HomeMy WebLinkAboutThe Wingham Advance-Times, 1989-05-09, Page 5Akiliekg"t,
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THE CARDIFF REPORT
By Murray Cardiff, Huron -Bruce MP
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Canadians have a serious probwas cut to 10 per cent, but despi
lem — our large and growing pub- that progress, the debt continues
lic debt, grow more rapidly than our natio
An hour from now, that debt will al income.
have grown by $3 million. In just It is, thus, with a sense of urge
two weeks, Canada will fall behind cy that Finance Minister Micha
by nearly $1 billion. Wilson embarks on the prese
The cost of financing the debt has budget -cutting course,
also grown. Twenty years ago, 12 Spending will be reduced, an
cents on every dollar collected this will affect a wide range of pr
through taxes went to interest pay- grams. As well, the budget propo
ments. When the Progressive Con- es revenue increases affecting co
servative government took power- porate and personal income taxe
in September 1984, a staggering 32 sales taxation, and the financing
cents of every tax dollar went the Unemployment Insurance pro
toward interest payments. This gram. Effective Jan. 1, 1991, th
year, it will be 35 cents. Government will proceed with th
The recent surge in interest rates reform of the federal sales tax,
shows how vulnerable we are. In These debt control measures wi
just one year, the projected cost ol be worth more than $5 billion thi
making interest payments on the year and $9 billion next year. B
debt has risen by $6 billion. This 1993-94, the annual deficit will b
year, interest payments alone will cut in half, to 15 billion
cost Canadians $39 billion. Clearly, °,,Financial requirements — the
a sudden jump in interest rates am-clunt that must actually be bor-
could be crippling. rowed — will be reduced to $3 bil-
And how did we find ourselves lion from the current $20 billion,
in this mess? By living beyond our and as the deficit goes down, the
means, accumulated debt will shrink as a
The debt places all Canadians in proportion of our national income.
an unacceptable position and this Deficit reduction is not easy.
government is determined -that it Tough choices have to be made, but
must not continue. the budget ensures that the total
The new budget recognizes that package of measures is balanced
to maintain the social programs —reflecting regional circumstances
and high standard of living Canadi- and placing greater burden on
ans want for themselves and for those best able to carry it.
their children, a serious program of This budget is about building for
debt reduction must be undertaken. the future, not borrowing from it.
Already, the government has That is why the government is tak-
made significant progress. In 1984, ing aim at the prime obstacle to that
the debt grew at a rate of 24 per future — the problem of our grow -
cent. Last year, that growth rate ing debt.
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te The cost of successful debt reduc-
to tion may seem high, but the price of
n- failure is unimaginable.
In Agriculture
n- • Federal spending in the agricul-
el ture sector has increased. dramati-
nt cally in recent years, growing from
$3.2 billion in 1984-85 to some $5.8
d billion in 1987-88. Expenditures
o- related to grain assistance alone
s- exceeded $10 billion over the last.
r- five years.
s, This is largely due to assistance
of given to farmers because of the
- price collapse resulting from the
e international grain trade war, three
e major droughts within five years —
federal premium contributions for.
11 crop insurance have increased at a
s greater rate to cover deficits in the
y program. The federal government
e has borne the brunt of the costs
associated with these difficulties,.
and because of' declining market
incomes, there. was the introduction
of the Farm Credit Corporation and
the Farm Debt Review Boards, and
various transition programs to pro-
vide. assistance to farmers in diffi-
culties..
These are all ad hoc measures
that are • not satisfactory as a policy
framework over, an extended peri- •
od. The approach to agriculture for
the 1990s will be to strive for a pro-
ductive and economically viable
industry that is able to become self-
reliant. The farm sector will be
encouraged to respond to new mar-
ket opportunities, and changes will
be made to policies and programs
that insulate farmers from market
signals. •
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JACK'S JOTTI•:*&
NGS
by Huron MPP Jack Riddell, Agriculture and Food Minister
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To prevent unacceptable rate or handicap. A new classification
increase and to avoid confusion system, however, should only be
over putting Ontario consumers put in place with insurance reform.
through two major changes in auto- In a system where automobile
mobile insurance in a shr period insurance is mandatory the govern -
of time, Financial Inst' fin- ment has a responsibility to ensure
ister Murray Elston ha b or,...-Aed a that consumers receive fair cover -
7.6 per cern cap on car insurance age at a fair price. This government
rates written after 1989. has concluded that insurance prod -
The 7.6 per cent cap defers the uct reform is necessary to serve the
June 1 implementation of an best interests of the Ontario public,
Ontario insurance system that and is already examining alterna-
included a new classification plan. tive car insurance policies, includ-
The insurance industry now uses ing the possibilities of a "no fault"
discriminatory criteria — age, sex, option.
marital status, etc. — as part of its The bench -mark rate of 7.6 per
formula for rate assessment. Under cent was established by the Ontario
the new plan, an individual's rates Automotive Insurance. Board in
will be determined by the driving February 1989, following months of
record, public hearings involving members
Mr. Elston stresses that deferral of the insurance industry, consumer
of the new classification system groups and individuals.
should not be viewed as a decision For the small number of drivers
to abandon the plan. The govern- who would have received lower
went feels that the classification rates had the classification system
plan should be part of overall prod- come into effect on June 1 (mostly
uct reform of the insurance indus- young men with less than six years
try
driving experience), Mr. Elston
The government believes that an pointed out that as the costs of the
effective auto insUrance system can insurance system continue to rise,
be deliX144, AlAtkilAitatiRor Acthisd red uctiontiwoultdAtayttribetit
on age, sex, family,or marital status, only temporary By reforming the
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Planting for tomorrow...
Former Seaforth mayor
chairs review committee.
The appointment of Seaforth resi-
dent Alf Ross as chairman of the
Ontario Producer Review Commit-
tee was announced last week by
Huron -Bruce MPP Murray Cardiff.
Mr. Ross is a former Seaforth
mayor and is joined on the commit-
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system, he said, the government
can provide for savings for every-
one in the long term.
Mr. Elston also responded to sug-
gestions that 7.6 per cent was too
low for insurance companies and
might chase several out of the mar-
ket, explaining that with the
prospect of product reform, respon-
sible companies are likely to stay in
the market and write their fair
share of business.
The government, he added, will
be monitoring trends in this area.
WCB Survey
During May, the Worker's Com-
pensation Board is undertaking
Phase 2 of a survey to determine
injured workers' satisfaction with
various services provided to them
by the board.
Workers who have received or
are currently receiving temporary
compensation — as well as workers
who have recently received pension
awards — will be contacted.
Responses will be kept confiden-
tial and Will not become a part of
the claims file. The survey takes
"abolit /0 Minutes to answer.
•!,ew Wgirketitkireliinditettnoi obligratibn
to restraint and workers With a
• st
claim under appeal will not be
included in the study.
The survey is being undertaken
with a view to continuing to offer
adequate services to injured work-
ers, and to evaluate the impact of
recent changes at the board.
It is through consultation with
the user groups themselves that the
board is best able to assess the satis-
faction with information and ser
vices provided, and tp make
changes where deemed neessary.
Grants To Riding
Community and Social Services
Minister John Sweeney has recently
advised of funding assistance being
provided to the Huron riding.
The CAP program at Community
Living Huron in Coderich will
receive $4,700 in one-time Multi-
year plan funding to assist in the
development of services for handi-
capped adults and children, and t
$1,400 in annual funding for the a
Community Activity Program.
The Jack Reavie Vocational Centre 4
in Wingham will receive $14,991 in ha
addftional year-end funding to sup-
port people in employment stations
in the community.
tee by Ron Christie of Staffa, an
Glen Walters of Dutton. The feder
representative is Frank Webster
the Agriculture Developmen
Branch,
Other committee members and
provincial government representa
tive are still to be named by th
Ontario government.
The producer review committee
have been set up under the Canadi
an Drought Assistance Program
(CCDAP). Committees have bee
established in Albert?
Saskatchewan, Manitoba am
Ontario.
In Saskatchewan and Ontaric
committees will consist of six pit
ducers and one representative eats
from the federal and provinciA
governments.
As their first order of business
the committees will finalize detail
on the appeal procedure. Furthe
information will be announced fol
lowing the first meeting of commit
tee chairmen.
Committees will also make rec
ommendations to the ministers ce
how payments should be made e7,
forage crops and unseeded acreage
Committees will work wir;
CCDAP staff to review yield dat
which will be used to establis•
acreage payment rates for crops 4_,
each drought zone.
These acreage payment rates wi
be used toMake final payments
all eligible producers in July.
To date, the CCDAP administm
ion has sent out about 120,00t
pplications to producers, an.:
eceived back over 100,000. Ovei
3,000 interim payment chequer
ve bee.nmailed to producers.
A total of approximately 65,00f
tbIrwWlegibi3zeointeeiro
heques.