Zurich Citizens News, 1973-05-17, Page 13THURSDAY, MAY 17, 1973
ZURICH CITIZENS NEWS
PAGE 13
The public is sufficiently
aroused at the tax increase, and
recent action against one of the
retailers demonstrates the folly
of the Government in persisting
in the application of the 7%
sales tax retroactively.
Provincial Treasurer, John
White had intended that a bill
formalizing the 2ojo increase
in the sales tax would be passed
by May 1, but the legislation
was stalled in second reading by
long opposition debates. The
bill is now receiving third read-
ing with lengthy discussions and
proposed amendments by oppos-
ition members, all of which is
futile as the Government feels
it has lost all the creditability
it can afford to lose by withdraw
ing the energy tax. In a state-
ment made to the Legislature,
Revenue Minister Allan Gross-
man said the opposition parties
were quite accurate in saying
that the present retail sales tax
is basically 5% rather than the
7% which Ontario retailers have
been collecting since May 1,
but he suggested that the collec-
tion of the retail sales tax at
7% is in keeping with a prece-
dent which recognizes the pract-
ice of collecting taxes prior to
the enactment of enabling leg-
islation. Mr. Grossman has been
accused by opposition members
of intimidating retailers by
telling them to take down the
names and addresses of people
refusing to pay the tax, so that
it can be collected later. NDP
leader, Stephen Lewis, has said
the tax increase is a disgusting
tax illegally imposed. In his
statement Mr. Grossman said
retailers themselves should col-
lect the tax now because it is
in their own interest. Debate on
the tax bill is scheduled to cont-
inue in the Legislature next wee
although the legality of collect-
ing a tax until legislation is
passed is now being challenged
and further debate might be con-
sidered improper while action
against the collection of the 7%
tax was before the courts. Such
action was initiated by Cameron
Smith after an official in the
T. Eaton Co. Ltd. store refused
to sell him merchandise unless
he paid the 7070 sales tax. It
should be a very interesting case,
The House traditionally does not
debate matters that are before
the courts.
Attorney -General Dalton
Bales, has introduced amend-
ments to the Law Society Act
which will set up a Law Found-
ation to receive the interest on
lawyer's mixed trust accounts.
The Foundation will use the
money for legal aid, legal educ•
ation, legal research, and law
libraries. The bill proposed
that at least 75 per cent of the
money go to legal aid. These
monies can now be used for
public purposes instead of going
entirely to private banks and
trust companies.
A statement by Health Min-
ister, Richard Potter, revealed
figures which substantiated his
prediction that the monthly cost
J Ck
f rom
Queens Park
of the Ontario Health Insurance
plan would stabilize in the $40
to $45 million range. The plan
cost Ontario taxpayers $39.12
million last August and $42.08
million in September. Dr. Pot-
ter said the overall cost of 01-1IP
for the 1972-73 fiscal year would
be about $540.85 million. His
figures also showed that 379
doctors made more than $10, 000
during August, and 402 made in
excess of this amount in Sept-
ember.
Premier Davis refused to ans-
wer questions about his assoc-
iations which Gerhard Moog
when asked by liberal member
Eddie Sargent whether he was a
guest of Mr. Moog in Florida in
1971 or any other time, and
whether any of Mr. Moog's
companies had built or repaired
the Davis cottage. Premier
Davis told the legislature that
his private life was his own bus-
iness but Sargent retaliated by
saying that when hundreds of
millions of dollars of contracts
are involved, (Moog's Canada
Square Corporation is presently
building a new bead office for
Ontario Hydro having been aw-
arded a $44 million contract
on a proposal basis). Mr. Davis'
association with Mr. Moog did
matter to the people of Ontario.
Mr. Davis intimated that he
never let personal friendships
interfere with his judgments as
a public servant.
The Ontario Legislature's
select committee, instructed to
look into circumstances surround
ing the granting of a contract to
Canada Square Corporation
Limited to build new head office
for Ontario Hydro, held its first
meeting headed by John Mac -
Beth (P. C. York West). The
committee quickly agreed on
its counsel and decided to seek
permission to meet while the
full House is sitting. The coun-
sel will be Richard E. Shibley,
senior partner in the Toronto
law firm of Shibley, Righton anc
McCutcheon. Proposals by
James Renwick (NDP, Riverdale)
and James Bullbrook (L. Sarnia)
to have all witnesses called on
Speakers warrants were granted
However, their requests to have
TV cameras and tape recorders
oermitted at the committee
hearings were denied by the
Conservative members of the
committee on the basis that
the normal Hansard reporting
system was adequate.
Ontario Labour Minister,
Fern Guindon, made the state-
ment in the House that he int-
ends to increase benefits paid
to injured workers by the Work-
men's Compensation Board. He
plans to introduce amendments
to the Workmen's Compensation
Act which will increase the min•
imum monthly payment• for pay-
ment total and partial disabil-
ity and for widows' pensions
from $175 to $250. The ceiling
on earnings on which benefits
are based will be raised from
$9, 000 a year to $10, 000. The
increases will cost about $12.4
million a year or about 7.8 per
cent over the present costs.
Money to pay compensation
benefits is levied from employ-
ers. The totally disabled, widow
and children will receive the
major benefits from the increas-
es, as well as those workmen
who are tamporarily deprived
of their usual income from em-
ployment. The minimum rate
for temporary total disability
will also be raised from $40 to
$55. The amendments will raise
the dependent widows' pension
minimum from $175 a month
to $250 and the minimum
monthly benefit to orphan child-
ren will be raised from *70 to
$80. Allowances for funerals
will be raised from $400 to
$500.
Premier William Davis an-
nounced a major reduction in
(continued from page 13)
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