Ke —
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AUGUST - SEPTEMBER, 1972 THE WESTERN CANADIAN LUMBER WORKER VW

CORPORATIONS BENEFIT:

GOVERNMENT GENEROUS
WITH OUR TAX DOLLARS

IWA SHOWS WELL AT
LOGGERS SPORTS DAY

The Sub-Local Chairman of
Local 1-417 IWA Revelstoke,
Bob Garant, reports that the
Knights of Columbus Third An-
nual Loggers Sports Day which
he was Games Chairman of,

_was highly successful and
drew 288 contestants.

A good number of IWA
members from Locals 1-405
and 1-417 participated. Winner

of the Paul Bunyan Award for
all-round logger, was won by
Blake Franklin of Local 1-417.
George Wilson, an IWA
member employed at the

day, from Andy Harvey.

LARRY CAPONERO placed fourth in this power saw event.

— BEST OF THEM ALL. Blake Franklin receives the Paul
% Bunyan Trophy, symbolic of the ‘‘All-Round Logger” of the

GEORGE WILSON winner of the Silver Axe Trophy receives
his award from Alvin Dow, Vice-Chairman of the Sub-Local
of Local 1-417 |WA Revelstoke.

Federated Co-op plant at
Canoe, won the Silver Axe
perpetual award for his
showing at axe throwing and

the obstacle pole event. nually, not including tax re-

Other IWA members who missions, concessions and cuts
made good showings were or depletion allowances.
Larry Caponera, Local 1-417; During the same period, the
Larry de Gans, Local 1-405; Stu’ average rate of unemployment
Turner, Local 1-417; Carl has also increased one-third to
Beam, Local 1-417. 6.4 percent in 1971 from 4.8 per-

All the competitors were cent in 1968.
given an invitation to attend David Lewis, federal leader
the Loggers Day at Golden, of the New Democratic Party,
September 9, and at Nakusp ona recent tour of Nova Scotia,
September 23. launched a scathing assault on
the Trudeau government’s
program of regional economic
expansion.

Mr. Lewis attacked the
government’s flagship of
regional and economic
development with a broadside
of economic statistics pertain-
ing to the issue of handouts to
large corporations.

Excerpts taken from
speeches Mr. Lewis gave in
New Glasgow and Sydney
attest to the alarming benefits
corporations receive through
the taxpayers treasury.

“The working people of Cape
Breton may shake their heads
with wonder when they hear us
in Ottawa complaining about
unemployment in the 6 or 7
percent range. And they have
every reason to do so, for in
this area (Cape Breton) un-
employment often reaches 30
percent or more in winter
while another third of the labor
force lives on wages at the bare
subsistence level.

“The government-run steel
mill (SYSCO) here is now
threatening to close down its
bar mill which will put another
150 men out of work. Although
the ownership is provincial,
there is no reason why the
federal government should not
become involved.

“‘T understand the reason for
shutting down the mill here is
that the equipment is worn out
and old-fashioned.

“Tf that is the case, there is
no excuse for government fail-
ure to provide the capital
needed to replace the equip-
ment and maintain the jobs
that already exist. The raw

Since 1968 government
grants to corporations have
risen by a third from $391
million to $530 million an-

,

ee

GORD CAPONERO shows his skill

materials are accessible here
and the people with the skills to
do the job are available here.
All that is missing
willingness of the government
to act.

“We hear about hundreds of
millions of dollars being ladled
out to corporations by the
federal government to en-
courage them to establish and
expand their plants in the slow-
growth areas. But very little of
it trickles down to the people
who need it most.

“Free enterprise in Canada
is walking on crutches, and if
you are feeling a tremendous
financial burden these days it
is because you and your taxes
are the crutches.

“Over the past years, suc-
cessive Liberal and Tory
governments have spun a vast
web of subsidies that lessen the
risks in business and sweeten
the profits.

‘Look at a few years in the

life of a company like
Canadian Westinghouse.
Between 1965 and _ 1971

Westinghouse received 12.

separate grants from the
federal government as well as
a forgiveable loan from the
Ontario Development Corpora-
tion. All this bounty mounted
up to $3,661,012.

‘‘Westinghouse, during those
same years, received no fewer
than 15 remissions of customs
and excise duty, totalling
$363 ,537.

“Corporations are receiving
huge amounts of your tax
dollar and you have no equity
in their operations. You have
no equity in your own future.

“The first stage of the
Michelin (multi-national tire
company located in Nova
Scotia) operation is a prime
example. Of approximately $80
million capital investment,
Michelin provided little more
than 15 percent or about $12
million of their own money.
The Nova Scotia government
provided a $50 million loan at
an interest rate of 6 percent —
you try getting a bank loan at
less than 12 percent for your
next car, more likely you’ll pay
18 or 19 percent to a finance

at obstacle pole bucking.

is the.

company — the Nova Scotia
government also gave them a
$5 million grant. Then the
federal government provided
$16 million under DREE and
its predecessor plus tax remis-
sions and so on. ay

“Michelin in a submission
last month to the U.S. Commis- -
sioner of Customs stated that
all these grants had nothing to
do with its decision to build in
Pictou County (Nova Scotia).

“Of approximately 93,000
corporations in Canada half do
not pay any income tax at all.
And the 15 percent of govern-
ment revenue they do provide
is immediately returned to
them in grants and handouts
according to Mr. Turner’s
latest budget. In other words, it
is the average taxpaying
Canadian who subsidized the
so-called free enterprise
system despite the fact that
corporate profits have in-
creased 500 percent since 1947
while personal incomes have
risen by just over 300 percent.

“What has happened to the
average taxpayer over the past
several years? In 1951 corpora-
tions paid 28 percent of all
direct taxes collected by the
government and _ individuals
paid 26.7 percent, a fairly
equitable sharing of the tax
burden. In 1973, according to
the May 8 budget, individuals
will pay 49.9 percent of all
income tax and corporations
only 12.2 percent.

“From now until election
day we in the NDP are going to
hammer away at this corpor-
ate welfare rip-off. We are
going to try to show Canadians
just who the welfare bums in
this country really are.”

*TL6L ‘1 JOQUIaAON

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