The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

PAGE 4, WEDNESDAY, MAY 19, 1982, WHITBY FREE PRESS blished every Wednesday by M.B.M. Publishing and Photography Inc. Phone 668-6111 The Free Press Building, 131 Brock Street North, P.O. Box 206, Whitby, Ont. whitby Voice of the County Town Michael Ian Burgess, Publisher - Managing Edito The only Whitby newspaper independently owned and operated by Whitby residents for Whitby residents. MICHAEL J. KNELL Community Editor MARJORIE A. BURGESS Advertising Manager Second Class Mall Regist ration No, 5351 Pub Miller's budget is not a total loss but taxpayers are still footing the bil forthe government'smiistakes Last Thursday, the taxpayers of the Province of Ontario were again punished for government's continuing inability to deal wlth the economic problems of the day. It seems to this publication, (however unlearned in matters of public fiscal policy) that the provin- cial government is still using old and unworkable solutions to old problems. Before we join In that favorite sport of govern- ment "bashing", a few points in the government's favor should be made. FIrstly, it le recognized that Treasurer Frank Miller can do little or nothing about the problems of inflation and high interest rates. These weighty matters are the sole jurisdiction of the federal government which controls the Bank of Canada and therefore, the national money supply. Further- more, we all know how anxious Prime Minister Pierre Trudeau is to thrust aside last November's disastrous budget and the National Energy Program. The federal government has commissioned a study on Japanese industrial relations which recommends a Royal Commission to focus on one aspect of our economic dil- emma -- that is Canada's poor labor relations record and the high incidence of crippling strikes. But any scrutiny of Japanese labor relations is going to open up a Pandora's box of Canadian problems, and not least among them is the nature of leadership. In Japan, the essence of leader- ship is demonstration. It is much more do as i do, than do as I say. And seniority is almost éverything. Thus the 46 year old marketing vice-president with 26 years of service is on roughly the same economic and social level as the 46 year old chief mechanic who also joined the company when he was 20. Japanese executives feel that North American company owners and managerial staff give themselves too many benefits, compared with whât they give the people who work for them. In Japan, the fact that there is only a modest differential between managers and workers of a given age, gives the workers the feeling that everyone is in it together. And please don't get the idea that this isn't capitalism. Japan is one of the most fiercely competitive capitalist societies on the face of the earth. It's just that managers and workers alike have recognized that sharing the credit and sharing the wealth is what makes the wheels go around. In most Japanese companies, where wovrkers feel that they are part of the corporate long-term interest, strikes have become a thing of the distant past. This is not the result of some deep-seated cultural memory, a racial anomaly, but a hard-headed, practical approach to prob- lem-solving that has been evolving since the American occupation. Managers and union leaders spend time to- gether, talking about their goals and problems, BEFORE there is trouble between them. And because both sides are as concerned about the other's business and welfare as they are about their own, there is trust. There is no need for the auto industry in this country to collapse. But until the General Motors executive in Oshawa, for example, and the leadership of the UAW there, come to realize they're on the sarne side, collapse it must. It's only a matter of tine. That's notnews, but that too is reality. Miller's budget was not a total loss. Small busi- nessmen across Ontarlo are rejoicing at the aboll- tion of the provincial corporate income tax. Ac- cording to government sources, this will provide $250 million worth of tax rellef to 60,000 small businessmen in the f irst year of the two-year tax cut. However, this is not guaranteed to create more jobs in the small business sector. Ail it may do is help keep them financially afloat which is, indeed, better than nothing. The shining jewel of the budget is the $75 million Ontario Renter-Buy Program that will run through October 31. Under the program, renters can recelve an Interest-free loan of up to $5,000 to buy a newly-built home priced under $90,000. On the surface, this looks great. However, the government did not address the issue of mortgage renewal or the fact that according to federal government statistics, the average family in On- tarlo has to earn in excess of $30,000 a year before they can afford to own a home. How many families in Ontario earn that much? Miller also announced a $133 million program to create 14,500 short-term jobs. The youth-employ- ment program wiIl be beefed up to provide 93,000 jobs and the Farmstead Improvement Program is expected to provide 2,100 more rural jobs at a cost of $11 million. It is more than interesting to note that the government has not addressed the issue of long- term job creation. Instead, we have another round of short-term, stop gap measures that appear to have been taken in the hope that the economy will turn around by itself and that the federal govern- ment will pick up the slack by throwing the current federal finance minister*out on his ear. His six per cent guideline for salary incréases for senior civil servants and MPP's is a nice political gesture but will do little to help the over- ail provincial economy. Realizing that the federal government was serlous in its threat to cut back transfer payments to the provinses, Miller decided to make up for this shortfall by, what else, raising taxes. While, thankfully, he did not raise personal in- come taxes, Miller removed a number of retail sales tax exemptions from such things as house- hold cleaning and personal hygiene products, pets, plants, building materials and magazines. Restaurant meals, whatever their cost, will now be taxed at the magic rate of seven per cent. And who will be paying this new and Improved sales tax? Everybody, including senior citizens and lower to middle income earners. Once again, the government has showed'little imagination in its search for new revenue sources. Once again, the government has deemed it inad- visable to do such things as finding a bigger and nore profitable market for Ontario Hydro in the northern United States or imposing a stiff royaity on exports of our precious natural resources such as nickel, lumber, water, etc. Government officiais are hailing this budget as a success in the light of last November's federal budget, but if that is the sole criteria for assessing Miller's economic policy, they should not be cheering too loud. P.O. Box 206, Whitby, Ont. Regatration No, 5351