The Huron Expositor, 1983-12-14, Page 1751
THE HURON EXPOSITOR. DECEMBER 14. 1903 — *17
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SEAFORTH BUSINESSES and organiza-
tions entered floats in the annual Santa
Claus parade on Saturday. Marlen Vincent
and his gang entered their Vincent Farm
equipment float, top photo and kids dressed
in decorated boxes show that Christmas is
tor giving, right photo.
New rules proposed for trust companies
BY JACK RWDOL MPP
A year has passed sincer`the Ontario
Government's seizure of three firms in-
volved in a controversial, 5500 million flip
sale of some 11.000 Toronto apartment
units. .
Now the Government has tabled a White
Paper in the Ontario Legislature which
proposes tough restrictions on loan and trust
companies operating in the province to avoid
a repetition of last year's trust company
incident. The White Paper contains numer-
• ous recommendations for revamping and
tightening regulatory control of the industry
including:
-The minimum capital for incorporation
(now Sl -million for both loan and trust firms)
should be increased to $2 -million for loan
companies and S}0 -million for trust compan-
ies.
-Each company starting in business
should be allowed to act only as a loan
corporation. It would be allowed to assume
fiduciary and other trust powers only after it
"demonstrates its capability," meets finan-
Christmas time is
conservation time
Christmas time is family time- It's also the
time for cheery Christmas lights and a 200
megawatt boost in our electricity demand.
Holidayindoor and outdoor lighting
increases province -wide electricity demand
by more than 200 megawatts - that's enough
electricity to meet the peak demand of�a
community the size of St. Catharines.
However. there are many ways to conserve
during the energy hungry holiday season.
Manufacturers of Christmas fights have
done a lot in recent years to help conserve
energy. Mode,rn outdoor lights, rated about
'seven watts, use 30 per cent less electricity
than do older types. Modern indoor lights
also use less, whether you use the standard
size of one to two watts or the miniature
lights which burn about ten watts for an.
entire string. If you're buying new lights this
year, check the power consumption rating -
you may be buying the older lights which
consume more electricity and cost you more
to operate.
Lighting can be enhanced by using
non-metallic reflective decorations where
possible. Christmas lights will also burn
brighter if they are leaned before use, and
you can use fewer of them for the same
effect. Relamp existing string sets with
new. lower wattage bulbs. Place the
Christmas tree near a window to make it an
outdoor as well as indoor decoration. This
can even replace the traditional outside
lighting which is more expensive. Turn on
exterior lights only during prime time
viewing. , that is. between seven and
bedtime.
Winter driving:
Extra caution
Rain. snow or ice covered roads are no fun
to tackle if you're a driver. They can throw
you for a rig toss. Driving in adverse
weather requires extra caution and keen
driving skills. One of the greatest hazards of
driving on wet or snow covered pavement is
the lack of traction.
There are many things a good driver can
do to prepare for the unexpected stop or the
unwanted skid. says the Ontario safety
League.
Adjust your speed. On wet pavement at 30
km h..it takes from three to 12 times longer
to stop your vehicle than on dry pavement.
Get the feet of the road. Occasionally. try
your brakes or gently press the accelerator
while the t afftc is light. If the wheels slide
or spin. reduce speed.
Keep well behind the vehicle ahead.
You'll need the extra room in case of an
emergency, so increase your following
distance.
If a skid does occur. turn your wheel in the
direction of the skid in order to head the
vehicle back on course: Turn just enough to
correct the skid - and be prepared for a
second skid in the opposite direction. This
takes a lot of practice - practice that we
rarely get. So remember. caution is the best
defense against adverse weather --in starting
as well as stopping.
Recognize poor driving conditions and
adjust your speed accordingly.
Board of Ed will
hold public meeting
The first public meetings for reviewing
accommodation at three Huron County public
schools have been set for January.
The Huron County Board of Education set
aside three days in January in which board
officials and the public will have an
opportunity to discuss the situation at the
schools. The dates were set at the board's
Dec, 5 meeting.
The school accommodation review process
starts once a school's enrolment gets below a
certain number of students. A committee
made op of representatives of the public will
be involved in the process.
The end result could be the eventual
closing of the three schools. but director of
education Robert Allan has said that the
decision to dose a school may not necessarily
be taken
The first meeting will be held on Tuesday,
Jan. 17 at Vanastra Public School. The second
meeting is scheduled fur Tuesday, Jan. 24 at
Hensafl Public School and the third meeting
is slated for Tuesday, Jan. 31 at J.A.D.
McCurdy Public School in Huron Park.
The meetings, being held at the three
affected schools, are expected to start at 8
p.m.
dal requirements and is approved by the
registrar.
-A new commissioner of financial institu-
tions should report directly to the Minister.
advise on policy, act as a watchdog for the
public interest and hear appeals of decisions
by the registrar.
-A new assistant deputy minister should
be responsible for the administration of all
ministty branches regulating financial insti-
tutions, and the registrar should be separate
from the superintendent of insurance.
-A separate investigative unit should be
established within the financial institutions
branch.
-The amendments giving the registrar the
power to approve the transfer of more than
10 per cent of a company's shares should be
extended to all loan and trust companies in
Ontario. including those that are incorpor-
ated federally or in other provinces. The
White Paper does not recommend any limits -
on share ownership.
-Trust and loan companies should be
prohibited from owning more than 10 per
cent (the limit is now 20 per cent) of the
shares of another corporation.
-Companies should not be permitted to
have more than 10 per cent of their assets
invested m real estate.
-Companies should be able to increase
their commercial lending to 15 per tent of
their assets (now 7 per cent) provided ••they
have demonstrated over a period of years
their capability to handle this type ,af
-The powers and functions of every loan
and trust company should be reviewed
annually. r •
-Companies should have to establish audit
and investment committees (consisting of a
majority of outside directors) which would
review financial records and investment
decisions. In addition, the province's
registrar should have prior approval of all
appointments of chief executive officers and
chief financial officers in these companies.
-Directors or officers of companies should
face fines of up to $100,000 forfailure to
disclose personal conflicts of interst in any
transaction involving their companies.
-All trust and loan companies should be
required to report certain monthly financial
information through a computerized report-
ing system that would provide "an early
warning system/for variations. exceptions
and potential problem areas."
The Minister of Consumer and Commer-
cial Relations also'tabled the report of an
'internal review committee which examined
the administration, and regulation of finan-
cial institutions by his Ministry. In the
Legislature, Liberal Leader David Peterson
described tt},e internal review as "a damning
indictment' of the Ministry's failure to
protect the public interest. We have had in
the past 15 years in this province somewhere
over 10, collapses or near -collapses of
financiainstitutions. Why is it that the
processes were not in place?" He added that
the trust companies affair has cost taxpayers
about $500 million through payments made
by the Canada Deposit Insurance Corpora-
tion. The Government was accused by the
Opposition of a five-month cover-up, be-
cause the review. released on November'
15th, was dated in June.
The study stated that -those who oversee
Ontario's multi -billion -dollar loan and trust
company industry now rely on "moral
• suasion (and) the integrity of -the companies' •
officials to conduct loan and trust business
with consideration for the protection of
public deposits-" Staff time was "consider
ably under-utilized" on the regulators'
prime function of examining company
compliance with the act and "a deterioration
of the reporting and directing responsibili-
ties" was observed within the Financial
Examination Services Branch.
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Wish
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Holiday Season �•
throughout the
year
with a
"A gift that keeps on giving
31luron
527-0240
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