HomeMy WebLinkAboutTimes-Advocate, 1978-11-30, Page 8 (2). Times -Advocate, November 30, 1978
By JACK RIDDELL
MPP Huron -Middlesex
The Treasurer of Ontario,
Frank Miller, has conceded
that the effect of Alberta's
action -in providing tax
breaks to oil companies may
not be in the best interests of
all the Provinces, but , said
the federal government was
Ottawato blame for tax breaks
mostly to•blame.
He maintained that
Alberta's move is the result -
of its fight with Ottawa over
the allowance of royalties
charged against operating
costs. The Federal Govern-
ment has refused to permit
companies to deduct from
federal taxes royalties paid
to Alberta, ani that province
tiaS _responded by allowing
companies based in Alberta
to deduct royalty payments
on oil and gas productiopS
from the income on which
they .pay provincial taxes.
The Treasurer has stated
that Ontario is not in a
\e've TVOt what it to . -es
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position to grant such an
incentive.
Shell Canada Ltd. ,and
Imperial Oil Ltd of Toronto
have. established - Calgary -
based subsidiaries.. which
will handle their natural
resources activities. General
administration, refining and
marketing will continue to be
the responsibility of the
Toronto head office.
Gulf Oil Canada Ltd. is
also considering whether it
will consolidate some of its
operations in Calgary to take
advantage of the incentives.
When Liberal Leader
Stuart Smith asked the
Treasurer to protect Ontario
against what he called
Alberta;s somewhat un -
Canadian attitude" in en-
ticing away Toronto based
oil companies, the Treasurer
said - he shoulcj look to
Ottawa.. "I would suggest
that the Federal Govern-
ment is trying, perhaps
unsuccessfully, to interfere
with the resource owner -ship
the provinces currently
have..
He told the Legislature'the
by-product of Alberta's
action is that it become
profitable for oil companies
to move tsometimes mostly
on paper) their operation
from Ontario. •
The Treasurer.' indicated
that he is sympathetic to the
oil -companies, and "if 1 was
a- president I'd do the same
thing." However. estimates
of revenue Lost in cor-
pdration.taxes because of the
move range from S25 million
to $50 million.
Government and op-
position members of the
,Ontario Legislature's justice
committee disagreed
sharply on whether former
Ombudsman Arthur
Maloney should be allowed
to cross-examine witnesses
during an investigation into
the controversial phone call
made- by. former So1W itor- '
General George Kerr to a
Crown prosecutor.
The committee has ad-
journed until next week
without making a decision.
Mr. tilaloney is 'representing
Mr. Kerr, ,the . former
Solicitor -General, in the
committee's inquiry in the
propriety of the call to an
assistant Crown attorney
about a court case involving
a constituent.
The Attorney General, Roy
McMurtry, told the com-
mittee that to grant Mr. Kerr
the right to counsel without
allowing the counsel to cross-
examine witnesses is unfair.
"This is a very serious
matter and to suggest that
this is not in the nature•of a
trial is absolutely
ludicrous he said.
• However, Liberal
Margaret Campbell and
NDP's Patrick, Lawlor
argued that giving a lawyer
the right tQ cros�-
examination in committee
would in effect tura the
.proceedings into a trial.
"When it comes to the
operation of a committee of
the Legislature, we should
not be trying to bring this
into a trial.atmosphere ..
To suggest. in any way,
we're trying a member of the
Legislature is completely
fallacious."
Mrs. Campbell, the
Liberal Justice Critic, said
she is concerned primarily
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with whether justice is ap-
plied equally' to all people
and with whether the ad-
ministration of justice was
properly protected in the
Kerr case. Alf Stong (L.
York Centre) said Mr.
Maloney should have the
right to advise and assist his
client, but should not he
permitted to cross-examine
witnesses before the com-
mittee.
The Provincial Treasurer
has attempted "to outline
our basic fiscal position and
to provide early notice to the
municipalities and
schoolboards of our spending
plans for 1979-80." He in-
dicated that "in the year
prior to Ontario's initiation
of fiscal restraints in 1974-75,
year over year spending
increases were running at
almost 25 Percent.
Mr. Miller' asserted .that
recent federal budgetary
moves will mean a reduction
of some $400 million in our
revenues% next year. He -
stressed that theGovernment
is still committed to a
balanced budget and
determined to reach that
goal as soon as it is fiscally
possible ... "assuming an
annual growth rate in the
range of nine percent in
revenues Ontario will be able
to balance its budget by
-1984".
The Treasurer stated that
members of the municipal
liaison committee have
recommended that im-
mediate abandonment of the •
"revenue-sharing formula
known as the Edmonton
Commitment and that
transfers of provincial funds
tommunicipalities in 1979-80
be 'commensurate with the
rate of growth of provincial
expenditures.' "
He advised the Legislature
that the government is
prepared to accept both
these recommendations
Spending by ministries for
exisiting programs will be
limited to an increase of
about 5 percent in the year
1979-80; increasesintransfers
to local governments and
schoolboards will average 5
percent also.
Earlier in the week,
Treasury officials indicated
that the government in-
tended to place tight limits
on grant increases. These
grants are for uses ranging
from roads and public
transit to social assistance
and health. Officials said the
limits will be imposed in
"flexible" areas, such as
transportation, culture and
recreation and en-
vironmental protection.
Traditionally, the
municipalities have been
notified in September about
the size of their grants,
which until last year were
equal to the province's
growth in revenue.
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