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HomeMy WebLinkAboutThe Citizen, 1998-11-18, Page 7Your first investment choice A good financial advisor Helen M. Hetherington and Associated Financial Planners Limited are dedicated to helping you achieve your financial goals. We assist you through 3 important steps: determine where you are now, determine where you want to be in the future (your goals and objectives) and design a plan to achieve your goals. We also provide: • Friendly, personal attention and service • Various financial products from independent sources • On-going professional and experienced advice • Comprehensive and sound financial planning HELEN M. HETHERINGTON AND AFP - Your financial solution Associated Financial Planners Limited Bus: (519) 887-9964 Toll Free: 1-800-869-8922 Fax: (519) 887-9967 R.R. #3, Brussels, Ontario NOG 1HO Owen Sound Branch: 887 - 3rd Ave. E., Suite 101, Owen Sound, Ont. N4K 2K6 Tel: (519) 371-8980 .11FP Associated Financial Planners Limited Helen M. Hetherington Financial Planning Consultant We balsg it fresb, wholesome, and delicioas daily! Starting this week, we'll be baking bread and rolls on Sunday too! Store hours: Monday & Tuesday 8:00 a.m. - 6:00 p.m. Wednesday, Thursday & Friday 8:00 a.m. - 9:00 p.m. Saturday 8:00 a.m. - 6:00 p.m. Sunday 12 noon - 5 p.m. SCRIMGEOUR'S FOOD MARKET Blyth 523-4551 THE CITIZEN, WEDNESDAY, NOVEMBER 18, 1998. PAGE 7. Federal surplus inspires strong opinions at meeting By Janice Becker Citizen staff November winds could not keep people from coming out to speak their mind about the distribution of excess federal funds. Strong feelings and definite opin- ions were expressed last Tuesday at a public forum hosted by Huron- Bruce MP Paul Steckle and Parlia- mentary Secretary to the Minister of Finance Tony Valeri, at F. E. Madill Secondary School. The audience was told there were several options for use of the employment insurance money, including reducing employment insurance premiums, paying down the national debt, investing in health and education or cutting per- sonal income taxes. However, speaker after speaker called for a reduction in premiums. They said it should go to the peo- ple who paid into it, the employees and employers. It is an insurance policy and those who have not paid into it should not get a reduction on their income tax. Providing background Valeri, MP for Stoney Creek, said the forum was being held to provide the government with feed- back on how to deal with the esti- mated $6 billion surplus collected for insurance premiums. An auditor has recommended the Ministry of Finance maintain a $10 to $15 billion surplus to handle recessions or the impact of a crisis sucn as has occurred in Asia which affects the Canadian economy. According to 1996 regulations, the ,premium rate is to be set at a stable level to retain the surplus yet cover periods of increased unem- ployment. Though the economy has felt pressure in recent months due to the Asian situation, Valeri said Canada has the lowest interest rates in years and is forecast to have the most rapidly-growing economy in the coming year to lead all G7 nations. In detailing the options available, Valeri emphasized the need to cre- ate a sustainable situation. "There is not enough (surplus) to do every- thing to the extent people want. If we were to reduce employment premiums to the level people want, we would go back into a deficit. That would also limit other action." With regards to income tax, Valeri said Canadians pay the high- est rate of all the G7 countries yet have one of the lowest payroll taxes. "(Income taxes) are our area of vulnerability," he said. He estimated 14 million Canadi- ans would benefit from a reduction in income taxes while only 8 mil- lion would gain from a drop in pre- miums. Question period Doug Garniss of Morris Twp. immediately questioned the benefit of an income tax break as seniors and low income families do not pay much tax. Valeri said the change to income tax would focus on the personal exemption. "There are a lot of low- income Canadians. They earn less than $8,000 and still pay some form of federal tax. By increasing the personal exemption, we take 40,000 people out." Many speakers told Valeri they wanted to see those who paid the money compensated, either through the return of funds or a reduction in premiums. Speakers indicated that a reduced premium would put money back in the pockets of employers, thereby creating jobs. It was also stated that students should not pay employment premi- ums as they are not eligible to col- lect. Valeri said the government has incentives for hiring students and there is a premium break. The government has no reluc- tance to reduce premiums, Valeri said, but they want to know how much. "We must know if you want all $6 billion in employment insur- ance. It would be a one-line bud- get." Quoting the overall 6.5 per cent deduction from the payroll for employment insurance, Doug Fines of Goderich said the amount paid is often more than the profit achieved by small businesses. He asked for a 19 per cent reduction in premiums, saying it would be significant to the employer. Just a one per cent change in the premium rate would cost the gov- ernment $190 million, Valcri coun- tered. Valeri was asked, if all funds from many sources of revenue are in one pot, why employers must go to so much work to submit it. He was told "if it is all in one fund, it should be simplified. Have one tax." Arnold Hester of Stephen Twp. agreed, saying all money should be under income tax, making it all eli- gible for RSPs. "We are moving away from income tax to taxes that the govern- ment has 100 per cent control over. A person has no way to adjust it," he said. Valeri said it was not the govern- ment who wanted all monies in a single fund, but the auditor general. If it is a separate fund, it would have to be self-sustaining through payments by employers and employees. The government and taxpayers would no longer be responsible to cover deficits, he said. Doug Hamilton of Bruce County asked that the money be used to increase the benefits for laid-off workers. "The surplus is not from increased premiums," he said, "but from more people cut off. They reduced the percentage of dollars paid out based on income, cut the number of weeks eligible to collect, increased restrictions on repeat users and disqualified others if they quit or were fired." In a reform of unemployment benefits in 1996, cross-country debates showed that most Canadi- ans thought the benefits were too generous, a disincentive to work, said Valcri. Alex McDougall and Barbara Langer of Morris Twp. and Stuart Alton of Lucknow asked that the surplus be used to decrease the national debt. Alton said consideration should also go to reducing taxes. After suggestions that some of the money could be invested in health care and education, Langer said it was not needed. "There is still a lot of fat. There are areas where there can be sav- ings. A lot of re-organizing still needs to be done. If money goes back it will undercut the re-organi- zation. It would be pain for noth- ing." As another suggestion for a use for the surplus, Leonard Smith asked that it be put into the Canada Pension Plan (CPP) as all who worked would eventually get the pension. Valeri said this was not an option as the CPP is held separately from government funds. When asked about earmarking the premiums for benefits, Va,leri cautioned that earmarking would limit flexibility. Once the money was gone, that would be it. All those in attendance were asked to fill out a questionnaire indicating their preference for use of the surplus. A tabulate result is expected in a few weeks. Writer says trustees' duty to public, not staff THE EDITOR, The Avon Maitland District School board insists that the Huron/Perth community needs more funds for the operation and renewal of its schools. It is imperative for our community to find those funds using options that do not include closing schools. There have been a number of statements and reports from the AMDSB indicating that all possible cuts to administrative spending have already been made. This cannot possibly be true. The board has pointed out that four or five senior administrators have retired from the combined Huron and Perth AMDSB. The grapevine reports that savings of about $800,000 have resulted. While this may be a significant amount of money, the savings have not caused the board to deflect from their obsession to close schools. The board has consistently refused to acknowledge the possibility that other administrative and overhead savings can be realized in addition to those from this retirement of senior staff. But consider this: according to data supplied by the board, in 1997 Huron and Perth's combined spending on non-teaching salaries, wages and benefits plus spending on supplies, services, travel and equipment related to non-teaching positions was a whopping $12 - $13 million. Non-instructional spending continued through the January - August, 199'8 "Stub Year" at essentially the same rate. The director's March 31, 1998 Action Report recommending the Adoption of the "Stub Year" budget contains a telling reference to a continuation of all employment statuses in place as of Sept. 1, 1997. The trustees adopted this budget plan in an April 14, 1998 resolution. In doing so they voted to protect all overlapping, redundant non-teaching jobs associated with the administrative spending of the board, while setting off to reduce spending by closing schools. The effect of this decision has been an unnecessary burden of stress on the Huron-Perth community. When the Huron and Perth boards amalgamated, a new school board was created with two completely duplicated sets of non- teaching staff. Elementary reasoning cannot but confirm that this new board must have several extra employees in the dozen or so twinned administrative departments. The Toronto District School Board has announced plans to cut its non-teaching staff by 50 per cent yet the AMDSB has revealed no plans to cut even a single position. Surely the board can find the $2 or $3 million it says it is short in that whopping $12 - $12 million overhead budget. It is regrettable that some non- teaching jobs must be eliminated, but remember, those jobs are a privilege not a right. Our schools must be kept open at all costs. The privilege of the few must yield to the good of the many. In contrast to the actions of the AMDSB, Huron and Perth's health care sector has made the necessary tough decisions. All of the hospitals have remained open. How long have the trustees put us on the hook to protect 1997 administrative expenditure levels? Expenditure levels which are grossly excessive for the now combined board. It is clear where Huron and Perth can find the operation and renewal funds to keep all schools open. The public must demand that our schools be kept open using the option of substantial cuts in administrative spending and diverting the money so saved to school operations and renewal. The trustees have a duty to keep our schools open. They were not elected to serve the staff, they were elected to serve the public. Charles Smith, P.Eng., President SDHS Student Success Foundation.