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Gilt Barrie Examiner Published by Canadian Newspapers Company Limited 16 Bayfield Street Barrie Ontario WILSON Advertising Manager ELIO AGOSTINI Publisher and General Manager HENSHAW Managing Editor The Barrie Exanitner Thursday February 17 I977 Inadvisable to stop battling inflation Ordinary taxpayers can hardly be blamed for feeling concern about the growing pressures in Ottawa aimed at phasing out price and wage controls Not too much has been said about effective alternative policies which would be adopted to stop nuing inflation which is steadily decreasing the purchasing value of the dollar While there has been justification for some of the criticism directed at the way the control program has been carried out at times overall it has helped to curb the inflationary trend The Barrie Chamber of Com merce is among many concerned groups which have been trying to convince the government of the need for realistic action to bring about genuine restraint in tax spen ding Certainly the majority of Cana dians who have to meet steadily in creasing tax burdens would agree pointed out by different economists the heavy increases in government budgets have played major role in the inflation spiral which sent up the consumer price index by 75 per cent last year Full figures on federal govern ment spending for the fiscal year March 31 Wont be known for few weeks yet but it was estimated last year at $422 billion which represented an increase of 16 per cent over the $365 billion for the As ending previous year Of major concern to taxpayers is that despite record heavy taxes there is likely to be substantial deficit This means adding to the the conti public debt which already takes up some 12 per cent of the budget And despite socalled austerity measures federal spending es timates due to be tabled soon for the 197778 fiscal year are reported like ly to exceed $46 billion This is another 14 per cent increase over the current year Back decade ago the federal budget amounted to $88 billion and this soared to $17 billion$14 million by 1972 Since then it has more than doubled again When record hikes in provincial government spending are also con sidered with their deficit financing ing and increased carrying charges the inflationary trend is hardly surpris Spokesmen for pressure groups who have been clamoring for con trols to be abandoned do not repre sent the harderhit majority selves Member neighboring riding Ross Milne MP has called for serious dialogue on the ad visability of phasing out controls and what economic objectives Canadians should set for them of Parliament for Peel Dufferin Simcoe Rather than give up the battle against inflation the government would be better Chamber plementing policies which could br ing genuine restraint Lower taxation would be welcom ed by taxpayers and also reduce to heed of Commerce in the im costs for business indUStry and farmers This could provide en couragement for the necessary ex pansion for needed jobs and pro ductivity for an affluent society Geology markets taxation discourage activity in oil By ALAN ARBUCKLE REGINA CP Saskatche wan is Canadas secondlargest producer of oil next to Alberta but an industry spokesman says geology markets and taxation have combined to discourage activity in the province Bill Spicer manager of the Saskatchewan division of the Canadian Petroleum Associ ation said in an interview that oil production in Saskatchewan has steadily declined since the mid19605 In 1966 the province hit its peak year for production about 255000 barrels of crude day By 1975 that had dropped to 162000 barrels day with most of the drop coming between 1973 and 1975 when reports of dwindling world reserves and high comsumption gave rise to increased concern The federal government in order to retain as much oil as possible for long as possible in Canada put on export limita tions of Canadian oil to the US Mr Spicer said This affected not only the export flow but also the type of oil that went across the border because when the limitations went on naturally the purcha sers took the best oil which is the lightgrade oil and thats when Saskatchewan got pretty badly hit HARD TO REFINE Most of the oil being pumped out of Saskatchewan these days is medium or heavy crude some of it too thick to move through pipeline without Eli Barrie Examinrr 16 Bayfield Street Barrie Ontario Telephone 7266537 Registration Number 0484 Second Class Mail Return postage guaranteed Daily Sundays and Statutory Holidays excepted Subscription rates daily by carrier 85 cents weekly $4420 yearly Single copies 15 cents By Mail Barrie $4420 yearly Simcoe County $3400 yearly otor Throw Off $3900 yearly alance of Canada $3600 year 1y National Advertising Offices 65 Queen St West Toronto 11541710 640 Cathcart St Mons treat Member of the Canadian Press and Audit Bureau of Cir culations The Canadian Press is ex clusively entitled to the use for republication of all news dispatches in this paper credited to it or The Associated Press or Reuter and also the local news published therein The Barrie Examiner claims Copyright in all original adver tismg and editorial material created by its employees and reproduced in this newspaper Copeyright Num Registration r203815 register 61 being thinned out Heavy crude is harder to refine and produces fewer marketable products thanlightercrudc Oilfields around Weyburn and Estevan in southeast Sas katchewan produce light crude Fields around Swift Current contain medium crude and heavy crude is found fur ther north around Lloyd minster As of Jan 1977 the Na tional Energy Board changed the export rules permitting Americans to buy an additional 125000 barrels day of medium and heavy crude The impact of the change hasnt been assessed yet but it should in crease Saskatchewans exports of heavier oil Saskatchewan produced 59 million barrels of oil in 1975 About 22 million barrels of that was light crude and the rest medium of heavy Canadian refineries are not equipped to change heavy crude into mar ketable gasoline and oil and the resource has to be sold to the US Most of the light crude is sent to Ontario for refining EXPLORATION DROPS Exploration for oil and gas in the province has dropped form 1200 wells drilled seven years ago 37 per cent of total drillv ings in Western Canada to 262 in 1976 five per cent of the to tal Saskatchewan is mature province in terms of explor ation said Mr Spicer The nor mal depths have been thor oughly explored and what oil is left now is either heavy or ex tremely deep8500 to 10000 feet Drilling down 10000 feet in the hope that something will be found is obviously risky To ready such well for produc tion can run the total bill up to $1 million Combined with what the industryconsiders high roy alties in Saskatchewan the risks dont seem worth it Mr Spicer said comparing royalties with complicated for Ber know this may sound ridiculous but has anyone ever told you youre beautiful when youre angry mulas and different inccntivc schemes is difficult but Sas katchcwans royalty ratc runs about 18 per cent morc than thi rate in Albcrtu and about 10 per Cent more than in British lumbia Saskatchewan recently made some reduction in royal tics MARKET MAY IMPROVE Saskatchewan could produce morc oil but it cant find an easy market In addition to thc problems with the heavy crudc the medium crudc is high in sulphur which makcs it hard to rcfinc Mr Spiccr prtxliclcd that It minishing world reserves will make Saskatchewans hcavy oils more attractive in the fu ture when light crude either cant be found or is priced at unacceptably high lcvcls The federal and provincial govern ments have sharedcost re search program under way which will spend $108 million over five years looking into more efficient ways of rccov cringhcavycrude The provincial government has established the Saskatche wan Oil and Ias Corp as Crown agency to work in the in dustry Mr Spiccr said as long as Saskoil competes with pri vate companies on an equal basis the industry has no objcc tion Saskoil explores and produces in its own right and in partnership with others BIIYS PRODUCTION The Crown agency also buys existing production from the private sector The story in natural gas is bit different Mr Spicer said the Saskatchewan Power Corp SIC buys all gas produced in the province for inprovincc use and because theres never enough buys about 50 per cent of Saskatchewans con sumption from Alberta SPC sets the price for gas and until recently both produc tion and exploration grew By SIEWARI aclEOI Ottawa Burcau Thomson News Service The other day while referring to senatorial sen sitivity about attcndance mentioned how several senators became outraged when reporter named them as among the absent during speech by Senator Erick Cook of Newfoundland The chamber was only one third full for Senator Cooks speech on separatism And un fortunately thc hubbub that ensued over the low at tcndanco has tended to over shadow the best parliamentary presentation on separatism sin cc the Nov 13 Qucbcc election There are times when the Scnulc is worth listening to And its invariably worth listen ing to when Senator Cook is on his feet The toyearold former St Johns lawyer has the happy knack of graspingthc nub of the matter whilc others seem to be dabbling in cosmct ics And while both the Commons and the Senate have been strangely silent on what to do about the threat of separatism here was Senator Cook acting entirely on his own not only ad By VINCENT EGAN Business and onsumcr Affairs Analyst Thomson News Service Such personal qualities as prudence thrift and foresight have been turned on their beads by inflation Some of the biggest losers in financial terms have been those people who believed that common stocks were hedge against inflation that bonds were good conscrvalivc way to save and that private pen sion plans were dependable means of providing for corn fortablc retirement Most people who used to in vest in equities fixedintcrest securities and pensions have probably already learned that lesson through bitter cx pericncc onfirmation of it is provided in an academic study by ccono mist James Pesando of the University of Toronto just pub lishcd by Montrealbased How Research Institute Dr Pcsando in his report on titled The Impact of Inflation on Financial Markets in Canada concludes that neither equities nor fixed By JOHN lIARBRON Foreignfairs Analyst Ihomson News Service shared superb lunch the other day with Van derploeg who retired in 1965 as president of Anacondas Cana dian operations At 80 he is live wire of man The venue was Torontos etcL gant York Club Its red stone ile of Victorian Toronto riefly the home of the Goodcr ham family and now offering visitors like me access to su perb luncheon and hosts of ca libre and power From the ample sitting room Any chance of lwing Irported In Cuba vocating parliamentary study but listing the questions that need to be answered In the next few years as the government of Premier Le yesquc Works toward rcfcrcn duin which will they hope au thorizc their avowed aim we do not wish to stand idly by with our fingers crossed hoping that somehow things will work out WANTS ITIICE And Senator ook went on to suggest joint Senate Commons committcc corti rising the best brains from lioth Houses to get out and look at all the practicalities and legalities of separation Its the senators considch contcntion that Premier Levesque has this field all to himself while the federalist forces sit back and hope for the best And the Newfoundland Lib cral doesnt like somcof the as sumplions that sccm to bc prcv alcnt Onc of tlicsc is that Qucbcccrs alone are entitled to decide their dcstiny and an other is that existing rovincial boundaries are sacred It does seem as if many of those who are advocating thc idea tof separatismi are under the impression that on ttic one YOUR BUSINESS Prudence thrift foresight turned on head by inflation income securities provide an attractive outlet in an in flationary climatc In fact he adds people hold ing stocks and bonds suffer real income loss in an in flat ionary climate As for private pension plans he finds that they cannot pro tccl participants benefits against the erosion caused by constantly rising prices using the kind of investment vcliiclcs available today ALI MEASURE Those pension plans in which benefits are geared to income just before rclircmcnt which is likely to be the highest in come in the cmployccs career do help to protect the benefits against the inflation that has already taken place at the rct irement date From then on however most retired people are on their own The major exceptions are re tired parliamentarians public services and armcdforccs members whose benefits will rise automatically with each in crwsc in the Consumer Price Index If inflation were to continue at an annual rate of eight per cent for the next decade the THE WORLD TODAY 93 Comments from 50s still valid as reality for Canadas Os the lithe Mr Vandcrploeg boun ded up the narrow stairs two at time to the dining room where we sat down to lunch of potato soup rich lamb chops fresh strawberries and coffee Any time have been there with club members past and present and they have in cluded the late Sir Roy Dobson once the dynamo of the British Ilawkcr Siddeley aircraft and missile manufacturing empire and Air Marshal Wilf Curtis the man who built Canadas cold war air power the place has been almost empty FROM PARLIAMENT HILL Newfoundland senators idea probably wont be acted upon hand the now province of Quc bec is indivisiblc while the now existing country of Canada may be torn asunder at will Senator Cook reminded his sparse audience that with thc Treaty of Paris of 1703 all the area occupied by Quebec be came part of British North America and all of its people become anadian citizens The government of Canada had paramount rights chr thc provinces and this should not be forgotten as we sit back waiting for Qucbcccrs to dccidc the fu turcof thiscountry lhc Vcry least that ana dians would cxpcct their gov crnmcnt to insist upon is that the creation of thc new state of Quebec will not endanger the lines of communication by land air and watcr or in any way jcopuidizc the continued cxistcnccofanada ANSWERS NIIIIIHII What Senator ook suggcsts is that parliamentary com miltcc gct to work answering SAllllt of tlic qucstions averagi Canadians arc beginning to ask How arc thc national asstts to bc apjxntioncd bctwccn an lllfltptlltltlll Qucbcc and an ada purchasing power of fixed dollar pension would fall by 54 per cent 10 years from now Its no solution to this di lcmma to suggest as fcdcral politicians and bureaucrats do so glibly that private pension plans sboiild be indexed just as their publicscrvicc plans arc Iublicscrvicc pensions can bc incrcziscd indefinitely be causc the money coincs from the bottomless public treasury lrivatc plans on the other hand must invest their partici pants contributions in safe conventional conservative securities and that makes it virtually impossible for the level of benefits to keep pace Willi the level of consumer prices INDENEI INVESIMENIS The only way in which pri vate pensions could maintain their real purchasing power and yet remain actuarially sound would be if they could in vest their funds in assets hav ing real return that is unaf fectcd by inflation Sonic theorists have proposed new types of investment ve hiclcs that would be true hedge against inflation Its like lunch in your own chateau unobserved and alone But not quite Next to us sat Walter Gordon father if you like of Canadian economic na tionatism and his academic co hert Abe Itotstein plotting public forum last week on for eign ownership DIFFERENT MEN The juxtaposition of Walter Gordon who would keep the likes of Anaconda either out of the country or severely at bay and Jake Vanderploeg who be licves now as in his time as its Canadian president in the need What proportion of national obligations will Quebec and Canada assumc What will be the likely boun darics of an independcnt Qucbcc How will the air land and water lines of communication of anada be provided for and protcclcd What will happen to Quebec industries which depend on the whole Canadian market Thcrc were many other ques tions posed by the senator who said that honest answers will not come from the present gov crnmcnt of Quebec The fcd cral Parliament which is the Parliament of all Canada has thereforc duty and responsi bility to make fair and honest appraisal of the future The word is that Senator ook wont get his joint com mittee bccausc Senator Ray lcrrault the government lcadcr III the Senate alrcady has plans for an allSenate com mittcc to snvc onfcderat ion Senator ooks idea is bet tcr one But if wcdo have to set tlc for an allrScnatc committee hope the Newfoundland senator will be one of its prominent mcmlxlrs One would be an indexed bond The issuer would under takc to pay the purchasers an intcrcst rate that would keep abrcad of inflation and upon maturity repay the real value of the principal amount not just thc original number of dol tars Anothcr suggestion is priccleveladjusted mort gage This would require the use of contractual real in vestment ratc together with periodic revaluation of the out standing principal in accor dance with the price index to which it is tied So far no lmrrower in Canada has offered either of these It ccnt ivcs to investors If they were made available pensioners might ultimately reap some benefitbut the market for conventional bonds and common stocks would be weakened still urthcr Dr Pesando believes that fi nancial markets will have to come up with some such It novations unless the federal government should ado fiscal and monetary policies esigned to reduce inf latiom prospect that becomes more remote each day for large unencumbered pri vate sector was plain to see remembered Jake Van derploegs peppy speeches from 20 years ago when he was president of the Canadian Ex porters Association have particular awe for man who worked as long for his company half century as have years But most especially for the problems we face in the Cana dian economy today and to bring complete relevance to our luncheon have reread one or two of his statements of yester year letters to the editor Schools alumni asked to reunion DearSir Dickson Elementary School in Cambridge Catt will be 100 years old in 1077 Many of the records have been lost We are asking any among your readers to write to the principal of the school giving your name year of graduation and your present address Home school more than any others DearSir On Monday you printed let ter from gentlemen who registered his disgust with what he termed the dehumanizing and deteriora tion of our society due to por nographic materials He has the right to voice his opinion but does he honestly ex pect me to believe for one minute that our children are reading pornography in the classroom hearing it in music and seeing it on television My scnsesmustbefailingmc He further stated that studies show increases in sexual crimes can be attributed to por nography Oddly enough Dcn mark reports significant decline in sexual crimes especially those involving children since legalizing por nography Basically four questions are raised by those concerned with the saleof this type of material Docs exposure lead to undesirable alterations to sexual orientation and sex crimes trigger antisocial acts tend to divest sex of meaningful lovc relation ships INTERPRETING THE NEWS Negotiating formula may become pattern By BRlE LEVETT LONDON 1C new negotiating formula devised to bring the Soviet Union and the European Economic Com munity tEECi together to discuss fishing rightsmay become the pattern for possible agreement on other issues The formula involves building an EEC negotiating team around British Foreign Secretary Anthony Crosland in his capacity as EEC president Strictly speaking the EEC has commission to conduct external negotiations Ilowcvcr the Soviet Union refuses to recognize the EEC diplomatically The Russians have however expressed desire to negotiate treaty to allow their ships to fish within the EECs new Zoomilc limit About 80 pcr cent of fish stocks in the EECs 200mile zonc arc within the British and Irish sectors and the Russians would prefer bilateral negotia tions Britain however has refused to separate from her EEC part ncrs and negotiate on her owu AVOIDING SNOWBOWN And the EEC interested in fishing rights in Soviet waters doesnt want to force the Rus sians into corner by insisting on diplomatic recognition By BOB BOWMAN Sir John Macdonald and WL Mackenzie King were probably the two best federal election campaigners Canada has evcr known They were at their best when faced with the most severe situations They had another quality in com mon postponing decisions as long as possible Macdonalds last election campaign was fought in the winter of 1891 The Con scrvativcs were in trouble in the Maritimes Quebec Ontario and Manitoba Farmers across the nation appeared likely to support the Liberals Macdonald asked Sir Charles Iuppcr to come back from Lon don where he was hiin com missioner to Britain to help him On Feb17 they faced large noisy gathering at the Academy of Music in Toronto Suddenly Macdonald drew sheaf of papers from his pocket and read them to the audience They were proposals on how the BIBLE THOUGHT Do this now my son and deliver thyself when thou art come into the hand of thy frlend go humble thyself and make sure thy friend Prover bsfifil Take the humble position The hardest things to do are very of ten the most rewarding CANADAS STORY Macdonald King two of the best reunion will be held on the weekend of May 21to 23 1977 Even though you might not be able to attend we would still like to send you information about planned activitives Yours truly Dickson Centennial Committee Cambridge Gall Ontario erthreaten family and moral fabric of our socie ly There is no conclusive eVidence that indicates por nography contributes to any of the above In fact rapists and child molesters are usually reported to have had less ex posure in their formative years than the average young male This is not to say that can done exposure to minors but cannot conceive of normal welladjusted person commit ting any crime strictly motivated by reading an article or viewing picture Instead many crimes are invariably committed by individuals that have deep rooted emotional problems In the Saturday Examiner Mr Mossop Principal of Cen tral Collegiate stated when the beauty of the body love marriage and human relation ships are in focus the in fluence of the news rack and the movie theatre is going to be much less Absolutely right The home and school en vironment means more to human development than any other influence Youistruty HAROLD YOUNG Barrie The result is the formula whereby the British lead the negotiating team and everybody saves face Foreign office spokesmen say the formula has been devised for this one situation only but one source suggested that if it is successful the pattern may be applied in other situations There are about 60 Soviet ves sels believed operating in the EEC zone and their licences to operate there have run out However the EEC is not ex pected to press the issue and risk possible disruption of plans for longterm agreement From British standpoint however the main fishing issue within the community itself is the need for new arrangement among the nine member states governing fishing in each otherswaters Some observers are pre dicting that unless changes are forthcoming Britain and Ire land could take longthreatened unilateral measures to protect and conserve fish stocks in their sectors of the EEC 200 milclimit The two countries consider the current policy with its em phasis on free access for all EEC fishermen to all commu nity waters as unacceptable United States could take over Canada compiled by Edward Farrer who was editor of the Toronto Globe Liberal news paper Thcn Macdonald thundered that here was proof of Liberal conspiracy to hand over Canada to the US There was near pan dcmonium and Macdonald shouted his famous slogan British subject was born British subject will die That slogan helped the con servatives win the election with majority of3l seats Actually Farrers treatise on how the US could take over Canada had been written as theoretical document for an American friend to present to an American audience Some how copy had been sent se cretly to Macdonald He knew what to do with it Macdonald was then 76 years old and very tired He could not even finish the campaign owing to illness and died June OTHER FEB EVENTS 17597Wolfe sailed from Brit ain to attack Quebec 1869The Society for the Pre vention of Cruelty to Animals was organized untoClayoquot Indians of Vancouver Island were awar ded US Gold Medal for rescuing shipwrecked American sailors l905Oldage pensions of $75 month were made available at attest