~ Alean’s

KITIMAT, B.C. (CP) — The British Columbia water rights branch |s setting out to determine the limits of a 1949 water licence, given to Aluminum Co, of Canada, which some environ- mentallsts call “basically a Magna Carta which allows Alcan to rampage over the countryside at will,

“What we want to know is how much control do we have over Alcan because this

YeAYs ago,

PROYINCTAL ULBRARYT

water licence is extremely vague," sald branch official David Tanner, — - Alcan’s proposed Kemano Two hydro-electric ex- pansion, under the Lcence, would almost double the exlating capacity of ore ne, a er plan + hao, Ps ’ kilometres aoutheast of this northern community, ta fuel the Alean smelter. The Alcan licence was

PARLIANEN! BLDG5 VICTORIA

wat

BC

issued under the Industrial Development Act; legislation written solely for Alcan “back in the Post-War years when the government thought It had to hand over sweeping powers as the price it had to pay for develop- ment,” said Howard DeBeck, ‘water rights con- troller, .

“It's the only hydro- electric development in the

province ‘which wouldn't have to apply for a wate licence,” he said, . .

The branch admits the licence is an “aberration on its books, more wide-ranging that anything we've ever Issued, even back then.”

Meanwhile, the B.C.,: Forest Service is in: vestigating complaints that a contractor hired by Alcan

felled trees on 3.6 hectares along the banke of the Na- nika River, about 100. kilo- metres ‘south of Houston,

Jack Hiickert, Prince Rupert. regional forests manager, said he authorized a trespags notice to be sent to Alcan for illegally cutting trees on Crown land.

“Trees were slashed and cleared for several hundred

feel up both sides of the river,” said Michael Bell, spokesman for the Houston- based environmental group, the Father Morice Outdoor Recreation Society,

“The drilling process also introduced silt into the river which is a major spawning area for several species of salmon,” he said.

A seven-volume federal f sherles report on salmon

studies in connection with Kemano Twe said the project could result in bet- ween $88 million and $372 million damage to fisheries over the next 50 yeara, Alcan spokesman Brian Hemingway said due to considerable public protest, the company plans ta hold public hearings in the area this month. He sald the campany felt the cutting of timebers was within the

er rights under examination

- terms of its agreement with

the government.

Expansionat Kemano Two was studied extensively in 1973 and 1874 but shelved after public criticism was aroused. The project in- volves the alteration of several river and Jake sys- tams,

Bulkley Valley and Burns Lake district residents have organized to fight the project if Alcan decides to proceed.

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Throne speech talked of

ENERGY POLICY PASSED BY

Kiln donated to hospital

By DON SCHAFFER , Herald Staff Writer

The Terrace Centennial Lions Club last week -

presented the Mills Memorial Hospital’s psychiatric

ward with a new kiln for firing ceramics, This kiin is.

part of the psych ward’s occupational therapy program, which allows the patients to make marketable products and sell them to each other and the general public.

The occupational therapy program was begun at Easter this year, under the charge of Pauline Vaal- Henke. It was set up originally with a start-up budget,

’ after which funds are no longer available, The

program must now generate its own operational capital, and this is why it is important for the ‘patients to produce high-quality goods to sell.

The group’s pre-Christmas sale will take place at the middle of November. This will be the first of what Vaal-Henke hopes will be twice annual sales, when the patients will sell the goods they have made.

The group makes all sorts of erafts and wood worked g: pa well 9s the, ceramic gooods that the kiln now allows them {o produce. Ed Risling, a worker inthe psych ward, emphasises that the group makes a wide range of products.

“The group doesn't just sit around and make baskets," according to Risling. “We make candles, macrame, we have a woodworking room and the new kiln. We do still make the baskets, but the crafts range 80 much now.”

The theraputic value of the facilities lies largely in the fact that the goods that the patients make are very marketable. The patients .aren't just making things for the sake of the activity, but are doing something weful and profitable. Aside from the candles, macrame and ceramics the patients make, the woodwork made includes tables,ornaments and looms, which the patients use and seil as well.

Besides being for sale to the general public the crafts are available to the patients. While they pay

only for the cost of the materials, the public will pay a-

charge for the work that has gone into the products,

The first sale is coming in November, and when a definite date has been set, more details will be available. ' .

Pauline Vaal-Henke and Ed-R.

EUROCAN TO FIGHT ON PCB

Showing off their new kiln, courtesy of the Terrace Lions Club, are Frank Donohue, Cristina Cote,

Photo by Don Schaifer

Suspects shoot their way free

Dispute seen in the Yukon

By VIC PARSONS

WHITEHORSE (cP) — Yukon commissioner lone Christensen resigned Tuesday after the federal government announced changes that would cut the

Mortage rates up

TORONTO (CP) — Canadian Imperlal Bank of Commerce announced today an across-theboard increase in mortgage rates of % per cent, effective immediately.

The move, following the increase Tuesday in bank interest rates to their highest-ever levels, was expected.

For conventional three- andfive-year open mor- tgages, the Canadian Im- perial's rate now will be 13% per cent. The convention three year open rate and the one year automatic renewal rate goes to 14 per cent.

Stocks drop

TORONTO (CP) — The Toronto stock market continued to drop sharply today following record- breaking losses Tuesday,

The selling wave, set off by increased interest rates in Canada and the United States,

powers of her office and move the territory a long way towards provincial statua. :

The changes, made public by Northern Affairs Minister Jake Epp, would oblige the commissioner to follow advice of the Yukon's 16- member elected legislature on all mattera of exctusive territorial authority.

Epp also proposed replacement of the current executive committee, which includes the commissioner, with a cabinet consisting of only elected members, The territorial council would be called the legislative assembly and the govern- ment leader would be en- titled to be called premier.

The federal move is a major step away from the previoua territorial governing system under which the federally-ap- pointed commissioner held velo powers over the leglsiature. The changes

easentially parallel pro- -

posals made last summer by the four-member executive committee,

Epp’s announcement came aa the federal Progressive Conservative government was promising Jin Tuesday's throne speech in Ottawa to strengthen the authority of the territorial governments.

OTTAWA (CP) — Two

firms have flled objections to

’ proposed federal restrictions on the use of the toxic chemical polychlorinated biphenyls, or PCBs, the environment department an- trounced Tuesday,

The department said the firms — The Iron Ore Co. of Canada of Newfoundland and Eurocan Pulp and Paper Co, of Kitimat, B.C. — are in effect challenging for the firat time the Environmental Contaminants Act which cameinto effect April 1,'1976,

Both firma have objected to the proposed restrictions

as new filling or makeup fluid in the servicing of electrical transformers or associated equipment.

The department sald a

board of réview will hold a

public hearing on the matter in Ottawa Dec. 10, and report its recommendations within six months to both the en- vironment and health: mv- nisters,

The proposal to prohibit the import, manufacture or sale of PCBs in new products was made last December.

PCBs have been linked with birth defects, liver damage and cancer

MONTREAL (CP) — Two

prisoners ~- identified by -

police aa Michel and Pierre Renaud, charged with the Feb, 16 slaying of a Montreal policeman following a $100,000 jewel heist — shot their way out of custody to- day.

There were unconfirmed reports that one guard and at least one other prisoner were wounded.

Police spokesman Paul Perrault sald the break occurred while several prisoners were being transported in a van to the Montreal courthouse from maximum-security Arch- ambault penitentlary, north of the city,

As the van was rotling along the Decarie ex: pressway, shota were fired and the duo fled. There were conflicting reporta as to whether the escapera mada off by autombile or on foot.

The Renauds are facing charges of first-degree Murder in the shooting death of Constable Rene Vallee following the Jewel robbery at a house in the affluent suburb af Mount Royal, Two other police officers were wounded in that incident.

Pierre Renaud was arrested shortly afterwards in San Juan, Puerto Rico, along with two French-born nightclub dancers

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By PAUL GESSELL

OTTAWA (CP) — The Progressive Conservative government opened the 3ist Parliament Tuesday by pledging to promote in- dividual Initiative, restore confidence in the economy and co-operate with the provinces,

Only a few minutes after Gov.-Gen, Ed Schreyer read the -first throne speech prepared by a Conservative government in 17 years, the traditional partisan battles in the Commons began with the three major parties denying the five Social Credit MPs the automatic right to sit on parliamentary committees,

Fulton

And outside the Commons, Liberal Leader Pierre Trudeau and Ed Broadbent, New Democratic Party leader, look turns insulting Prime Minister Joe Clark's policy-previewing throne speech by saying nothing was announced ta aid the economy or provide af- fordable energy,

The politicians were less scrappy when they paid tribute to John Diefenbaker, former Conservative prime minister who died since the

jobs and economy

see page 2 PARLIAMENT

said

not impressed

By ED YUDIN Herald Siaff Writer

The throne speech lacked the kind of economics leadership Canada needs, says Jim Fulton, the M.P. for _Skeena.

Fulton said that while Tuesday's speech contained some good news for ‘the Northwest, it lacked clear cul policies in such areas as job creation, fair prices, and the rising bank rates,

“Tt really hasn't analyzed and taken into account the serious economic problems that Canada is facing in terms of energy, jabs, peices, and interest rates, "’ he noted.‘‘They weren't directly approached in the throne speech and really they should have been."

Fulton praised the government for its con- firmation thal the agreements concerning the Prince Rupert = grain elevator would be signed, He also indicated approval of the plan to purchase ad- ditional hopper cars, which he says is good for Prairie farmers and ‘‘will help create jobs in Terrace,” The Tory government announced plans to encourage mining in the north, which Fullon intends to keep an eye to.

“As mining critic, 1] am certainly going to pursue that, because there are some broad questions that are Boing to have to be answered and long term sirategic plans that the government and the mining sector must be involved in to have a viable mining sector,"he commented, while pointing

out the need for additional smelters and improved rail and road facilities for the transport of ore.

In general though, Fulton, who is the NDP mining and small business tritic, appeared disap- pointed with the initial performance of the new government of Joe Clark.

“When you consider that it's been four months since the election, they really should have had an op- portunity to make specific policy statements in the throne speech, that simply weren’t there,'*

Crosbie may be nervous —

By CAROL GOAR

OTTAWA (CP) — Hints surfaced Tuesday that Finance Minister John Crosbie may have serious questions about the high- interest-rate economic path on which the government is embarked,

In an off-the-cuff comment to reporters, he mentioned thal one of the frustrating things about raising the bank rate is thal it does not seem to deter Canadians from borrowing money and buying on credit.

Crosbie made the remark several hours after the Bank of Canada had announced it was raising its pace-setting lending rate to a record 13 per cent.

Council approves of local transit plan

By ED YUDIN Herald Staff Writer

Terrace District Council appears to be united in supporting the financing scheme for the proposed new Terrace-Thornhill public transit system, which will see Thornhill residents pay considerably more than their Terrace counterparts

The aldermen made their views known at Tuesday night's regular meeting of the Terrace District

ne

The regional district director for Thornhill, Les Watmough had been pushing for a community- financed scheme where Thornhill and Terrace residents would pay the same mill rate for transit. Instead, the proposal adopted at a joint meeting of the Urban Transi Authority and representatives from Terrace, Thornhill, and the regional district called for Thornhill to pay its own way, Watmough later protested that he had been misled into believing the community finance system would be adopted.

“Maybe that's the way he understood it, but I don’t

think there was any question in our minds that there was a possibility Thornhill wouldn't go for it and we might be interested in it ourselves,"said Alderman Helmut Giesbrecht in explaining why a separate plan for Terrace and Thornhill was adopted.

Giesbrecht said that Watmough is also pushing for a change in the funding of recreation, which would see the establishing of a straight mill rate for all com- munity taxpayers, According to Giesbrecht this might set the prededent Watmough is looking for.

“It would be very difficult for me to justify any kind

of subsidy to Thornhill from the taxpayers of . Terrace,” he said

Giesbrecht said he would oppose any form of amalgamation if it meant Terrace taxpayers would have to subsidize Thornhill for the kind of services they now lack.

Alderman David Pease reiterated his earlier stand, that the cost sharing proposal for the transit system

underlined the benefits which would accrue Thornhill if amalgamated to Terrace. He said the straight mill

rate would be adopted if Thornhill and Terrace were amalgamated.

“] can't say the taxpayers of Terrace have to sub- sidize the existing facilities in Thornhill," he remarded on the issue of amalgamation. ‘‘As far as eventual amalgamation goes, it depends on the terms. I do think it only logical that one day Terrace and Thornhill will be one city.”

Alderman Bob Cooper pointed out that Thornhu residents weren't the only ones who might consider themselves unfairly assessed.

“When the bus routes are decided, there may well be areas in the Terrace District which will be too far away in to make use of it, but these people will still be assessed.”

Giesbrecht's point concerning the financing of recreation facilities was supported by Alderman Alan Soutar who noted that the “jurisdiction problem is a real one," but it was the ‘'cilizens of Terrace who decide who pays for what,”