FROM PAGE NINE

“RECOVERY”

began negotiations for a joint-venture steel
mill and refinery, with Japanese and Brit-
ish interests. Since then, the Socreds have
closed Railwest and abandoned the other
initiatives.

As a result, we have lost ground. Since
1974, the proportion of manufacturing jobs
in British Columbia’s economy actually
dropped, from 15.5 per cent to only 13 per
cent last year. We are becoming more, not
less, dependent on subsidized mega-project
sales of our heritage, without adequate
long-term economic benefit for our children.
Efforts to diversify our industrial activity
by developing regional resource and manu-
facturing strategies must be made at this
session. The Socred slide in secondary
industry job opportunities must be reversed.
At the same time, we must set to work,
vigourously giving every support possible to
the flagging primary industries and the
thousands of laid-off workers, particularly
in the pivotal forest sector.

Economic recovery cannot be achieved
overnight, or alone; but provincial policies
can help, or hinder, it to a considerable
degree. Helpful action is needed fora
change. The New Democratic Party has
made special efforts to obtain informed
public input, through ongoing standing
committee tours and sector-oriented semin-
ars, and these proposals have been shaped
by discussion with people at management,
working, sales and consuming levels.

They will be offered for House debate
throughout this session, and will include
initiatives in the forestry, small business,
housing, food industry, mining, tourist and
job training fields, areas in which the
Socreds should stop stalling and get to work
on economic recovery. The proposals would

directly create a total of 33,660 jobs. Usinga
modest employment multiplier, the program
could be expected to generate in excess of
43,500 new employment opportunities, at a
time when our province needs them most.

Amore detailed description of these initial
proposals, is contained in the accompany-
ing discussion papers, but in summary form
they include, besides the financial sector,
the following sectors:

FORESTRY
1. Government and private silvicultural
programs planned for 1982 to be carried
out in full. New incentives, if needed, to
prevent possible cancellations due to
economic downturn.

2. An additional major, new silvicultural
program to begin this year, providing
5,000 jobs over the year, at an investment
cost of $62 million, and employing skilled
forest workers on high-quality forest
lands, selected by the forest service and
the industry.

8. Following this year’s start, the five-year
reforestation program would double pres-
ent plans for restocking of backlog lands,
directly creating 2,000 new jobs and
securing the future of at least 3,500
threatened forestry jobs and eventually
increasing government revenues. Net
cost funded through stumpage fees allo-
cated to the forest and range resource
fund.

4. Significant increase in government fund-
ing of the co-operative marketing devel-
opment agreement, matched by an equal
commitment by the industry.

5. Substantial new incentives and assist-
ance to innovative companies which
develop high value-added forest products.

HOUSING

. Injection of $200 million per year in

five-year renewable mortgages at 12 to 13
per cent interest. Net cost this year of $12
million to treasury, enabling construc-
tion of 2,700 new housing units.

. Additional infusion of $10 million capital

funds for senior citizens’ housing pro-
jects, to reduce two-year waiting list.

. Interest-free loans, of up to $10,000 per

unit, for construction or conversion of
5,000 additional co-operative housing
units.

. Home insulation program for senior

citizens and low-income familes, to retro-
fit 15,000 older homes before next winter.
This will supplement the federal CHIP
and provide work for 1,000 British
Columbians.

SMALL BUSINESS

. Revive and expand this sector, where a

majority of new jobs can be developed, by
enactment of a Small Business Protection
Act to: force banks to obtain court permis-
sion before any small business is put into
receivership; implement rescue plans
with a court-appointed consultant where
feasible; and establish regional “store-
front” offices to assist small businesses.

. Start a three-year phase-out of corpora-

tion capital tax and provide new tax
incentives for manufacturing, processing
and energy conservation initiatives.

. Establish a British Columbia Trading

Corporation to aggressively market B.C.
small business products across Canada
and abroad.

. Pay full cost of B.C. government paper-

work imposed on small firms.

VOCATIONAL TRAINING &
STUDENT EMPLOYMENT

. Establish an independent British Colum-

bia Trading Commission, to monitor and
develop apprenticeship programs, fore-
cast needs and administer funding from
province, industries and federal govern-
ment.

. Inaugurate, this year, a training program

for 3,300 new apprentices in critical
areas.

. Revive course-related summer work pro-

gram for 10,000 students.

TOURISM &
COMMUNITY
DEVELOPMENT

. Establish a Tourism Development fund

to provide low-interest, forgiveable and
joint-venture financing of employment
opportunities. Priorities set by federal/
provincial TIDSA studies. Projects
selected through regional boards of
industry and community representatives,
to ensure non-partisan decision-making
procedures.

. Immediate construction and improve-

ment program for publicly-owned facili-
ties such as campsites, small boat moor-
ages, breakwaters, etc. to provide 1,000
jobs this year.

. Commit funds and convene co-operative

negotiations among government, com-
munity and tourist industry representa-
tives to begin building affordable trade
and convention centers in Vancouver and
Victoria, providing 1,000 construction
jobs this year, more later.

FOOD INDUSTRY

. Launch efforts to increase provincial food

production, and therefore jobs, by open-
ing new farmlands. Specific programs
include replanting of vineyards to accom-
modate switch from red to white wine
tastes, replacement assistance for
orchard stocks, dyking in the Fraser
Valley and weed control assistance.

. Assistance to encourage establishment of

co-operatives and small secondary pro-
cessing plants for B.C. agricultural pro-
ducts.

3. Inaugurating strategies and incentives to
increase the province’s share of jobs and
investment in marine food production, by
reducing the $100 million worth of fish
and fish products imported into or
through British Columbia. Substituting
B.C.-caught and processed products for
these imports would inject a new eco-
nomic stimulus and capitalize on the
200-mile limit economic zone added to our
shoreline.

MINING

1. Upgrade the benefits, terms and condi-
tions obtained from more than $1 billion
of publicinvestment in the north east coal
deal by seeking: improved selling prices
for coal exports; contractual preference to
British Columbian and Canadian com-
panies, in order to prevent contract
awards such as the $273 million which
have already been given to foreign firms;
and negotiate a requirement that 25 per
cent of the coal shipments be carreid in
BC-built, Canadian-staffed ships.

2. Develop a policy of “linkage” of resource
development to a secondary manufactur-
ing strategy, by insisting on a full range
of industrial spinoff benefits as a basic
condition for new export deals.

3. Revive a joint study with NKK of Japan
to develop a steel mill in British Colum-
bia, using our resources.

4, Institute negotiations with industry to
achieve working arrangements for devel-
opment of a new world-scale copper
smelter in the Highland Valley near
Kamloops.

This cataglogue is certainly not complete.
But it indicates the great range of actions,
some requiring funds and others only
leadership, which can help our distressed
province over the next few months. There is
enough in this package to ensure both an
economic and a psychological turnaround.

The cost of these initiatives has been
estimated at $309 million for the first year,
with lesser sums required in subsequent
years.

Where will the money come from? Three
sources. First, as of December 31, 1981, B.C.
Petroleum Corporation held retained earn-
ings of $98 million. That would be shifted
into the provincial treasury, to help fund the
economic recovery program immediately.

Second, funds would be reallocated by
shifting budget priorities. For example, the
New Democratic legislators identified some
$82 million of “frills” — such as fattened
advertising, travel, office furntiure and
facilities and computer expenditure propos-
als — which should have been cut back. We
estimate $100 million could easily be found
in the coming year’s estimates, particularly
considering reports of a $7.5 billion spend-
ing program for 1982-83.

Finally, some of the money would be
generated as government revenue from
putting people and firms back to work, a fact
ignored by the Socreds’ retrenchment pol-
icy. The economic recovery proposals advo-
cated by the New Democratic Party would
result in 43,500 BC citizens obtaining jobs,
directly and indirectly. They would generate
almost $1 billion of economic activity in the
first year. That by itself would enrich
government revenues at least $100 million
over the course of the year, without tax
increases.

The money can — and must — be found to
bring jobs, activity and hope to many
citizens. We need the will and a determina-
tion to get to work this session on an
immediate recovery program. But we also
need formal planning and budgeting pro-
cesses, to prevent future self-inflicted eco-
nomic wounds and to buffer external
pressures.

For instance, part of our problems have
been created by Socred mismanagement
and reactive — instead of creative —
responses to a changing world. The Socreds
have demonstrated repeatedly they are so

SEE “RECOVERY” PAGE ELEVEN

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10/Lumber Worker/April, 1982