Tax dollar fought over
but war costs ignored

The federal-provincial conference met last week in

Ottawa. The issue as between Ottawa and the provinces
Was clearly revealed on the first day.

The provinces want, and in-|

fed need more money. The
Most far reaching demands in

ment and the provinces, and

we submitted to the federal-||

a Tespect came from Can-| provincial conference in 1955
a “&S richest province — QOn-|our basic opinions on this mat-

tatio. Premier Frost called for ,

is Percent cut of all income
cet Corporation taxe revenues
lected in the provinces. (At
Plesent, the provinces get 13
nent of income tax and nine
“teent of corporation taxes.)
Ste5 Would bring. another
= 940,000 into the Ontario
in Sury; and if this tax shar-
a agreement extended on the
. : basis to all provinces, it
eae cost Ottawa an addit-
Bs $1.68 billion. Frost’s
ic Vy demands reflect the bas-
Tee ition of the Ontario
“ta to ; equalization pay-
i Which are designed to
3 8 the less well off provin-
a to the level of the
tee hiest. He is obviously en-
‘ €d in a big political pres-
ure play,
me Minister Diefenbaker
. Cipated all the provincial
Mands by a carefully word-
fee in which he made it
: t that the Tories in Otta-
Consider themselves unable
— any greatly increased
whi ands on the revenues
Ich they now control.
a the conference will go on
Penne: There is no Com-
tina. Provincial premier to
teal up and make clear the
Undelying issue involved.
os set forth in the letter
th the national executive of
a °mmunist Party to Prime
\ster Diefenbaker, and the
1, BCial premiers .on —July
&
fgpat'Y Serious examination of
Upon relationships; bearing
distriy® problems of taxation,
ang ution of public revenues
Varios Sl obligations among
in |S levels of government
5 ay must begin with
tional ul review of overall na-
- &tig Policy and its main dir-
®ythin This is so because ev-
Quej 8, such as: revenue-pro-
tha industry, employment,
tip, 2 Tevelopment of educa-
ing’ SClence and culture, hous-
ty ‘tas all matters pertaining
Peonie living standards of the
term: — are, in the main, de-
ang ed by national policy
cys aims.
the ic Placed our policy for
Qa  dustrializaztion of Can-
Mig ore the Gordon Com-
thay 1, confident as we are
Snly the independent
of Canadian manufac-
UMie “24 provide the econ-
Ig eee for prosperity. In
Wells; Placed before the
ogra Irois Commission our
NStireen for equitable relations
Nthe federal govern-

|

ter. The growing fiscal crisis
in federal-provincial-municipal
relations was forecast in our
past submissions and we sub-
mit that evenis have borne
witness to the validity of our
proposals.

“For many years we have
pointed out that, at present,
our national policy betrays our
national interests by subordin-
ating our country to the United
States, whose economic, mil-
itary and political aims, rath-
er than Canada’s interests, be-
come the determining factor in
our country’s development and
fiscal policies. One of the best
illustrations of this is the en-
ormous and wasteful expendi-
tures for armaments since the
end of the Second World War.
In the past ten years no less
than $15.6 billions has been
spent for military purposes. If
we go back to 1946 and add
up the figures until the end
of last year, the official amount
is -18 billion while Senator
W. D. Euler has recently plac-
ed the figure as high as $25
billion in 15 years..This is a
colossal -sum.: Furthermore,
far from bringing us national
security it has brought us in-
creasing insecurity. -_ - ---. -

“In addition to the deadly

danger we are faced with an
account of this reckless policy
it has brought inflationary
pressures and economic distor-
tions which interfere with :nor-
mal productive activity. As a
result of this we see the dev-
elopment of avoidable weak-
nessess in the national econ-
omy and an alarming growth
of permanent unemployment,
even in the midst of sporadic
economic expansion.
“The facts stated above are
typical of many which mirror
the undeniable necessity for
changes in national policy. To
deal with the gathering crisis
in a basic way your conference
should initiate a serious re-
examination of Canada’s pos-
ition and, foreign policy in par-
ticular, in the light of the dra-
matic changes now taking
place in world relationships.
The very essence of these
changes is reflected precisely
in the fact that, what is, call-
ed “the western alliance,” is
crumbling before the combin-
ed pressures of the desire for
an alternative to nuclear war
and the growing realizaztion
that there is a practical alter-
native in total world disarm-
ament, and peaceful coexist-
ence.”

—Minneapolis Tribune,
“I asked the price of the
chop — not the shop!”

“Homes, nof fallout
shelters’ -- YCL

TORONTO — _ Protesting
against the tory policy of
heightening cold war tensions
some twenty-five young Com-
|munists demonstrated on July
| 23 at the new fallout shelter at
} Queen’s Park.

The demonstration marched
for little over an hour in front
of the shelter carrying a coffin
and placards bearing such: slo-
gans as ‘Homes, Not Fallout
Shelters’, “Disarmament
Now’.

It was obvious the pickets
enjoyed the support of the
majority of bystanders and
passers-by, as one commented,
“I’m behind you one hundred
percent. It’s time we spoke out
against such preparations for
war.”

Why such a demonstration
against something which is
already accepted as useless, if
not slightly ludicrous?

“Because,” said a -spokes-
man for the YCL, ‘‘We don’t
look upon this as simply an-
other whim of General
Pearkes’ Dept. of Defence.
This is obviously the first
step in a campaign to create a
war hysteria in this country.
The next step will be to poison
the minds of our young people
and children. There is already
talk of introducing air-raid
drills, Following that, we will
be treated to scenes of chil-
dren huddling under school
desks and wearing identifica-
tion tags that will withstand
the heat of a nuclear blast.

“The YCL is violently op-
posed to such machinations of
any government,” he contin-
ued, “and we shall continue to
oppose them with every means
at our disposal.”

EXPORT MARKETS

Canada is slowly but surely
being squeezed out. of the
world market, the steady de-
cline in wheat exports being
but one example. The export
of B.C. and Canadian farm
produce is being restricted by
several factors which include
the following:

(a) The Canadian govern-
ment, under U.S. pressure, re-
fuses to trade to any extent
with socialist countries.

(b) The Canadian govern-
ment, under U.S. pressure, re-
fuses to accept the currency
of other countries in payment
for Canadian farm produce
and will accept only U.S. or
Canadian funds. It also refuses
to make barter deals.

(c) U.S. dumping of its farm
surpluses at low prices on
the world market.

U:S. pressures on Canadian
export policies are not diffi-
cult to understand. It wants
to keep the Canadian market
for itself and doesn’t want
Canada importing products
from other countries (through
barter deals or accepting their
currencies) that might compete
with U.S. exports to Canada.
The fact that the U.S. itself
accepts the currencies of oth-
er countries in exporting its
agricultural products shows
how servile the Diefenbaker
government is and how little

of Canadian farmers. In this
respect the Bennett Social
Credit government is no dif-
ferent. \

The fight for new agricul-
tural policies—trade with all
countries, barter deals, long-
term credits, accepting foreign
currencies, etc.—is bound up
with the whole struggle for
peace, neutrality, disarma-
ment, Canadian independence
from U.S. domination and an
end to the cold war.

FARM SURPLUSES

In most cases the so-called
surpluses of farm products do
not arise from there being
more than Canadians can use
or eat, it is a case of there be-
ing more than Canadians can
afford to buy. The obvious sol-
ution is to create conditions
that will enable Canadians to
buy more, and to find means
(such as long term. credits,
etc.) to enable other hungry
peaples in the world to secure
our farm produce. But the
Diefenbaker government with-
out any protests from the B.C.

Premier W. A. C. Bennett
was right when he asked Fed-
eral assistance at the Domin-
ion-Provincial conference ‘re-
cently-for establishmént of @
health and médical ‘plan, in

‘calling for recognition-of and

trade with China and for a big-
ger return for rental of the
B.C. tax field, said Nigel Mor-
gan, 38.C. Communist - Party
leader.

‘But he missed the boat com-

|pletely when he ignored the

fact. (admitted by Finance
Minister Fleming) that the to<
tal cost of all provincial de-
mands amount to $2 billion —
precisely the sum the Federal
budget pours down the drain
each year for war prepara-
tions. That is the nub of the
question,”’ said Morgan, ad-
ding:

“Every cent of the $250 mil-
lion Otiawa collects in B.C,
goes for so-called “defence” —
for planes that don’t fly, and
“defence” that it is now admit-<
ted, is no defence. :

"Solution of the acute prob

school taxes, aid in providing
for the alarming growth in
permanently unemployed in
this province, and defence of
the living and health standards
of the people cannot be achievy-
ed so long as Canada follows

war course.

"What is needed above all
else is pressure from B.C.’s
representative, and the other
fen provincial premiers, for
new national policies of neu-

ev’ trality, Canadian independence ~
it is concerned with the needs ;

and peace. Only if this is done
will a satisfactory redisiribu-

found.”

Social Credit government

thinks only in terms of cutting
production to meet a-shrinking
market. That is why it replac«
ed the system of floor prices
with deficiency payments, and
that is why hog production in
Canada went down by 20 per
cent in the past year, with’ a

income.

ste soe Ruse

0 g,%ae fe Me

weenie, «Se degeters
et. . oe

August 5, 1960—PACIFIC TRIBUNE—Page 7

lem of rising municipal and _

the present U.S. dedicated cold

tion of government revenues —
and the much-needed relief be

corresponding decline in farm