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.

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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