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The Examiner is member of The Canadian Press CP and Audit Bureau of Circulations IABCI only the Canadian Press may republish news stories in this newspaper credited to CP The Associated Press Reuters or Agence OMPOSING ROOM Jack Kerney Ioreman ADVERTISING Len Sevick menloer ausiniss Marian Sough accountant EDITORS Craig lson managing editor Published daily except Sunday and the examiner serving barrie and simcoe county Wednesday Juno 979 Published by Canadian Newspapers Company Limited 16 Hayfield Street Barrie Ontario LAM 4T6 Bruce Rowland publisher NEWSROOM 726 6537 CIRCULATION 7266539 ADVECTISING 7266537 ClASSIFIEDS 72824 Arbitration may be best answer It appears increasingly likely that the province will be fore ed to make decision over proposed French language high school in leneuinguishene Such step became more of likelihood this week when pmvincial mediation failed to find solution to the French question Although the board has until June 13 to submit its final position it seems unlikely that events will take dramatic turn The board of education has decided against building distinct French secondary school in Penetanguishene based on facts as they know them The French Language Advisory Committee meanwhile says it will only accept the separate school Both the French committee and most trustees have now ruled out French annex to the existing high school as solu tion That leaves provincial arbitration for or against the distinct school as the likely course of action The question arises is there anything wrong with arbitra tion True the province has never before intervened on the Sim coe board in such way But then the Simcoe board has never before been faced with such problem It seems to us that arbitration if it comes to that might actually be welcome move After nearly two years of study and discussions both sides must look forward to final answer final decision from the province would give justice to those francophones who have labored in good faith for what they believe Nor could it be said that the local school board has not fulfilled its responsibility That responsibility is twofold to be accountable for its spending to all the ratepayers in the county and to honor its commitment to further French language learning op portunities Rightly or wrongly the board has stuck by its decision that the numbers do not merit the cost of separate school Perhaps letting the province decide the matter is the only right thing at this point The feeling is that the issue transcends the local school board jurisdiction by having provincial if not national im plications Both the board of education and the francophone popula tion have legitimate points for and against separate school It now seems that Dr Bette Stephenson as minister of education Will have to decide which ruling is to prevail Your business By VINCENT EGAN Business and Consumer Affairs Analyst Thomson News Service How high is up as far as interest rates are concerned The highs whatever they are havent been reached yet Borrowing costs have been rising steadily for many months and the end of the rise isnt in sight Within recent days some major in stitutional lendch have added another quarter of percentage point to their mor tgage lending rates bringing them up to 11 per cent for mortgages guaranteed under the National Housing Act and to 1125 per cent for conventional mortgages variety of economic factors combined to push up interest rates in Canada One is the weakening of the Canadian dollar which was being quoted at 851 cents US at the beginning of this week sub stantial drop from 866 cents as recently as May 17 Such decline always has tendency to push up domestic interest rates because it is write your mp 199 If you would like to write your Member of Parliament or Member of Provincial Parlia ment printed below are their mailing ad dresses It you send us copy of your letter it might be suitable for our Letters to the Editor columns After all it there is matter of concern that makes you want to write to your MP or MPP it it is not personal matter it should be of interest to your friends and neighbors too FEDEIAl STEWART MPSimcoe South Parliament Buildings Ottawa Ont MMITGES MPGreySimcoe Parliament Buildings Ottawa Ont DWGLEWIS MPSimcoe North Parliament Buildings Ottawa Ont PEIIIN IEATTY MPWellingtonDullerinSimcoe Parliament Buildings Ottawa Ont PROVINCIM GaargaTaybr MPPSlmcoe Centre Qttario Legislature Queens Park Toronto GerdaSuki MPPSimcoeEast Ontario Legislature Queens Park Toronto George NcCagee MPPDullorin Simcoe Queens Park Toronto Borrowing costs on rise again inflationary costs of imported goods go up and domestic manufacturers raise their prices to keep abreast of imported prices and investors seek to offset inflation through higher return on their capital Another factor in the current rise in in terest rates is the natural uncertainty about the policies of Canadas new Conservative government If the Tories election promises are taken at face value the already huge federal govern ment budgetary deficit about $12 billion this year could well go much higher This would force the government to borrow even more heavily in the capital market or in effect to print more money Either approach would put new upward pressure on interest rates key Tory promise in the recent campaign was that the first $5000 of annual mortgage interest payments would be made deductible from taxable income This leads to the likelihood that pretax interest rates would generally increase due to the increased pressure of demand in the economy says commentary by Wood Gundy Ltd investment dealers One widely watched indicator of interest trends is the average yield on 40 Canadian bonds calculated each month by investment dealers McLeod Young Weir Ltd At the end of May it stood at 1028 per cent up from 994 per cent year earlier REAL RETlRN Theres rule of thumb in the capital market that longterm yields should exceed the anticipated inflation rate by about two percentage points 77 those two points being the true return to the investor who provides the capital to the borrower That suggests that professional investors are anticipating longterm inflation to average about eight per cent year If that anticipation proves to be correct prices at the end of this century will be approximately 688 per cbnt higher than the prices that many Canadians find staggering today But inflation is too virulent an economic disease to remain constant and under control at even an eight per cent annual rate Just as we accepted an increase to four per cent inflation from three per cent around 1972 in the vain hope that the increase would cure unemployment it made it worse in the end we are probably heading toward the day when rise to 20 per cent inflation from 15 per cent will be proclaimed as the regrettable but necessary cost of stilulating the economy Inflation rates and interest rates are closely linked aiid todays peaks may seem like tomorrows bargains bible though lord thou art my iod will exalt thee will praise thy name for thou hast done wonderful things thy counsels of old are faithfulness and truth Isaiah 25 The Bible states that He knows what we have need of even before he ask Him then why dont we praise him more for the fact that He knows and for His faithfulness to answer BUSINESS 7266537 SALES iWayna Hey Adan Smith Steve Skinner gap aeolian Bert Stevens lan Mulgrew city ldlor Bill McF arlane wire editor NEWSROOM Dave Fuller Claudia Krause Stephen Nicholls Dennis Lantnier Nancy Figueroa LoriCohen CLASSIFIED Richard Thomas Stephen Gaucr Gary Forbes Beily Armor Terry ield Peter Hsu Freda Shinner Janice Morton The werid today By JOHN HARBRON Foreign Affairs Analyst Thomson News Service Venezuela one of the great oilproducing countries is also in serious economic troubles inspite of the oil revenues Just how deeply in trouble was revealed few days ago by the new Venezuelan President Luis Hererra Campins who re vealed new economic plan The reasons are familiar to Latin America unbridled public spending massive corruption in business and government fail ure of industrial diversification schemes The revelation was actually made by the Backgrounder Peat Chapell superVIso 5m p0 Dona Homewood Delve Mitls ViItIii Grant Brenda Woods CIRCULATION Sign wyay Blll HOW IONIC Bill Raynor Stavawmte assistanltllarlultr Ed Alienby Brad Howcrott Mme Hamel Alva LaPlanle Susan lichen Lisa Warry Ron Glider Barbara Strioi PR SSROOM Don Near ioreman Don Saunders Lorne wass Wilt adooan Cheryl Aiken red Prince asst toreman countrys new Finance Minister to the very influential VenezuelanAmerican Chamber of Commerce in Caracas the big nations capital This body represents the private sector in that city and especially the many US multi national firms with Venezuelan branch plants Last year Venezuela finished off with the largest payments deficit in her history about $17 billions along with current account deficit of $61 billions And even though Venezuelas revenue from her oil now at record high $58 billions an Health food sales booming top $100 million annually TORONTO CP It was only few years ago that the health food business was regarded as marginal one catering to small group of health nuts Our clientele were regarded as hypochondriacs oddballs middleaged peopm in search of their youth and people with beards who rode bicycles says Lion Pasen of Toronto vicepresident of the Canadian Health Food Association But now he says all that has changed Pasen 42 manufactures natural vitamins and herbal remedies as well as operating string of health food stores His rosy upbeat view of the health food business is based on reports to be presented Sunday when the Canadian Health Asso ciation begins its threeday convention From modest trickle 10 years ago sales of health food in Canada have now reached $100 million year Canada now has more than 1000 retail health food stores 50 manufac lTS FOR THE LATEST Ill GROWING LIST OF CANADAS ENDANGERED SPECIES turers and 25 distributors In 1970 Metropolitan Torontos Yellow pages listed 29 firms under health foods Today there are 100 ALWAYS FOOD SCARES The people who buy these products are so numerous and varied they can no longer be dismissed as health nuts says Pasen whose enterprises include several health boutiques in Simpsons stores in Toronto Ottawa and London Our customers are men and women of all ages from all walks of life he says It seems that every few months theres another food scare Were told that everyday food items contain dye or sweetener or hormone which causes cancer People get frightened to the point where they seek out additivefree foods And says Pasen if you measure the cost in nutritional value many health foods are actually cheaper than supermarket foods Glenn Kwon asst loreman statutory holidays WEEKLY by carrier 90cents YEAR LY by carrier $4680 BY MAIL Barrie $4680 SIMCOE COUNTY St Montreal FrancePresse and local news stories published in Thegiramifler The Examiner claims copyright on all original news and advertising material created by its employees and published in this newspaper Copyright registration number 20383 register 6L National advertising ottices Queen St Toronto 864 I710 640 Cathcart The advertiser agrees that the publisher shall not be liable for damages aris 53900 ing out of errors in advertisements beyond the amount paid tor the space ac MOTOR mnow OFF SAI 503 Year ELSEWHERE tN CANADA ulOanear tlsement sa Oil rich Venezuala still in serious economic trouble nually keeps growmg the efforts of the previous administration of former PreSident Carlos Andres Perez to diversify the economy were too costly DEMOCRATIC WAY In the early 19705 his government com mitted to major social programs was determined to make work in Venezuela the trickle down theory of national wealth distribution This means major sharing of such revenues by the poor needy and unemployed who represent perhaps 25 per cent of the population of the capital city of Caracas But Venezuelas governmental and distribution systems cannot yet cope with such sophisticated distribution of new wealth through transfer payments Instead much of the new wealth ended up in the conspicuous consumption patterns of the countrys wealthy undulgent middle classes Also the governmental plans of the well meaning former President Perez to diversify industry move investment work force and new development away from oil and gas also foundered Venezuelan agriculture which should be the countrys second largest revenuecarner is mess The country actually imports kinds of food it could grow in abundance at home Diversification into heavy and light in dustry has slowed with much of it remaining in longestablished industrial parks mainly in Eastern Venezuela Caracas the capital city and one of the most beautiful in Latin America virtually has no public transit but is an endless and noisy jumble of too many cars There will be Caracas subway and the countrys first major railway system is now abuilding Canadian industries lost out on bidding for the former but have major portion of the construction for the latter NEW MEASURES Meantime President Herrera in office since March will take major measures to reduce the countrys many deficits and he knows constant hiking of oil prices alone will not do it Remember too that Venezuela is one of South Americas only two thriving democracies and that what the new president can accomplish will be done within democratic institutions YOUD BETTER RECHECK YOUR MEASUREMENT5 IVE NEVER SEEN IIBERAI Mi YET WHOD FIT Ill THERE tually occupied by that portion at the advertisement in which the error oc curred whether such error Is due to the negligence or its servants or other wise and there shall be no liability tor non Insertion of any advertisement beyond the amount paid tor such advertisement The Publisher reserves the right to edit revise ciassliy or reiect an adver The rest is history By LEONARD NOBLE was thinking of the brief but formal oc curencc that took place last week when the Prime Minister replete in his light tweed sport jacket entered the residence of GovernorGeneral Edward Schreyer to tender his resignation as Prime Minister and recommend that Mr Clark be called on to form government You may think it ridiculous but just possibly the conversation went something like this between Mr Schreyer and Mr Clark as result of Mr Trudeaus resignation The telephone rings in Joe Clarks office Joe answers Hello Joel Is that you Ed here Ed who queries Joe No no Joe thats my line to you Its Ed Schreyer How are you doing anway Fine Ed Just fine replies Joe without great deal of enthusiasm You dont sound well Joe responds Ed hope youre not coming down with something dont think so says loe probably just postelection fatigue Well Joe speaking of elections guess this is the moment youve been waiting for What do you mean inquires Joe TENDEREI RESIGNATION Pierres just come and gone Hes formal ly tendered his resignation and has recom mended that you form the next government Im glad you called Ed You see Ive been thinking it over and well just dont know What do you mean You just dont know asks somewhat alarmed GovernorGeneral Let me put it to you straight Joe remarks confidentially and almost in whisper Yuh see if the Conservatives had got clearcut majority then okay no qualms about taking over But this way Ive got Trudeau leaning on me from one side and Broadbent from the other have to ask myself 15 it really worth the hassle Now now Joe interjects the Governor General quickly Thats not the attitude to take Youve got to form the next government like the show must go on and all the sort of stuff WHO SAYS Who says the show must go on replies Joe with his voice betraying more than bit of hostility Besides continues Joe Maureen isnt too happy about moving this time of the year Were still looking for half of our belongings after our last move Ed you have no idea what moving can be like er ah well maybc you do It seems you made the big move to Ottawa just few months ago Never mind all that Joe Youve got to come over to my place and tell me youre ready to form the next government Just play it by the book and quit giving me such hard time Sorry Ed says Joe apologetically dont want to get you off to bad start as GovernorGeneral Tell yuh what Ill drop over about 330 pm if thats okay with you and well put the show on the road Thanks Joe Sec yuh Ed The rest is history interpreting the news Carters star on the decline By GLENN SOMERVILLE WASHINGTON CPI spread of public protest over the lack of energy supplies ris ing gasoline prices and the use of nuclear power are hammering home to an embattled President Carter the fact that many US citizens are losing faith in his policies Perhaps more significant majority of US citizens no longer seem to find the presi dents explanations for the energy shor tages for example credible Carter normally smiling and unflappable has frequently been pecvish and snappy in re cent weeks with the public with members of his own Democratic party who resist his policy initiatives and with some companies Further evidence of the presidents troubles was reflected in an Associated PressNBC nationwide poll that shows 65 per cent of US residents think current gasoline shortages are profitmaking ploy by big oil companies Fully 74 per cent of motorists three out of tour said they would reduce driving if they thought the scarcity was real but they dont believe it The survey finding mocks President Carters warning first made two years ago and repeated in national energy address in April that the energy crisis is real time is running short The public hasnt accepted Carters ex planation that current energy problems can be traced to lost Iranian imports which accounted for only about 25 per cent of daily US consumption and excessive domestic demand Carters solution to remove federal con trols on oil prices as an incentive for higher production also ran into obstacles Many members of Congress say they oppose it and oil multinational Mobil Corp has said it wont work That led to sharp criticism by Carter of Mobil as possibly the most irresponsible company in America Mobil simply doesnt want to pay windfall profits tax ac companying deconlrol the president charged Gasoline shortages are the most obvious energy problem but not the only one convoy of truckers converged on Washington threatening traffic tieups to dramatize highdiesel fuel prices The fuel has more than doubled in price in recent weeks reaching 85 cents US gallon and more in manyregions But nuclear protest groups have provided the most dramatic signs of reemergence of public protest anainsl administration polices