VANCOUVER .- Manager's report reveals disaster of Socred policy This week’s column consists of a reprint of the Vancouver city manager’s report from the social planning department on the state of the economy in Canada and more particularly in British Columbia. The “miracle” of Social Credit policies on mega- projects and curtailing of social services for the elderly and the poor makes us a special case in the dismal picture of Canada’s economic position. This report updates jnformation on key socio- economic indicators presented to council members in January. The purpose of the report is to provide council members with a broad overview of the effects on the city of changes in the economy. This report presents information on the Consumer Price Index, average wage earnings and family income, retail sales, unemployment rates, duration of unemployment, dis- couraged workers, changes in labor force activity, employment by industry, UIC statistics, Ministry of bankruptcies, apartment vacancy and rental rates, net migration into B.C. and lone parent families. - The tentative signs of economic recovery that buoyed hopes through much of 1983 have faded. The Confer- ence Board of Canada’s short-term outlook calls for a continued slowing in the pace of economic growth this economic activity is expected to increase by 3.3 per cent this year after a three per cent gain last year. Harry — Rankin For British Columbia, the outlook is worse. According to the Conference Board, “British Colum- bia, Alberta and Newfoundland experienced particu- larly harsh versions of the recession and received less than proportional benefits from last year’s resumption of growth.” The Conference Board predicts growth of .7 per cent for B.C. this year, revised downwards from 2.5 per cent primarily because of the negative impact of the pulp mill shutdown in February. An improve- ment in growth is expected in 1985. ° A variety of factors underlie the Conference Board’s pessimism. Consumer spending, which grew quite strongly in the early stages of the recovery, has weakened, the rebuilding of inventories has been slow, and business investment spending has been “singu- larly unspectacular”. Exports of goods and services, the strongest sources of growth during the recovery, but a deceleration in U.S. economic growth is expected to dampen demand. ~ : The recovery that took place in 1983 made only a small dent in the unemployment rate, and with the slowing of growth, the unemployment rate and other socio-economic indicators such as numbers of UIC claimants and bankruptcies, are on the increase again. To put the unemployment problem into perspective, consider that in April the number of unemployed people in the country is greater than the combined populations of Newfoundland and Nova Scotia. In B.C., the average unemployment rate for the first quarter of 1984 was higher than any rate recorded by Statistics Canada since the depression. of the 1930s, according to the B.C. Central Credit Union. Not only are there more people unemployed, there are propor- tionately more people who have been unemployed for 14 weeks or longer. Those who are working are find- ing that inflation is outstripping wage increases. People with no income at all are still turning to the Ministry of Human Resources in record numbers. In both Vancouver and the province as a whole, there were more people on income assistance in March than there were one year previously. Some analysts are managing to find a silver lining among the primarily negative economic indicators. They say that while growth has slowed, itis now running at a more sustain- able pace. If wages are depressed, they argue, at least that helps make our goods more competitive; if productivity increases; if production is down, so is inflation. While the Conference Board has been critic- ized for being overly pessimistic in its warning that a recession could occur in 1985, one thing all analysts agree on is that the slowdown in economic growth now evident will continue through the rest of the year. Human Resources statistics, business and consumer | year, and the possibility of a recession in 1985. Overall. led primarily by car sales to the U.S., have been one of | > Council demands Expo deal Vancouver city council called on the provincial government and the Expo board July 24 to abandon their “con- frontationist, changing-the-goal-posts position” and bring about the “speedy implementation” of the agreement on — construction wages worked out between the Expo board and the Building ‘Trades but later scuttled by the board. The motion, introduced by COPE alderman Bruce Yorke following an address to council by Building Trades Council president Roy Gautier, passed seven to four after nearly two hours of . debate during which both The Electors Action Movement (TEAM) and Non- Partisan Association (NPA) aldermen attacked it as “a diatribe” and “crap”. Ironically, however, it was NPA alderman Don Bellamy who told coun- cil, “It looks to me like there is an organ grinder and a monkey. ..and Expo is the monkey.” He had earlier asked repeatedly whether it was the govern- ment or Expo which had caused the negotiated agreement “to come unglued.” : Bellamy joined with COPE alder- men Yorke, Harry -Rankin, Bruce Eriksen and Libby Davies as well as mayor ‘Mike Harcourt and independ- ent Bill Yee in supporting the motion. Opposed were Warnett Kennedy, George Puil, May Brown and Marguer- ite Ford. A second part of Yorke’s motion, calling on the two Expo- board members nominated by the city and - appointed by the government —. Don Hamilton and Alison Robinson — to endorse the city motion and to resign from the board if the agreement was not implemented, was referred to a sub- sequent meeting after council had had an opportunity to meet with Expo chairman Jim Pattison. That meeting took place July 26° although it was held in camera, closed to all but council members. Council had sought to get a first- hand version of the Expo board’s posi- tion from city representative Don Hamilton but he took refyge behind confidentiality, claiming that only Pat- tison could speak for the board. “The Expo board has muzzled him — that’s why Hamilton can’t tell us what happened,” alderman Rankin charged. . D He added: “The question is: was there a deal which was welched on by Expo? And the . answer to that is an unquali- fied ‘yes.’ ” Mayor Har- court backed Rankin’s con- tention, empha- sizing that there had been a deal worked out on Whos Ose construction BRUCE YORKE wages at the Expo site involving not just the trades and Expo but the unio- nized construction industry and offi- cials of the labor ministry. The deal, as reported in the media at the time, involved all non-union workers being paid the basic trade union rate without benefits, he said. That agreement was later modified to exempt J.C. Kerkhoff’s already signed contract and to eliminate the $1 _ Increase negotiated by Building Trades unions for their members. “But the goalposts were changed — because of pressure from the non-union coalition,” Harcourt said, adding that various meetings he had with Pattison and others had satisfied him that it was the Expo board which reneged on the agreement. : Yorke’s motion also emphasized the changing position of the government ‘and the Expo board, both of whom it noted, “are now following a confronta- _ The much-vaunted leaders debate on television revealed little of any substance, particularly on the key issues of peace and jobs, B.C. Communist Party leader and Vancouver- Centre candidate Maurice Rush said July 26. : _ “The media is still debating who won the debate,” he said. “But the losers are the Canadian people,” he told a public ‘meeting in Vancouver where he was speaking along with Vancouver East candidate Miguel Figueroa. 2s What did emerge from the debate, he noted, was that there are “no basic differences between the two old-line parties.” Significantly, both addressed themselves to the deficit, claiming that they would bring about reductions. “Mulroney said he would cut the deficit in half while Turner said he would ‘cut the fat,’ the unnecessary programs. “Remember, that’s what Bennett said he would do when he launched his budget last summer,” Rush warned. The CP leader emphasized that measures could be taken to cut the deficit, “but no one addressed themselves to those “measures. “eres “Every year more millions are spent on the military,” he said, citing the $9.5 billion budget for 1984-85. “And the Tory defence critic said just last week that he would double military spending, particularly on conventional arms. . “How can Mulroney be so hypocritical as to say he will cut — the deficit in half when his party is committed to that increase ~ in military spending?” he demanded. / = He slammed Turner’s and Mulroney’s total reliance on the as IBUNE PHOTO — SEAN GRIFFIN ‘tion course based on an ideological” MIGUEL FIGUEROA. . .CP candidate in Vancouver-Eas commitment to an ‘open-shop, right to-work’ philosophy.” ar The motion noted that there were ” “other facts and concerns — whi¢ suggest Expo mismanagement” includ- ing questionable financial projections, cancellation of one gate of Expo ane” the off-site housing, both previously planned, and “unrealistic estimates” 0 turnstile receipts. It also pointed to the “‘as yet unad- : dressed question of the 18,000 employees that are required on the site during — operation”, particularly their wage and'conditions and union rights. ~ _ In endorsing the motion, council | - dismissed a proposal floated by Liber candidate Paul Manning for a 60-day truce on the site until after the feder election at which time he would pres for adjustment of the federal fair wage which is still pegged at 1981 levels. Aldermen noted that if the waae were adjusted, it would roughly eq the rate laid out in the last agreement which was scuttled by Expo. But in the meantime, they warned, several con- tracts could be let, possibly to no® union contractors who have flocked t bid after Expo re-opened the pr qualification ‘bidding. Some 20 con: tracts are to be let over the next 30 days: The motion also drew a: predictable, if particularly acid reply from Premict Bennett whose renewed attack on city council only underscored the role the provincial government has played 18 carrying out the anti-union agenda 2" Expo. Strangely, he accused the federal 20 ernment of constructing the Cana! Harbor Place project without bringing the site under the provisions of the fe eral fair wage law. But the project which will be the site of the Canadi@! Expo pavilion, is being built entirely union workers whose wage rates 4% negotiated by the Building Trades. Debate evades issues, says CP Z Rush emphasized that he was “never so impressed with the need for the Communist Party to be in the election campal as after the leaders’ debate. a “Tt is vitally necessary to have the Communist Party top forward strong alternative policies and policies for 14 employers are reluctant to take on new employees, . 2 e PACIFIC TRIBUNE, AUGUST 1, 1984 private sector for job creation. “The fact is that the economic crisis that we’re in cannot be tackled without government intervention and government action.” =" Rush noted that Ed Broadbent had tackled some issues but _ added that the NDP leader had not discussed questions such as nuclear disarmament and cruise testing and had not put forward economic alternative policies despite the opportuni- ties during the debate to do so. Pe : For example, “He had an ideal opening when he was asked about job-sharing and income-sharing to propose the shorter © work week, — but he didn’t,” he said. change,” he said. Figueroa echoed the importance of the CP campalé emphasizing that the party “is in the election, not only t0 heard but to get every vote possible for our program.” He also focused on local issues in Vancouver East, includ ing pressing the development of a merchant fleet to oe shipyard jobs; developing the fishing industry to bO?" employment in local fish processing plants; and embarlit on a massive housing construction program to answet e “desperate need for housing, particularly affordable housing