HomeMy WebLinkAboutTimes-Advocate, 1980-08-20, Page 51/2 PRICE
on
CUT AND STYLE
for all students 14 and under
Aug. 20-30
B firr
SCHOOL
SPECIAL
• ti
Two locations to serve you:
Designer's
Unisex
Hairstyling
10 Main St., Grand Bend
238-2412
Designer's
Phase II
180 King St., Hensall
262-2402
We'll Do
the lob
Right... -1111111Wit
We've Moved Our Office
we are now located at our Exeter shop
Whatever the project, call on us for
Ready-Mix Concrete
• RESIDENTIAL • COMMERCIAL
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Plant: 235-0833 Office: 235-1969
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235-1933
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355 MAIN STREET, PHONE 235-1990 FURNITURE LTD. CHAHGLC
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Timis,Achrocuto,. August 20, 1980. Paws 5
Pension funds. wove ,controversial
PLOWING QUEENS — Clare Paton, of the Middlesex Plowmen's Association helps Ontario
Queen Peggy Kniesz and Middlesex Plow Queen Carolyn Adams on to the float at Satur-
day's Lucan Fair parade. The float was publicizing the 1982 International Plowing Match to
be held in Lucan. T-A photo
Plan classes
for breathing
in Stratford
The fall breathing classes
will begin September 15, at
the Conestoga Regional
Nursing School, Youngs St.,
Stratford.
Children and adults may
be registered on the above
date at 7 p.m. and 8 p.m.
respectively.
Mrs. Janice Parsons and
an assistant will be in
charge. Al special en-
vironmental speaker will
also be on hand to do some
interesting tests.
If you have any breathing
problems contact your
doctor for consent to attend.
Special breathing exer-
cises have proven beneficial
for many persons. It will be
to your advantage to be
present.
Classes for adults will also
begin Thursday evenings
September 18 tentatively at
7:30 p.m. at Vanastra. Mrs.
Carol Bowker will conduct
the classes in this area.
The Huron Perth Lung
Association is the sponsor of
these programmes.
RY JACK RIDDELL
MPP Huron-Middlesex
No doubt you have been
aware of the controversial
question of pension funds,
There is a great deal of
concern about the best
manner in which to prepare
for the enormous burden
which will be placed upon
these funds in the early part
of the 21st Century.
recent article on this
subject pointed out that by
the year 2031 - projected as
the peak year for the number
of elderly in society
something like 67 percent of
the population will be over 65
years of age (33.7 percent) or
under 18 (33.3 percent).
Comparisons have 'been
made between these
projected figures and those
for 1961 (at the height of the
so-called baby boom), when
87 percent of the population
Was under 18 (72.8 percent)
or over 65 years of age (14.3
percent). This represented a
much higher , dependent
population than at any time
in the next fifty years.
At the present time, the
dependent'group (those over
65 or under 18 years of age)
represents some 61 percent
of the population, with 46
percent young people and
some 15' percent senior
citizens.
Some people may try to
argue that everything will
even out, because it will
simply be a question of
substituting the care of the
elderly for the care of young
people.
What cannot be
overlooked, of course, is the
fact that the costs of raising
children are, for the most
part, borne by the parents of
the children themselves. On
the other hand, the highest
proportion of the expenses of
helping to support elderly
people is paid for through
taxes or levies raised by
governments.
It should also be
remembered that the burden
of caring for young people in
the year 2031 will not be
noticeably lighter for those
in the work force (1 child per
worker is projected com-
pared with 1.2 in 1980). On
the other hand, the number
of dependent elderly will
have more than doubled
(from 0.45, per worker to 1)..
Moreover, the unfortunate
truth is that the hoped for
savings: in education costs,
are not occurring, despite
declining enrolment,
Againg the background of
these facts, we have to
consider the question of the
responsibility of future
working age populations for
those drawing pensions,
Obviously, we need to give
some very serious con-
sideration to the need to
direct sufficient wealth into,
savings and productive.
investment in order to cover
the demands which will be
made upon pension plans in
the futnre.
One of the problems in this
connection is that, because
the whole question of pension
funding is somewhat com-
plicated, it is difficult to
make it a focus of great
public attention.
Over the last three years
or more, my colleague David
Peterson (Liberal Member
for London Centre) has been
trying, as one reporter
phrased it, to convince the
public that "we're hell-bent
in our own complacency for
economic disaster if we don't
start paying attention to
what governments have
and haven't- been doing with
the billions pumped into the
universal and special-sector
pension plans. And he has
been arguing for at least
three years now that many of
the private funds are in just
as much of a mess."
What he has been saying
is, in effect, that there is
likely to be a collision bet-
ween demographics and
economic realities which
could leave a lot of people in
their late 30's or early 40's
wondering what happened to
all that security they thought
they were buying in pension
packages, during their
working years.
To put the question in
fairly simple terms, twenty
years from now in the year
2000, there will be 50 percent
more Canadians over 65
demanding their pensions.
On the other hand, there will
be fewer people paying "the
bill" or contributing to
pension funds or con-
tributing to taxation
revenues.
At the present time, there
is a debt of something like
$14-billion against the
pension plans, with interest
being paid at about a per-
centage point less than the
market rate. Ontario or
instance .borrows more than
90 percent of its money from
public pension plans, mainly
the Canadian Pension Plan,
Blame; for the low interest
rates •paid to the plans
cannot be entirely attributed
to the province, The federal
Government and the
provinces set the rate when
the original conditions were
negotiated for the Canadian
Pension Plan, and the in-
terest rate is based on the
long-term federal bond rate,
CHILDREN'S
SHOES
Factory Im perfects
$999
and
$ 1 1 "
Mens
DRESS SHOES ▪ 'SALE
9 499
s---_
SALE
2 499
which has. historically been
lower than the provincial
rate,
According to. Samuel Rea,
an .economics professor at
the University of Toronto,
who was co-author of a hook
on Canada pension plans,
that rate has varied from
just below market rate to,
1,65 percentage points less.
He maintains it is "an ar-
tificial rate paid to pension
plans and it is inherently a
subsidy to the provinces in
the form of lower interest
rates."
Provincial Treasurer
Frank Miller claims that at
LUGGAGE
SPECIALS •
Discontinued lines
Some Sets
While Stock Lasts
10% OFF
REGULAR
IN STOCK
MERCHANDISE
the time the deal was struck
on pension plan interest
rates, that rate seemed fair.
"We are getting money at a
lower rate... (but) we are
preferred borrower,
He has stated that the
Government won't hurt
future generations because
its policy is to balance the
budget within four years.
Womens'
CASUAL TIES
SALE
$6"
SALE =-
12"
SIDEWALK
SPECIALS
WOMENS
99t
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irluomas ORGANS
are now available at
years to the staff. George is well-known in the area and
welcomes everyone to come in and view the beautiful new
organs in stock. He'll be happy to demonstrate the many
features of Thomas Organs which make owning one a pleasure.
Irvine Armstrong, Bob Fletcher and Gord Ross of Hopper-
Hockey Furniture Ltd. are pleased to announce their store has
acquired the Thomas Organs franchise. They welcome George
Jeater, the previous Thomas Organ store owner for the past four
THE MOST EXCITING
THOMAS FEATURE EVER!
The new Thomas Harmonizer adds real pro-
fessionalism to your music. You can play full chords,
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in combinations and eight separate modes of
harmony are possible. Vary your playing technique
and the sounds and effects are virtually unlimited.
COLOR-G1.0
LIGHTS THE WAY
Thomas' exclusive Color-Glo makes It possible for
even a beginner to play many songs without lessons,
Touch a button and the keys light up to identify the
basic left hand chords and the right hand solo notes.
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and you're playing your own music instantly.