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y

“BILLS”

the size of the subsidy during the first five
years of the mortgage. By the end of the fifth
year, the mortgage rate would revert to the
15'% normal level which was in effect at the
time the mortgage loan was made. If mort-
gage rates drop by then, the homebuyer may
refinance his mortgage at rates below 152%.

The proposed legislation also permits the
govenment to recapture some of the subsidy
to the homebuyer. At the time the house is
sold, the homebuyer must pay to the govern-
ment 50% to 60% of the net increase in the
equity in the home. In other words, as the
value of the house appreciates, part of that
increase in value will be used to pay back the
subsidy that permitted the homebuyer to
qualify for a loan in the first place.

If the bill which is now being considered
by the U.S. Senate is passed, it would
generate a substantial increase in the
demand for Canadian lumber. During 1982
the mortgage subsidy program would stimu-
late an additional 250,000 to 300,000
housing units or 25% more than the annual
rate of housing starts over the last 6 months.
And 85% of those additional units would be
detached single-family houses. Because
single units consume three times as much
wood as condominums and apartments, the
subsidized units would generate a signifi-
cant increase in the demand for lumber.

It is too early to tell how successful the
mortgage subsidy legislation will be. It is
important to emphasize, however, that the
housing lobby has taken a strong stand on
securing legislation which will assist the
industry. For the past year the housing
group stood on the sidelines hoping that
President Reagan’s economic program
would succeed in bringing down interest
rates. At the moment, however, the housing
lobby has become completely disillusioned
with the President’s economic policies. They
have now budgeted $6.3 million for the 1982
Congressional elections to support candi-
dates whose positions are favorable to
housing.

Although funding of that magnitude still
does not guarantee that the mortgage
subsidy legislation will be passed, it cer-
tainly puts tremendous pressure on the
Reagan administration. Two weeks ago the
Senate bill already had 30 co-sponsors, or
roughly one-third of the Senate. If the bill is
passed, there is a good chance that U.S.
housing starts during 1982 could reach 1.5
million units. That level of starts cannot be
considered a boom year, but it will certainly
be an adequate one for the Canadian saw-
mill industry. It will help to put back to work
many IWA members who are currently on
layoff in western Canada.

CFL SHOWS ITS
TRUE COLOURS

The founding convention of the break-
away Canadian Federation of Labour was
held in Ottawa March 31st and attended by
some 350 delegates mostly appointed or
hand picked by their International unions.

The CFL, comprised of 10 of the 13 build-
ing trades unions in Canada, broke away
from the Canadian Labour Congress last
year over a disagreement with the CLC
constitution.

The International Building Trades had
demanded the CLC change its constitution
to allow block voting and also give the
International or National officers the
authority to submit resolutions and choose
delegates attending CLC conventions.

Two of the three largest Building Trades
unions, the 92,000-member Brotherhood of
Carpenters and the 55,000-member Labour-
ers International, boycotted the convention.

Some of the delegates that did attend from
the ten unions were critical of what took
place at the convention. The fact that Prime
Minister Pierre Trudeau was the keynote
speaker didn’t sit well with many there.

As the first prime minister to address a
labour convention in twenty years Trudeau
wasted little time in suggesting that labour,
management and government get together
and share the responsibility of governing.

His idea of sharing was for labour to
volunteer to accept self-imposed wage con-
trols while the government would work at
reducing inflation. He refrained from say-
ing how or when this would be done.

Labour experts view the formation of the
CFL as a made-in-Washington attempt to
split the Canadian labour movement and
weaken the CLC. However, they are con-
vinced that as time goes on more of the
Building Trades unions now affiliated to the
CFL will quit that organization and return
to the CLC.

Two unions, the Ironworkers and the
Labours, are on record as favouring re-
affiliation to the CLC.

NEW SOCRED
BUDGET BAD

By DAVID D. STUPICH, NDP-MLA

VICTORIA — The budget presentation
makes clear that the tax gouging of the past
two years will remain in effect, with disas-
trous consequences for hard pressed Social
Credit tax victims.

There were $625 Million of increases in
last year’s budget. They have added $300-
$500 Million in direct fees and charges in the
past year. Hundreds of millions more have
been taken by crown corporations such as
ICBC, B.C. Hydro and the Urban Transit
Authority.

The effects on a recession weakened
economy are completely predictable — more
unemployment and lower output. The effect
on the tax victims, individual families has
been devastating. Not only does Mr. Curtis
fail to take action to help, he refuses to
acknowledge the plight of these victims.

Rural property owners are now the latest
tax victims of Social Credit. They face a 20
percent increase in their property tax rate
today.

Curtis boasts about the minor level of tax
increases for this year. Having driven
people to the wall he proposes simply to
leave them there. This is hardly fair and
hardly something to boast about.

The finance minister has today presented
a fundamentally dishonest budget, design-
ed to mislead British Columbians about the
state of the province’s finances and to hidea
budget deficit.

The attempt to mislead is reflected in
deliberately padding of resource revenue.
Incredibly, forest revenues are forecast to
jump 23.1 percent in the depths of a reces-
sion. Mining revenues show an increase in
Mr. Curtis’ budget despite layoffs and
shutdowns throughout the province.

One has to assume that income and sales
tax revenues have been further padded to
reflect these very questionable assump-

tions.

The attempt to hide a deficit is admittedly
transparent. Special funds are to be gutted
to fund this year’s expenditure program. I
shall have more to say on this later, but my
colleagues and I are prepared, for example,
to challenge the decision to exhaust the
forest and range resources fund this year.
The decision is short-sighted, endangering
the balance of an already inadequate five

ear program.

* The tonal effect of today’s effort will not be
to win the government new supporters.
Those who will believe that Mr. Curtis has
pulled off the magic act he thinks he has
would believe anything a Social Credit
minister tells them, despite recent ex-
perience.

MAY PROCLAIMED
FAMILY MONTH

The British Columba Government’s
annual proclamation of May as Family
Month is anew tradition. During the month,
the B.C. Council for the Family and its
members make a special effort to raise
awareness of the importance of shared
family life.

This year’s Family Month theme, CELE-
BRATING FAMILY TRADITIONS, recog-
nizes the multitude of cultural, ethnic and
religious traditions which influence fami-
lies in our Province. The Council emphas-
izes the common base of all these traditions:
to provide a framework for security, growth
and development.

Itis the Council’s belief that awareness of
traditional rituals for bringing people
together can bridge the generational and
cultural gaps that threaten family solidar-
ity, and stimulate the development of grow-
ing traditions that incorporate the best of
the old.

“Let our differences unite us” could be
another tradition celebrated this year by the
five-year-old British Columbia Council for
the Family. The Council, since 1977, has
linked a wide variety of community and
religious organizations which invest volun-
teer time, energy and money in encouraging
family-related activities.

For more information on Family Month
activities in your area, write to:

B.C. Council for the Family

Parliament Buildings

Victoria, B.C. V8V 1X4

B.C. Federation of Labour Secretary-
Treasurer Mike Kramer lashed out at the
provincial government for their uncons-
cionable medicare and other health pre-
mium hikes. “The government preaches
restraint out of one side of its mouth and
then announces massive fee hikes out of the
other,” charged Kramer. “Family medicare
premiums have been increased over 50
percent in eight short months.

Kramer noted that this was one more
instance of the provincial government
collecting revenue through regressive forms
of taxation. “This type of increase is just
going to affect the people who can least
afford it,” added Kramer. “It will hurt the
sick, the elderly and the working poor worst.

2/Lumber Worker/April, 1982

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