CRISIS IN BURNABY

Mounting financial problems
can't be solved by old methods

HE ACUTE financial prob-
lem that faces Burnaby

and other municipalities can-
not be solved by doing busi-
ness in the old way.

It is generally accepted that
the present method of munici-
pal financing is inadequate.
The property tax, the mainstay
of municipal revenue, is
strained to the breaking point.

Another factor that must be
considered is the effect of ris-
ing unemployment, the tight
money policy and_ inflation
upon the stability of munici-
pal finance.

The largest single item of
expenditure in Burnaby’s
budget is for education. Its
school population rose from 5,-
500 in 1946 to 15,000 today.
School costs in the same per-
iod account for $2% million
of the municipality’s $8 mil-
lion debt.

The growing need for more
schools: and educational fa-
cilities for young people, be-
cause of the narrow tax base,
is being throttled. In a report
prepared for the Canadian
School Trustees Association,
Dr. M. E. LaZerte, research
director of its school finance
research committee, stated:

“The complexity of our
present economic society is
such that only the federal gov-
ernmen can tax wealth
wherever found to pay for edu-
cational services where need-
ed. Revenues in 1952 were: mu-
nicipal, $636 million; provin-
cial, $918 million; federal, $3,-
792 million. The first came
mainly from real property; the
second from gasoline taxes,
liquor profits and motor lic-
ences; the last from personal
income and corporation taxes,
customs duties, excise duties
and excise taxes. The most
general base is that for fed-
eral taxes; it should make its
contribution to education
which is a general service.”

Whereas in 1951 expendi-
tures of municipal, provin-
cial and federal governments
totalled (exclusive. of defense
costs) $3,665 million, the mu-
nicipalities collected only 17
percent of: it.

But the municipalities’ ex-
penditures were as follows:
65 percent for local educa-
tional costs, 88 percent of their
gross expenditure on public
welfare, and 72 percent of cost
of. roads, highways and
bridges at the local level.

The conclusions drawn from
this in the report are:

“Municipal costs are increas-
ing due to expansion of exist-
ing services. . . . Because much
of the increased cost of muni-
cipal governments comes from

general rather than local serv-
ices, this cost should be paid
in part from revenues from
personal income and corpora-
tion taxes and customs and ex-
cise’ taxes, that is, from fed-
eral funds.” (The Road Ahead
to Better Education, February,
1955, page 26.)

Municipalities are also vit-
ally concerned about the forth-
coming Dominion - Provincial
Conference on finances. To
ensure a voice at that meeting
the Union of B.C. Municipali-
ties annual meeting held in
Nelson recently demanded a
Provincial - Municipal Confer-
ence on finances to be con-
vened prior to the dominion-
provincial meet.

Burnaby’s Non-Partisan ad-
ministration, while giving lip-
service to the need for aid
from senior govenments, car-
ries out a policy in which the
main burden of the tax -load
falls upon the home owners.
While-the NPA fondly pro-
claims about Burnaby’s indus-
trial growth there is little to
show the taxpayer except a
consistent rise in his taxes.

In 1950 NPA spokesmen con-
fidently predicted to the
harassed taxpayer that Burn-
aby’s industrial assessments
would amount to 50 percent of
all total assessed property
within two years. At that time
Shell and Standard refineries
were expanding, Trans-Moun-
tain Oil Pipeline terminus
was under construction on
Burnaby Mountain, and indus-
trial sites bought for a song
found ready buyers.

That was in 1950 and still
the trend continues. After
hoisting the mill rate to three
mills this year the NPA re-
cites the same fairy tale. The
municipal treasurer assures. the
taxpayers that while property
assessments in 1943 were al-
most entirely residential, now
it is 31 percent industrial. He
further states “it is likely that
the percentage of commercial
and industrial assessment will
reach 45 to 50 percent of the
total assessment.’ (Sun, Aug-
ust 5,. 1957.) :

He, of course, very coyly
refrains from setting any time
limit when this will take place.

What is required is a com-
plete re-assessment of indus-
trial property in line with its
ability to pay as a revenue-
producing concern. For ex-
ample, the Trans-Mountain Oil
Pipeline Co. had a clear-profit
of $6 million for the first six
months of this year. The bulk
of its business passes through
Burnaby. Such huge _ indus-
trial concerns have enjoyed a
tax havengn Burnaby granted

by the NPA.

While Burnaby does need to
kammer at the door of the
federal government for aid for
education, the provincial gov-
ernment responsibility lies in
other fields that are of more
direct concern. The Socred
government is the second
largest property owner (next
to the municipality itself) in
Burnaby. Yet it pays no prop-
erty taxes. :

The Public Administration
Service of\Chicago prepared a
report based upon municipal
administration, operation and
organization in 1956 at the re-
quest of the municipal council.
It reported:

“The second largest prop-
erty owner in the district is
the provincial government. Its
holdings are largely Crown
lands, originally intended to
be reserved for public pur-
poses. The provincial and fed-
deral government lands were
valued at $1,899,615 (1955).
The value of these lands have
been rising consistently in the
past decade; increases in value
have been most rapid in areas
partially improved and oc-
cupied.” (P.A.S. Report, Prop-
erty Management, June 15,
1956, page 68.)

According to Socred govern-
ment figures the people of
Burnaby paid into the provin-
cial treasury in 1955-56 the
sum of $2,2207,046 as their
share of the gasoline tax and
motor license fees. For the up-
keep of roads (for which the
above taxes are levied) the
government reimbursed Burn-
aby the paltry sum’ of $439,-
543.39. Included in this is the
maintenance of the provincial
highways in Burnaby.

Burnaby’s NPA administra-
tion recently lost no time to
increase salaries of the coun-
cil. The reeve’s salary was
upped from $6,000 to $7,500
and councillors’ from $1,200 to
$2,400 a year. Council also
pushed through a bylaw to ap-
point a municipal manager at
$18,000 a year. This in face of
protests from ratepayers
groups and the Labor-Pro-
gressive party.

Council refused to submit it
to the taxpayers to vote upon
by plebiscite. Top-heavy ad-
ministration increase in costs
(this year administration costs
were up 11 percent over last
year) have made the NPA;
council bureaucratic and ar-
rogant. The future of Burn-
aby lies in defeating the NPA
machine and electing progres-
sive candidates to council and
school board at the coming
municipal elections.

—WILLIAM TURNER.

| oo oo |

OPEN FORUM

Imperial Oil Strike

ELGIN NEISH, Victoria,
B.C:. Just a few lines on the
Imperial Oil strike. The Oil
Workers have a small sailboat
with three of their members
aboard, picketing the Imperial
wharf here.

Three troller members of the
United Fishermen and Allied
Workers Union have volun-
teered the use of their boats
and have put themselves and
their vessels at the disposal of
the picket captain. This has
eased the pressure on the one
boat of the Oil Workers and
has assured the maintenance
of the picket line on a 24-hour
basis.

Members..of the Masters and
Mates Guild*and members of
the Seafarers International
Union have done yeoman Serv-
ice to the strike ‘by refusing to
cross the picket line, with the
result that several tankers
have been turned away. At-
tempts were made to shuttle
back and forth with barges and
thus get the tankers unloaded,
but after the first barge the
crew refused to pump and the
tanker had to leave with its
load practically intact.

The Victoria Trades and
Labor Council placed Imperial
Oil on its ‘““‘We Do Not Patron-
ize” list at its last meeting,
after hearing an address by
Vern Barber, president of the
Oil Workers from Port Moody.

Protest to CBC

MYRTLE BERGREN, Lake
Cowichan, B.C.: I have just
written a letter to the CBC
television studios in Toronto
protesting the rash of lurid
Hollywood - inspired anti-
Soviet pictures recently shown
on Canadian television screens.

We have already had a sur-
feit of this kind of thing from
the U.S. for years past, and
always shunned it.

We can be thankful that

“Since it is impossible to sup-
port your wife on your pay let
me introduce you to one of
our finest divorce lawyers.”

CBC television and radio pro-
vide us with a standard of
service and entertainment far
better than the average fare ©
of any other North American
system, but sometimes they fall
on their faces, an this is one —
time.

I feel it is important that
as many people as possible
write to CBC and protest this
kind of thing, as to say the
least it is in deplorable taste;
and far worse, it is designed to
whip .up hatred of other
pedple’s political systems, and
in so doing, encourage war.

The CBC cannot afford to
sit in an ivory tower and ig-
nore the fact that over nine
hundred million people have
thrown out the system of capi-
talism for good, and are now
going ahead under socialism,
the system of their choice.

What would be more helpful
to the cause of world peace and
dignity would be a film show-
ing the “legalized” murder of
the Rosenbergs; or the British
fleet sailing into British Gui-
ana to oust a constitutionally
elected people’s government
because its aims did not cor
respond to that of British |
imperialism.

Let Freedom Ring

0. L. D’ANDREA, Vancol:”
ver, B.C.: Here is a short poem
on freedom which you may
find suitable for publication:
Freedom for heart and lip;

Be the pledge given!

If we have whispered truth,
Whisper no longer:

Speak as the tempest does,
Sterner and stronger:

Still be the tones of truth
Louder, and. ‘firmer,

Startling haughty South
With the deep murmur:

God and our charter’s right,
Freedom forever!

Truce with Oppression,

Never! Oh never!

Coast Fans Ignored

HOCKEY FAN, Vancouve
B.C.: The Russian hockey
team, Moscow Dynamos, will
arrive in Canada this month 1
play seven amateur Canadia?
teams. But western fans won't
get a chance to see the Ru&
sians in action, because thé
Canadian Amateur Hockey
Association has’ made no are
rangements for the visitors i
come to the coast, Is this fait,
I think Vancouver fans shou
protest to the CAHA.

November 15, 1957.— PACIFIC TRIBUNE—BAGE 4