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Citizen -- January 1 1992 a EDITORIAL > - Tough. choices In a move unprecedented in Ontario politics, Premier Bob Rae has booked air-time January 21 on province-wide television to deliver an economic message directly to the people. Precisely what Mr. Rae plans to say in his half-hour address is not known. But it will be on the economy and it's a safe bet that the message will not be one filled with good cheer, In fact, some analysts are predicting the Premier will tell us that the economic situation is so drastic in Ontario right' now that municipalities, hospitals, school boards, colleges and universities will be facing severe cut-backs in transfer payments this spring. There enarios being bandied about. The first is thar Fansfer payments will be limited to two per cent this year and next, zero in the third year. The second sce-, nario has-no i for two years and a two per cent hike in the third year. . With school ialS, municipdJities locked into contracts that call for wage increases of-stdcast 4.5 per cent, it's not hard to figure out what a zero or two per cent increase in transfer payments would mean: higher taxes or a reduction in services. Or an attempt to re-open those con- tracts. The fact that Rae has asked for province-wide air time to talk directly to the people in these time of economic crisis is interesting (shades of FDR and his radio chats during the Depression) Mr. Rae after all has the Legislature any ume he wants 10 make a statement. He could call an emergency session. But he apparently wants to put some tough questions to HEY HARRY, WHERE'D YA PARK THE TRUCK? ten HARRY 7. LE J = pr v . LETTERS TO THE EDITOR Expected more from small town folk To the Editor: On December 14, 1 160k my daughter and her girlfriend to the Scugog Shores Museum for an was a tidy sum of money) Only recently, we moved bere and | honestly expected a bit more from small town folk. and supervision was un-impressive. Please print my letter in the hopes for a change for next year. | will take the girls again, hoping for the people directly: do we want 10 see his government run Shem of cris, WR ug cit the girls Sins home improved Yiaking i ; ; gladly paid the ee with, had me cleaning mess . McLean an even higher deficit than predicted, or are we prepared 10 | Chol ine oF he vear, it for days. Supplies wore unnouble RR S, Port Perry. live with small or no increases for schools, hospitals, roads, sewers, police departments etc. which in tum could mean a reduction in levels of service. In the coming fiscal year? Ontario's deficit was projected at just under $9 billion. Shortfalls in income and sales tax revenues now suggest the province will have $5 billion less than anticipated. In other words, to carry on as usual, the deficit would jump from $9 billion to $14 billion. That is monumentally dangerous. It would mortgage future ge ions and send i diate shock waves through the business and financial community at home and overseas. Clearly, the province and all agencies and institutions that get funds from the province are in tough straights right now, very tough. Tax increases in this economic climate, on incomes, goods, corporate eamings or property are clearly out of the question. That means cut-backs in service levels or at best a freeze at current levels, We don't think thee is any choice. , Though the specifics of what Mr. Rae will say next Tuesday night are not known, it's a safe bet that he will not follow the lead of Alberta premier Don Getty who said he wants to see an end to publicly funded official bilingualism and multi-culturalism. AN Too bad, because getting governments at all levels out of those things would save this country hundreds of millions. However, like a lot of Ontarians, we'll be watching Mr. '| Rae January 21 to see just what he does say. \° , MP encouraged by economic signs To the Editor: Though it is taking longer to recover from the recession than mos of us hoped or expected, there are some quite encouraging cconomic signs as we proceed into the new year, Inflation is down significantly and still declining, the bank rate is at a five year low, while a ris- ing stock market shows that investors are growing ever more optimistic about the future. The past year was not easy for many Canadians, especially those directly affected by job losses and plant closings. And a lot of blame was directed unfairly at the federal government. The fact is that, like most other countries, we are caught in a global reces- sion which no government any- where has been able to control and which proved once again that the boom times such as we expe- rienced in the late 1980's cannot £0 on forever. Actually, despite the reces- sion, Canadians have not done badly at all since the present fed- eral government took office in ment rate was 10.3 per cent, 1.3 points below September 1984 and 2.5 points less than at the height of the recession in 1981- 82. While the unemployment rate increased last year, so did the number of people with jobs. H in Ontario, 32,000 more peohle are now ployed than Current five year mortgage rales are 4.35 percentage points lower than in Sepiomber, 1984, which works out to a saving of $1800 per year on a $50,000 mortgage. According to a study by the independent Conference Board of Canada, over the same six years the real personal dis- ble income...after taxes and last February. Over the past six years, new employment has been created in this province at an average rate of 5,700 jobs per month. It's worth remembering in Canada when approximately 94 per cent of the workforce is gainfully employed, we're con- sidered to have full employment. Right now we're only four points below that goal. ! The inflation rate, which hits our wallets through the increased prices we pay, is lower than in most western countries. It is cur- rently about 4.4 per cent and dropping...considerably better than the 12.9 per cent inflation many Canadians remember back in mid-1981, In 1992, we expect inflation will stay below three inflation...of an average Ontario resident has gone up $1,848. Overall, this government has a very good economic record. Eight years ago Canada's eco- nomic performance was the worst in the industrialized world. Since 1984, we've either led the world or placed second in eco- nomic growth. Over the past five years, we've had the highest job cre- ation rate of all the countries in the world. Unfortunately, the lingering recession that began last year has over-shadowed this ecbnomic recovery for Canadians. I'm con- fident we'll all be able to enjoy its benefits in the months ahead. Ross Stevenson, \ 1984. The December unemploy- per cent. MP Durham riding. 36 Water Street Published by Proud Port Perry, Ont. L9L1)2 ,, Scugog Citizen Publishing Ltd. Buia Phone: 985-NEWS ~~ ° mil Jobn B McClelland Cathy Ollie "3h ronrahlp Fibx: 985-1410 La John B. McClelland . The Scugog Citizen, an independently owned and Ad Manager: Valerie Ellis y Member of ria ro CY bi Doug Olltle tone Russell | CF) | emewrsd ¢ around Scugog Township. Cirmalation Mire Doug Oe Cots C-- A Proud Volce For Scugog + Printed on 10% recycled Aewsprint. Reception ™ Newtpapers Asacition.