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28 The Canadian Statesman, Bowmanville Features and Comments, Wednesday, April 20,1994 Research Key to Business Success Survival for businesses in our eco- cussing how small business can de- nomic climate often depends on cide whether research would be a knowing how to effectively attract helpful course of action new business, streamline operations, Dr . Reed's presentation will be generate and evaluate new ideas and pan 0 f the Clarington Business Group assess how satisfied customers are meeting on Tuesday morning, April with services provided. 19 at 7:30 at the Flying Dutchman in Conducting, opinion and satisfac- Bowmanville. Admission includes a tion research is one way to acquire continental breakfast, this infonnation. According to Dr. The aim of the Clarington Business Maureen Reed, co-owner of Collis & Group is to have informal monthly cm be cmkd outby sraU budnesJto mo^busiSsêfvices mdexwriSc' Mi^Bubï k*"'^ 1 T, aboUr set up a three-person Royal Commis- ployers are frustrated by the com- a simple, affordable yet effective man- es with other fix Se'°n^eSo "tX St htottuS ViS ""in a présenta, ion for fite Glaring,on r£tttts"ountn Ut "TTt wrn TVb wTnoTS Business Group, Dr. Reed wil, be dis- taetBonnilcu^gEaSK: STtoXW**! in ESL""* '° '° W " and financially healthy, are built on Ontario's compensation system has "After 80 years, it's time to have a the solid framework agreed to by la- not kept up. Many workers are not compensation system that reflects to- bour and business representatives in covered. Some injured workers live day's realities and will provide for the Premier's Labour Management in virtual poverty. Workers and em- our future," added Mr. Mills Advisory Committee. Business and Finance N.D.P. Announces Change To Workers' Comp. System WARNING! THIS AD MAY MAKE YOU UNHAPPY WITH YOUR PRESENT AUTO INSURANCE RECOMMENDED COVERAGE FOR CAREFUL DRIVERS! ■ 91/92 medium size 1 1 million liability - Accident benefits • $250 deductible collision • $50 deductible comprehensive • Family protection endorsement • Loss of use/rental vehicle NOTE: Careful Drivers Over Age 25 with Preferred Driving Records may qualify. This rate also includes limited driving to work. Two car policies may qualify for additional discounts. SEMI-ANNUAL PREMIUM (including»» $489.30 4M Established 1978 623-0331 3 Silver Street, Bowmanville Oshawa - 436-6239 DISCOUNTS FOR DOUBLE PARKING. / Liberty Mutual Insurance Company 68 King St. E., Bowmanville, Ontario L1C 3X2 623-8914 Insure two or more cars with Liberty Mutual and we'll reduce your rates. Call us today for more information. LIBERTY, MUTUAL] © 1994 Liberty Mutual Insurance Group/Unionville, Ontario "Unlike other provinces, where injured injured workers' benefits were cut, we've actually increased benefits to those hardest hit," said Durham East MPP Gord Mills. "These changes will greatly improve the WCB's financial financial situation and make it more efficient. efficient. And, we'll continue to protect people injured at work. It's the best combination of reforms to fix the system." system." Older unemployed workers injured injured before 1990 will get an increase of $200 a month in their pensions. Many of them are currently living in poverty. The government will direct the WCB to improve its day-to-day finances. Changes will be made to how benefits benefits are indexed. Currently, benefits are increased in line with the rate of inflation. In the future, they will be increased using the Friedland indexation indexation formula, which will bring them in line with most other pension plans. This measure will go a long way to bringing financial stability to the WCB. About 45,000 older injured workers and their families will continue continue to get fully indexed benefits. The government will direct the WCB to improve its day-to-day finances finances and to work toward a system that focuses on an early return to work for injured workers. The structure of the Workers' Compensation Board, will also change. It will become a bipartite body, with equal numbers of board members recommended by business and labour. "A truly bipartite board, will result in a better system, because the people most affected by it, labour and business, will be working together together to run it", Mr. Mills said. Taken together, these changes are expected to reduce the WCB's unfunded unfunded liability by just over $18 billion billion by 2014 to $12.9 billion. If the WCB keeps going the way it has been, its unfunded liability would have been $31 billion by. 2014. The system was in danger of collapsing. For the long term, the government WATCH YOUR SAVINGS GROW AT NATIONAL TRUST OPEN A NEW U.S. ACCOUNT AND WE WILL ADD $10.00 U.S. DOLLARS TOWARDS YOUR NEXT YEAR'S HOLIDAY But Hurry, Offer only lasts until May 10,1994 (Minimum Five Hundred Dollar Deposit. Bonus must remain on deposit minimum 90 days.) © Hero's the scenario. The American Federal Reserve has ( „ „ t ..-- a total of 1 We've increased our rates by two per cent or more. Some our rates twice as much as necessary. As a result, I think this thing has been overdone. ' ' ' ' - * . *n prevail and rates will slip lower later this year. If you believo this theory you can make a lot of money if you act ' à i ' # » v. < ■■ « '. •. i v. v' ' J- #•••.'# First, the non believers Canadians are known as cautious . CIC and term deposit can earn a better rate of return now than you could a few months ago. To put it in perspective though, one year ago the five year QIC rate was 7%. Now, it's 7 1/4%. So, everybody who complained about low rates last year is slightly better off, but not much. Another was at 6%. At 6 3/4% it's 3/4% higher. But the GIG rates are only 1/4% higher than a year ago. Is it possible that the bankers are telling us^that they also think the recent rate increases are being If you believe rates are going to fall you might want to lock your monitor rates for a while though, to see if we get another nudge upward before the turmoil is over. Those who really want guaranteed type investments have another opportunity to earn even more. Mortgage rates have also risen. Many institutions lend homebuyers mortgage monies that are ordinary investors. There's no risk, they generally pay a monthly income and they yield 7 3/4% or so. You have the same or better security than a term deposit with a higher yield. If interest rates do fall you can actually make a profit as this type of investment generally rises in price when rates fall. ' Where the big money should really be made though is with 'estments that combine what has just happened with what is inevitably going to happen. the American economy is growing at such a clip that it's going to create inflation. If the economy grows at only a reasonable pace it means higher profits for corporations. If it grows at a rapid pace it will mean sharply higher profits. Now, these interest rate increases ■ "" slow the economic growth somewhat. However, once the . That means rates will fall. *»7 .. I, . ■ _ Wâ Can : CnniKlflâ:' till thooo farte t<viûthûr f#v mal* a a bottGf than ,., L W „ * - When rates rose, stock and mutual fund prices fell. But, the companies didn't cut their dividends. In fact, we can buy the same j* • i i # i - . ^ • * : . _ to Ito | are buying vmii iiiuiiwivjiHiiii^iiiaipsjo on tarm deposits and GICs. Heres another strategy. Some companies issue convertible preferred shares. They guarantee a set rate of return. However, they are also convertible into the company's common shares. Because aL.l f_ |L 'j ai _ i « * . ■ .j , . yiled cheaper today. However, when the company Increases it's common share dividends the preferreds will rise as well as Investors know you can convert them and enjoy the higher common share dividends. It's kind of getting your cake and eating it too. The problem is in deciding which side of the fence you're on. Once you make up your mind you can profit.