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Section Two The Canadian Statesman, Bowmanville, Wednesday, September 7,1994 11 Number of Building Permits Jumps by 64 % The value of building permits issued issued in Durham Region for the first six months of 1994 totalled $265.7 million - an increase of 64 per cent compared to the same time period in 1993. According to a report prepared for the Durham Regional Planning Committee, the increase in value is the result of increased new house production and commencement of construction of the new $39.1 million million Whitby Psychiatric Hospital. Building permits were issued for a total of 1,449 new residential units in the first half of 1994, an 80.4% increase compared to the 803 units produced in the same period last year. During the first half of the year, permits were issued for 987 single-detached units, 271 semidetached semidetached units, 185 townhouse/ quadruplex units and six apartment units. The limited production of new apartments is attributed to reduced apartment construction activity by the public (assisted housing) sector. The increase in new house production production is due to a combination of factors such as low mortgage rates, low house prices, government incentives incentives for first-time home buyers and returning consumer confidence. It is expected that prospective new home The power of U.S. investing Industrial American Fund | 115.8% 13.4% 8.9% 12.8% 15J%| For more than 20 years, Industrial American Fund has helped Canadians to participate in the world's most powerful economy. The result has been some exceptionally powerful results - conveniently and easily. What does the future hold? Based on exhaustive analysis, the fund manager is optimistic that the coming years will also be highly profitable for investors looking for long-term gains. For more information on Industrial American Fund - and other international funds managed by Mackenzie Financial Corporation, please call us today at the.number below: Mackenzie The Industrial Group of Funds HARRY CAMPBELL PFSL Investments (905) 623-5588 Important information about the offering is contained in the Fund's simplified prospectus. Investors should obtain a copy and read it carefully before investing. When purchasing mutual funds, investors should be aware that: ;• mutual fund investments are not guaranteed; • unit values and investment returns will fluctuate over time; and • past performance does not assure similar future returns. The indicated rates of return to July 31, 1994 are historical annual compounded total returns, including changes in unit value and reinvestment of all distributions; and do not take into account sales, redemption, or optional charges payable by an investor which would have reduced returns. © buyers will continue to be sensitive to these factors. However, should conditions change, such as higher mortgage rates, the rate of new housing production may be affected. The value of permits issued for non-residential construction during the first half of 1994 totalled $69 million, an increase of 22.9% over the $56.2 million worth of permits New Award for Best Teachers The Certified General Accountants' Accountants' Association of Ontario Accounting Accounting Teacher of the Year Award is a new award that the Association is sponsoring to recognize an outstanding outstanding accounting teacher who is currently currently teaching in a classroom setting, setting, and who is a member of the Ontario Business Educators' Association. Association. Bobbi Greenberg, manager of public relations says, "Business teachers strongly influence which accounting accounting route and designation students students pursue after completing high school. CGA Ontario believes that individuals individuals who qualify for the award will continue to be. valuable assets to the teaching profession, as well as serving as role models to other teachers teachers and students." Only one award will be presented in any one year. It includes a plaque and $500 towards professional development. development. In addition, $500 will be provided to the teacher's school for the advancement of its business studies studies program. Nominated individuals must demonstrate demonstrate superior abilities in fostering excellence in accounting education and contributing towards the continuous continuous improvement of student learning. The recipient is selected from nominees suggested by the Directors of Education throughout Ontario. Deadline for nominations is December December 15,1994. The Ontario Business Educators' Association represents more than 5,500 business education teachers in Ontario. It provides services to assist in OBEA's goal of achieving excellence excellence in the classroom. The Certified General Accountants' Accountants' Association of Ontario is an association association of professional accountants who meet the Association's rigorous requirements of professional competence, competence, are bound to a uniform standard standard of conduct. issued during the same period in 1993. The value of permits issued for institutional uses increased 245.6%. Agricultural permits grew 97.5% and industrial permits grew 62.1%. Permits issued for governmental governmental uses, however, dropped 54.4% and permits issued for commercial commercial uses dropped 52.9%. Commercial Commercial permit values tapered off in 1994 as the improvements to the Oshawa Centre neared completion. A total of 790,559 square feet of new non-residential floorspace was created during the first half of 1994, an increase of 50.1% over the 526,805 square feet produced during the same time period in 1993. The value of building permits issued issued in the Greater Toronto Area (GTA) which includes Durham, Halton, Metro, Peel and York, increased increased by 5.8% from $2 billion to $2.1 billion. New house production in the GTA increased 19.8%, however however the value of permits issued for non-residential construction decreased decreased 18.2%. Durham led all GTA regions in percent growth of both total total construction value and new residential residential unit production, increasing its share of GTA building activity. Locally ownecLand operated by Glen Morris by Brian Costello CANADIAN ECONOMY STRONG The Canadian economy is on wheels. That may have a veiy positive impact on two of the biggest problems we have in this country. Take a look at what's happening in the Canadian economy. While the American economy is showing signs of cooling out ours is cooking. In fact, the growth is so surprising that some economists worry that we might bring on some inflation. If that happened it might require an upward adjustment in interest rates. However, in the overall picture it should be a very positive indicator. The biggest problem we have in Canada is our federal and provincial debt and deficits. The only way we can pay them down is to increase tax revenue or slash the size of governments or a combination of both. The size of governments is being decreased regularly. But, with little impact. The only way to really put a dint into the problem is to produce some economic expansion that will create jobs. Get people off the social system and into the workplace and we win twice. One, they no longer require assistance. Two, they earn enough to pay taxes. The deficits will shrink dramatically. Well, that might be what's happening. Ottawa has announced that the Unemployment Insurance Pool is running at an ever increasing surplus. That means that people are finally getting jobs. If they don't require UIC payments it means they are now working or have run out of UIC benefits and now have to work harder to find a job to support themselves. They obviously are. In fact, economists suggest that the UIC surplus could jump to as much as seven billion dollars before year's end. There aren't many signs that would be considered more positive. You see, if people are getting jobs they are going to become taxpayers. If companies are hiring them they must have the profit base to justify the cost of expansion. That suggests that companies are also more profitable. In fact, we are seeing substantial improvements in the corporate earnings reports being issued by Canadian companies. Higher corporate earnings doesn't necessarily mean they pay more tax though. In fact, thanks to the monster recession most companies lost money and have been able to slash or eliminate taxes by carrying forward all their tax losses. However, they are gradually being used up. As a result, corporations have to choose between paying more tax or expanding their operations to produce tax deductions so they don't have to pay as much tax. Either choice is going to pay big dividends. If companies choose to stand pat and pay more tax, the deficit will fall. If they choose to expand their operations they will create jobs. Those hired will pay more tax. The deficit will fall. It's a win/win situation. If this scenario works, and it should, foreign investors should start to take a much more positive view towards Canada and Canadian investments. We have virtually no inflation. An orderly economic expansion wouldn't create enough to worry about. And, all Ottawa would have to do is cut taxes on alcohol or other taxes and the consumer price index would show there is no Canadian inflation. That would ensure that our "real yield" on investments in Canada is higher than in most other countries in the world. In fact, that is already the case. The most recent numbers show that foreign investors have been moving larger than normal sums of monies into our Treasury Bill, money market and government bond markets. It's a sign they think Canada is cheap right now. That's definitely a positive. However, the bulk of their money is going into short term government investments. They are monitoring the same signs I am. If they see an improvement they will move their money very quickly into the Canadian equity markets. Our stock markets could shoot sharply higher. We have two other problems to consider. One is our political uncertainty. That will be resolved soon. If it's positive, all the fence sitters will head for Canada. If negative there may be a reduced rush to Canada. However, I suspect a chunk of money will come anyway because this is the place to be at this time in the normal economic cycle. Canada is rich with natural resources. We have oil and gas, pulp and paper, gold, silver, aluminum and so many other natural resources that are always in demand when the world economy is cooking. Historically, the world normally feels this is the time to invest in Canada. The only drawbacks are our deficits and or political uncertainties. The deficits will now improve, the political uncertainties will be proven to be less important than they seem. Our equity markets will soon soar. Oh, there is another problem. Investors are gradually becoming more and more paranoid about investing in September and October. Remember October 1987? Well, if there are any dips this fall treat ■ them as a chance to pick up some bargains. ■ ■