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G.S.T. will cut dee (From page 8) to four years, the Government ex- pects to be in a position to actual- ly begin reducing the ac- cumulated Federal debt. Mr. Wilson's recent budget forecasts a deficit for the year of some $28.5 Billion. So, how is this shortfall plus the additional revenues necessary to begin prin- cipal debt repayment going to be made up? The obvious conclusion is a con- "tinuous annual increase in the G.S.T. rate, thus negating the statement that it will be revenue neutral. *Any taxation system that needs to employ an additional 4,000 Government workers to ad- minister the tax, smacks of inef- ficiency and a disgraceful waste of taxpayers' dollars. As tax- payers, we should not only expect but demand fiscal responsibility for the way in which our tax dollars are spent. *The retail trade and all service based businesses will meet with severe economic damage because of the G.S.T.. In 1991, the average Canadian family will be faced with the elimination of the balance of its' discretionary spen- ding, just so it can cope with the effect of continuous tax increases which the Conservatives have im- posed since 1984, clawbacks, and the impact which the G.S.T. will have on mandatory consumer spending. Companies will be faced with a significant decline in sales, resulting in layoffs, bankruptcy and a loss of revenue from con- sumer and corporate income taxes. This loss of sales also will result in a corresponding loss of G.S.T. revenue. *Why is the manufacturing sec- tor apparently being favoured over all other business sectors and the consumer? The Govern- ment appears to be asking all of us to reduce our disposable in- comes so manufacturers can en- joy healthier profits. But is the Government's real reason for wanting to eliminate the M.S.T. not directly related to the free trade agreement with the United States? As a consequence of free trade, the widely held public view is that Canada will end up as a net ex- porter of manufacturing jobs. With a substantial loss of manufacturing business, the Government also loses a very significant tax base against which the M.S.T. is applied. When com- bined with the loss of revenues resulting from the phased elimination of tariffs under the free trade agreement, an alter- native tax source is necessary to offset the shortfall. As Canada moves from a manufacturing based economy to a service based economy, the ob- vious solution for the Government is to replace the M.S.T. with a consumption tax on goods and . services. But the Government has so far lacked the political backbone to be honest with us as to its' real reason for wanting to eliminate the M.S.T.. *The Government's view that the market will ensure M.S.T. savings are passed along to the consumer is difficult to accept. Experience shows that if business thinks it can get away without passing on the savings, it will. If everybody tries it, the market theory simply won't happen in practice. Besides, business is go- ing to have to recover its' increas- ed operating costs resulting from the G.S.T.. *I put myself in the upper range of the middle class income earner. Since last Fall, my wife now earns a small salary as a school bus driver. We do not burden other taxpayers by expec- ting them to shoulder tax deduc- tions for daycare for our two and five year old children. Yet I pay substantially more income tax than a two wage earner family bringing in an income equivalent to mine. We live modestly. We are selec- tive in our spending and do not live beyond our means. We do not take expensive vacations and do not buy luxury items. My wife and I drive seven and ten year old vehicles respectively ; ine needs to be replaced but our budget says not this year. Our shrinking disposable income goes towards life's basic necessities - housing, food, health care, utilities, in- surance, clothing and transporta- tion. We have little left over for discretionary spending. Rising in- terest rates, annual hikes in federal, provincial and municipal taxes and ever increasing prices in consumer goods and services dwarf the 3 - 5% salary increases I have been getting over the last five years. I continue to work harder but come home with less. As a Transport Ministry official told me last October when the VIA Rail cuts were announced, the envelope the Ministry got from Mr. Wilson holds only so much money. Something had to go. Well I want Mulroney & Co. to understand that my pay envelope, not dissimilar to that of the Ministry's, also holds only so much money. As Brian and Mike continue to increase my taxes, something will have to go. I worry where I will find the additional money in my pay envelope when the G.S.T. comes into effect. It won't come from a salary in- crease and it certainly won't come from discretionary spen- ding because in my case it ver- tually has been eliminated as a result of successive tax increases. What an irony it will be when I am forced to borrow just to meet the demands of day to day living in our tax fatigued economy. *On January 15th, the Govern- ment significantly impaired my ability to get to work when it eliminated the VIA Rail service between Toronto and Peter- borough/Havelock. Because of this decision, the quality of my family life has been affected adversely, my productive time has been reduced by the addition of an hour and twenty minutes to my previous commuting time of three hours a day, and my travell- ing expenses have increased. The Government chose to dismiss the suggestions of passengers who relied on this service as to how it could be made more cost effective. I wish for once, the Government would stop using tax increases and the sledge hammer technique on programs and services, as substitutes in intelligent manage- ment of the country's Profit & "Loss Statement. The Government could have met its' objective of significantly reducing the annual subsidy to VIA without decimating many of the services which were cut. All it would have taken was some innovative think- ing, hard work, and the will to succeed. But instead, it elected to take the quick and easy way out. I feel that I have made more than my fair share of sacrifices to pay for the consequences of careless and irresponsible government spending both past and present. The Conservatives must share responsibility with the Liberals for our accumulated debt and continuing deficit. Ot- tawa must stop blaming the tax- payer, in particular the con- sumer, for the economic mess the country is in today. After all, it was our ~elected officials who | PORT PERRY STAR REAL ESTATE -- Tuesday, April 17, 1990 -- 15 created it - not us. Alternatives to the G.S.T have been suggested. The Prime Minister should swallow his pride and give serious consideration to them. I agree with the need to eliminate the deficit and to repay the accumulated debt. But I op- pose the G.S.T. and any other tax increases, however they may be packaged. What ever happened to true tax reform? It is time that our taxation system be made fair, equitable and acceptable to all Canadians. The current structure should be discarded and replaced with an administratively simple alter- native. I for one would be willing to take my chances with one tier consumer and corporate flat tax calculated on gross income over the poverty line threshold. No more deductions and no more tax breaks! And finally let's insist that the Feds truly tighten their belt on spending. No more giveaways to foreign countries, no more cor- porate subsidies and handouts, no more questionable grants, no more government waste, mismanagement and patronage, and no more free rides for anyone. I look forward to receiving a response from my M.P.. When replying, I have asked that he do so personally and that he avoid using the standard patronizing Government partyline which on- ly infuriates me by insulting my intelligence. I reject the fact that 80% of Canadians are intellectual- ly deficient, as current Govern- ment rhetoric would lead us to believe. The final decision on how he voted the G.S.T. issue was his. But it was also the final decision on how my wife and I vote in the p says letter writer next Federal election. Canadians should resist the temptation to feel helpless in this matter. If we sit back as the usual complacent lot that we are and take it, then we deserve what we get. But if individually we all act, the opportunity exists to avert what otherwise will be an eterni- ty of taxation hell. That oppor- tunity is the house of second, sober thought - The Senate. Make your views know when Senate Committee hearings into the G.S.T. begin. Remember, the Senate forced the Conservjtives to an election over the freeltrade issue. If the public outcry is loud enough, we collectively through ~ the Upper House can force an election on the G.S.T.. When the day comes, I plan to be first in line at the polls. Sincerely, Paul Pagnuelo R.R.3, Little Britain Myths and facts about the safety of food we eat Consumers today consider food safety their No. 1 food purchase concern according to two studies recently published by Agriculture Canada and the Grocery Product Manufacturers of Canada. In commenting on the studies, Mrs. Valerie Bell, Executive Director of the Wholesome Food Council of Canada, stated that "Unfor- tunately, consumers' awareness of food safety issues is more often based on a general perception of news coverage and misinforma- tion from a wide variety of sources, than on actual fact." Mrs. Bell then went on to give five current examples of food safety beliefs, commonly held by Canadian consumers, and their realities. 1. Myth: Canadian pork has to be cooked to the well-dofie stage to ensure it does not contain trichinosis. Fact: Trichinosis hds been non- existent in Canadian pork for many years and even if trichinae were present, they would be destroyed at 140°F (60°C rare) during cooking. The pork industry recommends cooking pork to an internal temperature of 160-170°F (70-75°C medium) which is well above the temperature required to destroy trichinae. Cooking beyond this simply makes today's lean pork less palatable. The Canadian pork industry has been working with the Organiza- tion Internationale Epizotique (an international regulatory agency) to develop proposed standards that will recognize national swine herds as trichinosis-free. These standards would require exten- sive testing procedures at time of slaughter. When approved, hog producers could take great pride in the fact that Canada would then become one of the first countries in the world to be recognized as having a national swine herd free of trichinosis. 2. Myth: The Use of Nitrites and Nitrates in cured meats should be completely eliminated because they cause cancer. Fact: Both the National Research Council in the United States report on 'Diet, Nutrition and Cancer" and the diet/cancer report of the American Cancer Society, two of the most com- prehensive reviews of scientific literature on diet and cancer, clearly state that there is no know link between nitrosamines or nitrates and any form of human cancer. Sodium nitrate is the form of nitrate most commonly used to cure meat. It is also the only ac- cepted meat curing agent which effectively inhibits the growth of one of the most lethal bacteria known to man, Clostridium botulinum. 3. Myth: Hormones, antibiotics and pesticides are a major food safety concern for Canadians. Fact: All hormones, antibiotics and pesticides are approved prior to use by the federal government and considered safe for use in agricultural production for human consumption. Unfor- tunately, however, less than 68 percent of Canadians are aware that legislation governing the ap- proval and use of these chemicals exists. In 1989, less than 1 percent of 58,000 samples taken under Agriculture Canada's current chemical residue sampling pro- gram, contained violative residues of any of these chemical compounds. All animal carcasses found to contain violative residues are immediately destroyed. 4. Myth: Salmonella is prevalent among poultry products. Fact: Salmonella is one of the bacteria present in poultry and other foods, however, it is destroyed by cooking at the pro- per temperature. 5. Myth: Over 56 percent of Canadian consumers think red colouring is added to red meat. Fact: Fresh meat is naturally bright red, therefore it isn't necessary to add red colouring to improve its appearance. However, cuts such as ham- burger oxidize or brown when ex- posed to air, which is why ham- burger is often brighter red inside than on the surface. Government regulations prohibit the addition of artificial ingredients or preser- vatives to fresh meat. Fines are issued if these regulations are violated. Canada will study US farm subsidy levels Canada is about to take a hard look at American agricultural subsidies. In an announcement made February 2, Agriculture Minister Don Mazankowski said his department had contracted a firm to carry out an extensive study of the level of government assistance available to American farmers and food processors. The firm involved already has exten- sive experience with the Canada- U.S. Trade Agreement (CUSTA). The study will focus on the in- cidence and extent of federal, state, municipal and local support for the American industry, and will determine how this support affects trade between Canada and the U.S. Further, the results of the study will help Canada's negotiations with the U.S. on the development of a new system of rules and disciplines coverning such government support. (Article 1907 of the CUSTA provides for development of a substitute system to deal with unfair pricing and subsidization). Mr. Mazankowski noted that the results of the study will also prepare Canada for U.S. trade in- itiatives aimed at imports from Canada? In addition, he said, the study will put us on an equal footing with our southern friends, who already have an extensive data bank on Canada's agricultural support programs. The study will focus on the following commodities: wheat (including duram), corn, barley, soybeans, slaughter cattle, beef, slaughter hogs, pork, fluid milk, industrial milk, butter, skim milk, cheese, eggs (including hatching eggs), chicken, turkey, apples and potatoes. Also subject to study will be food processing that includes vegetable commodities. The study will be finished by mid-September of this year, and will cover federal. state and a few local governments in lowa, Kan- sas, California, North Dakota, New York, Texas and Wisconsin. These are dynamic times in the trade world. As pressures mount for liberalized trading practices, the demand for a greater understanding of current prac- lices also builds. Examining the way our neighbours to the south do business is a part of that process. Ml Be A ¢