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4 The Canadian Statesman, Bowmanvillc, Wednesday, February 12,1992 Former Publishers ti a Rev. W. R. Climie, 1854-1878 • M.A. James, 1878-1935 • George W. James, 1935-1957 Produced weekly by James Publishing Company Limited For 138 Years, Our First Concern Has Been Our Community Publisher - John M. James Assoc. Publisher - Richard A. James Plant Manager-Donald J. Bishop Ad. Manager-Brian G. Purdy Editor-Peter Parrott Production Rick Patterson,, Julie Cashin-Oster, Laurens Kaldeway, Doug Lugtenburg, Sharon McMullen, Barb Patterson, Sean Pickard, Ralph Rozema, Jim Snoek, Vance Sutherland, Jim Tuuramo Advertising Laveme Morrison, Pat Patterson-Savage Editorial Brad Kelly, Lorraine Manfredo, Laura J. Richards Office Angela Luscher, Junia Carnegie, Grace McGregor, Nancy Pleasancc, Marilyn Rutherford, Barb Schouten P.O. Box 190,62 King St. W., Bowmanvillc, Ontario, L1C 3K9 416-623-3303 Fax 416-623-6161 No Easy Solutions To Solve Nation's Economic Woes For about as long as the economic downturn lasts, we're going to be hearing of lots of schemes by which the government can get the economy rolling again. Such suggestions are based, of course, upon the idea that the government has within its power the key to magically solve the problem. And that idea, itself, is suspect. In what continues to be (for the most part) a free market economy, it's not just up to the government to get us out of the mess in which we find ourselves. Clearly, there arc other players in the game. The economy is not just the government, but every other individual or organization which spends money or creates jobs. So, the solution lies with not only the government but also big manufacturing corporations, the banks, small business, and individuals. Having said all that, we have to admit that the government can play a leadership role in improving the country's economic fortunes. And that's the reason why the federal government recently announced it will lower the minimum down payment in order to let more first-time home buyers into the housing market. Home buyers can now put down just five per cent cash when they buy that first house. It would be nice if this measure were enough to pull the economy up by its bootstraps. But, frankly, we see it as somewhat of a bad news/good news scenario. Yes, it's good news for some folks to hear that the minimum down payment has been lowered. But, the bad news is that those same people who cannot manage the 10 per cent down payment are committing themselves to a lifetime of overwhelming interest payments. They'll be doing on a small scale what the federal government and most provincial governments are doing on a larger scale. They'll be committing themselves to spending massive amounts of income on debt. If incomes and housing prices are going to be rising quickly over the next decade, such a prospect doesn't seem too frightening. But, given the economic performance of the past two years, how likely does that appear to be? Another government incentive to improve the economy is the proposal which would allow Canadians to use their RRSP savings to buy or renovate homes. It's a creative idea. However, we suspect that if the federal authorities agree to such a scheme, they'd do it a little later in lire year and a little closer to the inevitable federal election. Voters lend to have short memories. And federal, politicians will want to make sure that any accolades they gain from stimulating the economy will be received around election time. Of course, even if Canadians are allowed to tap RRSP savings, the fact remains that this money cannot be spent twice. It can't be spent today to help kick-start the economy and tomorrow to help an aging population retire in comfort. It's quite possible that if the federal government allows Canadians to deplete their RRSP piggybank now, the government will be,faced with paying more in the future to ensure seniors are adequately provided, for. It's a'good example of short term gain, but long-term pain. However, such longYange benefits will likely be ignored if the government's agenda is to give the country an economic transfusion without using any government funds. Even more sobering is the possibility that whatever the government does to supposedly kick-start the economy will be irrelevant. Given the fact that everyone is now part of a global economy, Canada's future depends as much on what governments in Europe and Washington decide as on what happens in Ottawa. If we are in the midst of a short-term recession, federal authorities will be kicking themselves for spending government dollars to bail out an economy which would recover quite nicely without their help. On the other hand, it we are in a really big economic crunch or even -- to use the D-word -- a depression, anything the government does to boost the economy won't do much good. In that case, economic stimulation will be a lot like giving medicine to a patient who has already died. It may boil down to something like this: If we're merely in a recession, then it may well be lime to stimulate the economy with measures such as provisions to use RRSP funds for home purchases. If, on the other hand, we're looking at a full-scale depression, then it's time to worry mainly about alleviating the pain felt by those hardest-hit and time to batten down the hatches. v. )^ ; {y by Ross Stevenson, M.P., Durham , J Like other elected officials, officials, I get a great many comments about government government spending, which isn't surprising, especially with income tax time approaching. approaching. But it's evident from speaking with Durham residents residents that a lot of people don't understand how or why the federal government spends all the money it collects collects from us. So, where exactly exactly do our federal tax dollars dollars go? Income and spending is calculated for what's called the fiscal year - a 12-month period commencing each April 1. During the current fiscal year, which ends March 31, the government budgeted to spend $159 bil- LETTERS TO THE EDITOR Student Comments on 407 Route To Whom It May Concern, I am deeply concerned and upset about the proposed Highway Highway 407 route that cuts through my area. The consequences consequences of building an 8-10 lane highway that plows through thousands of acres of rich agricultural farmland greatly outweigh the shallow and shortsighted advantages. It is extremely contradictory of the government to institute various various environmental programs that encourage the public to reduce, reduce, reuse and recycle, and yet at the same time announce the construction of a pollution causing, garbage increasing monster highway through environmentally environmentally sensitive land. Docs this make sense? Firstly, the purpose of the highway (as outlined by government government officials), is to provide provide relief to the congested roadways of Toronto. If politicians politicians were truly serious about this endeavor, why did they discontinue transportation by train and by trolley buses? Again we sec a contradiction in terms. Granted, Toronto (and surrounding municipalities) municipalities) arc increasing in population. population. However, this highway is a temporary solution that is only procrastinating the real problem. What will happen in 10-20 years from now when this highway becomes congested? congested? We cannot keep building highways, because it won't solve the problem. It is only postponing i't. Also, who want to live in a concrete desert? Why doesn't the government put more money into improving improving public transportation? Bring back the train. Widen roadways that are already in place. Bicycles arc the way of the future. Get public input!!! Secondly, the construction of the highway proposes to improve improve the economy by bringing in industry and rapid urban development. development. This highway proposes proposes to bring in industrial industry, industry, while sacrificing agricultural industry. With in- dustralization (past and present), there comes extreme social and environmental consequences. consequences. Agricultural industry industry docs not have the unpleasant unpleasant side effects of industrialization. Farmers arc stewards of the land. They preserve preserve and protect it, while at the same time, they harvest food for the mass population. What happened to "Foodland Ontario?" Will it become "Smogland" Ontario! If you destroy acres and acres of rich, by Rick James Will Return Next We iililz fertile farmland, the long term consequences are very grave indeed. Firstly, Ontario will no longer become self-sufficient. Ontario will have to import the majority of food from outside sources and become dependent on them. • Food prices will skyrocket and when -the economy spirals into another recession, there will be no immediate solution. But, Ontario will be plagued by a full fledged depression. A seed cannot grow on concrete!!! concrete!!! An alternate route, that would be considerably less environmentally environmentally hazardous would be to go more northerly where the land is less productive, productive, The land north of the proposed proposed route is less fertile because because it is mostly gravel and sand, and thus less productive. In addition, the social consequences consequences that come about because because of this proposed Highway Highway 407 must be addressed. Many of the area residents and area farmers have lived on and farmed their land for several generations, The land that they brought and worked, However, government officials have informed informed those area residents and area farmers lying in the path of ' the monster highway that their land will be expropriated. expropriated. In other words, the government government (as they dictate) has the authority to take land from the public by force. The public cannot refuse to sell their land, because the government will take possession of it by force. Is this a democracy or a dictatorship? dictatorship? The Highway 407 plows through the acres of good pro ductive land and destroys many century homes and historical historical buildings. This highway not only destroys prime agricultural agricultural land, but the fragile heritage and culture of town and village communities. In effect, effect, it will be like a Berlin wall, separating neighbours. What will happen when all the precious villages and communities communities end up a dusty artifact in a museum? What will we tell and teach our children and grandchildren about the land and the production of food, when all of it is covered by concrete? Will they have to lopk in history and picture books to view as a memory or an illusion, while we had it in the present and as a reality. If we do not learn from the past, we will keep making the same mistakes in the present, and ultimately ultimately destroy the future, As a member of this community community of ours and a member of the human race, I urge you strongly to vote against Hwy. 407 and preserve our land, livelihood, communities, and future. We can no longer follow follow the irresponsible government, government, like sheep to the slaughter. slaughter. "And it came about that owners no longer worked on their farms. They farmed on paper; and they forgot the land, the smell, the feel of it, and remembered remembered only what they gained and lost by it." The Grapes of Wrath by John Steinbeck, 1939. Thank You for your time, Miss Luisa Gisella Longo (Student of St. Stephen's High School) lion. \ The greatest portion, 27 cents of each tax dollar co- lected, will be needed to pay interest on the massive national national debt that's been accumulating accumulating since back in the 1970s. The other major item is payments to people - Old Age Security benefits, Guaranteed Income Supplement", Supplement", Spouses' Allowances, Veterans' Pension's and Benefits, Benefits, Family Allowances, Unemployment Insurance, etc. All together they take another 25 1/2 cents of each tax dollar, which incidentally incidentally is almost two cents more than for the previous year. Transfers to the provinces, provinces, northern territory governments, governments, and to municipalities municipalities take another 14 1/2 cents. That includes Ottawa's Ottawa's share of welfare costs, equalization 1 payments to less wealthy provinces, as well as federal funding for medicare and postsecondary postsecondary education. Subsidies for industrial and regional development, for grain farmers, along with job creation and training, training, and programs and services services for native people, require require 8 3/4 centa of each tax dollar. Foreign aid costs slightly more than one cent, 70 per cent of it spent here for Canadian goods and services. services. Crown corporations take 3 cents, mostly going to Canada Mortgage and Housing Housing Corporation. National Defence takes another 8 cents, almost three-quarters of which is paid out in salaries salaries and operating costs for military bases. That brings us to the final final item, the entire cost of running the government itself. itself. It takes 11 3/4 cents of each tax dollar to pay publi- ic service salaries, administering administering all government programs, programs, travel, buildings, utilities, supplies, research in the environment and health and agriculture, all inspection services, as well as the cost of the House of Commons and the Senate. When people speak of cutting federal government spending, they generally zero in on this last area - the cost of government operations. operations. Yet, as you can see, it only accounts for about one-eighth of the tax dollar. Substantial cuts already have been made here, so that this year we have 10,500 fewer full-time employees employees than six years ago. Budgets are frozen this year as are wage levels - including including mine - and there are 10 per cent fewer senior executives. executives. Even if this whole spending spending item was eliminated and the entire federal government government and Parliament was shut down tomorrow, the savings couldn't begin to cover our national debt." And as I've explained, more than 75 cents or three-quarters of each federal tax dollar is spent on debt interest, on payments to people and to other levels of government for social programs. We can't avoid paying our debt interest, which takes all of the GST except for collection collection costs and the amount paid in rebates to people. And any suggestion for limiting limiting social programs, subsidies subsidies or provincial equalization equalization brings understandable howls of protest from those who would be affected. So, when anyone tells us they can slash government spending miraculously, I'd suggest we should ask for a detailed explanation of exactly exactly where and how the cuts will be made. Unfortunately, Unfortunately, it's not that simple. St. Valentine's Day is on Friday. What are you hoping to get on Friday? Hmm, most people hope for some romantic music, wine, flowers, dinner out and well you know that little three letter word starting with "s" and ending with "x." Oh boy. Not me. I'm a true blue journalist underneath underneath this wishy washy exterior. exterior. I hope to have a couple of moments to talk with the big cheese, Brian Mulroney. Ycsirec Bob, er (in this case,) Brian. He's scheduled to stop at the Newcastle Village Village community hall on Friday Friday evening. I have a couple of questions questions that I would like to ask him. Like, was he pulling my leg the last' time I ran into him several years ago when he invited a whole room of students to 24 Sussex Drive for a swim if he became Prime Minister. I happened to be one of ■ those students. Never mind that I don't swim, but I can paddle around the pool quite well. Oh well, if that doesn't break the ice, I know another question which might just do the trick. Has he updated his resume lately? If, by all reports and rumors rumors sliding around several different newsrooms across Canada, this little tour around this part of Ontario is a preelection preelection spring lour, he might be looking for another job next year. Although I have several other questions, the best one yet is this:. If he get re-elected, would he be willing to take a cut in salary and benefits and live closer to the people he has been living off over the last few years? Other questions that have been dancing through my brain are: Why all the smoke screening screening with the roving constitutional constitutional meetings regarding the economy? What's the poop regarding the Queen's visit to Ottawa on July 1st? And, here's the one whose answer we're waiting for with baled breath: When is the next federal election? Will I get answers to my questions -- who can really say for sure. However, I remain remain positive. One has to in this business. As for Mila, I only have one question for her: How many medals do you think the Canadian teams will bring back from this year's Winter Olympic Games? So what do all you Liberal-minded Liberal-minded folks think about your newest parly leader? What a difference! I think Ontario is in for some fireworks now. Lyn McLeod has listed among her priorities the fostering fostering of economic improvements, improvements, restoring confidence in the political process and creating a communications strategy that will put her in touch with the grassroots. Ms McLeod is also looking looking to push the Rac government government towards the middle of the political spectrum because because that's "in the best interest interest of the people of Ontario." Ms McLeod has said Ontario Ontario is ready for a premier" with direction. She also said there "won't be a problem if that person happens to be female." female." She seems to be someone who won't back down from the stands she takes. And she won't be backing down from the philosophies which the Liberal Party stands for. She isn't wishy-washy. Maybe I'll vote for her party during die next provincial provincial election in Ontario. Seeing Seeing that I didn't get to vote in the last one. *** Have a Happy St. Valentine's Valentine's Day! Reader Tells of Differences in Education Costs - The Trustees: • „ Norlhumberland-Newcasllç Board of Education: The Editor, The Canadian Statesman, Bowmanville, ■ Ont. Dear Fellow Taxpayers: I am concerned about the high level of taxes, and especially especially the 60% of property tax going to education. Comparing the public schools and Christian Christian schools, I find the N/N Board spends about $5670.00 per year per student while Christian schools spend $4714.00 per year per student. The fundamental difference is the lack of an administration between the trustees and schools in the Christian system. system. Clearly, most of the 17% or 22 million annual difference is due to administration costs. Do tmstees consider these costs acceptable and fixed or do they search for ways to lower lower the cost of administration? I urge all concerned to redouble redouble the effort to reduce costs. Struggling taxpayers would find any increase intolerable intolerable this year. Sincerely, Doug I lately, 3 First Street Bowmanville, L1C2A2 IS m We Asked.. Does Ontario need the proposed Highway 407? ... And You Said Reta Cameron North of Tyrone "I don't really know. In some ways yes and in some ways no." . Haroldine Kinney Bowmanville "I've read about it, but I don't know all the details." Keith Shackelton Bowmanville "I think Ontario does. I'm not quoting where the route should go. But definitely with the traffic, they should expand the 401 or build the other." Bryan Foley Oshawa "Yes, because the 401 is over crowded. We need an arterial route." Next week's question: I low do von think Lyn McLeod will perform as the leader ol the Liberal Party? m B