Times-Advocate, 1981-05-27, Page 4Tomes Established 1$73
Times-Advocatra, May 27, 1981
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Amolgomated 1924
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Lead by example
At a time when young people may
have difficulty in determining what
they'd like to do in the future, the 12
students who were selected as can-
didates for students of the year at
SHDHS probably won't have too many
difficulties reachingwhatever goal they
set.
Their nomination for the honor was
an indication of their contributions to
school life and the brief resume on each
in last week's issue also indicated many
community endeavours as well.
These students have already known
the taste of success, but equally impor-
tant, they have known the dedication
and enthusiasm required to attain that
success.
All 12 were honored by their selection
and while only two could end up as
winners in the voting, the entire dozen
have established habits that will make
them winners.
It is to be hoped that their
enthusiasm will rub off on their
younger cohorts at the local high
school and student life will continue to
flourish with the type of leadership the
12 exhibited.
Hope they like it
While there was a general hue and
cry over the budget presented this week
by Ontario Treasurer Frank Miller, the
fact is that many of the tax hikes were
placed on luxury items, such as alcohol
and tobacco. In some instances, the in-
creased tax on gasoline can also be con-
sidered a luxury tax.
It is evident that Miller does not
share the view that most taxpayers are
already suffering economic woes. He'll
probably be proven correct as few peo-
ple will reduce their consumption of
alcohol, tobacco or the gasoline they
use for pleasure or convenience driving.
If they did, the increased revenue he
expects would be cancelled by the
reduction in sales.
Most people have the option of how
much they contribute to the tax
revenue on such items and their voices
usually remain silent because they are
labelled as "sin" taxes.
The increase in OHIP premiums
was not surprising. The government
recently signed a new contract with the
Ontario Medical Association and
naturally the taxpayers have to con-
tribute to the increases granted. It is in-
teresting to note that Ontario has set
aside $5.6 billion this year to keep 8.5
million residents healthy. The 13 per-
cent increase in health care expen-
ditures is said to reflect Ontario's aging
population.
All the tax increases went to in-
dividuals, with corporations escaping.
Miller's hope is that industrial and
commercial growth won't be further
impaired beyond the inflation and other
economic pressures they are experien-
cing.
Unlike budgets of the past five
years, this one was designed only to
suit the Conservatives. It didn't have to
satisfy the Liberals and NDP as was
the case with minority governments. It
didn't even have to suit the taxpayers
because they don't vote for another
four years.
Of course, the Conservatives don't
have anyone to blame if the budget
doesn't have its planned results. Time
alone will tell, although Ontario's
economy may not have as much time to
rebound as some would hope.
If it doesn't get turned around, the
increase in the income tax levied by
Miller may also be considered a luxury
that more and more people can't enjoy.
Formula scandal
Those of you who belong to church
groups, and other women's clubs will
know about the tragedy that the over-
zealous promotion of Infant formula
causes in the Third World.
The formula is sold aggressively, as
a status symbol almost, to new
mothers, who may not have the good
fresh water necessary to mix with it
and who may dilute the formula
because it's expensive. As the mother
attempts to feed her new baby ex-
clusively on formula. her breast milk
dries up. The baby becomes
malnourished. the baby becomes ill,
because it's being fed insufficient for-
mula rather than the mother's own
milk.
That quick run down is an over-
simplification. But so is the United
States' position on a code to control for-
mula marketing that the world Health
Organization hopes to adopt this week.
The code. fairly mild and non-
binding, comes after discussions with
by SYD FLETCHER
With my golf game as poor
as it is it doesn't take too
much to distract me from
making that perfect shot.
Usually f can blame my
lousy shots on the sudden
whistle of a bird or the noise
of a car backfiring in the
distance.
The last time 1 was out 1
had the perfect excuse. Just
as I was about to tee off a
police siren cut loose on the
highway bordering the
0
manufacturers of the infant formula
and aims at making the bottle a com-
plement to rather than substitute for
breast-feeding. The code notes that im-
proper marketing of breast milk sub-
stitutes "can contribute" to improper
feeding, malnutrition and death in the
third world.
It looks now like the US will be the
only one of 156 WHO member countries
who will not accept even this limit on
the power of manufacturers to con-
tribute to infant mortality. An official
says the Reagan administration "feels
that it is inappropriate for an agency of
the United Nations to move in the
direction of regulating economic ac-
tivity."
Two senior American Agency for
International Development (AID) of-
ficials have resigned, critical of their
country's failure to endorse the code.
Good for them.
Huron Expositor
Perspectives
course Of course f 'duffed'
the shot.
As 1 was looking for the
hall in the rough, f was able
to observe the officer ap-
proaching the sporty little
red car and the two young
fellows inside.
In a moment a second
police car pulled up behind
the other two cars and after
a thorough search of the red
car the two young men were
put into the second car and
taken away. In a few
moments a tow -truck came
out, hooked up to the red car
and left with it, heading for
the police 'pound' 1 assume.
The whole affair had taken
only a little more than a
quarter of an hour, about the
time it took us to play a
couple of holes of golf.
My first impulse was to
feel a little pity for the two
boys. Here they were being
hauled away to jail like a
pair of criminals. If I had
been one of the boy's parents
out there on the golf course
and seen the incident it
would probably have broken
my heart.
Then my heart hardened a
little. Later in the day my
family and f would be
travelling down that same
highway, several times in
fact. If those two young
fellows, a little giddy from a
couple of drinks too many,
had swerved into my car's
path and killed us all, who
would be able to feel pity for,
or put blame on anyone.
No way. I'm glad the
police caught them. In fact 1
hope the judge 'throws the
book' at them this time.
Maybe they'll do their
drinking in the proper place
after this.
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Mainstream Canada
Interest rates:
a real crunch
By W. Roger Worth
These are depressing and
scary days for the Canadian
homeowners who have to re-
new mortgages on their homes
this year.
Consider what's happen-
ing.
In 1976, al least 250,000
mortgages were written and
are due for renewal this year.
The interest rates in 1976:
100/0 - 12%.
The interest rates in 1981:
l7% - 18%.
Roger Worth is Director,
Public Affairs,
Canadian Federation of
Independent Business.
That means a quarter
million Canadian families will
be paying an extra 6% - 8%
for the money needed to
finance their dwellings.
In real terms, such home
owning families will end up
paying an additional 52,600 -
53,400 per year on a relatively
small 550,000 mortgage.
That means a whopping
S216 - S283 per month in -
To be changed, not broken
Local developer Len Veri made an in-
teresting observation at last week's
session of Exeter council when he con-
tended that some of the red tape
situations in a small community can be
more strangling than in a metropolitan
area.
It's a point well taken andthereason-
ing may well be that the politicians
become more involved in small com-
munities because they are aware of
what is happening around them from
personal knowledge and observation.
Any type of project taking place on
the main dragof a small town quickly
becomes first-hand knowledge to
elected officials, even such minor
situations as the erection of a new sign,
while in a city, chances are that a
similar project would not even be notic-
ed by one elected official on his/her
daily travels throughout the area
represented.
Civil servants in a smaller communi-
ty are also affected by the situation.
knowing that their "bosses” can readi-
ly see projects that have been ap-
proved. With the awareness that
elected officials are looking over their
shoulders, they tend to follow the letter
of the law in administering policies.
There are, of course, pros and cons
regarding that situation and it is
further compounded by the fact that
practically every resident of a small
town is also aware through personal
observation of what is happening.
When one resident has been given a
decision which may circumvent the
rules to even a small degree, someone
else comes along expecting the same
thing and is wellawareofthe precedent
that has been established and therefore
has solid grounds for his plea.
It may well he considered as red
tape. but in effect it is more a
phenomenon of living in a small com-
munity where few things go unnoticed.
While Mr. Veri may be correct in
suggesting that commonsense should
prevail and his sign application be ap-
proved. it is imperative that the (–All-
mon sense be used to change the rules
and regulations and not to merely grant
approval of a contravention of those
pules.
bThat is not to suggest that his inter-
pretation of the rules is incorrect. In
fact, that may well be the case.
That too becomes one of the reasons
for the apparent red tape situation that
may pervail. Many rules and
regulations are open to various inter-
pretations and it often becomes a cost-
ly and tirpe consliming matter to get
the final ruling on what the law makers
intended when they drew up the rules.
It is not always possible to phrase
words to negate the possibility of
differing interpretations. but when it is
found that there is confusion, it
behooves elected officials to put the
legislation back on the drafting board
in an attempt to remove that confusion
or the possibility of varying inter-
pretations.
It is incorrect to suggest that rules
were made to be broken, a popular
adage of our times. They were, un-
doubtedly, made to be changed and
that isalways the fair way to correct
SuQar and Spice
Dispsed by Smiley yf _:.s kx
Studying some increases
A reader, W. Ross Carrothers of
Waterloo. Ont., takes me to task for a
recent column in which I expressed my
unhappiness, and that of thousands of
others. I'm sure. with The Bell's ubi-
quitous requests for rate increases.
He says, in part: "Your article cer-
tainly showed you didn't do your home
work on that one. Perhaps you'll be
good enough to write an article on the
Hydro rates next. They seem to slip by
you with nary a sigh."
That's what you may think, sir. I
don't sigh; I groan. But it's the only
game in town, and it's controlled by the
politicians. My only available response
is to cut hack on my use of electricity.
Mr. Carrothers, P. Eng., goes on. His
figures are based on Stats -Can:
Price increases in percent increases,
1971/80:
Electricity 124
Fruit and vegetables 178
Gasoline 140
Rail 1'18
etc.,etc.,etc.
Telephone services
(Canada) 34.6
O.K. Let's take them one at a time,
though it seems my correspondent is
using the argument that two wrongs
make a right, or two blacks a white.
Electricity increases are the result
of the usual bungling when a utility is
controlled by government. During the
ten years mentioned, Hydro spent
millions of dollars in advertising, try-
ing to persuade us to use "cheap" elec-
tricity for everything from heating
homes to buying new appliances to us-
ing an electric toothbrush. They were
I
practically flogging this cheap energy.
Bum guesses and faulty
prognostications tell us one minute that
electicity is practically free, it's so
plentiful, and the next that we might
start having "brown -outs" because of
shortages. And all the while jacking up
the rates to cover the boo boos of
previous prophets on everything from
nuclear power plants to projected
usage of power, often away out of
whack.
But man, it's a comfortable way to
operate, with no competition, and
always the govenment shoulder to cry
on, taxpayers' money to subsidize, if
necessary, and politicians to cover up
and explain away.
We could go back to the oil lamp, the
wood stove, and a chunk of ice in the
ice -box. But with the price of oil and
wood, and the inavailability of coal and
ire (because hydro practically forced
their purveyors out of business) there
doesn't seem much point.
We are hooked into an electrical cir-
cuit that heats us, lights us, cooks for
us, and entertains us, audially and
visually. It's our own fault. But, even
accounting for inflation, hydro prices
have risen ridiculously, and really hurt
people on fixed incomes and those in
rural areas. I'd guess that half of that
10 -year increase is due to bungling and
botching.
Once again, I must be fair, as 1 was
with Bell. Our hydro is remarkably ef-
ficient, still cheap according to world
standards, but expensive considering
our resources.
Next, fruit and vegetables. That's
easy. We had them at bargain rates for
situations which are not in keeping with
the many changes taking place in any
community, whether it be large or
small.
It should be noted that Mr. Veri was
talkingto a sympathetic audience when
he lamented the amount of red tape
which surrounds some minor situations
in the community. At the past couple of
meetings, members of council have
aired the same frustrations over the
amount of time involved in allowing
people to move ahead on projects that
common sense would indicate should
be approved.
Even for some very minor contraven-
tions of the zoning bylaws as they per-
tain to setbacks, it takes several weeks
before official approval can be granted
as it is necessary to have the com-
mittee of adjustment rule on the issue.
However, it can be handled by a local
group, and really in the full scheme of
things, a couple of months to follow the
proper procedures is really not much of
an inconvenience to ensure that proper
development guidelines are followed
while at the same time, ensure that
some of those guidelines can be altered
to fit situaitons that dicatate the com-
mon sense contraventions.
Too often, people see rules and
regulations as an infringement on their
individual rights and freedoms when in
fact most of those rules and regulations
are in force to protect their freedoms.
The view, of course, often depends
upon whether you are the one creating
the problem of the one being affected
by it.
years because their producers used the
nearest thing to slave labor: foreign
workers, migrants, the very poor. Now
these people. with some organization
and help from genuine liberals, are
making something approaching a di -
cent wage. We pay the difference. But I
can still buy a quart of strawberries for
50 cents, if I pick them myself
Gasoline? We are hogs, burning it as
though it were going out of style. Which
it is. We've been warned by experts
that it is a non-renewable form of
energy, then told by politicians that
there was no foreseeable shortage,
then panicked by other politicians. But
don't try to tie me and the Arabs and
Ma Bell into one neat package.
Rail? Sure. More government bungl-
ing and botching and patching over the
years, and now a desperate attempt to
recoup some of the billions of our
money used as subsidies for the CN. CP
was smart enough to get into other
things and make money. but don't
forget where they got all that free land
in first place.
As for the etcs., they could be
anything. 1 know for dam sure that my
salary hasn't gone up 120 or 140 percent
in 10 years. Nor has the income of the
farmer, merchant. pensioner.
It's easy to use a few statistics out of
context, to prove a point. Beef prices
have more than doubled in those 10
years. And beef farmers are going
broke. Car prices have doubled, and
automobile firms are going broke.
Postal rates have more than doubled,
and the post office requires huge sub -
crease in payments, forcing
the homeowners to either cut
their standard of living or sell
the family homestead.
There are also lens of
thousands of shorter -term
mortgages written in 1978, as
well as one year deals conclud-
ed last year to be renewed at
today's appallingly high rates.
Many people wanting to
buy their own homes, of
course will remain in rented
apartments as a result of the
interest -rate crunch, which is a
major reason the housing in-
dustry is in such a slump.
The mandarins at Ottawa
and the Bank of Canada, as
well as the country's political
leaders, provide little hope
that record high rates will
come down in the near future.
Perhaps the time has come
for the economic "experts" to
review their light money,
high -interest rate policies. The
spectre of tens of thousands
of families being forced to
give up their homes is indeed a
depressing scenario.
eoluAR SEINE
Shopping for mortgage
may bring house bargain
By Randal Adamkowski, CA
Current record mortgage
rates make it especially
important ih st you shop
carefully not only for your
house but for your mort-
gage.
Consider a 175,000 mort-
gage amortized over 25
years. If the rate were con-
stant over 25 years, you
would end up paying
196,000 more with a 17 per
cent mortgage than with
one at 11 per cent.
What can you do? Des-
pite the fact that new mort-
gages .are in the 16 per
cent area, you'll see news-
paper ads for lower mort-
gages in new housing
Dollar Sense offers
general financial advice by
members of The Institute of
Chartered Accountants of
Ontario.
developments where the
lower rates were locked in
last summer. There is one
answer,
With a resale house,
you'll sometimes find a
bargain if you can assume
an existing mortgage.
With a 25 -year mortgage
that has, say, three years to
run until renewal, you
likely would be getting a
rate much lower than
current rates. With a house
that changed hands in the
past two or three years, this
would be a particular
advantage because it likely
means the mortgage covers
the major portion of the
home's value.
This advantage dimin-
ishes, however, with older
mortgages. A mortgage
taken out 15 years ago, for
instance, likely wouldn't
r yiyss
Dear Editor:
cover much of the home's
present value.
Another potential ad-
vantage with a resale house
is that the vendor is often
willing to take back a
mortgage at better terms --
a lower rate or perhaps the
right to prepay without
penalty •- than you could
get commercially.
Right now you hear a lot
about bridge financing.
With today's peak rates, it
makes sense. That is,
simply, a short-term
mortgage of as little as six
months. If you can't get a
deal -- either on an older
mortgage or, with a new
home, a lower rate that was
locked in last summer --
consider bridge financing.
What you are doing is
paying the current high
rates in the hope that when
it comes time to renew,
you'll be able to get a
better rate.
You can make the wrong
judgement on bridge fin•
ancing, so don't be greedy.
Last summer, when mort-
gages were in the 12 per
cent area, you could have
opted for a six-month
mortgage in the hope that
rates would decline further.
But you would have found
that you had to renew at a
higher rate.
With mortgages at
today's levels, however,
chances are you'll be no
worse off - and perhaps
you'll be better off - by
going the bridge -financing
route.
Randal Adamkowski is
with Wiebe Baker Proche &
Co., Chartered Account-
ants, Downsview.
e readers write
Your publishing of this
"Rootsy" kind of letter
could be a great help in
locating some Roses in my
family tree.
In 1797 the first Rose of
my line arrived in
Northlake, P.E.I. His
brother, Sampson, with his
wife, joined him a few years
later. Mr. and Mrs. Sampson
Rose raised seven sons and
five daughters. Since their
sons and daughters were
equally prolific, hundreds of
their descendants live today
in P.E.I, while others are
scattered across Canada and
the U.S.A.
My grandfather (Samp-
son's grandson) moved to
Vancouver in the early
1900's and never went back.
Other Roses and Rose
relatives took part in Prairie
harvest excursions; and
some stayed and
presumably married and
raised families.
As a result of a recent sur-
ge of interest in "who we are
and where we came from",
the Roses are holding a reu-
nion in P.E.I. August 7th and
8th. Any Rose descendants
(whatever their names) are
welcome. More details are
available by contacting
Mark Rose, M.P., House of
Commons, Ottawa, K1A
OA6.
Yours truly,
Mark W. Rose, M.P
Mission -Port Moody.
sidles. Ineometaxes havedoubled, and the country is going
broke.
Not a pretty picture, but 1 didn't start out, in that other
column, to analyze the economy. 1 merely pointed out that
as a good corporate citizen which has a near -monopoly,
Bell could show a little restraint, and not be running to the
Transport Commission every couple of years for an in-
crease, which it was doing long before inflation became a
household word.
Mr. Carrothers is waiting to read my apology to the
telephone companies of Canda. Don't hold your breath, sir.