The Ottawa Journal from Ottawa, Ontario, Canada • Page 16

1 6 Tuesday, March 7, 1 978 Ottawa Journal Tax increases almost certain in budget Restraint promised in Nfld. speech ST. JOHNS, Nfld. (CI') A lijht hold on the purse strings and another look at public service strikes were promised by Newfoundland's Progressive Conservative government Monday in a throne speech opening a new legislature session. The speech read by Gordon Winter said the budget expected in about three weeks would show no change in the policy of restraint being followed by the government.

It said (he budget would contain an outline of new measures to stimulate economic growth in the form of a five-year plan. There were no details of the economic plan except that it would affect the fishery, forestry, agriculture, land clearing and capital assistance. Richard trial set TORONTO Keith Richard, guitarist for the Rolling Stones rock group, will 'fmw "land trial 0ct-2i ri possession of heroin for the purposes of traffick ing and pos-session of cocaine. Richard, free on $25,000 bail, was not at the hearing Monday. The charges were laid after a police raid on Richard's hotel room Feb.

27, 1977. Sherrell jol okayed VANCOUVER American Robbie Shcrrell will be permitted to take over the post as president of the Insurance Corp. of British Columbia, Bud Cullcn, federal minister of manpower and immigration, said today. Cullcn said that in view of the special skills required by the Crown corporation and the fact a Canadian is chairman of the board, he will recommend authorizing SherrclPs admission to Canada as an immigrant. Murder suspected TORONTO Police say the deaths of a Metropolitan Toronto businessman and his wife are being treated as a double murder.

The bodies of Harold Fagan, 64, and his wife, Florence, 62, were discovered Monday at their home in the city's north end. Fagan was president of International Concessions. 20 report UFO WINDSOR, Ont. More than 20 callers reported sighting an unidentified flying object pass across the northeast section of the city Monday night. The calls were received by UFO Investigation.

Similar reports were made to Windsor and Detroit newspapers and Ontario provincial police. PCh survive vote TORONTO The minority Progressive Conservative government of Premier William Davis survived a routine confidence vote In the legislature Monday, when the Liberals refused to support an NDP motion of non-confidence. Carlingwood St. Laurent Les Galeries de Hull TORONTO (CP) Despite his campaign for spending restraint. Provincial Treasurer Darcy McKeough's budget tonight Is almost certain to predict hlgher-than-ever government spending for the fiscal year starting April 1.

The budget, which McKeough will begin reading at 8 p.m. EST, will likely show government spending at more than ballon, about $1 billion more than It re-celves. One of the province's biggest expenditures each year is Interest on the public debt, which last year was more than $1 billion or more than $3 million a day. Government employees may be among the hardest hit as the restraint program continues. There have been suggestions the government plans to limit the Increase in Its civil service budget to between 3.3 and four per cent But It will not only be government workers who will be hit.

McKeough has Indicated tax Increases In some areas but he has not said where they may be. The cost of recreation is going up. It has already been announced that park licensing fees are Increasing and a fishing licence, abandoned some years ago, may be returned. In 1976, McKeough raised tha tax on cigarettes five cents a package, increasing revenues by about $50 million. He raised another $50 million by an increased tax on liquor and beer.

Neither increase seems to have adversely affected the sale of cigarettes, liquor or beer and it Is predicted that similar Increases will be announced tonight. There are also some areas where taxes will not be increased, as indicated In a recent speech by the treasurer. He told the Canadian Business Editors Association three weeks ago that increased corporate taxes would not be the answer to solve the problem. There may even be a few tax reductions In the budget-Ontario Chamber of Commerce asked recently for a reduction of the seven-percent tax on hotel and motel rooms and of the 10-per-cent tax on meals and alcoholic beverages costing more than $6. Sears I fpVss iid2 Ml each Reg.

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