6

THE WESTERN CANADIAN LUMBER WORKER

IN SASKATCHEWAN

Socialists Aid Private Enterprise

Opponents of socialism who claim the main purpose of the
socialists is to eradicate the free-enterprise system had better
take a look at the new plan to be put into effect this summer
by the New Democratic Party government of Saskatchewan,
which provides for outright cash grants to business firms.

Known as the Saskatch-
ewan Economic Development
Corporation (SEDCO), its
function is to provide money
to “companies engaged in, or
proposing to engage in, man-
ufacturing in Saskatchewan.”

Grants will be made avail-
able for research and develop-
ment, for marketing and feasi-

bility studies, for buying
machinery and equipment, or
for technical training pro-

grams for employees of man-
ufacturing firms.

Russell Brown, minister of
industry and information, said
Saskatchewan’s own 5 per
cent sales tax was one of the

There's no end to ingenuity at

WAYNE WOHLFORD,
Genial working president of Dayton Shoe Manufactur-
ing Co., shows how a simple adaptation can convert a
domestic sewing machine into a high-speed mechanical
potato peeler. No wonder the men at Dayton’s find it
so easy to turn out logging boots that satisfy the top
requirements of world champion tree climbers like
Danny Sailor.

three reasons for introducing
the feature into SEDCO.
When the sales tax was raised
to its present level, the gov-
ernment intended to exempt
machinery and other pro-
ducer’s goods from the tax,
but this proved impossible to
administer. The grants are an-
other approach to the prob-
lem.

The other two reasons for
the government grants to
private enterprise were the
handicaps to-industrial devel-

opment in Saskatchewan be-
cause of its remote location
and the relatively high utility
rates.

“The grants can be used to
ease the problem of new
manufacturing companies in
the formative stages without
involving the government in
continuing subsidy,” Mr.
Brown said.

‘The Legislature appropri-
ated $2 million for the grants
in the current year but pro-
vincial treasurer J. H. Brock-

DAYTON’S

And here’s living

a,

ia | won with DAYTON’S

proof, surrounded
by some of the cups

. ARTTSTRY IN LEATHER

PREMIER LLOYD

lebank said this isn’t intended
to be an indication of how far
the government is prepared to

‘o. “If industrial development
ales place so fast that we
have s provide more money
this year, we'll do it.”

Handling the new grant
system will be only one func-
tion of the new corporation,
but Premier Lloyd says most
of the other functions aren’t
new. The province has been
making industrial loans
through the Industrial Devel-
opment Fund and has acquir-
ed land, bought and leased
buildings and bought securi-
ties issued by Saskatchewan
companies.

What’s new, in addition to
the grants Mr. Lloyd said is
the direct involvement of the
business community in the
government’s industrial de-
velopment activities.

SEDCO’s. directors will be
Saskatchewan businessmen,
plus two senior civil servants.
SEDCO will behave like a
private investment company
with its own financial struc-
ture. The provincial treasurer
is authorized to buy up to
$15 million of the corpora-
tion’s securities, but $5 mil-
lion of this will be used to
take over existing obligations
of the Industrial Develop-
ment Fund. The grants pro-
gram will be financed separ-
ately.

Premier Lloyd denies that
the new action is a reversal of
policy on provincial develop-
ment. In earlier years, the
government established
crown corporations to carry
on various types of business.
“We went into projects when
there was no one else to do
the job. Now Saskatchewan is
attracting outside capital but
there is a very high degree of
competition between provin-
ces for industrial develop-
ment and Saskatchewan must
be in a position to compete
with the other nine provinces
in the race for faster indus-
trial growth,” he said.

mms oi eo

IGFTU Scores
Policy Of
South Africa

The International Con- =
federation of Free Trade =
Unions has called upon the =
United Nations to examine =
the apartheid policies of =
the Republic of South Af- =
rica as “a threat to the =
peace of an entire contin- =
ent of 250 million human =
beings.” In a memorandum
submitted to the UN, the
ICFTU which enjoys con- =
sultative status at the UN,
appealed to member states
“to take effective steps, in- =
cluding the immediate sev-
erance of diplomatic and =
commercial relations with
the Republic of South
Africa.”

ci SS ee