Edmonton Journal from Edmonton, Alberta, Canada • 47

Business Ralph Klein's honesty has endeared him with rural A voters. We Mean BusinessE2 MarketsE6-9 CareersE10 EDITOR: Peter Collum, 429-5325 1 CFRM-W cGiamsges owners in me Very minor' job losses seen if CRTC i IS THE OLD BATON Size: 22 TV stations in Ontario, Saskatchewan and Alberta; CTV interest 28.6 per cent; Employees: Revenue (1995): $254.2 million. ELECTROHOME Size: CTV affiliates CFRN in Edmonton and CKCO Kitchener; CTV interest 14.3 per cent Employees: 820; Revenue (1995): $186.4 million THE NEW BATON Size: 24 TV stations in Ontario, Saskatchewan and Alberta; CTV interest 42.9 per cent approves the deal "The spirit of the deal is that it's a merger of two strong companies, something we think will be great for the viewers," said Dan Wright, Electrohome's chief financial officer. Electrohome purchased CFRN from Sunwapta Broadcasting in 1988. Baton's share value will be based on last year's takeover bid by Telegram Corp.

an Eaton's of Canada subsidiary and Baton's controlling shareholder of $1155 a share. That offer was withdrawn when institutional shareholders opposed it. MAIN MACLEAN Journal Business Writer and the Canadian Press Edmonton CFRN television in Edmonton will be changing hands next spring, if a merger between Electrohome Ltd. and Baton Broadcasting Incorporated is given regulatory approval. Toronto-based Baton is buying Electrohome's TV holdings in a $117-million deal that solidifies its control of the CTV Network at 42.9 per cent.

"It will be very positive from a viewer's point of view, with no apparent difference in how CFRN reflects the local community," CFRN vice-president and general manager Fred Filthaut said Friday. "Some great Canadian programming we produce in Edmonton could find its way onto other stations and stuff produced elsewhere in the system could find its way into Edmonton." Filthaut said it was too early to comment on any specifics associated with the proposed change in station management. "I'd suggest it would be very minor in terms of any numbers of job losses. We're in a situation where we're properly staffed right now," he said, going on to anticipate that CFRN would "officially belong to Baton in March 1997." Electrohome of Kitchener, will receive 8.3 million Baton common shares and $35 million in cash, to be reduced by an amount equivalent to the cost of Baton acquiring one million of its own shares. ONLY THREE MORE SHOPPING MONTHS I i 1 300 up 11.44 to 5,287.47 up 20.72 to 5,888.46 Goldfj down $3 Canadian Dollar .18 73.15 cents US $522 ($382 US) Bill Sass Business Beat Cutting costs not as simple as snip, snip Enthusiasm often overtakes common sense.

That's why we sometimes need lifeguards, recess monitors and seatbelts. Helmets aren't a bad idea, either, especially for politicians attending brainstorm sessions on privatizing government operations. They tend to fall on their heads when they get enthusiastic. This, I am told, softens the brain. Environment Minister Ty Lund's latest mind monsoon, to rationalize provincial parks into privately run arcade palaces isn't getting good press.

But that's OK, it probably won't hurt his feelings. I've got an old Reporting 101 textbook which says politicians often fly trial balloons, even using leaks to the opposition to get the political puffers off the launch pad. If the public likes it, the politician takes credit for the idea. A negative reaction means some poor spear-carrier gets blamed for what was obviously a horse doo doo concept. The park thing falls into the second category, as does the plan to privatize labor mediation.

There are just some things the government has to run for, if you'll pardon the expression, the collective benefit of the people it governs. But two gongs don't put the Klein-sters on the mat. The Tories have warehouses of stuff government does that no self-respecting entrepreneur could possibly snub. Let's pretend we're on Ralph's team, the sanctum insanatorium of cabinet, talking about ideas to privatize services. In front of us is the 1996 budget book which is chock-full of things Our Government can consider privatizing.

Under the A is the department of agriculture. Agricultural transportation costs taxpayers $277,000. This is an obvious area for a small business with a couple of school buses capable of transporting agriculture around the province. Holy St. Mary Irrigation Rehabilitation District, Ralphman! The government is shovelling out $17.2 million for irrigation rehabilitation and expansion! Some bright light with a backhoe and pickup truck has to be able to do it for less.

Let the farmers hire him and pay the shot. And while we're looking at irrigation, there's a money pile to underwrite some of the costs of watering the beets. A subsidy? In Alberta? What's that? Oh, I see. Politicians don't mess around with farmers. Under the is energy.

For some reason, the Alberta government figures it's necessary to pour $56.5 million into the Alberta Oil Sands Technology Research Authority. I might be wrong, but the last time I looked, Fort McMurray was just crammed with free enterprise sorts digging huge holes in the ground. Let them handle their own research and huh? Oh, politicians don't mess around with oil people. OK Let's flip a few pages, close our eyes and throw a dart. Wow! Bonus.

We're in the Justice Department's budget and the dart hit "correctional services." It costs us $101 million to run prisons, that's down nearly $8 million, probably because of the color television removal. And don't tell me politicians don't mess around with prisoners. Privatizing prison service is an old balloon that the public already shot down but I read a decent idea once that called for incorporation of prisons as a business. The guards and prisons could buy shares in the facilities and make or grow things which could be sold. Guards could save up for retirement.

When a prisoner gets out, he could cash in his shares and have a nice little nest egg and a little knowledge about business. He could even start up a competing prison. But I've saved the best for last Why are we spending $9 million a year on salaries and perks for 80-plus politicians who come up with bad ideas on privatization? Privatize politics. I figure three suits could run the whole show. Sigh.

Back to reality. The thought behind this little morality play is simple. Arguments for privatizing appropriate government services are compelling. Small government puts money into everyone's pockets. The private sector is usually cheaper, more efficient and more responsive than a bureaucracy.

But before ideas are unleashed on an unsuspecting public, they should meet the test of one simple question: is this in the best interest of all Albertans now and in the future? If the answer is anything but "yes," forget it. People whose total focus is on saving money sometimes starve to death. with Baton Electrohome ends up with 23 per cent of Baton and two seats on the board of directors, making it the company's second-largest shareholder. Robin Fillingham, Baton's chief financial officer, said the deal was driven by the competitive nature of the broadcasting industry. The deal comes on the first anniversary of a strategic alliance between Baton and Electrohome that pooled their TV assets in two joint-venture companies.

The firms said they will complete that alliance while awaiting CRTC approval for the merger, which could come in about six months. Baton and Electrohome both own 50 per cent of joint-venture companies in Western Canada and southwestern Ontario. They're made up of Baton's Calgary station, CFCN; its six television stations in Saskatchewan; its Ontario stations located in Wing-ham, Windsor and London; and Electrohome's CTV affiliate in Kitchener. Brian Gavriloff, The Journal year with ornaments such as this, of holiday season marketing. holiday season than in recent years.

But the national consultant, whose firm conducts a yearly holiday outlook survey, believes retailers won't necessarily benefit. "We'll spend more than ever but there's been so much build-up of stores, there will be more casualties and more retailers in financial trouble." Houlden said the market is overbuilt and retailers have invested too much money expanding. He also predicted the recent financial troubles of Consumers Distributing will hurt retailers this holiday season. The company has sold millions of dollars worth of inventory to a liquidator. "There's a lot of goods in the (liquidation) system that will be a problem for retailers but great for individuals.

It's an opportunity for us to get a good buy." i- tTm 1 BANK RATE 4.25 PRIME RATE 6.75 TSE daily volume 95,686,000 Dow daily volume 51 7,537,000 TSE CLOSING INDEXES Close Change Minerals 5,126.20 Financial 4,533.03 3838 5,460.68 10.03 Industry 3,555.08 28.61 Utilities 4,050.07 Consumer 8,500.50 4745 Merchandise 4,364.68 Forest 4,236.58 Transport 5,439.13 Pipeline 4,505.62 1.18 Management 6,624.04 37.55 Communications 8,921.85 Golds 11,409.79 Building 1,634.53 13.78 OTHER CANADIAN MARKETS VSE index 1,235.80 VSE daily volume 33,716,045 ASE index 2,414.07 122 ASE daily volume 20,789,196 FOREIGN MARKETS Nikkei 21,112.24 Hong Kong 11.592J6 5.68 London FT100 3,964.1 Frankfurt 2,646.10 21.66 Australia 2,240.8 500 687.03 4.03 NASDAQ 1,219.69 7.60 Silver 6.66 (4.88 US) cents A- fa- 5vh A. ll yd Retailers hoping for cheer this Christmas PAULA ARAB Journal Business Writer Edmonton Tis the season to get ready for the holidays. For retailers anyway. After today, the first day of autumn, there are only 94 days left to shop for Christmas. "It's not something to laugh about," says Bryan Walton, with a chuckle.

"It's make it or break it time for most of them. Christmas sales are without question, the most important," said the vice president of the Retail Council of Canada for the Western region. "All signs look toward a pretty good economic picture for the end of the year," he said. Walton points to figures released Friday by Statistics Canada, which show consumer spending up for the third month in a row. As well, he says a rise in Alberta's housing starts, low unemployment rates and a good year for agriculture are good news for retailers.

"We think of Christmas 365 days of the year, because in the toy business that's when we shine," said Bill Rif-fel, assistant director of the Toys Us store on Calgary Trail. The company has already started to market what it anticipates will be its season's best, Nintendo 64 the latest version of the home-video game. It should arrive in stores by the end of the month. "Everybody wants this product, it's the hottest thing this year," said Riffel, adding that the manufacturers in Japan are selling the powerful 64-bit computer games on a limited basis only. His store will only get 100 games this year.

He's already pre-sold 75. "The graphics are incredible and a lot more intense," said Riffel, estimating that Toys Us nationally has pre sold about 1,500 games, which sell for $279 each. Holiday strategy is common talk these days between Edmonton retail consultant J. Radomski and his clients. Radomski said the next three months are traditionally the time of year retailers generate their most revenue.

"It's when people spend. Right now we're heading into fall and then the holidays. Those are two seasons, back to back, that are very important." Radomski predicts this year will be better for retailers than last year's lousy season but he doesn't think it will come close to the late '80s. "I think the last good Christmas was 1988 or '89," said Radomski. "It's going in the right direction but it's not the oil boom years." Radomski thinks a big part of the retail problem is the tremendous increase in competition and rise of the box stores, massive retail operations on busy locations such as Calgary Trail.

"One buying decision, one bad move can really have an effect on the retailer," said Radomski. He recommends companies get a "Christmas tune-up" which consists of a six-point strategy he says is really just common sense. "You don't have to hire a consultant if you take the time to do what you did before your business opened," he said, advising that stores have a business strategy. Jennifer Leavitt of Blu's womens' wear started thinking about this Kringles has Christmas on its mind all but other retailers are already thinking J. Radomski, an Edmonton retail consultant, advises his clients follow a six-point plan before launching into a new season.

They go something like this: ASSESSMENT: What are you really selling? It's not a product He says Club Monaco is really selling an image, the Body Shop sells a cause and The Disney Store sells entertainment If you want to sell your product, you have to clearly define what people are buying. STRATEGY: How you communicate to your customer what it is you are selling. The common ways of communicating your sales message is through your merchandise, advertising, signs and service. DESIGN: The visual aspect of the store. Decorate for your customers, not yourself.

Radomski says this is where national chains with national promotions run into problems. TRAINING: During the holiday season, people are mainly buying gifts. Staff needs training on how to sell to someone buying for someone else. In a nutshell, they need to ask a lot of questions. IMPLEMENTATION: Prioritize what has to happen.

Consider your budget and cash-flow and figure out how you implement your strategy. It often means phasing ft in gradually. INVENTORY: The key is having the right product and enough of it for the holiday season. Sampling new products through promotions gives retailers a head-start NYMex NYMex N. Gas iV Price A A down 9.8 cents $1.96 US per MMBtu Oct delivery i Oil Price up 9 cents $23.63 US per barrel Oct.

delivery OH (Edmonton par price, Imperial Oil) (down 63 cents) $31 Natural Gas per gigajoule (AECO-C Hub spot price, Price Waterhouse) -9 cents to $1.15 Complete stock listings, mutual tablesE 6-9 FsfCI by David Watsglass Gordon Coulthart "I heard he slept his way to the top." Exports in July jumped 2.1 per cent to a new record. The composite index rose 0.4 per cent in August; same as in July. Wages rose 0.7 per cent in union contracts settled in July Retail sales rose 0.2 per cent in July over June to $18 billion. Construction of new homes will rise 1 1 per cent this year, the Canada Mortgage and Housing Commission predicts. ii km.

year's holiday season six months ago. "We have to put product in the store. It will start showing up in the next two weeks," said Leavitt. Blu's, a high-end clothing store, has had a busy few months with sales up by about nine per cent Based on that, Leavitt is optimistic December will be better than any holiday season of the Ws. Dave Barton, manager of an Sony Store, is hoping for the same thing.

In the 11 years he's been at the Calgary Trail location, Barton said the past few have been pretty bad as far as holiday sales go. "People were talking about losing their jobs, or they'd return something because they just lost their job. We haven't seen that this year. It's a much more positive environment," said Barton. Brent Houlden of Deloitte-Touche agreed people will spend more this.