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Home My WebLink AboutZurich Citizens News, 1978-01-19, Page 4Citizens News, January 19, 1978 DmoryTON may- R "Now what?" II111111111111I111111I11111II11111e1111111111111111111111111111111111111I11111111111111111111111l1111111111111111111111111111111111111111111I111111111111111111111111111111IIIIIIIIIIIIIt1lUll111111111111111111 Vie::point- IIBIIIIIItl11111111111111111111t1111111111111111111111111111I11ItI1111Illllllllltll►IIIItI1tltltttlllitl11111f11itIfI111111111i111111tt11ilit111111ifISNf1S111111111f►it{Illfllti{IIt111f111fIH1111N111VItC A lost battle Shortly after the election of Rene Levesque as premier of Quebec. Prime Minister Trudeau- said that while his government would do everything it could to keep Quebec in Canada, he would not use force to keep the country together. But then 1977 was not an election year. It so happens that 1978 in all likelihood will be an election year. It is also a fact that public opinion against the separatist Parti Quebecois, at least outside of the Province of Quebec, has hardened considerably since the Quebec elec- tion last November. This is due in no small measure to Premier Leves- que's decision not to follow his promise to tend first and foremost to the province's need for good govern- ment, but instead to move ahead on policies having to do with separatist causes. In view of the circumstances perhaps Canadians shouldn't have been surprised to hear the prime minister state in a year end interview that he would once again invoke the War Measures Act if Quebec tries to separate illegally. Since there is real- ly no legal way Quebec can separate according to the BNA Act, one must wonder just where that leaves Quebec and the country. We haven't a doubt but what Trudeau's remarks will be applauded by a'rnajority of Canadians. It seems that Canadians in general are not all that concerned about a loss of in- dividual freedoms. This was abun- dantly clear back in 1970 when the War Measures Act was invoked by Trudeau to take care of the FLQ problem. Outside of the people of Quebec, many of whom were jailed for, no good reason, only a handful of prominent Canadians saw fit to criticize, or even question, the government's radical move. Surely we must recognize the fact that if it becomes necessary to use force to keep Quebec within Canada, the war and not just the battle has already been lost. And if that stage is reached, the Trudeau government must accept responsibility for much of the anti -French sentiment existing throughout the rest of Canada. Instead of bringing the two cultures together, the Trudeau policy of bilingualism, especially where the federal civil service and the armed forces are concerned has created ill will on a scale that has seldom beefi matched in this country. More talk about the War Measures Act might gain Trudeau votes across Canada, but it won't do much for the cause of Canadian unity. Listowel Banner IIIIIIIIIIIIIIIIIIIIItlllllll1111111111111111111t11111IIIt11lII1111111111I1t11111111111111111111111111111111I111111111111t11111111I11111111111111111111111111111111111111111111111►Illllllllllflllllllllllllll FIRST WITH LOCAL NEWS Published Eech Wednesday By J.W. Eidy Publications Ltd. Member: Canadian Waekly Newspapers Association • Ontario Weekly Newspapers Association News Editor - Tom Creech Second Class Mail Registration Number 1385 Subscription Rates: $7,00 per year in advance in Canada $18.00 per year outside Canada Single copies 204 ',„un►Innnulumm11ltlonu1111in►►utn►nununiulnl►u11111nn►nluuunlnnn►u►u) Miscellaneous Rumblings By TOM CREECH Grants and governments One of the main purposes of local government is to provide services which a community needs or re- quests. As such, the acquisition of adequate financial resources to pay for these services is one of the most pressing problems which municipalities face today. In Ontario there are three main sources of revenue for municipalities: taxation,' borrowing and grants from higher levels of government. A basic definition of the term `grant' as expressed by the Association of Municipal Clerk -Treasurers of Ontario is 'the transfer of funds from provincial sources to municipal use.' Conditional grants are also referred to as 'tied aid' which means that the province requires that certain conditions specified by the province, be fulfilled by the municipality before funds are allotted. Unconditional grants on the other hand, are those o ants which while oased on a definite formula, are transferred to the community for use as they see fit. In Ontario, provincial transfers both conditional and unconditional, account for one third of municipal revenues with conditional grants accounting for seventy percent of the transfers. According to Ontario Assistance to Local Governments, 1977 the estimated expenditures of conditional and unconditional grants for the 1977-78 fiscal year are 2,703 million and 436 million. In 1969-70 the figures were 950 and 45 million. There are seven major programs under which un- conditional aid is dispensed. The cornerstone of these programs is the General Per Capita grant which varies with population differences. A community the size of Zurich would receii'' approximately $5334 bas- ed on a rate of grant of $7.00 per head (762 ). For larger centres a flat rate applies, times a rate of grant for population over a specified figure. The other unconditional grants are per capita grants for density and policing, a Resources Equaliza- tion grant which aids municipalities with a below average tax base, the General Support Grant, the Northern Ontario Special Support grant and the District of Parry Sound Support grant. While unconditional grants may appear to be on the surface an excellent idea for municipalities, J. Stefan Dupre in Intergovernmental Finance in On- tario, A Provincial -Local Perspective expresses a different viewpoint: "But while unconditional dollar totals may show'a steady rise, it is still fair to say that Ontario policy toward this form of aid is shot through with ambiguity. This has meant to complicate uncon- ditional grants with what are essentially conditions — the reduction of the total tax burden (1937-1948), the subsidy of social services (1954-1963), the reduction of taxes on residential and farm property and the provisions for indigent hospitalization (since 1961). As a result, unconditional grants in Ontario simply are not unconditional in the strict sense of the word," Conditional grants as stated previously, constitute the largest sector of the grant program. Practically every aspect of municipal government is affected by conditional transfers with everything from transit operating subsidies to venereal disease control, Grants of this type are good from the standpoint that they recognize a need, measure it and meet it ac- cordingly. This form of aid allows for the improve- ment of services without the province having to order the change. On the other hand, meddling by the provincial government in municipal financial affairs can result in an alteration of municipal priorties. What may be good for the average municipality in Ontario may not be good for a specific municipality. Dupre expands upon this in stating that the level ofg overnment closest to the people should reflect most accurately the needs of the people within itss area. Conditional grants come from the provincial government which represents a different public in- terest. Therefore it is possible and probable that the two public interests do not coincide. Conditional grants can have two effects according to Dupre: an incentive effect or a subsidy effect. If a subsidy effect occurs, three courses of action could take place: an improvement of the subsidized service, the maintenance of the present level of services and the diversion of funds previously. tied up to other areas or a reduction in the tax burden, please turn to page six