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4--Orono Weekly Times. Wednesday, May 5th, 1087 Queen's Park Report DOUG MOI I ATT. MPI' DURHAM EAST I Lyall wants to part of action makes bid for executive position THE PRICE IS NOT RIGHT Skyrocketing food prices have slowed their;, ascent recently, and we're allfeeling a little less resentful! and suspicious at checkout counters. counters. Unfortunately, the 15 per Cent annual inflation rate in food has numbed us. We tolerate high food prices because we have become used to them. We should not become too complacent. There is strong evidence that these prices are artificially high. Some say that all that money we're paying is lining* the pockets of farmers. Others, Others, more charitably, rephrase rephrase the argument, saying that high food prices are the only way to assure farmers a decent living. Neither version of the theory is very good at all. The fact is that well over 80 per cent of the food industry is made up of middlemen, the go be tweens the farmer and the food store. These are the processors, shippers, packagers packagers and wholesalers whom the consumer never sees, but who play an alarmingly significant role in the setting of food prices. Worse, not only are they growing in number, but their power is also becoming more and more concentrated as the giant food chains control more and more of their activities. Dominion Stores is a case in point. Dominion, by far the largest food chain in Canada, is controlled by Argus Corporation. Corporation. Argus also controls General Bakeries, Canada's second largest bakery ; Mas- sey-Ferguson, Canada's largest largest manufacturer of agricul- "The price is right' . * t lirai equipment; Domtar, Canada's largest manufacturer manufacturer of packaging; and Standard Broadcasting, which which owns two of Canada's largest audience radio stations. stations. One conglomerate, therefore, therefore, controls the company making machinery cultivating cultivating and harvesting much of the food we eat (Massey-Fer- guson ) ; the company cooking it (General Bakeries); the company .packaging it (Dom-. tar) ; the company advertising advertising it (Standard Broadcasting); Broadcasting); and the 393 stores selling it (Dominion). .Argus is a classic example of what economists call "vertical integration" a corporate corporate structure which controls controls a product from its raw material stage to the final 'retail stage. And although this .system might be incredibly efficient form the Argus point of view, it is .incredibly expensive from the consumer's point of view because each rung in the vertical integration ladder sells to the next rung, with Argus picking up a profit at every step. Donald C. MacDonald, the NDP food and agriculture critic has documented the same phenomenon in the Loblaws - Weston empire. He summed up: "Within the empire, the Weston-owned manufacturer and processor sell food to the Weston-owned wholesaler who, in turn, sells it to the Weston-owned retail store, with the company picking up the profits at every Step along the way. With such a set up, is it any wonder that Not for the consumer. Reliable and carefully researched researched studies have shown that concentration - vertical integration integration - is putting a 4 per cent surcharge on food. In Ontario that represented something like $188 million dollars last year. To you it represents four dollars out of every $100 you spend on food. One of these studies was the Malien Report, submitted to the now defunct Food Prices Review Board. Mallen's study study concluded that Canada's consumers were being overcharged overcharged by 4 per cent because of the economic concentration and excess capacity of this country's supermarket giants, giants, which control 70 per cent of retail food sales. Beryl Plumtre, the chairman chairman of the Board, dismissed the Malien Report as "Undocumented" "Undocumented" and wouldn't have anything to do with it. Interestingly, a similar study, done in the U.S. by the Federal Trade Commission in 1972, concluded that the country's food retailing giants giants were pushing prices up by $2.6 billion out of $65 billion sales - exactly 4 per cent! In the face of this kind of evidence, the time has come for ministers of consumer and coporate affairs, both federally federally and provincially, to stop prating about "free enterprise" enterprise" and recognize that in the cozy relationships of the hundreds of companies in the conglomerate empires, there is less and less competition. Admittedly, economic concentration concentration in the food industry industry is only one villain in our excessive food prices, but it is a $188 million villain. That money should be passed back to the farmer or the consumer.tIt consumer. t It should not go to the already immensely profitable food conglomerates. 'And government should ensure ensure that it doesn't. councillor Ken l.yall. a member of the Ganaraska Conservation Authority Authority appealed to the general meeting on Thursday to appoint one of the Regional councillors to the executive board of the Authority, In speaking to the meeting Counc. Lyall said Regional Councillors had been appointed appointed to the board by the Region for one purpose . . . the concern of cost. He stated that councillors were more concerned over costs than most others and taxes were always in their mind. Councillors, Councillors, he said, must be close to the job, "but we find ourselves ourselves too far from the action". He pointed out that the executive did all the business and "we, councillors must be where the action is". "How can I report back to the Region", he said, "if I don't know what is going on". It was pointed out at the meeting by Mr. Èd Haynes of Cobourg that the Authority had held a meeting near the end of 1975 when all council members were invited to discuss the then proposed 1976 budget. Prior to this àll- members of the authority have the opportunity to participate participate in the make-up of the budget before it is submitted for approvals. The. executive must operate within the financial restraints of .the budget, he said. Mr. McClure, Resources Manager, also pointed out that the Ganaraska did operate operate in a similar fashion as did most other Authorities. He did point out that the Ganaraska Ganaraska held more general meetings than most others/ Mr. Roy Foster also pointed out that all members did have a say in the workings of the Authority through the Advisory Advisory Committee who did the initial groundwork for most, projects. The meeting gave support to a resolution by Ken Lyall and Kirk Entwisle that the executive consider the appointment appointment of one regional Durham member to the executive and report to the Don't Leave It to Chance Be sure your home is truly protected by a good policy , Call us now Mi Hson Insurance Agency Office: Corner of Church, and Cobbledick Street 983-5632 next general meeting. Chairman Roy Forrester stated he could not support such action unless all council, members were given the same consideration. Ha m i Items Insurance Service Your Friendly Agency All Personal and Commercial Insurance Sadie Hamilton Sue Sawyer Jim Hare F or dependable service 983-5 115 ( C tirG Ç Dry Wall Taping-Spray Ceilings Plaster Repair Painting Wally Lucyk 983-5518 ORONO G Seqd hve'n flow€ls Sending'flowers on Mother's Day is a loving tradition that deserves special care. 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