The Toronto Star from Toronto, Ontario, Canada • 39

THE TORONTO SttB Wednesday. October 13, 1993 C3 Deficit declines for third month But annually, it is running $2 billion ahead of last years pace By Shawn McCarthy TORONTO STAR The deficit question has dogged Prime Minister Kim cit will be. There are ome Delrina teams up with MCI, Bell for fax services ByDanaFlavelle TORONTO STAR Toronto-based computer software firm Delrina Corp. has linked up with two mqjor North American telephone companies to develop new products and services that make it easier for personal computers to communicate. The first of the new products will allow customers to send lengthy faxes quickly and easily from one personal computertomany other computers or fax machines, the company announced yester- encouraging signs but its still too early to say how dose well be to die target," he said.

About half of die $2 billion increase in the first five months resulted from die introduction of the child tax benefit and lowering the personal income surtax. But the impact of the eMM benefit will lessen as the year proceeds because the government will no longer be paying the child tax credit. Spending on government pro-was 0.8 per cent lower April to August, 1993, than in die same period last year, due to the elimination of the family allowance, lower unemployment insurance benefit pay-meats and other restraint measures. Interest payments on the $400 billion federal debt were down 1.9 per cent, thanks to lower interest rates. Campbell on the campaign trail as critics complain that her plan to eliminate the deficit in five yean is based on faulty assumptions of what the 19934)4 shortfall would be.

She has said a Conservative government would make more cuts if necessary to keep on track. said die new deficit figures show die fed-government Is making progress in its attack on what she calls a "ticking time bomb," The Stars David Vienneau reported. Its just five months into die fiscal year, she told reporters yesterday. "We must continue to follow through with changes. "Its better than last month so weve made progress.

If the trend continues Im optimistic we can reach our goal" Reform party Leader Preston Manning has laid out a plan to eliminate die deficit in three years and that; toA is based on OTTAWA The federal deficit is running $2 biQkm ahead of last years pace, but all of die increase came in the first two months of the fiscal year, the finance department says. The deficit for August was down $900 million from August, 1992, the third consecutive month in which the shortfall has been lower on a year-to-year basis. In August, "increased corporate income tax and GST oolLeo-tkms more than offset a decline in personal income tax collections," die finance department said in its monthly monitor. Some analysts nave suggested die deficit could be as much as $4 billion higher than the $32.6 billion forecast for 1993-94 in last Aprils budget Finance Minister GQles Lo-isdle has already suggested die budget forecast could be off track and said die government would have to cut costs to hit its target GILLELOISEUE Finance minister warned of more cuts if deficit ballooned. a $32.6 billion shortfall this year.

A senior finance department official yesterday said it is too soon to tell what this year's defi -i ci i minute charges for die service, the company said, and MCI has agreed to market. Delrinas software to its ma-' jor corporate accounts. "The fox broadcast market is exploding in the U2. Were seeing growth rates of 40 to 50 per cent annually, said Jerzy DeMartino, MCTs vice-president of sales and marketing "In Delrina, we now have an excellent distribution vehicle." A similar service will be offered through WorldLinx, die company said. Also yesterday, Darina unveOeda new software product, called WinComm PRO, which will be sold as part of a package of software products under the label Delrina Communications Suite at a suggested retail price of $229 in Canada.

1 Delrina chairman and chief executive Dennis Bennie predicted revenues for the $48 million-a-year firm will grow by 50 per cent a year ex-chiding the new products and services. The company reported Friday it had doubled its revenues to $15 million and tripled its profits to $12 million the first quarter of fids year compared to the same quarter last year. Delrina said it plans to make its stock available to UJS. investors through a listing on NASDAQ, New Yaks over-the-counter market, within the next few months. Bank rate dips, lower CSBs seen Yesterday the bank rate was set at 487 per cent, down from 4.95 last week.

The trendsetting rate is at its lowest level since mid-August, shortly after it hit a 28-year4ow of 42 per cent 45 per cent, the rate paid from 1962 to 1965. Finance Department official Brian Smith said the new rate is to be announced tomorrow in advance of die two-week sales period drat begins Monday. The service will be offered through strategic alliances with MCI Communications, the second largest telephone company in the U.S, and WoridLum, die data communications arm of Bell Canada, Debinastdd. Future products will be aimed at the growing trend for businesses and individuals to exchange information electronically, die company said. "We see a time when telephones and personal computers will be indistinguishable, said Delrina president Mark Skapinker.

Five-year-old Delrina dominates the North American market for software that at lows people to send faxes from their computers and Is a leader in software that creates and processes business forms on computer. In the first phase of its agreement with MCI, retail customers who buy Delrina communications software will be able to subscribe to MCI Mail, the firms global messaging service. Delrina will get an undisclosed share of MCFs per Wal-Mart told to halt cut-rate selling By James Daw TORONTO STAR The Bank of Canada rate foil sHghtfy yesterday as finance department officials prepared to announce the new Canaria Savings Bond interest rate. Economists and financial advisers expect Ottawa will have to pay significantly less than die 6 per cent paid last year to raise its target of $10 billion in bond dip The general interest rate scene remains calm, despite the attack on die flanarHan dollar during die federal election, unlike last foil when there was a re in rates around the time of constitutional referendum. So predictions for die new bond rate range from 4 per cent the lowest since 1959 to The latest move came as the Canadian dollar dosed at 7522 cents (U.S.), up 0.06 of a cent, continuing a strengthening trend that began late last week.

But the dollar remains well below the 775-cent level of early August, before investors drove it down for a number of reasons, over a eminent Rob Palombi of MMS International said the dollar is vulnerable to bad news developments, such as if there are any disappointments in trade figures to be released on Friday. But investors in government treasury bills believe that we are looking at a fairly stable interest rate environment over the next little while," he said. CONWAY, Ark. (Reuter) In a case where die little guy took on die big guy and won, Wal-Mart Stores Inc. yesterday was ordered to stop selling pharmaceuticals and health and beauty aids below cost in this Arkansas town.

Three independent pharmacies had charged Wal-Mart with intentionally selling items below cost in order to drive customers from the smaller stores. Wal-Mart also was ordered to pay $288,000 in damages but the firm said it would appeal the court ruling. Three Faulkner County, retail pharmacies sued Wal-Mart for $1.1 million, alleging the discount giant violated a half-century-old Arkansas law forbidding die sale of merchandise below cost to eliminate or discourage competition. MARKETS Profit figures boost Wall St. Gold stocks again lift Bay St market higher 024 of a point to 461.12, while the NYSEs composite index rose 027 to 25627.

The NASDAQ composite index rose 423 points to 77148, eclipsing its previous record of 76725 set on Last asset of failed Nationair also declared bankrupt MONTREAL (CP) Technair Aviation, the remaining asset of bankrupt dorter airline Natkmalr, was also dedarad bankrupt yesterday when the Toronto-Domlnlon Bank refused to renegotiate a mortgage. Technair leaves some 170 creditors and suppliers owed about $102 million, said spokesperson Henrick SnlednskL Technair originally had 300 employees, but 80 per cent of them had been unemployed since Nationair1! demise. Technair's assets consist mainly of a modern maintenance hangar and workshops at Mirabel Airport, on which the Toronto-Dominion holds a $32 million mortgage, the largest alngto creditor. Snlednski accused Nationair! former rival Air Transat of anangiiig a deal with tire Toronto-Dominion to boy the hangar for about $5 million, which he says has a replacement value of $17 million. iNEW YORK (AP) The stock market ended mixed yesterday, with investors encouraged by some strong corporate earnings repents but still concerned about foe economy.

For a second day, the NASDAQ and American indexes set new dosing highs. The Dow Jones industrial average fell 028 point to 359113. Advancing issues outnumbered declines by about 8 to 7 on the New York Stock Exchange. Volume came to 263.94 million shares, up from 18171 million in the previous session. Among other mqjor market indicators, the Standard Poor's index of 500 stocks rose On American Stock Exchange, the market value index rose 191 to 47020, surpassing file previous record of 46729, also set on Monday.

Merrill Lynch rose $228 to $10121 pulling up other brokerage issues. Morgan Stanley rose $175 to $8820. Jumped $720 (U2.) to $36725 an ounce. American Barrick rose $125 to $3325 and Placer Dome jumped $1 to $29.75. Another gold stock, Franco-Nevada Mining, gained $1 to $7020.

The company reported second-quarter earnings of $92 million or 62 cents a share, up from $42 million, or 30 cents a share, a year earlier. Alcan Aluminium rose 75 cents to $26. Inco fell a quarter to $25.75. LAC Minerals fell 50 cents to $10.63 on volume of more than 22 million shares. FROM DOW JONES Toronto stock prices closed solidly higher in moderate trading yesterday, as gold issues surged on firing gold prices.

The TSE 300 composite index rose 40.04 points, or 0.98 per cent, to dose at 410721. Advancing issues outnumbered declines 423 to 319. Volume was 60.1 million shares, up from Fridays 48.7 million shares and trading value rose to $648.4 million from $481.1 million. Eleven of 14 subindices dosed higher, led by the gold group, up 3.1 per cent as the price of gold in New York Star Classified 368-3611 Franchising For advertising informafloa cal (416) 869-0031 Fax (416) 865-3977 iiinummeim Star Classified 368-3611 Ms the word. USED OFFICE FURNITURE: EXTENSIVE INVENTORY Systems Workstations in excellent condition.

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