THE B.C.

LUMBER WORKER

__ Mr. Isley is a great showman. But, he seems to have overdone it recently when he led the public
recent announcement about reductions of 4c per pound in the price of coffee,
quart in the price of milk and from 7c to 10c per dozen in the cost of oranges.

one of disappointment. This announcement of “a large cut in the cost of living” was not up to

cynical. Why?

Finance Minister Isley announced that these reductions would be paid for through subsidies, which would amount to
about 40 million dollars per year. He went on to say a great deal about the importance of preventing inflation,
down the cost of living, maintaining our present price structure, etc., etc. But
of Canada into his confidence. He did not see fit to explain to them exactly what the i 2
Canada and how it was to be paid. He did not see fit to explain just why the subsidies were applied only to tea, coffee, milk

and oranges. Nor, in the opinion of the writer, has he ever properly explained to the people of Canada just what he means

by the dangers of inflation.

In contrast to the pompous and

ambiguous moralizing of Mr. Isley,
the people of Canada evinced a very
realistic approach. The most com-
mon reaotion seemed to be, “Where
does the 40 million dollars come
from for the subsidies, if not from
my own pocket?”

40 MILLION DOLLARS DOES
NOT COME FROM THIN AIR.

It is nonsense, of course, to sup-
pose that this 40 million dollars
will appear out of nowhere in some
mysterious fashion. Obviously, it
must be paid somehow and since
Mr, Iisley did not suggest any
Particular source from which this
money would come it is clear that
the money will come from us,
whether it is paid in this year's
taxes or next year’s,

SUBSIDY BENEFITS
SOME CONSUMERS,
Nevertheless, although the tax-
payers of Canada as a whole are
paying 40 million dollars to re-
ceive back 40 million dollars, it is
wrong to assumé that each and
every taxpayer will pay $1.00 in
taxes for a $1.00 return in the form
of reduced prices. Fundamentally
the subsidy involves a redistribu-
tion of consumer goods, With this
we have no quarrel. For example,
large families at certaian low in-
come levels will undoubtedly bene-
fit from this subsidy, providing
their income is not too low so as
to make these commodities, partic-
uarly mill and oranges, unavail-
able at aany price. Other families
Whose income just enables them to
buy these necessities may saye
about $20.00 per year. In return for
this saving of $20 .per year, it
is conceivable that in his next bud-
get Mr. Isley may require the head
of such a household to pay, say,
an additional $5.00 in taxes for this
subsidy. Thus the head of this
household may be expected to bene-
fit, as will, of course, his whole
family. On the other hand, the
single worker, who usually boards,
will not benefit to any appreciable
extent. Thus the single person on

Mr. Ilsley did

10c per pound in °
Certainly the reaction of the public was largely

subsidy meant to the people of

WHAT THE SUBSIDIES MEAN?

trol inflation.

every reason to
thorough-going system of
such as is now in
Englana, would achieve
results as a subsidy

additional burden on th

to expect so much from
the price of tea, 2c per

expectations. The public was

of keeping
not see fit to take the people

a modest income may have to pay
an additional $8.00 or $9.00 in taxes
to receive back perhaps only $2.00
or $3.00 in lowered prices. Similarly
a wealthy person will have to pay
still more in taxes for an equally

. by b
BERT MARCUSE

Director -
Pacifie Coast Labor
Bureau

small return. The idea to have the
wealthier people paying an addi-
tional tax to benefit the low in-
come large families is fair enough.
However, in the case of a single
worker at a moderate income there
is some just cause for complaint.
Had Mr, Isley seen fit to announce
that this 40 million dollars would
come through additional taxation of
large incomes,-or non-essential lux-
ury goods, or some other source
which could have been taxed, with-
out fear of inflation, he would un-
doubtedly have removed much
ground for cynicism on the part of
the every day people of Canada,

EFFECT ON THE COST
OF LIVING BONUS

Finance Minister Iisley stated
that these subsidies were designed
to help prevent the necessity of pay-
ing an additional cost of living bo-
nus because of the rise in the cost
of living index, His claim was that
a further cost of living bonus might
have an inflationary effect. If
business had to pay this cost of
living bonus they might be forced
to raise costs. Likewise the
creased purchasing power of those
receiving cost of living bonuses
might also cause inflation. Ilsley
also said that in any case it was
fairer to reduce the cost of living
for everyone than pay a bonus to
meet the increased cost of living
to a certain section of the popula-

in-

tion only, since there are many
classes of workers, such as agri-
cultural and domestic workers,
fishermen, ete, who are exempt
from the provisions ‘of the cost of
living bonus order.

At the present time it does seem
probable that these subsidies will
tend to keep the cost of living at
its present level for several more
months, thus having the effect of
postponing the need for the grant-
ing of a further cost of living bonus
to those eligible, However, unless
the control of pricés can be made
more far-reaching these subsidies
would only be in the nature of a
temporary remedy and will in no
sense provide a cure, The cause of
inflation is far too widespread to
be tackled successfully through
control of only four out of dozens
of articles which at present are
either not at all or only partially
controlled as to price an distribu-
tion,

WHAT ABOUT BUTTER,
EGGS, ETO.?
Many people seem to feel that

rather than subsidizing tea and
coffee which are already rationed
and only available in small quanti-
ties, that necessities such as butter,
eggs and other foodstuffs might
more profitably have been rationed.
There is undoubtedly a great deal
of justification for this demand.
A year ago the price of eggs was
approimately 50% lower than it is
today, The government might prof-
itably undertake a study of this
situation with a view to controlling
the skyrocketing price of this ne-
cessity. The butter situation, too,
might well be checked for the dual
purposg of controlling both price
and supplies as there seems to be
little reason for either shortage or
increase of price on this com-
modity. Indeed, the government
should undertake a survey of the
entitre situation with respect to
dairy, poultry and meat foodstuffs.
Certainly the fault does not seem
to be with the farmer or primary
producer, but rather with the condi-

the primary producer and reaches
the consumer.

CANADA PACKERS FINED
$7,000 BY PRICE BOAD.
This is news to you, is it? It
would not be surprising if you
hadn't heard of this $7,000 fine
imposed on this powerful company
on Dee. £5 on charges of revolving
around the selling of low-grade
beef at prices set by the Wartime
Prices and Trade Board for high-
grade beef. The reason you may
not have heard of it is because
most newspapers gave it as little
publicity as possible. When an em-

union it gets screaming headlines
in our daily newspapers. When Can-
ada Packers defrauds the Canadian
people of tens of thousands of dol-
lars we have to hunt for the item
with a magnifying glass. In the
words of the judge who imposed
the fine, “How can the govern-
ment ensure an equitable distribu-
tion of food if the consumer, rich
or poor, has to pay the same price
of any quality of meat?” Surely
this is proof that the government
should turn its attention to the
investigation of the manipulations
which transpire from the time
foodstuffs leave the primary pro-
ducer until they reach us, the con-
sumers,

WHY WASN’T BEEF
INCLUDED?

It is now known that up to with-
in a few hours of Isley's broadcast
that it was intended to include
beef in those foods that were to
be reduced in price. At the last
minute it was decided otherwise.
It appears that this decision was
made-because of a fear that ration-
ing of beef*would then be neces-
sary. This indicates that the gov-

ployer blames a labor dispute on al

people. The people of ©
face the facts, Mr. Hsley. ”

Carmichael Pa
Workers Credit —

TORONTO, Ont—Writin
Industrial Canada, Harry J. Da
michael, co-ordinator of x
tion, Department of Muniti
and Supply, and one of Cai
leading industrialists, makes
following remark; ee:

“ think Canadian Iabor is en ve
titled to a great tribute from

all of us. We see only our ow
problems. When you figure
regulations, the freezing of ws
the freezing in their jobs
many other things that they
been forced to accept—we
about the freezing of
and about income taxes—I fi
ly believe that the sacrifices
our workers have been asked to
make are far beyond those that
we havo been asked to make
leading manufacturers,

“This puts a desperate respon
sibility up to us to see that in all
our relationships we enter
a new high sphere of
get together and get to kno
them.” z i

Red Band Shingle
Award Will Help

(Continued from Page One)

pointed out by union officials,
wherein it provides that emplo
are forced to bargain collectit
with representatives of the m
ity of his employees, but does,
oblige him to arrive at an

ment as a result of such bi
ing. a8
It is a foregone conclusion tht
the Act must be and will be ¢

ernment is unwilling to face the
issue squarely in the face, because
surely, if we are to prevent in-
flation, which after all is mainly
scarce goods, thus raising the price
to terrific heights, then the sooner

tions arising to affect prices and

supplies between the time it leaves

EU SEN ANN SN NH sD

rationing is instituted in Canada,
the sooner we shall be able to con-

a peayeaye

ed in the forthcoming session 0
\the Provincial Legislature to

it compulsory for employers
‘meet and bargain collectively
the legal union designated by #
employees and to negotiate
conclude an agreement with |
union so designated.

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