SERLERS

= E58

Ses

&

a5)

the

BESERES

The Vancouver and District Labor
Council’s Unemployed Action Commit-
tee launched a new JOIN campaign —
Jobs Or Income Now — Feb. 24,
demanding that the provincial govern-
Ment take action to provide jobs to the
Province’s 200,000 unemployed or pro-
vide them with a livable income.

The campaign was in direct response to
the Socreds’ new budget which offered
Nothing in the way of job creation pro-

‘grams while reducing welfare payments to
young unemployed and imposing new res-
trictions on recipients.

“The budget that was brought down on
Monday didn’t even talk about the unem-
ployment,” committee member Mike
Proniuk told a press conference Friday.

“We're going to be demanding that the
government re-direct its priorities to creat-
ing sobs instead of bashing the poor,” he
said,

New provisions in the budget will cut
welfare rates by $50 for the first month for
Singles under 25 and by $25 for the second
to eighth months of assistance. The new
rates will start at $325 for the first month,
$350 for the second to eighth months and
will only rise to the current rate of $375
after eight months.

Couples under 25 will lose $50 in the
first month, and $25 in the second to

eighth months, reducing their rate to $570
in the first month.

Those over 25 will have their welfare
payments cut by $25 for the first month.

Singles and couples, classified by the 7

Ministry of Human Resources as “unem-
ployable”, also face cuts ranging up to $80
a month.

New restrictions imposed by MHR will
remove eligibility for welfare for those
waiting for Unemployment Insurance
benefits — they will be eligible for emer-
gency assistance only — and will remove
current earnings exemptions from recip-

ients until they have been on welfare for

eight months.

The various cuts coupled with the new
restrictions will save the ministry an esti-
mated $31.3 million. But they will impose
crippling income constraints on recipients.

Proniuk emphasized that those now on
welfare are already living substantially
below the poverty line. “Slashing GAIN
rates will only result in another decrease in
their already low standard of living,” he
said.

“But they don’t want welfare, they want
jobs,” he emphasized. “And we’re going
to be taking action to compel this govern-
ment to listen and to respond.”

Immediately following the press confer-

campaign

ence, the committee was to meet with
representatives of various community
groups, union unemployed committees,
tenants’ and women’s groups to begin
mapping out the campaign. ~

“The mood is there for action,”
Proniuk said.

MIKE PRONIUK (r), RANDY McLEOD...announce launching of Jobs Or Income Now

nae

An immediate plan included wide dis-
tribution of a leaflet against the budget on
Feb. 29, the day welfare cheques are
distributed.

Proniuk also emphasized that the JOIN
committee would be pressing for a mass
demonstration against the budget.

Taxpayers gouged twice for health

" Continued from page 1

_ teaching positions will be eliminated. Union

_ leaders have not yet hazarded a guess on the

number of non-teaching support staff who

_ Will face layoff but it is certain to be a

Significant number — again as a direct

_ Tesult of cuts in grants to school boards.

Similarly, the cuts in grants to munici-
Palities — $650,000 — combined with the

| Massive reduction in revenue sharing —$35

ion — will put enormous financial

Pressure on municipalities, forcing most to

lay off municipal staff or impose major tax
Mcreases to maintain services.
The combined layoffs emphasize the
Utter cyncism of the budget speech in which
1s stated: “The economy is recovering
and jobs are being created.”
_ But probably the most ominous new pol-
Icy feature of the Feb. 21 budget was the

_ Rew role for the Resource Revenue

Stabilization Fund.
The practice for the
past two budget
years has been to
place all revenues
from resources in
the fund and then
transfer funds to
general revenue as
required.

But the Socreds
have changed all
; ys that.

; “Under this new

HUGH CURTIS system,” Curtis told
the Legislature, “. . natural resource revenue
Will no longer be directly available to
. ace current expenditures. ..Commenc-
'NS in 1985/86, it is planned that all resource
Fevenue will be allocated to the fund to
Provide for the repayment of direct public
debt as well as that guaranteed debt which is
Rot commercialy supportable.”

_ The new regime is to be phased in with 70
Per cent of resource revenues, or $470 mil-
os going into the fund during this budget

That first allocation will go to B.C. Rail,
‘0 be added as a lump sum to its sinking
fund, to provide for annual interest and
Principal payments on its historic debt until
the year 2005. :

Both actions by the government —
putting all future resource revenue to debt
retirement and doling out $470 million to
BCR — should be viewed with consider-
able public alarm.

By divorcing resource revenue from the
operating revenue of the province, the
Socreds are effectively turning government
services into a pay-as-you-go business pro-

position. In future, all services will be
financed from direct taxation. And even if

there is a great upsurge in the export and
sale of resources, that revenue will not be

available to improve or extend — or even -

maintain — vital services.

In short, the people will have been alie-
nated from the resource wealth of the
province.

Significantly, the vast bulk of public debt
is incurred by such agencies as B.C. Hydro
(which itself accounts for 64 per cent of total
public debt) and B.C. Rail.

The government’s gift to BCR of $470
million — a sum which, if applied to oper-
ating expenditures, could have eliminated
cuts in every ministry — is a move which
prompts two possible explanations.

Either the government is preparing to
privatize the provincial railway and wants
to make it an attractive plum to the private
sector or it is trying to cover itself against
what are expected to be major losses in the
future on the Northeast coal project. —

BCR itself estimates that annual interest
charges on the money used to build the
Tumbler Ridge line will be $45 million —
while freight rates will only generate $20
million annually and that only when the line

is fully operational which is not expected for .

some years. Thus losses will be upwards of
$25 million every year.

The Socreds have also used financial and
political manipulation in the budget to
exact double taxation for health care costs.

Curtis charged that the federal govern-
ment was being “politically mischievous”
for introducing the Canada Health Act
which will subtract one dollar from federal
transfers to the province for every dollar the
provincial government raises through hos-
pital user fees: Under that Act, Curtis said,
the province stands to lose $40 million if it

- does not remove user fees.

Full time equivalents (FTEs)

Special Office/ Ministry 1982/83 1983/84 1984/85
Auditon Generalization canis 92 82 82
OMDUOSMAN 2. Series os sisi sees oo 43 Shih 32
Premier's Office ........ Ree 18 16 13
AQTICUITURE C0005. cn certs ie nee 727 594 508
Attorney General ...... See oak ee ee 5,537 4,983 4,561
Consumer & Corporate Affairs .............. 665 565 482
Education Ss. 2h ils vice cw a eee 711 574 484
Energy, Mines & Petroleum Resources ...... 487 414 341
Environmeéntiixiéica Sects... HE eins 2,002 1,600 1,401
FINANCE <4 vane Soa actos ‘s ansiste sata Se RS Se 3S 1,210 1,097
FONOStSias 53 ae, erste te tists Sas << sckels S Ge 5,520 4,415 4,002
EEUU RSA Sy nn el ee SAS Ee ee 9,182 7,949 6,884

+AU IMAN ROSOULCOS 605 seeps she edie erase 5,988 5,443 4,928
Industry & Small Business Development..... 278 222 194
Intergovernmental Relations...............- 55 47 40
Vaboric toes 0s oe ees es fo ys cic otc oe 1,032 826 753
Lands; Parks &Housing ..<«<...<...2 veo 1,672 1,421 1,256
Municipal Affairs ........ ER OR SAS ASS 135 115 95
Prov. Secretary & Government Services ..... 1,465 1,251 1,032
POUNISIN o. iocsre tis os se sive a ole a0 paar eco 175 139 123
Transportation & Highways..........-..+++- 9,245 7,824 6,998
Universities, Science & Communications .... 144 130 . 104

TOTAL Sass rs eee sae eee oa 46,686 39,857 35,410

BUDGET ESTIMATES 1984/85. . .Socreds’ plans for slashing the public service.

In his budget, Curtis stated that B.C. was
“prepared to replace all acute care hospital
user charges with a single charge based on
family size, levied through the income tax

-- system.”

That single charge was not part of the
budget and the size of the charge will not be
known until Curtis negotiates it with the
federal government, if, in fact, it is even
acceptable under the Canada Health Act.
And until it is negotiated existing user fees
will remain.

But whatever happens to Curtis’ negotia-
tions, beginning July 1, every taxpayer in
the province will pay an eight per cent sur-
charge on his or her income tax, to be
known as the Health Care Maintenance
Tax.

“We must have an alternative source of
revenue to compensate for the federal
underfunding,” Curtis stated. He added
that it was a “temporary measure” but it
will apparently remain until the Socreds

negotiate a new funding arrangement with
Ottawa, something which could take years
considering the Socreds bargaining posture.

What is worse, since the only provision
for replacement of user fees is the single
charge, the health care surtax will also
apparently exist alongside the current user
fees. So whatever happens, we will pay
twice.

We will also pay far more than necessary.
The health surtax will raise $97 million in
the first half year and $166 million in a full
year of operation. Even taking the $51 mil-
lion increase in the health budget and the
$40 million in penalties for user fees, the
province takes more money than it needs to
cover costs. | :

Moreover, as a result of financing formu-
las being improperly applied in the past,
more money — roughly $100 million —
will be coming this year from the federal
government, making the Socreds tax even
more unconscionable.

PACIFIC TRIBUNE, FEBRUARY 29, 1984 e 3