The Rural Voice, 1980-05, Page 49OFA Directors Meeting March 19, 1980.
President Ralph Barrie opened the meeting and reviewed the
•
actions and "update" items during the last month. He noted that
there seemed to be a stronger commitment to agriculture in the
recent Ont. throne speech. It will be interesting to see if this is
turned into real action, Mr. Barrie commented.
Despite all the recent discussion of alternate energy sources,
there is no new technology available for the mass electrical
generating systems in the foreseeable future. So stated Mr.
Hugh MacAulay, chairman of Ontario Hydro.
Mr. MacAulay explained that at present, 30% of our electrical
generating ability is powered by nuclear fuel. It is expected this
will increase up to 50% in the next decade. At present, Ontario
Hydro has 20% surplus generating ability but the transmission
capability is under capacity.
SPECIAL PROGRAM SPEAKERS ON CANADA'S ECONOMIC
POLICIES OF HIGH INTEREST RATES
Mr. George Freeman, the Deputy Governor of the Bank of
Canada told the OFA that it was the Bank of Canada's job to
control the Canadian money supply. Mr. Freeman claimed that
the prime interest rate should be at or near the inflation rate. For
example, in the U.S., the interest rate is 19% and inflation is
running at 20%. However, in Canada the inflation rate is nearly
10%, yet the Canadian prime interest rate on March 19 was
15%. This rate has since increased to 17% to 171/2%. Therefore
it appears as if the Bank of Canada is mismanaging the Canadian
economy, as the interest rate should be nearer 10%, if it were in
line with the inflation rate.
The next speaker was Dr. Gordon, a Professor of Economics at
a Canadian University. Dr. Gordon claimed that the Canadian
Economy would improve if the Canadian Dollar fell in relation to
the U.S. Dollar. This would permit the lowering of the Prime
Rate of interest thus encouraging more development, with more
employment.
Dr. Gordon advanced a theory that increased exports of
natural gas and some minerals improves the balance of
payments, which increases the value of the Canadian dollar, and
contravenes future exports of all Canadian commodities.
Dr. Gordon also claimed that investment in the Oil and Natural
Gas Industry has been made very, very attractive by the
Canadian Government.
The final speaker of the afternoon was Richard Wietfield, a
staff member of O.F.A. Mr. Wietfield has his Ph.D. in
Economics and is recognized as a well qualified and dedicated
researcher.
Dr. Wietfield stated that 5 billion dollars per year has been
paid out of Canada in repayment of interest and dividends on
borrowed foreign capital. That is, foreign investment in Canada
creates grave problems for Canada's balance of paymentl.
Another contributing factor to this growing deficit is Canada's
deficit in foreign travel; that is, more Canadians holiday abroad
than visitors coming to holiday in Canada.
Richard Wietfield offered a number of solutions to Canada's
present economic ills as follows:
1. Increase Canada's exports in relation to our imports.
2. Increase Canada's production of goods and services in
comparison to what we use.
3. Reduce our foreign debt.
4. Reduce our Provincial and Federal Deficits.
The Federal Deficit has grown from $724 million in 1971 to
$12-513 billion in 1979. In addition, all of the Provincial
Government deficits have grown from $20 million in 1969 to $68
billion in 1978. The Provincial deficits have been growing at a
much faster rate than the Federal deficit.
Mr. Wietfield indicated that the Federal Government is
somewhat limited in its ability to control the Canadian Economy
because of the great extent to which the Provinces have the
autonomy to control their own fiscal policies. An additional and
somewhat frightening aspect of. foreign trade is that 40% of
Canada's Canadian exports or imports are between large
International Corporations and their Canadian subsidiaries
which trade is practically beyond Governmental control.
The Canadian Government has definite controlling functions
on the Canadian Economy, but the Government is most certainly
faced with large Power Blocks such as International Corporations
World Trade Patterns and autonomous Provincial Governments
which are very difficult to control.
East Wawanosh
elects executive
On April 1st, the East Wawanosh Federation of Agriculture
held its Annual Meeting.
Louise Marrit and Dr. Jul ius Mage spoke about the Rural
Outreach Development Project.
Les Caldwell, a pork and beef producer at R.R.#2, Blyth, was
elected president of the organization for 1980. He will be assisted
by Barry Mason as vice president and by the following eight
directors: Robert Hillis, Ed. Franken, Jack Sanders, Douglas
Walker, Jim Ross, Wallace Norman, Jerry Jaretzke and Chris
Palmer.
The secretary is, again, Peter Chandler.
Outgoing president, Walter Elliott, announced tbat at a
membership drive conducted by the directors, (with help from
county fieldman Bill Crawford), 14 new members were recruited.
The Vanastra Office of the Huron Federation
of Agriculture is open from 9-4 on Mondays,
Carol Finch, Secy -Treasurer, Fridays - Bill
Crawford, Fieldman 482-9642.
If you need to contact Fieldman on Tues. -
Wed. - Thurs. call Goderich 524-4424, and
leave a message.
Did you know
Did You Know that because of OFA Action, the Ontario
government granted reduced farm truck licence fees since 1973.
Savings per truck of from $14 to $315.00 license depending on
weight.
Did You Know that OFA executive meets once a year with the
Ontario Cabinet to present a brief on behalf of Ontario farmers.
The Farm Tax Rebate is one of the most important requests
every year. The rebate returns 50% of all farm taxes and in 1979
saved Ontario farmers $52,000,000.
Did You Know that for every 100 acres a farmer owns, a saving
of $50.00 is realized because the OFA opposed the government's
1974 attempt to place a minerlal rights tax on all land in Ontario.
A total of $7 million was saved by Ontario farmers because of
OFA.
THE RURAL VOICE/MAY 1980 PG. 47