil firms react cautiously to Call to leave Libya Washington a president from nato no european Leader at a nato meeting in East Washington a president reagans summons Home to Ameri cans working in Libya has drawn a cautious response from Oil firms operating there and from americas neither is expressing the urgency that Reagan has about the threat posed by strongman Moa mar Kha in state Secretary Alex Ander Haig found scant Public support Farmers slowed under Ottawa up the number of Farmers forced into bankruptcy so far this year reached 258 at the end of no up 28 per cent compared with the first 11 months of last the consumer affairs department re ported the november figures showed a Small increase in the rate of bankruptcy compared with the Previ Ous at the end of farm bankruptcies were 25 per cent ahead of total at the end of Ontario continued to record almost half the with 139 Farmers forced out of business so far this largely because of Low prices for cattle and Quebec has recorded 53 bankrupt Saskatchewan 19 and Alberta the announcement came As about 200 angry Farmers protested Bank and government financial policies outside the port Branch of the Canad an Imperial Bank of the some pulling manure spreaders behind jammed traffic in the cites the protest ended in a partial Vic tory for the Farmers when the Banks management agreed to release equip ment seized last week from a Farmer whose operation had gone into receive earlier in the agriculture min ister Eugene Whelan said he still Hast received Cabinet approval for a plan to make More Money Avail Able to he said in the commons that a Bill to allow the farm credit to borrow from no government sources to in crease the amount of Money it has for lending to Farmers has yet to Clear the Cabinet committee that decides government this summer Whelan promised farm angered with Ottawa High interest rate that the Bill would be in parliament in the he he has talked about bringing in such Legisla Tion for several from nato no european Leader stepped Forward to endorse the Call for the voluntary withdrawal of american citizens and the invalidation of passports for travel to in announced it intends to resume Normal relations with Libya because it no longer considers Kha Days government a subversive inter National up photo at a nato meeting in Brus made no direct reference to the administrations claim that Libya is plotting to kill he said Reagan ordered the minor Steps because of an increasing level of terrorist activity and to protect american lives should some of the plans that we have had Access to perhaps be carried reporters questioned Reagan him self and former president Gerald Ford while they posed for but Reagan said Little More than that he agreed with Fords assessment that khad Afy is a serious menace to peace on a global defence Secretary Caspar Wein Berger told a news briefing in that the 6th Fleet was ready to evacuate americans from Libya if state department officials met with executives from Oil firms with operations in arts department spokesman Alan Romberg said the businessmen indicated that they would be cooperative with what the president is trying to but one Oil firm who asked that his name not be said no evidence had been offered for the governments assertion thursday that american workers physical safety is in imminent Occidental the biggest Oil firm operating in said it told its 138 american workers there of reagans request but it will not encourage them to if the americans choose to do Occidental will provide spokesman Gordon Reece said in los Farmers protest financial policies in port continued from Page 1 est rates has begun to take its toll on Well run businesses which had slim profit margins when the Cost of Money was lower can no longer survive under today he bankruptcy trustee Alvin Barrett took the opposite saying poor management still plays a key role in causing the death of a business in periods when sales he said when inexperienced manag ers decide to go into they often open a and this helps explain Why this area accounts for the largest number of some people simply open up without having done All the financial i dont think interest rates Are causing All the problems were dealing on the jobs we have at the present i honestly cant think of one where interest rates were the main accountant John Platt said retailers have to make astute purchasing Deci Sions to avoid getting stuck with the High Cost of carrying inventory which they cant both Collins and Barrett noted that the bankruptcy rate tells Only part of the Story in that Many More companies Are forced into receivership or simply shut their Bank Calls Loans in a the Bank Calls its Loans and takes charge of the company if it cant the receiver either tries to revive the business or Sells off the assets As is done in a but because there Are no recorded statistics on the number and size of its impossible to know the True extent of business Collins said its Clear that receiver ships Are growing in number and also in terms of the amount of liabilities owed by the companies that have gone under in this theres no doubt that receivership Are substantially higher than but i bad planning have no idea As to he firms which go the bankruptcy route tend to be smaller operations those that went under to the end of septem ber had total liabilities of million or less than no figures were available on the value of the assets owned by these the second biggest category of fail ures was with 31 subcontractors and 11 general contractors going Down the tubes in the first 11 this group was followed by trucking companies and moving and storage with 30 Barrett added that construction hard times predicted for province continued from Page 1 despite a projected yearned the government will have to finance programs that can stimulate we Are uncomfortable with the size of the but that is not to say programs should be he these initiatives May very Well Cost More the Premier refused to offer details of the mortgage interest Relief pro Gram that a Cabinet committee has been working he confirmed the headed by agriculture minister Bill will be looking at the controversial legislation introduced this week in Sas under the homeowners Protection about Saskatchewan homeowners who Are to renew their mortgages in 1982 can negotiate a better continue to pay at the existing rate or not pay at that obviously one of the options we will be he firms dont seem to be getting the House repair and renovation business needed to offset the Lack of new housing people Are doing More and More of their own repairs because they cant afford to pay for he while Hignell was surprised at the number of failures in Barrett said this is another area where companies Are started on a shoestring and thus cant withstand economic Down consumer spending perhaps Only 20 companies listed As manufacturers went broke during the 11month Hignell said theres a Dan Ger the apparent slowdown in consumer spending on durable goods could result in fewer orders for manufacturers later when people Arent a lot of suppliers of those goods get hit when the stores Cut Back and Stop ordering new he while 15 farm operations were listed As going broke in the past 11 Barrett said this figure is misleading in that it Doest include receivership and mortgage were lacking data to make Conlu if we did have that things might not look that he adding that from his experience farm ers Are having Tough he added that the rate of bankrupt cies appears to have risen at a faster Pace in the latter part of the part of this is probably due to the the postal which caused a loss in business which cant be other major categories of failures reported were restaurants and Tav erns car repair shops food stores real estate firms ser vice stations 6 and lawyers the remaining bankruptcies covered the full Gamut Barber taxicab con and dozens More types of Crow rate at Centre of talks plan reported to hinge on massive revamp of rail system continued from Page 1 Hazen minister responsible for the Canadian wheat officials say there is a body of thought around town to indicate that if the payoff is big enough for the West and certain aspects affecting Saskatchewan Are improved we might get Down to the True Liberal tradition of the problem itself has become the incentive for the present rail system cannot be expected to carry the massive amounts of Potash and other resources coming out of the booming West without major improvements which the railways say they cannot afford to make at least with the artificially Low Crow rate in Premier Lougheed just has to be Wor ried about How to transport the stuff from the four big petrochemical plants he has an official Saskatchewan Premier Allan Blakeney is thought to have a Short term interest in opposing anything that involves changes to the Crow rate because it is a hot item with militant Farmers and he is expected to Call a Spring election expected officials think that Blakeney could have his agriculture minister and Rural maps running about the Countryside chastising the Federal government while the concentrated on the larger picture considered movement after the Manitoba Premier Howard Pawley could go either the payoffs in Industrial diversification would be but the pre Mier owes a debt to Blakeney for providing election organizers to run what Ottawa liberals Call a Brilliant Campaign and they suspect Pawley would probably not want to veer from Solidarity with his More experienced there Are whispers in the capital that the new Manitoba administration is by far the most professional in its relations with Ottawa in comparison to both Alberta and Tele phone Calls get returned and consultation that would make an albertan wince the enthusiasm tempered by the fact that Good conversational relations have not yet been tested in actual negotiations on anything that big things coming the knowledge that big things Are coming sparked Strong debate yesterday in the Whelan has now joined forces with Pepin in the push to change the speaking strongly and publicly for Resolution of the thorny Western economic As minister responsible for the Canadian wheat has made no Bones about his opposition to changes in the statutory which sends a Bushel of Prairie Grain to Export ports for less than it will Cost to mail a letter when new postal rate increases come and argues position is judged to be strengthened because the Hawleys new Democrat administration has joined Bla Kemeys Saskatchewan government in officially opposing Crow the Crow rate was set in the modified in the 1920s and never changed it sends Grain from the Prairies to Export ports at on half a cent per tonne that works out to about 25 cents a Bushel from the Middle of the Prairies to either Vancouver or Thunder a Frac Tion of the rate for other commodities such As Coal or those who want the government to stick by the legislatively Frozen rate say the Deal is part of the bargain of they say it allows Canada to remain come Pei Tive with countries such As Australia and Argentina which grow their Grain much closer to their harbours and they say farm ers could not handle whopping increases in their costs added to the effects of High interest High land prices and in creased machinery those who oppose it argue that Grain should be sent at something closer to Market rates and that there is no Logi Cal reason Why the railways should be forced to transport one commod Tity at a fraction of the rate they charge on the free Market for such As Coal and they argue that the rate creates artificial distortions in the Western Economy because it is cheaper to transport Grain for and feed it to cattle than to feed the Grain to the cattle on the Prairies and ship the meat they say railways have Cut Back service on the unprofitable Grain Trade resulting in Canadas perennial Grain transport prob lems problems which in turn make can Ada a weaker Grain dealer on the International maps take sides in the commons maps came Down on several sides of the Lisgar my Jack a specialist on indicated he favors Crow the progressive conservatives in 1979 were on the verge of changing the rate before they were knocked out of office on a budget vote almost two years ago Argentine military fires Viola Buenos Aires Reuter Argentina military rulers have fired the ailing former general they appointed president eight months ago and re placed him with a hard line army chief obsessed with the country great in a move which bore All the signs of a Palace the country three armed forces command ers yesterday dismissed president Roberto ending weeks of intense speculation about his political his to be sworn in is Leopoldo the powerful army commander in the ruling Junta who once declared we do not want a country but a great not a nation but a great violas Fate seemed sealed when he fell ill with heart trouble last even the normally cautious Buenos Aires press suggested he would never re sume his duties and tipped Galtieri As his violas administration had been under heavy fire for failing to find a cure for Argentina economic three figure inflation and the worst Indus trial slump this the anxious to preserve the image of Unity amid signs of Public disenchantment with Mili tary backed away from exposing their differences and fired the military sources the social welfare min Rea Admiral Carlos will act As president until Galtieri takes will have considerably More Power than his predecessor be cause he will remain com Mander of the most pow Erful Branch of the armed at least until the end of next a staunch anti comm and a Strong sup Porter of president Rea Gans latin american he played a major role in the 1970s anti guerrilla Campaign of repression in which thou Sands of people were re ported to have includes new super spa Power lifting body building european health Adi Tuxedo downtown 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