FROM PAGE ELEVEN

“FOREST POLICY”

time in Canada’s history. If the nations
needs are to be met then research must be
given a higher priority.

The I.W.A. proposes that:

(a) 1.5 percent of the forest industries
gross product be allocated to research and
development.

(b) The I.W.A. assist forest research
institutions in securing long term adequate
financing.

(c) The I.W.A. assist forestry schools to
secure adequate financing for needed pro-
grams to ensure that trained researchers
and specialists will be available in the
future.

(d) Encourage provincial, federal and
private research agencies to coordinate
research efforts.

(e) Research and development be relevant
to the needs of industry.

(f) A balance between short and long term
needs be established.

(g) Annual reports be published indicat-
ing the status and direction research is
developing.

(h) Research results are effectively com-
municated to forest industry managers.

FACTS DISPROVE
U.S. SYSTEM

By CLAY PERRY
Regional Legislative Director

The following facts were published by
UAW of Canada in its newspaper Solidarity
and the figures shown disprove those who
have argued that Canadians and Ameri-
cans should accept the North American
system of widespread unemployment, pov-
erty, and the unjust distribution of wealth
that exists in Canada and the U‘S. as the
price for the “‘efficiencies”’ of ‘“market”’
economics.

1. The GROSS NATIONAL PRODUCT
(GNP) is the value of all the goods and
services produced in the economy (e.g. —
cars, machines, hospital care).

For 1979, Canada’s GNP was $260.5
billion dollars; with a population of about
23.7 million people, this averages out to
about $11,000 for every man, woman and
child in the country.

The comparable GNP per person for
Canada and some other countries is set out
below (data is expressed in U.S. dollars).
Switzerland $15,451 U.S. $10,737
Denmark 12,598 France 10,652
W. Germany 12,386 Canada _ 9,256

Sweden 12,335 Japan 8,891
Belgium 11,892 U.K. 7,054
Netherlands 10,843 Italy 5,606

Spain 5,301

About 60% of GNP goes to goods and
services bought by the individual consumer;
about 20% goes to investments made by
private business (construction, machinery,
equipment); and about 20% goes to goods
and services bought by government institu-
tions.

2. Canada’s population is about 23.7
million people and of these, about half
—11.2 million are in the labour force (over

12/Lumber Worker/September, 1980

15 and working or looking for work). In 1979,
about 10.4 million were working and 838,000
(7.5%) were unemployed.

About 85% of taxpayers are wage earners,
about 13-14% are essentially self-employed
(doctors, lawyers, small businessmen) and
1-2% are the corporate elite (owners of
dominant corporations, banks, media).

As of the first quarter of 1980, the unem-
ployment rates amongst some of the de-
veloped economies were as follows:

Canada 7.4% Italy 6.0%
France . 6.8% W.Germany 3.1%
USS. 6.1% Japan 1.8%
U.K. 6.1% Sweden 1.8%

Almost two out of five workers are women.

About one out of every four workers is
under 25.

Out of every hundred workers,

—about 5-6 work in agriculture, forestry,
and fishing.

—about 1-2 work in mines, quarries, oil
wells.

—about 5 work on construction.

—about 20 work in manufacturing.

—about 20 work in the government sector
(teachers, hospital workers, municipal
workers, civil servants, defense, crown
corporations).

—about 47 work in the private service
sector (banks, hotels, restaurants, account-
ants, lawyers, department stores).

Of the non-agricultural paid workforce,
about 3.3 million (39%) are organized. The
Canadian Labour Congress (CLC) includes
2.2 million workers.

Average industrial weekly wages in Can-
ada were $302.70 at the beginning of 1980.

They were:
$328.67 for manufacturing employees
$361.22 for motor vehicle industry employees
$371.97 for aerospace employees
$386.17 for agricultural equipment employees

The following table provides an interna-
tional perspective on pay; it expresses
average hourly compensation (wages and
benefits) in U.S. dollars as of mid-1979.

Sweden $11.89 France $8.17
W. Germany 11.33 Canada 7.97
Netherlands 11.31 Italy 7.38
Belgium 11.30 Japan 5.58
US. 9.09 U.K. 5.46

3. The main institution for organizing
production in our economy is the corpora-
tion. Although there are about 32,000
manufacturing companies in Canada, one
hundred of these corporations employ about
half the manufacturing workforce. Two-
thirds of these hundred corporations are
foreign owned. Together with a handful of
banks and a few corporations in other
sectors (utilities, transportation, retail)
these corporations dominate the economy.

The corporations are owned by stockhold-
ers. Although many ordinary people own
some stocks, the overwhelming majority of
stocks are concentrated in a few hands: 1%
of the population owns almost half the
stocks and the other 99% of the population
shares the other half.

The branch-plant nature of our industry
has meant that:

a) We use high technology machinery
and equipment.

b) This technology is imported, so we are
dependent on U.S. based corporations.

c) Corporations have come to Canada to
serve our domestic market rather than serve
the world market so our plants are neither
export-oriented nor of competitive size.

The above weaknesses in our manufactur-
ing base are reflected in the structure of our
trade. Over 60% of our imports are manu-
factured goods, while less than one-third
of our exports (mostly auto-related) are
manufactured goods. Our share of world
exports of manufactured goods has been
falling, and at a time of intensified inter-
national competition and technological
change, this trend will continue.

Overall, about 25-30% of our GNP is
exported and half our manufactured goods
are imported. About 70% of our trade is with
the U.S.

The Government Sector accounts for
about 20% of the goods and services pro-
duced in Canada (e.g. — health, education,
tax collection). The government is also

involved in transferring an additional 20%
of GNP from some Canadian taxpayers to
others (e.g. — pensions, family allowances,
unemployment insurance).

The Government Sector in Canada does
not account for an unusually high propor-
tion of GNP according to international

comparisons:
Government Government

Expenditures Revenue
as%ofGNP as % of GNP
(1978) (1978)

Sweden 57% 60%
Italy 42% 37%
France 42% 42%
West Germany 41% 43%
U.K. 41% 39%
Canada 38% 36%
U.S. 382% 383%
Japan 23% 24%

The corporate share of direct (income)
taxes was 22% in 1979 while individuals
contributed 78%. Thirty years ago, the
corporate share was 43%.

SOURCE OF INFORMATION: Various Government Agencies