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1955 ‘

Week in ihe ‘House

By NIGEL MORGAN
hai budget debate is generally

considered*to be a highly ~

technical and involved discus-
_ Sion. But behind all the talk
about grants-in-aid, approved
_ costs, mill rates, and equalization
of assessments, are questions
that will have ‘an important bear-
ing on the size of the municipal
tax bill every home-owner, farm-
er, and small businessman in the
province ‘will have * pay this
year.

The most important item, in
fact the only major change in
taxation contained in Premier
Bennett's budget, is the new cost-
sharing formula between the ‘pro-

vincial government and the muni- *

cipal administrations and school
- boards of the province. And,
while the new proposals leave
much to be desired, there is no
question that they will go a con-
: siderable way in providing great-
er stability in school financing

and’ in equalizing © costs across
the province.

Disappointment will be felt that
the government, in dropping the
sales tax as a means of directly
financing education, did not use
its flaunted $20 million surplus
... to dispose of unjust taxation en-
tirely.. Although it is estimated
that municipal governments will
be better off under the new sys-
tem of grants by ‘approximately
$5 million and tax bills should
not rise this year, little if any
relief, will be provided for al-
ready overloaded home-owners,
and farmers. Equalization is a
step in the right direction, but
relief for homeowners, farmers
and small businessmen is still
the need.

Substitution of a per capita
grant in-aid-of-local-government
for the fluctuating share of a 3
percent sales tax and motor
vehicle license revenues will
eliminate a grave threat to muni-
cipal finances in a declining
economy. But this does not ob-
viate the need for additional fin-
ancial aid from the senior gov-
‘ernments, both provincial and

Tax bill best test of
education formula

‘

federal, if municipal administra-
tion debts are not to rise ‘sharply.

* * x

Under the new school formu-
la, on the basis of assessments
now being equalized throughout
the province, each municipality
will set_a 10-mill rate for educa-
tion and each rural district a 7-
mill rate on the full assessed
value of land and 75 percent of
the assessed value of improve-
ments. The provincial govern-
ment will then make a_ basic
grant to each district
board sufficient to pay ‘all ordin-
ary approved school costs above
what these mill rates yield.

When school boards agree to

services or salaries above the

standards approved by the pro-
vincial education department any

additional costs will be added to

the local tak bill.

In addition to basic grants, the
provincial government has agreed
to contribute a grant towards
capital costs of school construc-
tion of between 50 and 75 per-
cent of the approved capital ser-
vicing and amortization costs un-
dertaken by school districts.

It has been estimated that the
total provincial grant to school

boards for education will amount .

to $21,286,000 or approximately
60 percent of the total cost.
With equalization of assess-
ments proceeding, throughout the
province, and with the new pro-
vision for periodic review, the
'government’s new formula rep-
resents a substantial advance
over the now completely aban-
doned Rolston formula — the

government has in effect revert-—

ed back to and brought up to
date the recommendations of the
Cameron Report.

Several of the basic require-
ments for measuring the new
formula in relation to the muni-
cipal taxation are not yet avail-
able. But for most of us our
next tax bill will be the clearest
test of how the new provincial
cost-sharing program is going to
work out.

Scyeel ‘en defense talks,

NIKITA KRUSHSCHEV

Vv. M. MOLOTOV

Bulganin elected: premier

GREGORI ZHUKOV

Gosia: Malenkov, premier of the Soviet Union for the past two years, this week
resigned his office and was succeeded by Nicolai Bulganin, deputy premier and minister

of defense.

In a statement read to and accepted by a joint session of the Supreme Soviet which —
opened Monday this week, Malenkov aske to be relieved from his post as chairman of

the Council of Ministers of the
USSR, stressing the need for “an--
other comrade with greater ex-
perience in state work” to take
the premiership.

The Supreme Soviet elected
Bulganin by acclamation after
his nomination had been moved
by Nikita Krushchev, secretary
of the central committee of the

Continued

APPEAL

Commonwealth prime ministers’
conference, aware of the fear of
war and the desire for peace in
the hearts of the peoples of all
Commonwealth countries, admit-
ted that the hydrogen bomb
poses a “choice and a challenge”
for mankind.

‘Ts this vast power to be de-
veloped for the benefit of man,
or is it to be used to ‘bring ruin
upon the human race?” the
premiers demanded.

But a separate communique
which were
not attended by India and Ceylon,
reneged on _earlier\ peace pro-
nouncements and declared that
the countries concerned “recog-
nize the need for .the iclosest as-
sociation with the United States

‘in all defense matters.”

The peoples of the world cee
have the final say. ;

Continued

LETTER

The other side of the picture is
the plight of taxpayers in Alberni
and Port Alberni.

Municipal Statistics of B.C.
shows .that.out of 112 municipali-
ties, cities and villages in the prov-
ince, Alberni rates fourth from the
‘bottom in the percentage of im-
provements taxed, and fifth high-
est in mill rate, with a rate of 70
mills. * 4

It also shows that in Alberni,
with a total assessed valuation on

improvements of $2,449,085 the im-

provements actually taxed amount-
ed to only $725,088.

In Port Alberni, where they
have a mill rate of 65 mills, on as-
sessed valuation of improvements
of $10,545,836 the improvements
actually taxed were $3,039,629.

Premier Bennett’s ‘considera-
tion” for H. R. MacMillan means
that Port Alberni and Alberni
citizens will face a sharp rise in
taxes, because of the need for
more sewers, sidewalks, etc., as a
result of the MacMillan-Bloedel
expansion program.

unsatisfactory

Communist Party of the Soviet
Union.

Malenkov, who pledged him-
self to “perform in the most
conscientious manner, my duty
and the functions which will ibe
entrusted to me,” 'now becomes
a deputy premier and minister
for electric power.

The new minister of defense
approved by the Supreme Soviet
is Marshal Gregori Zhukov, who
commanded Soviet armies both in
the defense of Moscow and the
final assault upon Berlin.

The Supreme Soviet ‘heard
Foreign Minister V. M. Molotov
charge that the United States
was guilty of aggression against
China ‘which must be condemn-
ed by the United Nations if the
UN wants to retain its respect.”

Text of Malenkov’s statement
as broadcast by Moscow Radio
follows. ~

To the chairman of the joint
meeting of the Soviet of the
Union and the Soviet of Na-

‘tionalities:

I ask you to bring to the notice
of the Supreme Soviet of the
USSR my request to be relieved
from the post of chairman of the
Council of Ministers of the USSR.
My request is due to business
(Russian: delovye) considerations
on the necessity of strengthening
the leadership of the Council of
Ministers and the need to have
at the post of the chairman of
the Council of Ministers another
comrade with greater experience
in state work.

I clearly see that the carrying
out of the complicated and re-
sponsible duties of chairman of

the Council of Ministers is being

negatively affected by my insuf-
ficient experience in local work,
and the fact that I did not have
occasion, in a ministry or some
economic organ, to effect direct
guidance of individual branches
of national economy.

I also consider myself bound
to say, in the present statement
that now, with the Communist
Party of the Soviet Union and
the workers of our country con-
centrating special efforts for the
most rapid development of agri-
culture, I see particularly my
guilt and responsibility for the
state of affairs
which thas arisen in agriculture,
because for several years past I
have been entrusted with the
duty of controlling and guiding
the work of central agricultural
organs and the work of local
party and administrative organiz-
ations in the sphere ‘of agricul-
ture.

The Communist party, on the
initiative and under the guid-
ance of the central committee
of the CPSU, has already worked

PACIFIC TRIBUNE — FEBRUARY 11, 1955 — PAGE 12 —

out and is implementing a series
of large-scale measures for over-

coming the lagging behind of —

agriculture.

Among such important meas-
ures is, undoubtedly, the reform
of agricultural taxation, regard-
ing which I think it opportune
to say that it was carried out on —
the initiative of and in accord-
ance with the proposals of the
central committee of the CPSU.
It is now evident what important
role this reform played in the ~
task of developing agriculture.

Now, as is. known, on the ini-
tiative and under the guidance
of the central committee of the
CPSU, a general program ‘has
been worked out for overcoming —
the lagging behind in agriculture
and for its most rapid develop-
ment.

This program is based on the
only corect foundation: the fur-
ther development by every means
of heavy industry, and only its
implementation will create the
necessary conditions for a real
upsurge in the production of all
essential commodities for popu-
lar consumption.

It is to be expected that various
bourgeois hysterical viragos will
busy themselves with slanderous
inventions in ‘connection. with my
present statement, and the fact
itself of my release from the
post of chairman of the Council
of Ministers of the USSR; but we,
Communist and Soviet people,
will ignore this lying and slan-
der.

The interests of the mother-
land, the people and the Com-
munist party stand ‘above every-
thing for everyone of us.

Expressing the request for my
release from the post of chair-
man of the Council of Ministers
of the USSR, I wish to assure the ~
Supreme Soviet of the USSR that,
in the new sphere entrusted to
me, I will, under the guidance
of the central committee of the
CPSU, monolithic in its unity
and solidarity, and the ‘Soviet
government, perform in the most
conscientious manner my duty
and the functions which will be —
entrusted to me.- :

(Signed) Chairman
Council .
USSR, Malenkov.

AFL, CIO to merge.

MIAMI BEACH.

of the

The AFL and the’ ClO-~have am

agreed to merge their powerful
organizations into one 15,000,000-
strong union body. Negotiating
committee arrived at the decis-
ion this week and the two labor
conventions later this year are
expected to ratify the decision.

of Ministers ‘of the Jf