doe

Serres

POPE DEE,

Fess

HRI T RANI IES,

KM

CREST TTS STAD bE,

BIE SAE EOS OS EEESE DELS KATE AERA CRUE EES ETERS EE ERASE PE SEEPS PBR EERE TDP PPT CT ETE LITRE ELITE AIAN AAT EE SPIE TOPE EOE EI ELE

Te

PAGE Aa, THE HERALD, Wednesday, September 29, 1976

GS" 635-6357

postage guaranteed,

EDITOR
PAT O'DONAGHY

PUBLISHER
GORDON W. HAMILTON

NOTE OF COPYRIGHT

without the wrilten permission of the Publisher,

~ ‘the herald |

. An Award Winning Weekly
Published by Sterling Publishers Ltd.

Published every Wednesday af 3212 Kalum St., Terrace, B.C,
A member of Varilied circulation. Autharized as second class
mail. Registration number 1201, Postage paid in cash, return

The Herald retains full. complete and sole copyright in any advertisement produced and or
editarial ar photographic content published in the Rera.d. Reproduction is noi”

. The, Four-Way
; Test

Of the things we
think, say or do.

is it the TRUTH?

Is it fair to all.
concerned?

Will it build GOOD.
WILL and BETTER
FRIENDSHIPS?

Will it be
BENEFICIAL
to-all concerned?

ADVERTISING -
MANAGER
RALPH KERMAN

Mm tes

Governments at all levels in this country last year took
nearly haif of the national income (including yours and
mine). The actual figure is 43 percent of the gross national
product (GNP) which is the value of everything this country
produces.

That's up 75 percent over a mere 30 years ago. But even
then governments (local, provincial and federal) spent 23
percent of the GNP.

if the trend continues, Canada will soon have to spend
more than half its earnings just keeping the government!

Alt of which raises some important questions. For in-
Stance, how can weput an end to such rapid and frightening
growth and how did it all come about?

Some of the answers recently came from members of the
Canadian Economie Policy Committee (CEPC). The rapid
growth of government is said to have resulted from the

» determination of successive administrations at all levels to

fulfill their presumed commitments to the electors.

Of course, quite reasonable arguments can be made for
specific programs. But il is their combined weight, and the
increased influence they give governments over our per-
sonal and business lives, that makes them dangerous.

This growth, says the CEPC, has been a creeping,
unobtrusive thing, carefully camoflaged. For instance, you
don’t really notice the big bite the government takes aut of
your cheque every payday for income taxes because you
never really see the money. ’

But if they hit you with a bill for $3,000 or $4,000 at the end
of the year instead, the protest would be spectacular indeed.

Excessive government domination of the economy is the

' major cause of Canada’s economic troubles, Gerald E.

Pearson, FCA told members of the Canadian Institute of
Chartered Accountants (CICA).

Addressing the Annual Conference of the CICA in Van-
couver, Pearson, a chartered accountant who is president
of the Canadian Chamber of Commerce, accused govern-
ment of refusing to face ‘‘the brute fact that excessive
government spending and the methods used to finance that
spending are the principal cause of inflation”. .

Pearson said that levels of gavernment now consume
almost 43 percent of GNP. Although much: is redistributed
in the form of transfer payments, it is still money which is
taken away from (he producers in society,

To finance its massive spending programs government

the money supply and deficit budgets — all contributing to
the inflationary spiral, Government borrowing at high rates
of interest makes borrowing more expensive for the private
sector, ‘‘Ottawa now pays out about $4 billion per year just
for interest on the national debt,” Pearson said.
* The damaging effect on capital investment is the most
serious of all the consequences of governments’ fiscal and
monetary sins, Pearson sald. In the next ten years Canada
will need $800 to $460 billion in capilal investment, mostly
for new plants and equipment, energy products and
housing. This money cannot possibly be generated in-
ternally, . .

Inflation and taxation on profits reported in. inilated
dollars mean that business cannot retain sufficient after-

tax profits for expansion. In 1974 and 1975, $2.4 billion, or 24

percent of the taxes paid by Canadian industry, was the
direct result of inflation and not based on real profits,
Pearson said. . .

Pearson said that part of the problem is that business
itself has been publishing. misleading rese-coloured
financial statements, which emphasize the growth of profits
and low-key the investment required to generale them.
“What good is a profit increase of $50,000 if it took a million-
dollar investment to earn it?"

resorts to high levels of taxation, unwarranted expansion of —

-

The big spenders

One CEPC member suggested that most social] welfare
needs could be met adequately without spending more
money if.what he termed “the principle of universality”
were abandoned.

What he meant was that the available money could be
better spent giving it to those who really need it and not
because of automatic entitlement when certain conditions
(such as age) are met. He suggests that this would improve
the quality of help in addition to promoting a more realistic
redistribution of income. ‘

Of course, said another member, there are certain, un-
pleasant but automatic, checks which eventually limit
government spending, as the U.K. clearly demonstrates.
“When these limits are reached," he said, ‘there is no
sector of society which eseapes the economic penaity.”

In other words, everyone pays the piper.

One sure sigan of the approach of that limit is the fallering
confidence of the private entrepreneurial sector.

“Without continuing confidence,’’ the CEPC member
said, “the sector’s willingness to risk capital to expand
production and productivity would be sharply reduced and,
in turn, the foundation of government viability itself would
be impaired.”’ ;

In other words, without investment there would be fewer
jobs and less income, for everyone including government.

If we fail to stop Bovernment growth, everyone will suffer
a great deal. We hope that you, as every other thinking
Canadian should, will take the time to let your Member of
Parliament know how you see it. ;

Excessive government domination

Government borrowing is crowding the private sector out

of the capital markels, causing business to postpone in- . ,

-vestment in expansion of proditétive capacity: Taxation and

poor market. conditions have hurt the private investor.
According to the Stalscan investors index of 114 stocks,
from 1961 to 1974 the average annual real rate of return on
investment was only 6.2 percent.

Pearson warns that the necessary investment capital
may not be available at all unless adequate after-tax profits
are restored tobusiness so that Canadian equity investment
becomes attractive. He also advised that responsible
foreign inyestors should be welcomed.

“The problem of capital investment in Canadian business
was already acute before the AIB got into the act,"" Pearson
said. ‘‘Now the problem is greatly aggravated.”

“From the very beginning, that anti-inflation program
discriminated against business," Pearson said. Dividends
are held below the inflation rate, and profits, already
trailing inflation, have heen cut drastically. In contrast,
wage settlements have exceeded the guidelines in 40 per-
cent of the cases — with the public sector leading the way —
and government spending has been running 30 to 50 percent
higher than the expected rate of inflation for 1976.

The most important long-term effect of the anti-inflation
program ‘may be the massive increase in government
involvement in, and regulation of, the economy, and the
apparent willingness of people to accept this intrusion
without too much fuss,” Pearson said. The Anti-Inflation |
Act and Regulations are a prime example of government
interference and ‘legislative over-kill".. In drafting the new
restrictive legislation, the trend is towards broad and
sweeping language, arbitrary powers of government
tribunals and officials, presumptions that citizens are guilty
until proven innocent, and heavy penalties, including jail
terms. , . .

if government controls most of the country’s money, “you
are well on your way to servitude to the government,”
Pearson warns, “Decentralizing economic power by dif-
fusing it throughout the private sector is one of the best
guarantees of retaining our political and civil liberties.”’

Trendicator flashes growth warning signal

‘Trendicator’, the Royal Bank of Canada's composite
index of leading indicators, has flashed a warning that the
Canadian economy may fail to achieve the five percent
economic growth rate that most forecasts have predicted
for 1976.

The rise in ‘Trendicator’ during the first half of this year
has been much smaller than the rise that occurred
throughout 1975, the report for the second quarter, released
recently showed.

“This is a signal,” said Dr. Robert Baguley, a Royal Bank
senior economist and co-designer of ‘Trendicator'’, “that the
pace of economic recovery — already slow — will likely
continue to be slow in the second half of the year.

_ "The Canadian economy may, in fact, fail to achieve the
five percent economic growth rate that most forecasts have

- predicted for 1976," he added.

The ‘Trendicator’ Report showed the index increased at
an annual rate of 1.8 percent from its downward-revised
level in the first quarter of the year. The first quarter value
was revised downwards by the incorporation of statistical
information that has only recently become available.

Dr, Baguley pointed out that ‘because of the unusually
depressed, the increase in the index between the two
quarters is abnormally high”.

He termed the rise “spurious — and due to a non-
recurring event”, which he identified as a major
bankrupicy occuring during the first quarter, but not
reported until now. This affected the dollar value of
liabilities of business failures, one of ‘Trendicator’s’ leading
indicators. -

‘Trendicator’ is a composite index of 11 leading indicators

Cae

rere

whose turning points have historically tended to precede
those of the economy. It is designed to signal in advance
changes in the direction of real economic activity in
Canada. .

The performance of ‘Trendicator’ has been measured
against the performance of the Canadian economy for the

‘past two decades. On average, the index has anticipated

upturns by nine months and downturns by six months,
Aten-fold increase, fram the $100 million range to nearly

* $1 billion, in first quarter value of liabilities, caused a sharp

downward revision in the value of ‘Trendicator' for the
riod. This increase was almost entirely due to the
ankruptey of a single large manufacturing concern

located in the Aantic provinces, ‘

If this were to be ignored, Dr. Baguley said, then
“Trendicator’ increased at an annual rate of 1.2 percent in
the first quarter and decreased slightly by 0.2 percent in the
second quarter, ‘‘This is probably a better measure of the
true underlying behaviour of ‘Trendicator” he maintained,

“The message is that our leading indicators .of future
economic activity have slowed sharply in the -first six
months of 1976 — compared to the strong increases ob-
served throughout 1975, Although 1976 is a year of economic
recovery, the recovery is slow and will most likely continue
to be slaw,” Dr. Baguley stated. ;
- Of the 11 indicators, five showed declines in the second
quarter and six showedincreases. Four of the increases, the
investors’ index of 134 common stocks, the money supply,
the price-earnings ratio and, of course, the Ilabilities of
business failures were above average. Of the declines, two,

the ratio of price to unit labour costs and average hours of

manufacturing, were above average.

sas heh 2.4 celal
eee

' Society

Pree

dascrtarescitentestittotettetiit

.

sere “48 ba ahtadet iNest

maastssieitarnaropnaui sites i

‘atatatetata atta sats sta e

Crippled

The Editor,
Dear sir:

Because of your help the
British Columbia Lions
for _ Crippled
Children, The Easter, Seal
People, more than met th
goal of $500,000,

Our Lions Club would like

to thank you for ail the-

“letters to

ees eaatate aaa ata tae alee CE ee Se ee eee ee ee Fee,

HeLa Ses Be eis

the editor

eecerele

C

editorial support that you
gave us during the Easter
Seal: Campaign. Without
your help, we may not have
reached our target. We
humbly thank you on behalf
of the crippled children in
British Columbia.

Yours sincerely,
_ James Mason, President

Royal Purple Lodge
216

The Editor,
Dear Sir:

The Order of the Royal
Purple extends
congratulations and a
sincere thank you to the
residents of Terrace who
donated to the Canadian
Arthritic and Rheumatism’
Society (CARS) in our
recent canyass, Campaign
organizers, Mrs. Joyce
Martel and Mrs. Mary
McGowan, report that we
have reached our objective
of $2300. Thanks to the
Terrace Herald, the News
Advertiser and the won-
erful coverage on CFTK,
many residents were
waiting for our call and
were generous in their
donations, A special thank
you goes to our canvassers
who made their calls on
such a terribly cold, wet
evening.

Last year yu gift to
CARS provided patient care
and treatment to 67,021
patients throughout B.C.
Treatment is provided to
out-patients, with funds
Loing to local hospitals on a
shared basis for.
physiotherapists, so
patients may enjoy the
comforts of home
surroundings while

Letter to the Editor:

Mr. Benrett’s visit to town
last week was a masterpiece
in political propaganda.
Anyone who is impressed by
the Premier’s “Major an-
nouncements’’ and his
highly heralded cabinet
meeting should be given an
award for political naivete.

We are right back to
where we were under the
former Social Credit
government. In the position
of | being thrown a few
crumbs here and there in
order to keep us quiet.-There
isno hope at all for this town
if we are going to he
Satisfied by such obvious
political engineering. Mr.
Bennett must think that we
are grossly — ignorant
politically and he has:
illustrated that by his ac-
tions this past week. In the
same week that the premier
made his announcement
about the development of
maintenance yards in

ment

.and be happy

receiving treatment. CARS
supplies three occupational
vans travelling to remote
corners of B.C., one of which
comes to Terrace twice a
year.

CARS operates the Rufus
Gibbs ge in Vancouver
where patients from all
parts of B.C. enjoy home
atmosphere while un-
dergoing treatment and
may spend time here before
and atter surgery,

The work of CARS has
gained international
reputation and doctors from
other countries are in
Vancouver studying the
work and doing -clinical
research. CARS conducts
research, both basic and

chnical, in the hope that the .

cause of rheumatoid ar-
thritis will soon be found.
Funds also go to education
and bursaries have been set
up for students going into
the study of physiotherapy.

Anyone wishing further
information on the help
available to them may write
to CARS, 895 West 10th,
Vancouver, B.C.

Yours truly

Shirley Kormendy

Secretary

Order of the Royal Purple

_ Premier's visit

Terrace for CN Rail, we
read in the paper that a
cedar furniture plant that
was looking into locating in
this area has decided not to
because of lack of govern-.
cooperation. Ob-
viously Mr. Bennett has no
interest in this area, or he
would be encouraging
secondary industry, which
is so desperately needed.
No, Mr. Premier, you can
fool some of the people some
of the time, but not everyone
in thenorthis as stupid or as
naive as you may think. We
are not about to swallow
your sugar sweetened pill
with your
efforts at "“helping’’ the
economy of this region. We
are still familiar with the
Socreds of the past, and
although the outward ap-
pearance may have

changed it is still the same ~

old party.
K. Clark |

Regional District
‘bureaucracies |

NEWS ITEM: “Regional
District Bureaucracies Ask
For Something To Do.”
(The Herald, Terrace, B.C.,
September 22, 1976). —
“Widespread antipathy of
residents (re) regional
districts.” “’... huge staffs in
this fourth level of govern-
ment.”

The Editor:
Dear Sir: .

I was most amused and
gratified by the above
mentioned news item,
reminiscent as it is, of
Danny Kaye's predicament
in the movie, ‘Inspector
General’, Believe it or not,
Danny had a high govern-
ment position without any
known dulies!! He pon-

‘dered, “What does an In-.

spector General do? I have
no idea. Nobody told me.

Dees he inspect generals or
Senerally inspect?” .

While I feel the utmost
sympathy for those un-
fortunate members of
regional district boards,
who feel as though the rug
were bein; gradually pulled
from under them, [ am

what I advocated four and a

half years ago.

In the spring of 1972, 1 and ©

a friend in Engen, near

Vanderhoof, — circulated.
petitions aimed at
abolishing repionat

districts, particularly the

Regional. District of
Bulkley-Nechako, for a
variety of reasons, At least
nine hundred signatures
were obtained, representing
well over ninety percent of
those approached, -

The subsequent Socred
defeat may have heen
partially a result of their
indifference to those
petitions, ©

No action was taken by
the socialists for obvious
reasons.

But now ... dare we hope .

«. perhaps .. or am I
misreading the sigus?, the
‘born-again’ Socreds are
beginning to tune in to the
wishes of the people of this
province}!

Let us hope that we are
indeed, witnessing the
beginning-of-the-end of
regional districts In British

Yours truly,
Thomas Atrill

‘Columbia,
gratified because that is just + .

To the Editor:
Thereby notify you that I
have registered the

following protest to Mr.
Pierre Elliott Trudeau:
“Dear Sir: Reports in-
dieate that the Law Reform
‘Commission of Canada
wants Parliament to con-
sider. whether abortion,
incest, obscenity, indencey,
bigamy and gambling
should be dropped from the

list of offenses under the.

Criminal! Code — and to
grant no-fault divorce based

- only on the failure of per-

sonal relationship and

Reforms |

requiring the dissatisfaction
of only one spouse.

Further erosion of the
moral principles upon which
our country has stood will
surely § assure the
destruction. of those good
things it has so far afforded
us

I therefore wish. to
register my protest and
advise you that ] cannot in
good conscience support any
person or government
presuming to take. such
action.” .

Sincerely

Bob Shatford

Wage controls

From a leader in the First
World War when people
were fighting for their lives.

1 would like to see the
protest to wage and price
controls become a real
movement, noi only for
trades and labor, but also
for the professions, com-
merce, management and
other industrial pedile. i'm
sure many others v' urd like
it too, A real altecn itive Lo
price and wage conirols.

A strong = expression
against wages and price
controls means, of course,
that there is a lot of ap-
position to them. But the
problem is still there. The
expression does not indicate
a solution.

lf the proposed strike
against wage and price
controls became a strong
stand for trades and labor
representation in
parliament, for industrial
representation in
parliament, it becomes a

wholesome growth in public
life. A positive alfair headed
towards a solution,

A successful expression
from industrial répresen-
tation could mean industry,
particularly trades and
occupations, would likely
become represented in
parliament.

industry as representing
more commercial, in-
‘dustrial, management, and
professional people, would
soon become real. about

representation in
parliament.
Labor and trades are, by a

stand, more or less in a
posilion to get things going
for industrial represen-
tation.

ILmay be labor and trades
turn now, but if a proper
‘course is taken by them,
commerce, professions,
industrial management's
turn comes next.

W.J. Murray

and Small
Business

A plan to curb conflicts

Ry KENNETH McDONALD

The Canadian Labour
Congress’ (CLC) planned
day of protest Oct. 14 is a
sham! Ti any group has
suffered during the first
year of wage and price
controls it isn't organized
labour,

Since the Anti-Inflation
‘Board was formed, the real
income of workers (the
Percentage increases in
wages over the previous
year, adjusted fur changes
in the Consumer Price
Index) has improved from
2.2 pereent October, 1975
to 38 percent in June,
1976,

Tap CLC’s real objective
is to claim equal partner-
‘ship with government and
-business in tripartite plan-
ning of the Canadian
economy. Representing
only one-fifth of the work
force, the Congress ‘also
claims to champion the
unorganized two-thirds
and the pensioners who
suffer from labour's collec-
tive blackmail.

Germany, Japan and
Sweden are often proposed
as models of tripartite
Planning. But these
nations are unitary states

' and more suited to central
planning than Canada, a
federal state. “Labour
movements in these caun-

tries aré centralized and

can speak with a united
vaice,

eee!

Canada’s labour move-
. Ment is a more loosely-
knit alliance of provincial
federations of labour and
representatives of Indivi-
‘dual - trade unions. The
a

sentation

CLC, for example, cannot
bind its affiliates.

eee.

Bargaining in Germany

is industry-wide, with only
one bargaining unit for
labour and management in
each industry. Normally,
one industry sets the wage
pattern for all industries
in the country. In 1975,
the construction industry
there set the pattern with
66 per cent. Canada’s
average for all industries
was 13.1 per cent.

eee ;

fanada’s Big Business

community is also an
unlikely partner in any
form of tripartite planning.
With 60 per cent of matiu-
facturing foreign-owned,
strategic decisions on
investment and repatria-
tion of earnings are made
outside the country. This
severely limits the kind of
agreements business can -
enter into.

eee

The Canadian Federation
of Independent Business’
has proposed the creation
of a Prime Minister's
Council, With equal repre-
(three each)
from big business, unions,-
owner-managed business,
consumer ‘groups, she
federal Cabinet, and the
federal civil service, the
Council. would provide’ a

_ means of reducing: the

confrontations in Canadian

Society.

‘Though final decisions
would still rest with the

‘government, all groups
“would have full ‘opportu-*

hity to present their. views

.on Inajor policy issues.

Sectional interests would
no longer feel impelled to
"go public’', as with full-
page advertisements by
corporations, or days 0
protest by the CLG." ~~