The Goderich Signal-Star, 1979-09-20, Page 32GODI RICH SIGNAL -STAR, THURSDAY, SEPTEMBER 20, 1979—PAGE IIA'
Nobody knows about farm taxes...yet
BY ALICE GIBB
Assessment com-
missioner Floyd Jenkins,
speaking to Huron
Federation of Agriculture
members in Belgrave
recently on the
subject of tax
equalization factors, told
his audience "somebody
organized a horse race
before there were any
horses."
He said the big change
is that factors for rural
municipalities have
decreased to am greater
Not too optimistic
about chicken deals
Ontario chicken
producers will be
seriously hurt unless the
Federal Government
takes a strong stand in
this week's negotiations
with the U.S. on broiler
imports, Peter Hannam,
President, Ontario
Federation of Agriculture
(OFA), said recently.
Hannam said farmers
have seen Canadians go
cap in hand to the
Americans too often to be
optimistic about the
negotiations which began
on September 19.
"The Americans know
how to be tough," he said.
"When Canada arrested
a few U.S. tuna fisher-
men, what happened?
The Americans em-
bargoed our tuna. That's
the kind of backbone our
negotiators need."
He said the current
problem with chicken
imports has developed
because the previous
government had
procrastinated in
establishing a national
chicken agency. A few
companies, in the hope of
receiving large import
quotas, have taken ad-
vantage of the delay by
increasing their chicken
imports. The result is an
oversupply and distress
prices for the processors
and producers.
Hannam sent a letter
earlier in. the week' to
Federal Agriculture
Minister, John Wise,
urging him not to reward
these few companies who
have tried to destroy the
domestic industry. What
lie :reed he said, are
h is q'uota's allocated
-among processors on the
basis of their market
share of domestic
product rather ;than on
their import base.
He also urged that
retailers not be allowed to
import chicken directly.
Hannam concluded by
saying that 'while
Canadian negotiators
should be instructed to
stop the present flood of
imports, it must be
stressed to them that the
most important issue is to
Riddell
BY
JACK RIDDELL,
M.P.P.
I am pleased to an-
nounce that the National
Chicken Agency is now
fully operational and that%
the Federal Assistant
Deputy 'Minister of
Agriculture, Dr. Trant,
went to Washington on
September 19 to begin
negotiations for import
controls with the U.S.
Department of
Agriculture.
For some time, I have
pressured the federal and
provincial governments,
because I firmly believe
Ontario's chicken in-
dustry will only survive if
immediate and effective
action is taken to restrict
U.S. imports. In my view,
the importation of live
chicken from the U.S.
should cease until the end
of the year and a
regulatory system for all
importation . of
have future imports
reduced to the level of the
early 1970s.
extent than they have in
urban municipalities
across the county. This
means "costs to rural
taxpayers will increase
much more rapidly than
to urban municipalities,"
the assessment com-
missioner said.
He told the audience he
doesn't know how these
factors will be used in
assessing 1980 taxes and
said -"anything you hear
or read is strictly sup-
position at this time." He
said a "wait and see"
attitude is called for.
RM
Mason Bailey,an
audience member, told
Mr. Jenkins, "I don't
think the public cares
about all this rigamarole
other than how much
money we're going to
pay "
Mr. Jenkins said, "You.
don't know and I don't
know that our taxes are
going to go up."
The matter is now in
the hands of the
provincial government
and a decision from the
legislature is expected
early this fall. Then
municipalities will have
between that time and
November 1 to appeal the
equlization factors.
Mr. Jenkins said there
isn't any way to find out
more information until
the provincial govern-
ment makes their
decision.
Another federation
member asked the
assessment com-
missioner if the basis for
calculating the
educational tax isn't
wrong. The man said
"houses, not land, send
•
b
:'ane loot in the
furrow' bYaaa.e�
Nobody is going to believe me but I'm going to say it
anyway: Food is still.a bargain in Canada.
Before every homemaker in the audience loads a
shotgun, let me explain.
The- Fraser Institute of Vancouver has piibl'ished a
book with enough statistics to boggle my un -
mathematical brain. It is an independent economic
and social research educational institution with no
special axe to grind.
The book, Tax Facts, has the figures to prove that
food costs across Canada have not increased as much
as other sectors of the economy. Which isn't to say
that food prices have not increased, mind you. They.
have, but not as much as most people think.
It is in other areas that the tax -paying public is
being milked. For instance, the consumer tax index
tracks .the tax bill faced by the average Canadian
family from 1961 to 1978. The index includes collec-
tions at the federal, provincial and municipal level
along with all the hidden taxes paid on so many
products. ........:.... ..
It includes income tax, property tax, oil and gas tax,
liquor tax,.sales tax, motor vehicle tax, amusement
tax and all other taxes. This consumer tax index, then,
increased 302 per cent between 1961 and 1978.
The cost of shelter increased 255 ,per cent since 1961.
Clothing costs increased 200 per cent.
But food costs increased only 172 per cent.
Why is it that everybody screams so hard and long
about the cost of food when everything else increased
by a greater percentage? Because food is so visible:
We all have to eat and food shopping is done so
regularly that the increases are noted weekly.
Income and property taxes, for .instance, don't get
paid every week. The tax bite on income comes only
once a year. Theproperty tax bill comes only three or
four times a year. We don't buy.:clothing'every week,
either.
on chicken case
eviscerated chicken
should be implemented.
Our chicken industry is
in serious difficulty due to
increased U.S. imports,
which for Ontario are 91
per cent higher this.. year
than last. More than half
a million live birds are
backed up on producers
farms in this province
and Canadian frozen
inventories are 176 per
cent higher than the same
period last year. Live
prices to producers in
Ontario are four cents
below production costs,
which are increasing.
Chicken production has
been regulated in this
Province since 1965, and
the prime objective is, of
course, to ensure that all
market requirement's are
met, at the same - time
avoiding' the disastrous
results of over -supply.
With the exception of
Newfoundland, all
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provinces have programs
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vary. The system fun-
ctions effectively if. there
is a minimum of outside
intervention. ' However,
provincial planning is
completely frustrated by
unregulated • US imports.
Under the terms of
GATT, a nation must
demonstrate orderly
marketing before import
controls can be
negotiated. Now that the
National Chicken Agency
is fully ol;er'ational, an
has established a system
of penalties for over-
production in Canada,
there is every reason to
hope that the U.S. threat
to our chicken producers
can be removed.
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Feeders
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Stabling
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Liquid Manure
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Hog Equipment
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Letters are appreC aced by Bob Trott*, Eidaie Rd Eim.ra Ont N38 2C 7
What should be noted, too, by the harassed
housewife is that what comes out of the supermarket
is not all food. The grocery carts are filled with other
items that cannot be included in the food bill such as
cat food, dog food, soft drinks, toilet paper, facial
tissue, hardware, glassware, cigarettes, soap,
detergent, candy and anything else that the modern
supermarket entices us to buy.
Supermarkets in Ontario, at least, are in one of the
most competitive situations .of any business. The big
chains are fighting to maintain or increase their share
of the 'market. A wise shopper can save. money by
checking the specials and stocking up on them.
The top men , in these chains have been un-
derstandably reluctantto.:eveal.too much about their
profits at the provincial inquiry into discounts and
allowances. It is a good guess, though. that many
chains work on a net profit of about three per cent on
some items. Which isnot a ripoff.
Canadians spend less than 20 , cents of their
dis .o.sa.ble.,in m.. .
p co e dollar.on food -, -a rE3.cQrd second only -
to that of the United States. In many parts`of the world
every moment and every resource is spent on trying to
fill an empty stomach.
We are fortunate in this country. We worry about
getting gasoline for a second car. Billions of people
worry about filling an aching gut. They don't even
have a first car to fill. In fact, they would be happy to
live in our gar'ages.
Food, then, is still a bargain.
That consumer tax index is something else, though.
I wish I could convince myself that our tax dollars are
being spent wisely and well. Taxes have increased a
whopping 302 per cent. Add to that the deficit just at
the, federal level and you wonder where this country is
going.
Complete Automotive
Machine Shop -
and
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Let US do the work....
IDEAL SUPPLY
COMPANY LIMITED
145 HURON ROAD, GODERICH
524-8389
•
Established 1876
McKILLOP MUTUAL
FIRE INSURANCE COMPANY
HEAD OFFICE: 10 MAIN ST., SEAFORTH, ONT.
Mrs. Margaret Shar`p. Sec. Treas. Ph. 527-0400
FULL COVERAGE
Farm and Urban Properties
Fire, Windstorm, Liability, Thelt
Various Floater Coverages
Homeowner's, Tenant's Package, Composite Dwelling
DIRECTORS AND ADJUSTERS
Ken Carnochan, R.R.p4, Seaforth
Lavern Godkin, R.R.61, Walton
Ross Leonhardt, R.R.61, Bornoholm
John Mt:Ewing, R R.61, Blyth
Stanley Mctlwain, R.R.N2,3ode1'f ,
Donald McKercher, R.R.61, Dublin
John A. Taylor, R.R.41, Brukelietd
J.N. Trewartha. Box 661, Clinton
Stuart Wilson, R.R. 61, Brucefield
AGENTS
E.F. 'Bill' Durst, R. R. 84, Seaforl h
James Keys, R. R.#1, Seeforth
Wm. Leiper, R.R.81, Londesboro
482-3354
927-1877
345-2234
523-9390
524.7051
527-1837
482-7527
482-7593
527-0687
527-1455
527-0467
523-4257
CALL AN AGENT OR THE OFFICE
asked whether, "we
should be taking that
view of t municipally?"
Mr. Jenkins did assure
the audience equalization
factors would be
calculated on valid
farmer -to -farmer sales of.
land across the county.
He pointed out the pric.e
of farmland has in-
creased drastically since
1971 when the provincial
government put a freeze
on assessment. Mr.
Jenkins • told the
federation members,
"inflation in values in
urban municipalities has
not been as great as in-
flation in rural
municipalities." He, said
while land prices have
gone up for farmland,
they haven't increased as
much in towns like
Clinton and Goderich.
Mr. Jenkins concluded
by saying the change, in
the equalization factor
will eventually affect all
taxpayers. Under the
present cost sharing
system in effect, the
towns and villages in the
county pay a greater
share of county expenses.
However, township
residents claim urban
populations gain much
greater benefit from
county services such as
sewers and water er,
systems and should pay
for those services.
Many members of the
audience still seemed
perplexed at how the
equalization factors will
affect their taxes and
township mill rate in the
coming year at the
conclusion of the
meeting.
In' reviewing his past
year as a member of the
Ontario Federation of
Agriculture ,board of
directors, Merle Gunby
told federation members
he believed the most
significant activity was
the food' industry inquiry
initiated by Peter' Han -
nap.
_He...sa.id....h...
e feels the
food inquiry has pointed
out the need .,for• the
Ontario Federation of
Agriculture and
marketing. boards to
improve their marketing
activities and pointed out
the practise of discounts
and allowances in the
retail food industry to
consumers.
He said other
significant steps had been
the amendment to the
Petty Trespass Act and
the institution of the
Farm Price Index, which
shows the consumer
wh'ere his food dollar is
going.'
Mr. Gunby said the
index, which is carried in
many newspapers across
the province, "quite often
shows farmers are not
responsible for the in-
crease in food prices."
He said the OFA's
greatest failure was "we
failed to get the gover-
nment to take agriculture
seriously." Among
examples of this he said
they had failed to get the
government to take
action and pass "deceht
farm machinery
legislation", had failed to
stop imports of
agricultural products and
that GAAT trade
negotiations in Tokyo
proved disappointing
from an agricultural
point of view.
FARM CLASSIFIED
SECTION
A. For sale
STRAW FOR SALE.
Phone 529-7542.-38
10 YORK-LANDRACE
first litter gilts bred
Duroc. Phone Randy
Kerr 529-7680.-38x
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Phone 524-8021.-38,39
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The next decade
may be the most Challenging of all
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Don't miss
at the 1979 International Plowing Match
presented by