The Rural Voice, 1979-11, Page 25Hannam warns
of tax increases
up to 50 per cent
Ontario farmers can expect their local
taxes to rise by up to 50% next year, Peter
Hannam, President, Ontario Federation of
Agriculture (OFA) warned farmers
Hannam said Peterborough County
farmers could see their taxes go up
10-40%. Taxes in urban areas of the county
are expected to drop. Similar rural in-
creases are expected throughout the rest of
Ontario.
The larger increases for rural residents
are due to the provincial government lifting
the freeze on equalization factors which
have been unchanged since 1970.
Hannam said that since the freeze in
1970, pressures have forced up the value of
farm properties much faster than urban
properties. As a result, farmers would be
forced to bear a larger share of county and
regional costs.
"The shift of costs from urban to rural
areas is unacceptable", said Hannam.
"Taxes should be based on the ability to
pay and not on inflation -inflated land
values."
Hannam said the provincial government
had already recognized the injustice of the
present tax system when they introduced a
farm tax reduction program. This shifting
-'f costs to rural municipalities will make an
unjust system worse.
Hannam concluded that if the provincial
government insists upon this readjustment
of county costs, the OFA will demand a
compensating adjustment be made im-
mediately in the farm tax reduction
program.
Consumers not
represented- ex egg
board chairman says
Murray McBride, chairman of the
Canadian Egg Marketing Agency, re-
signed recently, bringing the controversial
organization into the public eye again.
Mr. McBride told Agriculture Minister
John Wise that he was resigning the job
because it has become impossible to
represent consumer interests in the
agency.
He told reporters that he hopes his
resignation wilt "make the directors realize
that the next chairman will have to be a full
chairman." Mr. McBride said Max
Roytenberg, the agency's general
manager, cut him off from the normal
information flow of the agency and he
could only get what he specifically re-
quested.
The operation of the national egg
marketing system is paid for by a five -cent
levy on every dozen eggs sold in the
country. The agency was the center of
controversy in 1974 when28 million eggs
rotted in storage. It was also blasted earlier
this year when the Agriculture Economic
Research Council said consumers were
paying from nine to 14 cents per dozen
eggs too much.
The agency has recently announced it is
increasing the price farmers receive by one
cent a dozen due to the increase in lending
rates by the Bank of Canada.
Lorne Nystrom, the NDP's agri-
culture critic, called for an immediate
investigation of the resignation of Mr.
McBride • by the Commons agriculture
committee and by the National Farm
Products Marketing Council, the federal
overseer of marketing boards.
Former agriculture minister Eugene
Whelan, who originally appointed Mr.
McBride, a former Liberal MP, to the
position of chairman of the agency, said the
agency doesn't appear to be working as it
was set up to do.
Government insiders weren't suprised at
Mr. McBride's resignation.
The egg agency is also under attack by
companies who supply eggs to bakeries.
These processing companies are com-
plaining there aren't enough eggs
available for both bakers and consumers.
Soya beans to Asia
The Ontario Soya -Bean Growers'
Marketing Board have sold more than
$700,000 in Ontario soybeans to Asian
markets. The beans have been bought by
Malaysia, Indonesia, Singapore, the Phil-
lipines and Hong Kong.
A provincial government trade mission
went to Asia last month.
Otis McGregor of Chatham, manager of
the soya -bean board, said the market
seemed dead when they were in Asia "but
since we got back the sales we did make
there seem to have spurred other cus-
tomers to buy to compete."
Mr. McGregor said the board has made
sales since his return.
Last year sales to Asia were good, but
Mr. McGregor hopes the trade mission's
visit will increase sales this year.
Mr. McGregor said about 80 per cent of
the crop is still in the fields due to the
recent wet weather and this has delayed
the harvest. However, he doesn't foresee
damage to the crop as a result of the deli
THE
US - Canada chicken
talks end
Gerry Trant, senior assistant to the
deputy minister of agriculture, said re-
cently that consultations with the
Americans on the question of U.S. chickens
being imported into Canada, have come to
an end.
The import level agreement will now
have to be approved by the cabinets of both
countries.
While Mr. Trant wouldn't discuss the
details of the agreement, there is concern
by farmers' organizations that Canada will
be too lenient on U.S. imports, while some
consumer advocates feel the restrictions
will be too tight.
Current surpluses in both countries have
meant loNA chicken prices.
Cattleman says higher
interest rates hurt
farmers, consumers
Charles Gracey, manger of the Canadian
Cattlemen's Association, said higher inter-
est rates are bad news for both beef
producers and consumers.
Mr. Gracey was in Chatham speaking at
the annual Kent County Beef Cattle
Feeders Information night.
He estimated a 14.5 per cent interest
rate increase will mean 17 cents on the
price of every pound of beef, if cattlemen
are to get a fair return on their investment.
This increase means the average price of
beef in 1980 could go to $2.80 per pound.
Mr. Gracey said the uncertain economic
climate and high prices mean cattlemen
must make hard decisions on what they
plan to do with their operations. He
predicted some beef feeders will be cutting
back.
If the economy stabilizes, the speaker
said it might be possible for consumers to
pay the higher beef prices and for
cattlemen to survive the squeeze. However
if it doesn't, Mr. Gracey said it may be a
good thing that beef supplies have been cut
back from a per capita 101 pounds in 1978
to a projected 88 pounds in 1980.
Mr. Gracey said despite all the criticism,
the consumer is still spending the same
percentage of his disposable income on
beef.
RURAL VOICE/NOVEMBER 1979 PG. 03