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Times-Advocate, 1981-05-27, Page 4Tomes Established 1$73 Times-Advocatra, May 27, 1981 Adv cola EsrpbLshed 1881 rasswsas vacate SERVING CANADA'S BEST FARMLAND C WN A O W N.A. CLASS 'A' AND ABC MEMBER ONTARIO PRESS COUNCIL Published by J W Eedy Publications limited LORNE EEDY, PUBLISHER Editor -- - Bill Batten Assistant Editor — Ross Haugh Advert sing Manager Composition Manager Business Manager — Phone 235- -- Jim Beckett — Harry DeVries Dick Jongkind 1331 •CNA Amolgomated 1924 Published Each Wednesday Morning at Exeter, Ontario Second Class Mail Registration Number 0386 SUBSCRIPTION RATES: Canada 517.00 Per Year; USA 535.00 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. ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// /////////////////////////////////////////////////////////,/////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////,/,,,,,,,//////////////////////////////////// ///////////////////// ///////////////////////// /////////////////// /////////////////////// //////////////////////////////// ,„„„„„,„, „„„„„,„, „„„„,„,„,„ „„,„„,„„ „,,„„,„,„ ,„,,„„,,„ TI T LI 14 I la „„„„„,„„„ ,„„„„,„,„, „„,„„„„ „„,,„„„„„ ,„„„,„,,„ „„„,„„,„„ ,„„„„„„. „,,„,„„„,„ „„„„,„„ ,„„„,„„,„, 11111LWirl 1,== ///// w ///,// Q //„/// ,///// — ///,,,/ /////, ice- /,,,/„ iiii //// i,-,, , 0 ,// //// ,/// /„ '/// // /7/ // ,/, // 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.