The Ottawa Journal from Ottawa,  on August 11, 1964 · Page 17
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August 11, 1964

The Ottawa Journal from Ottawa, · Page 17

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Ottawa, Canada
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Tuesday, August 11, 1964
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Page 17
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1 t - (By CP) Th fed-ill tovernmcnt Monday 'x-pressed lU bop that agreei Burnt can be found which will tod to strengthening the UN peacekeeping' force In Cyprus. For , lix hour the Commons act aidelttftguTaV business and took op the Cyprus problem la an emergency debate amid opposition demands that the UN force should have wjder powers ' and mora men. SOUGHT BY PCs. The debate, asked for by Op position Leader Diefenbaker and greed to by all parties, cohvjear that you cannot ctoea who announcement or a formal cease-fire on the strife-torn Mediterranean Island. Prime Minister Pearson said vents In Cyprus If gone un checked might have spelled the Road Monopoly (By Tk Cp) The rcstric-tive trade practices commission aid today that II road surfacing contractors la south-central Ontario were parties In list, JMt tod 1M1 to a "collusive tendering system" contrary to he public Interest' - A commission' report to the federal government said the companies acted under an agreement o submit fictitious bid to the Ontario department t highways and municipal tUes m Um area. . CITES MONOPOLY , It said the arrangement con-titutad ' "undue lessening of competition In the sale, trans-Donation or supply of road sur facing materials" and gsve the companies a virtual monopoly la toe south-central sect ion of Ontario centred oo Toronto. The report, signed by commission Chairman Robert ' S. MacLeilan and Commissioner Donald EWon, said the agree, ment was contrary to the Combines Investigation Act. J 1 1 1 C Minister Favreau. making the report public, said lb usual consideration will be liven to the question of what further steps will bt taken by hit department. COMPANIES NAMED V V . The companies named m toe rnort arc Bray Construction 1 Company Limited, Etobicoke; BrueH Paving Limited, Toronto; CorneH Construction Company Limited. Brentford: Grey-Well' Ington Paving Company Limited. Durham; H. J. McFarland Construction Company Limited. Pteton; K. J. Beamish Conn ruc tion Company Limited. Mark- hMt: Miller Paving Limited, Toronto; Munid pal Spraying ' and Oiling Company Limited. Rasdsle; Riverside Construc tion Company Limited, London; Roads Resurfacing Com p n y Limited. Cheaterville; W. A. Rvdel Pavlnt Limited, Tor- . onto: W. S. Fullerton Construe tkm Company Limiled, Windsor, and Woollatt Construct loa Llm , iud. Windsor. Tb report followed an taves-tlzation Into the Ontario road urfacini Industry by D. H. W. Umnrt director of Investigation and research ander the Con- pines' Investigation Act. . , Tb commission ; found the contractors had agreed on ar-; tanaemenu which Included es tablishment of assigned territor ies and c o 1 1 s I v e tendering schemes. Six of the companies had entered kit revenue sheK ma tvitam to reinforce the tendering arrangement.,' In addition, a system of "po-ilclni the bidding" was used to diseottrare attempU by outs id era to compete In the territor-tee aJIocated to each, other by th group. , The commission said tb high- wav deoartment and she muni cipalities "were led to award surfacing contracts at prices higher than they would have m clrcamstance of normal corn- pet It loo among the spray com panlea. ILLUSION CREATED lt said an ""illusion of compe- TUESDAY, AUGUST 11, 1964 Seek More Cyprus Force Power Crisis But Not PM Warns MPs GobleCl-" ' Solved, end of NATO and precipitated a global nuclear war He told the Commons late Monday night the situation bad eased but the problem was not solved. He said tnere may have to be changes in connection with the UN activities in Cyprus and that the weekend crisis might make the necessity for such changes more obvious to certain people than has been the case hith erto. . MAY BE STRENGTHENED "Some times you can do things under' the impetus of the stimulus of reason. So per haps out of the crisis of the weekend ... we may ne able to strengthen the position of the United Nations force In Cy-4 pros tltion" was treated to- lull the customer Into thinking It had the, benefit of careful bidding In an open market Where sufficient competitive supply would) keep prices to fair minimum.- "Arrangements a n o a g the contractors to lessen' the risk ef competition were;' necessarily broader for departmental work than for the municipal," the re port aaid. t 4 .;, "Wall problems arising from tb latter could generally be solved by agreement among lo cal contractors, there many more firms whose co-operation was necessary in division of the departmental work, la both cases, the -system of overcoming competition among the contractors was the same. . "It was agreed that one com pany would be tb low bidder oa tenders called in certain highway division or in certain municipality, as tb case might be, and the others would by pra-arrangemant file higher bids to assure the selected firm of the award of the contract.' The assigning of departmen tal work was generally she sub ject of a meeting of contractors held ence or twice a year. Such meetings decided" the geograph ical division which would be recognized as tb territory of each contractor, i ..' ., . The establishment' of areas did not guarantee there would be no competition from contractors outside the group but the agreement was "almost an assurance" of provincial and municipal contracts m tb signed territory. Estimates by witnesses, termed conservative by the commission. Indicated a M to 7 per cent degree of suc cess in the companies obtaining contracts. '. ; , The report said that "where an outsider seemed likely to bid. tb man who had the con sent Of his fellow contractors that contract was to be bis would see to it that tb outsider did not get the contract unless the newcomer were prepared to bid at cost or less." ' The Ottawa Journal & : : . ' JMSW i - ..'". . Report Bares Huge Phony Bid Scheme 1 " 1 ?c :..-- Answers Critics' 'Fears' About Pensio n Plan Canad i an (By The CP) Th gov ernment Monday answered the sharpest critics of the proposed Canada Pension Plan by con tending that the country can well afford the multl - billion-, dollar scheme. - A pension plan white paper tabled In th Commons said the effect ef the plan oa savings, th capital market and busness costs will be "not very great" and that the plaa la "well within th capacity of our conomy." . It notes that a $4,000,000,000 reserve will be built up la the federal pension fund In the first 10 years the difference be tween employee-employer con Mr.. Diefenbaker and the other opposition spokesmen were critical of the effective ness of the f.MO-man UN force. in which Canada has a l.lOe- member contingent UN keepers, , they contended, are hamstrung because tb Cypriot government , bad not permitted them adequate powers. Defence Minister Heltyer said the force s .powers may be limited but It was the best that could be agreed on at the time. The Canadian troops had been little abort of magnificent" and had acted many times to save lives " and avert bloodshed. Mr. Heltyer said there is no intention of withdrawing the Ca nadian contingent from the is land. However, he said that should an emergency arise, be is satisfied provision had been made to cope with any situa tion. He also said that Canada has committed its forces on the too basis nf rreifidenc.JiAainL, commander, but if there was loas of that confidence then tt would be time to consider unilateral action to withdraw the Canadian contribution. The prim minister. spoke only briefly, said that if the cease-fire operation icceed, or If the end' events bed deteriorated into conflict. It would have been the end of tb NATO alliance. and probably also of UN peace keeping activities. - COULD MEAN WAR Events in a small Island such as Cyprus could escalate into a global nuclear war,, be said. Tb holding of the geocy debate meant postpon- atent of the scheduled coninua boa of discussion of a federal- provincial tax-sharing measure. Its disposal precedes resumption of the controversial flag de bate. ''The tax-sharing aieasur was Hated to be discussed first '-to day. External Affaire Minister Martin, who spoke for about IS minutes m a preliminary state- meat and later for an dour m a more detailed review, noted that Mr. Pearson had told Cyprus President Archbishop Makarios Sunday that UN forces should be used to supervise a cease fire. :''"' He said Mir. HeHyer bad taken all necessary steps to ' ensure that Canadian troops would be prepared for any contingency, but any decision In that regard rested with the UN. Mr. Martin said that without the action ef the UN Security Council events might not have taken a mora favorable turn. And. If Canada had not agreed to contribute Initially to the UN peace force, there might have been war. Mr. Diefenbaker suggested that some other UN nations mak troops available to streng then the UN . force He also asked for government assurance that the Canadian troops shall have the necessary power to do the lob they were sent to do. After Mr. Heltyer informed the House that duties of Cana dian, troop had Included help ing in bringing m the harvest in Cyprus, Marcel Lambert (PC Edmonton West) said he wondered whether the right unit had been sent to the island. Canada's principal unit is the 1st Battalion. Royal 32nd Regi-, SIMM Social Credit Leader Robert Thompson said the only hope for 'a peaceful settlement is through the UN. Canadian po litical parties should show a co operative, non partisan front over the Cyprus issue.- tributions, and payment of re tirement pensions. ,j . The provinces, could borrow from this fund la mounts proportionate to the amount their residents contribute to it. Since only Quebec has so far Indicated It will have its own pew-skw plan and fund the .fed eral pool would be spilt nine ways. " '- r - - p.-The federal .white paper Isaid little that was new about the federal contributory nlan Itself: these details were outlined by Prim Minister. Pearson la Ills totter to the provincial pre miers sut June .. , 1 fl V: V.A. M ; . I . , H . V 1 . 7 . . ' 9 .j i II i ..- i - ' -. I -- I CANADA This Is a typical Summer scene on Cow's Lake iq the heart of Ottawa, where sailing enthusiasts taka full opportunity of the exceptional setting provided by nature, r The, beautiful driveway system skirts the lake and the Rideau Canal. This Journal colorphoto was taken by Dominion Wide. ' AT NDP CONVENTION Says Jobless Rate Paradox ioif Times ' iyp TORONTO x (CP) : Unem ployment and underemployment in a booming economy is the paradox of tb times, an Ontario Federation of Labor official told the Ontario New ' Democratic Party convention Monday.-. , . , V J.' H, R. Craigs, director of welfare services for the federa tion, aaid the average unemployment rat from lJi to IMS was more than double the rat for the years lUt to lsM. "These official figures seri ously underestimate the true stent of unemployment,'- he said. RAPID SHIFT Such statistics do not meas ure the growing unemployment among teen-agers or those who no longer seek work sine they know that no employment opportunities exist for them." Mr. Craigs said. H aaid that was a rapid shift from a preponderance of blue-collar jobs towards a situa tion in which white-collar lobs outnumber blue-collar Jobs. The shift is caused by forces bt the private sector of the economy. be aaid. -. - . It may weir be that who do understand the whole economy are those who with various degrees of contempt are referred t as government bureaucrats." , If the government does under stand the situation, he aaid. then perhaps It la to the govern ment that "w have to turn.'' HITS CONCENTRATION . During a discussion on science and -social change Arnold Peters, NDP member of the Commons for Timtskaming, said that over-development' of the Industrial area around Tor onto has resulted 4a a low s Ca n Rather. It was mainly significant as the. first gpvernmentl rebuttal of criticism, largely on economic grounds, from business leaders and especially the insurance and trust companies that operate private pension plana. Without referring directly to these critla, the white paper said "fears are sometimes expressed" that the public pension plan will raise business costs, reduce , business savings., and Impair the competitive position of Canadian Industry. ' - In reply, the government said total contributions to the fed --"ft- , . '-rr; - ... ............ . ;;,v.i .... ' - r -ifc" , . . . . - - . , . m . '. ' IN COLOR standard of living in Eastern and Northern Ontartai .;. He said Job opportunities are limited in these sections because of heavy concentre tioo of industry m the Toronto area. The NDP must make an af. fort to decentralize industry so that the province as a whole can benefit, Mr. Peters said. During a panel discussion on social .aacartty and social chang. Michel Lansberg. a Toronto newspaper woman and wile ef Stephen Lewis. NDP member of the legislature for Scarborough West, called for equal treatment, for working She said women are paid $10 to- S2S teas 'than men across Canada although they make up a third of the working force. BID DEFEATED 0 Earlier, an attempt to I Toronto's three newspapers from the convention floor was rejected. ' Tb Star, The Telegram and The Glob and Mail have been hit by a printers strike sine July I. All three have continued to publish.-. ' The motion was first bit prated as an attempt to prohibit reporters from the papers from covering tb convention. But the delegate who raised the motion. Mar ity Stewart, member of the executive of Toronto Riverdal riding, said later she wanted copies of the papers banned from the meet ing floor. . . The three - day convention, which got under way Monday, is being attended by about MO NDP delegates from all lot provincial ridings. It is the NOP first conventloa hi l Action Urged On Jobless Fund By GORDON DEWAK of The Journal The Unemployment Insur ance fund managed to stay out of the red in the fiscal year ending March 31 but dM ao only through use of govern ment loans totalling (35,000, 000. ' ; ."'' The report of th Unemploy ment Insurance Advisory Committee, tabled la th Commons, warns future trouble may oc cur and urges that action he taken on recommendations of th Gill Commission as soon as possible. NOT ON PAPER Nothing has yet been placed on the Commons order paper concerning this committee nor its report' recommending changes in th Unemployment Insurance Act, ander study for almost two years. Th UIAC states th "imbal- aiK of revenue and expend! curt which has existed for sev eral years is an unsatisfsctory situation that ought to be corrected.'' : . It would mak no recommendations for changes be- cauae of the Gin report. SEES DEFICIT "A fund balance of S6.000,' 000 at the end of the 1964-63 fiscal year and fund deficit of bout $23,000,000 at the end of May, 1963, appear to be be offset by reduced contributions to corporate pension plans. There would be eome drop la tax receipts,, because the contributions are deductible . "Some part of th cost may be paid In th end by consumers, because business may raise prices to offset the pension con tributions." As for "fears" about the Impact of th plan on privet savings, uSe government said the maximum effect would occur if everyone psld his contributions out of money' that, otherwise would be saved. 4f that hap pened, the Canada Pens km plan Afford I tG eral plan, by employees and employers, would mean in 1000 an addition of only about two per cent to total labor costs In Canada. It added: . "During the past decade, average wage and salaries, to Canada have risen by three to four per cent year. These additional costs have been largely absorbed by rising productivity while Canadian prices have remained among tin moat stabls, and the country's competitive position has strengthened.!' . But in practice the impact of .contributions would aot fall entire 'y on business costs. ,- bt some cases, the cost would PSYCHOLOGICAL MOVE Saigon to Build 500 Air Raid Shelters to Wake U p People By MALCOLM W. BROWNE SAIGON (AP) Mixing civil defence and psychology, city of- ficials announced Monday they accommodate 400.000 of Sai-plaa to build M0 air raid shelt- gon's nearly 1,500,000 people, era la Saigon to counter attacks Lam asked landowners to do- from North Viet Nam. NOTE 'IMBALANCE Brig. -Gen. Duong figoc Urn, prefect ol the capital, said the projected public shelters will nate property, called for vomn- ut prospect if unemployment condition are much lik those of 1963-64. Jf unemployment hows a modest further Im provement, the . fund balance may be about minus $1,000,000 at the end of May, 1963." a senior actuary of the Insurance Department said in statement Included in the report. ' He added, in part "Only alight further improve ment can be looked for in un employment conditions . that have already developed favor ably for three years. Revision of the unemployment insurance schema does not appear to be an early prospect. Oa March 31, 11964, there was S874.B61 la th fund. This compares with $9,692,000 bt 1963; 166.598,000 in 1962, and S184.6S3.000 in 1961. Part of th reason the fund stayed out of deep trouble last year was' that contributions roe by about S12.000.000 over th previous year while benefit payments declined about $37,-500,000 (to $365,653,000). " This is apart from th special Ashing coverage In which contributions rose slightly to SI. 494,000 while benefit also rose, to $1 1.437.000. . Initial claims for benefits were down 122.000 to 1.358,- ooo.. 6v t in 194 would absorb about five r cent of all . personal and business saving Is) Canada. "That will not happen, bs-sus to fact all th contribu tion will not be made out of savings." The document told that the most Important predictable ef fect of the plan will be that la the first 10 years of operation. aa average of $400,000,000 a year would become available to th participating provinces. With th pension-fund available to them,, th trices would have toss seed to borrow from private investors. .teers to help construct the sheh- ers and urged private persons to dig their own. The shelter building will give residents a "real atmosphere of emergency," be said. . -,, ACTUAL CHANCES . At' this point, actual chances: of bombardment appear slight, specially to view of the week-; aess of North Viet Nam's and Communist China's ah forces and th strength of U.S. Afr Force combat units in this ansa. But emergency measure here are Intended partly for their psychological effect, aa attempt to involve the normally Indiffer- :ent Saigones far th warfor three years a domestic war pit- U.S. . hacked goverameat Jorcas against Communist Viet Cong guerrillas. ' ' ' : i. NEW TROOP MOVEMENT " Prialir Nguyen Khanh charged Monday that Commun ist China baa troops stationed in North Viet Nam In addition to about IS Chinese Jet fighters la the capital of Hanoi. He said about It Soviet-built MIG-17 Jets arrived to' Hanoi from China last Friday. Asked if the Chinese troops constituted a large force. Khanh replied: "la my view. yes. Large is. a relative term." 1 ' There were developments in related areas: '- :. , 1.' Australia sent three Caribou transport planes and .34 officers and men of its air force to complement a team of M Australian Army advisers who have served la Viet Nam. (or two years. -r . I. Khsnh's government broke diplomatic relations with Indonesia because President Sukarno's island government and North Viet Nam have agreed m raise their respective missions from consulates-general to ear hassles. : :. ...'.;.: .. '-' The New Chine news agency said in a broadcast dispatch from Hanoi that North Vietaa-atee militiamen are undergoing rigorous military training to prepare for any possible enemy attacg. . ... : PAPER BLASTS VJL 'l North Viet . Nam's official Communist party newspaper. Nhan Dan, declared editorially the United States suffered "a ' great political and military set- through its action agates -North Vietnamese patrol torpedo boats and bases tost Wednesday. It reiterated .hat the United States s lost eight let planes la the retaliatory-'raid. Wasftmgtoa hi Two Cblaese Com man ht newspapers la Hong Kong, dared the crisis is far ever. Th newspapers, Ta Kang Pao and Wea Wei Pe. reiterated that China will not stand idly by if North Viet Nam Is at'. tacked....' 'i ...j -. : ; ) The newspaper play was leas-iniscent, of that Just before the, Chinese Communists entered the Korean .War. .... 7::r ;,: n 7 '.. J . ..... . i ..'......-. i , 1 1 X'

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