Editorial Still another bad move out of Ottawa

It’s simply incredible how our federal government can throw around money in this period of so-called restraint — money it does not have, just piling debt on top of debt. Only a week or so ago we questioned just why the feds’ redundant International Development Agency (CIDA) should be financing a saw mill in Zaire at a direct cost to our treasury of more than $35 million. Now our Export Development Corporation is coming up with another dandy. Read on.

How can little Mexico get an acid-rain agreement with the United States when we in Canada can not? Easy. Just apply to this largesse-oriented, Ottawa-financed agency which will put up 80% of the $50-million(US)-cost of a pollution-control plant on the second largest source of SO2 emissions in North America — the Nacozari smelter in Mexico, 100 km south of the Arizona border.

This ultra-modern plant will cut 90%-95% of the 1,300 tonnes of the acid-rain-causing gas that smelter is capable of pouring out each year. In exchange, the U.S. has agreed to shut down an antiquated smelter in Arizona and to control emissions from others. So who is going to pay for similar control measures at Inco’s smelter in Sudbury and Ontario Hydro’s coal- fired electricity- generating plants? And when will we get a commitment from the U.S. that it will force similar coal-burning plants in Ohio and other states in the American industrial heartland to clean up their act? These sources are believed to have acidified 14,000 of our lakes and are threatening 40,000 more.

We hope action will be taken soon because loyal friendships between nations thrive on tit-for-tat exchanges and we would not like to see the issue go to the International Joint Commission to be resolved.

But we’re still dumfounded over this Mexican affair. With a federal debt now soaring past the $250-billion mark, there is just no rhyme nor reason for this latest move by Ottawa. What are the terms of repayment? What interest? Will it ever be repaid? We do know that the savings bonds that Ottawa must sell to finance its operations double in value (debt) every seven years.

We would bet that Noranda would like to get this Mexican type of financing to clean up its copper smelter in Quebec.