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THE TAXPAYER

Promoting the responsible and efficient use of tax dollars

Nov/Dec °92

Is government borrowing
driving us into the poor house?

In Canada, we’re all getting
poorer. It’s not an illusion. It’s
not made up. It’s absolutely
true.

While overall incomes are
still rising, after paying all the
taxes that are being levied by
the various levels of govern-
ment, the amount of money Ca-
nadians have left to live on is
getting smaller. The reason?

Uncontrolled government
spending leading to unre-
strained government debt.
When people take out a
mortgage for a house, the price
of the house increases substan-
tially over the term of the mort-
gage as interest piles up. For
example, a $65,000 mortgage
amortized at 10% over 25 years
will actually cost the home-

Taxes keep

getting higher —
and higher...

Over the years, governments
have not wanted to reduce their
spending in order to deal with
their deficits, but instead have
turned to taxpayers time and
again for more money.

per year. As a result, the total
tax burden on Canadian house-
holds consumes 24% more of
the economy than it did just
eight years ago.

The impact of the tax in-
creases falls most heavily
on middle income taxpay-

The average family IS ers, with those who have
paying almost $1,900 children and combined in-
i ie comes of between $35,000

= taxes this and $100,000 per year hit
year thanitdidin the hardest. However,
1984, even low income families

Now, a study by Patrick
Grady of Global Economics,
reported in the Canadian Busi-
ness Economics magazine (Fall
1992), has shown just how
much the tax burden has in-
creased. The average family is
paying almost $1,900 more in
taxes this year than it did in
1984, and the government has
raised the tax burden on Cana-
dian households by $22 billion

are paying more in taxes

today than they did in
1984. Grady warns that the
persistence of a high federal
deficit and increased pressure
on the government to spend
more, mean the situation will
likely get worse.

Until governments learn to
live within their means, Can-
ada’s taxpayers will be the ones
expected to make up the differ-
ence again and again.

Canadian Taxpayers Federation
#200 - 1315 Scarth Street
Regina, Sask., S4R 2E7

| Think about it: That incl

owner $175,000. The same
principle holds true for govern-
ment debt.

Increasingly, people are be-
ginning to understand that the
interest payments on the debt of
our various governments are
becoming the major factor in
determining our standard of
living.

At the national level, tax-
payers shell out about $42 bil-
lion a year paying interest on
the debt. This is roughly how
much it costs to run the prov-
inces of Alberta, Newfound-
land, Saskatchewan, Manitoba,
Nova Scotia, New Brunswick,
PEI and over 80% of British
Columbia’s budget.

all the highway departments,
prisons, health systems, schools,
universities, and bureaucrats in
these provinces! No wonder
everybody is getting poorer and
struggling to pay their bills. The
taxes we have to pay in order to
satisfy interest is killing us. Add
to this the fact that the $42 bil-
lion we spend on interest doesn’t
even reduce the debt, and we see
the difference between how
much Canadian taxpayers owe,
and how much that debt will
eventually cost us.

In order to accurately see
what taxpayers are facing,
though, the indebtedness of the
provincial governments must
also be added, plus the fact that

| our federal politicians are still

borrowing over $30 billion
more a year.

Since the defeat of the Char-
lottetown Accord, our politi-
cians have been talking about
turning their attention to the
economy. If some of them come
out with some kind of scheme
claiming they found a way to
make us all prosperous, hang on
to your wallets. The truth is that
the best thing they could do for
Canadians is to quit borrowing;
they should cut spending and re-
duce taxes. There’s no other
way that Canadians and our chil-
dren can have a fighting chance
at a prosperous and stable life-
style because the debt of govern-

-ment is what’s making us all
poor.

ife for the average Canadian.

The Taxpayer

The Canadian T: e
Federation
A politician fighting for
TAXDBVOIS oi. 3
Taxpayers must work together
across borders .................. 4
Unmasking the demand for
SOIVICGS. he en ett 5
What happened to direct
democracy in B.C.?............ 6
B.C. government fiddies while
fiscal house burns.............. 6
Taxes hurt economic
GrOWE io... coe 8
LOAD i ae sadssieeecs eee 9
Reverse Robin Hood
OCONOMICS). 2c. wets, 9
Saskatchewan upgrader down-

grades province's finances ..10
Making allowances for

MEAS i caiGinuc eee 11
An interview with Sir Roger
Douglas co sictalaeaeen 12
Ship of state gets shot across
INO: DOW &..ccsscssovagearminaenn 13
Albertans still waiting for
Freedom of Information......14
Taxpayer action guide........ 15
The transformation of Canada
as a democracy................. 18
Letters to the editor............20
Drilling for dollars in the oil
DaICh ee sista atom ere 21
Are Canada’s airlines being
taxed to death? «0.00.00... 22
Manitoba deficit hits $442
TANMIOR 0s -bacneesescntcachosbasimcbe 23

. ‘Scorched earth - the Ontario
government's hunt for new :
TOVONUGS ......sssccccnsseecsensesee

City employees earn

GIDE sida que 25
A future with less,
GOVEPNMENT.........cercrseecveres 26
Industry, Science and Technol-
ogy handouts if 28
What are you going to say
{22g Weep Re eee Re et 32

The Canadian Taxpayers Federa-
tion is a federally incorporated, non-
profit organization. Our purpose is to
promote the responsible and efficient
use of tax dollars and to provide the
public with information about govern-
ment spending and policy. Founded in
1989, the Federation is independent of
all political or institutional affiliations
and is entirely funded by subscriptions
and free will contributions.

Cost:

The Taxpayeris published six times
a year by the Canadian Taxpayers
Federation. There is a
charge of $55 to receive The Taxpayer.
Additional donations are also neces-
‘sary to fund the various research and

advocacy activities of the Canadian

Taxpayers Federation.

‘Address:

_ Please address all correspondence
to #200 - 1315 Scarth Street, Regina,
Sask., S4R 2E7. Phone hice: 352-
7199. |

is copyright. Copyright owner is the
Canadian Taxpayers Federation. Per-
mission to reprint can be obtained by
writing:

British Columbia: #206-920 Hillside
Drive, Victoria, BC, V8T 1Z9

Alberta: #304-17304-105 Ave., Ed-
_monton, AB, T5S 1G4
Saskatchewan: #200-1315 Scarth
St., Regina, SK, S4R 2E7

- Editorial cartoons - used by permis-

sion.

Staff profile

Robin Richardson

Robin Richardson, M.A.,
C.F.A., is the Director of Re-
search for the Canadian Taxpay-
ers Federation. Robin works out
of the Federation’s office in Vic-
toria, B.C.

He has worked as a senior

economist for a major Canadian
bank and was director and chief
economist for an institutional
brokerage firm. He also served
as a senior consulting economist
for a national engineering firm
and as a senior economic advisor
for the Canadian Federation of
Independent Business.

Robin received an Honours
B.A. in Economics from the Uni-
versity of Western Ontario,
where he was a gold medalist and
candidate for the Rhodes Schol-
arship. He earned a Masters de-
gree in Political Economy at the
University of Toronto and did
post-graduate doctoral studies in
international economics at Har-
vard University. He is also a
Chartered Financial Analyst and
has a masters degree in Educa-
tion.

Concerned about rising gov-
ernment spending and deficits,
Robin was an early advocate of
a constitutional amendment re-
quiring the federal government

to balance its budget over the
course of the business cycle.

He has been active in commu-
nity activities including organiz-
ing fundraising for overseas
famine relief and United Way
campaigns.

Todd Diakow

Todd Diakow is a Research
Associate working for the Tax-
payers Federation out of the Re-
gina office.

Todd came from a farming
background, and initially re-
ceived a two-year certificate in
Agricultural mechanics from
Kelsey Institute in Saskatoon.
With the downturn in the agricul-
tural economy, he continued his
education at the University of
Saskatchewan in Saskatoon.

In 1990, Todd graduated with a
Bachelor of Arts degree in Cana-
dian history, with Honours. After
the completion of his degree, he
entered the Masters program in

Nov/Dec ’92

history and is in the process of
completing his degree.

Todd’s responsibilities in-
clude research on Saskatchewan
issues and he is currently in-
volved in an analysis of the prov-
ince’s health care system. He
also makes regular contributions
to The Taxpayer.

It's up to you and me

by Ken Dillen

I was having coffee with my
old buddy Arnie, an ardent fish-
erman, hunter, camper, and all
around good guy who takes ex-
ception to a lot of things. The
one thing that irritates him more
than any other, though, is what
he describes as the “insatiable
appetite of politicians for more
tax money.”

So I asked him, “Arnie, be-
sides complaining about politi-
cians and taxes all the time, what
are you going to do about it?" He
replied, in a defeated sort of way,
"Well, what can anyone do about
it?”

"Arnie," I told him, “I used to
feel the same way. I watched
politicians of all stripes tax us to
the limit. Then, when there was
nothing left to tax, they com-
menced to borrow us into the
poor house."

"Just think about the way our
system works," I said. "Politi-
cian ‘A’ comes to town and says,
‘Elect me, and I’ll build you a
hospital.’ A few days later, poli-
tician ‘B’ comes to town, calls
politician ‘A’ a cheapskate, and
says if you elect him, he’ll build
a bigger hospital, throw in a
school, and pave every road.
Then, along comes politician ‘C’
who says he’ll do all of the
above, and what’s more, he’ll es-
tablish a social-safety net so that

anyone who won’t work, or can’t
work, will be kept too."

It was pretty apparent that
Arnie had caught the drift of
what I was trying to say, and he
confirmed my hunch by saying
“The big question is who pays?"

"You got it,” I agreed, "it’s
guys like you and me and other
people in this coffee shop who
eventually end up paying the
bills for all the politicians’ prom-
ines."

"That’s right!" he exclaimed,
driving his index finger into the
air to emphasize the point, "Now,
the question is, what can little
guys like us do about it?”

"It would seem to me, Arnie,
that this thing’s never gonna get
fixed until guys like you begin to
take some responsibility for the
way things are, instead of just
complaining all the time."

"What da’ya mean take some
responsibility?" Arnie de-
manded. "It’s not my fault the
politicians got us into this mess."

"Arnie, how old are you?" I
asked.

"Forty-eight," he replied.

"In the thirty or so years
you’ve been an adult, what have
you done to contribute to the
well-being of the province?"

At this point, he really didn’t
know what to say. He fidgeted on
his chair a bit, looked around a
bit more, and repeated what he’d
already said, "It’s not my fault
the politicians got us into this
mess."

"I’m not talking about
whether or not the politicians
have done a good or bad job,
Amie. My question was ‘In the
thirty or so years you’ve been an
adult, what have you done to

contribute to the political well-
being of the province?’"

Old Arnie just sat there.

"I don’t really know what to
say to that,” he replied honestly,
"I’ve never thought about it in
those terms.”

I walked away from the cof-

fee shop that morning wonder-
ing if I’d been a bit too hard on
Amie. After I thought about it
for a while, though, I became
even more convinced that unless
a significant number of people
quit their complaining in favour
of calling for responsible
change, we in fact aren’t going
to see things get much better.
Instead, they just might end up
getting worse.
Ken Dillen is a former member of
the Manitoba Legislature and is a
member of the Federation's Advi-
sory Board.

ae So a | ee ee ee

Attention local ratepayers ,

The Canadian Taxpayers Federation is currently compiling a directory of local

J ratepayer and taxpayer associations throughout Canada.

If you are a member of a local ratepayers group, or know of one in your community,

please fill out the following form and return it to:

The Canadian Taxpayers Federation

#304 - 17304 -105 Ave

Edmonton, Alberta, T5S 1G4

Name of ratepayer association:

President/Chairman:
Year established:

a Mailing Address:
Telephone:

Number of active members:

a ee ee ne ee

Nov/Dec '92

The Taxpayer

A politician fighting for taxpayers

Tax decreases can happen in Canada

by Dean Smith

While municipal taxpayers
across Canada have been faced
with an ever increasing burden of
taxation, the City of Langley, lo-

——E

cated in the B.C. Fraser Valley,
bucked the trend and announced a
property tax decrease for 1992.
The charge for lower taxes was
led by Joe Lopushinsky, the city’s
mayor. Lopushinsky says they

opushinsky: A politician concerned about taxpayers

were able to put through the 1%
tax decrease by trimming some
waste and through natural growth
in the tax base.

Lopushinsky was first elected
mayor of Langley in 1988, run-
ning on a platform of lower taxes.
He defeated the incumbent mayor
by 72 votes, a result which many
considered a fluke.

But many have found
Lopushinsky’s philosophy of
politics appealing. He says, "I am
not a friend of government and
don’t profess to be. I’m not re-
sponsible to council or the bu-
reaucracy that governs it. My
allegiance lies with the people of
the city of Langley." Of course,
these views have caused the
mayor to come into conflict with
his six aldermen and city bureau-
crats.

Two weeks after he was first
elected in 1988, the city admin-
istrator quit. Citing the need to
streamline city hall, Lopushin-
sky pushed through with plans to
combine the city administrator’s
job with that of the city clerk.
This saved the city a $70,000
annual salary.

When the city council ap-
proved a tax increase of 5.5% in
January 1990, Lopushinsky de-

cided to send out a letter telling
citizens that he had called for a 1%
decrease. When Council threat-
ened to sue him if he used taxpay-
ers’ money to communicate his
own views, Lopushinsky pro-
duced and mailed out the letter at
his own expense. Nevertheless,
the council subsequently billed
him $17.33 for his secretary’s
time in typing the letter.
Undeterred by the council’s

City of Langley was able to reduce taxes

unwillingness to reduce taxes,
Lopushinsky ran again in the No-
vember 1990 civic election, again
on a platform of tax reduction.
Despite a challenge by the former
mayor, Lopushinsky won by 889
votes.

To the delight of taxpayers,
Lopushinsky has shown that mu-
nicipalities do not have to resort
to tax increases to balance their
budget.

The cost of medicare

About a month ago, I had a
phone call from a U.S. reporter
who was curious about how our
Canadian medicare system
worked. I told him that in a lot of
ways it worked very well, but that
despite the accolades being rained
on it by some, the overall Cana-
dian health system is financially
unsustainable.

He was surprised to learn that,
unlike his country where individ-
ual states are prohibited from bor-
rowing, Canadian provinces have
the power to borrow unlimited
amounts of money at any time.
He was also surprised to learn that
what’s allowing the Canadian
medicare system to keep going is
the huge amount of money being
borrowed on an annual basis by
these provincial governments.

"If our provincial governments
couldn’t borrow huge sums of
money every year, Canada might
not have a medicare system at all,"
I said. "The real question you
should be asking then is not how

MEDICARE IS THE

RVICE AND

SYSTEM THAT ENABLES
e ADULTS Pee MEDICAL

it works, but how long can Cana-
dian governments keep borrowing
in order to help pay for it?"

I then gave him a bit of a break-
down as to how much the health
care system costs each province
versus how much the individual
provinces are borrowing. In Man-
itoba, the Filmon government will
spend $1.8 billion on health care
this year, while borrowing
roughly $400 million to help pay
for it. Saskatchewan will spend
$1.6 billion on health this year,
borrowing nearly a billion last
year, and another $500 million
this year. Alberta’s health budget
is over $3.5 billion, and the gov-
ernment will borrow over two bil-
lion dollars.

In British Columbia, the Har-
court government is projecting
that they’ll spend nearly six bil-
lion on health, when at the same
time they’re borrowing close to
three billion dollars to meet their
total spending requirements. In
central Canada, just like they did

THATS EASY SON. MEDICARE.

——

last year, Ontario will borrow an-
other $10 billion. The Mulroney
government in Ottawa will bor-
row close to $30 billion again this
year, while paying out literally
billions in transfer payments to
help fund medicare.

After relaying this information
to him, I told him of an editorial
cartoon that I had clipped out of
the paper. The cartoon was done
by Cam, who is well known for
the editorial cartoon awards he’s
won. In it, there’s a picture of a
father sitting in his chair in the
living room, reading the daily pa-
per, and a little boy, maybe seven
or eight years old is standing be-
side him.

“What's the best thing about
Canada?" the little boy asks his
father.

"That’s easy son, medicare,"
the father immediately replies.
"Medicare is the system that en-
ables us adults free medical serv-
ice and the government ensures
we never have to pay for it... You
will!"

In the final frame of the car-
toon the little boy is standing
there with a stunned look on his
face watching his father who has
already gone back to reading his
paper.

Editorial cartoons, although
often meant to poke fun at things,
are often seen as funny, or else
strike us as humorous because the
one-liners in them are accurate
and factual. In this case, it is ab-
solutely true that Canada’s health
system cannot be economically
sustained at current levels for
much longer, and it’s also true that
the generation of young people

who are coming up now are going
to help pay for the health care that
is currently being received by the
middle age and older generations.

Some might call it a kind of re-
verse Robin Hood economics;
take from the kids and give to the
parents.

Dog-gone tax

A Regina dog owner fought the
GST - and won.

Tim Maloney is the owner of a
cocker spaniel named Kate. Ear-
lier this year, Kate was sent to
Minneapolis to be inseminated.
On her return, Maloney was
charged $17.50 GST - on the stud
fee.

The customs officer argued
that the insemination increased
the dog’s value, and therefore
GST was chargeable. Maloney

said that’s ridiculous. "I laughed
- I thought they were joking, but
no, they were dead serious, and

ee |
Tim Maloney with (smiling) Kate

they said that no, we won’ t release
your dog to you until you pay the
$17.50 GST."

When Maloney asked how
they could tell whether the dog
was pregnant, he was told the dog
seemed to be smiling.

Maloney fought the officer’s
decision, and was finally rebated
the $17.50 after a ruling came
down that this was one service the
government didn’t need to tax.

Well, Kate was pregnant, and
her two pups were named, "Re-
bate" and "Here Comes the
Taxman.”

The Taxpayer

Nov/Dec '92

Taxpayers must work together
across borders

by Bjorn Tarras-Wahiberg

The steady increase of the
total tax burden is becoming
the true scourge of the industri-
alized world. In 1970, when
we still lived in the romantic
period before the first oil crisis,
the average tax burden in the

Sweden may appear as a rather
respectable place!)

Parallel to this we are expe-
riencing a dramatic increase in
economic activity between all
countries, including the setting
up of economic unions such as
the ones between the countries

of the European
Economic Commu-

With a better understanding of the _ nity.

pros and cons of the tax systems in
neighbouring countries, we may be
able to influence our politicians to
adopt good practices while removing

We must ensure
that economic un-
ion doesn’t result in
"free trade" in taxa-
tion [as there will be

absurd elements from our country’s pressure on govern-

tax system.

industrialized countries (the
OECD members) was 30 per
cent of Gross Domestic Product
(GDP), which is the dollar
value of the country’s total pro-
duction of goods and services.
In 1980, the average tax burden
had risen to 35 per cent, and
two years ago it broke the 40
per cent line. (Ten more years
of this, and my own country

ments to harmonize
their tax systems.
There will be a ten-
dency for countries to add new
taxes rather than seeing other
countries remove taxes.] Mem-
bers of the International Asso-
ciation of Taxpayers must work
together in stronger coopera-
tion to stop this ominous devel-
opment.

Let me point out the advan-

tages of taxpayers and their as-
sociations working together to

Taxpayer groups
around the world

// i |e
(/ [Se |€

WY
a OR

Wt i ae

The International Associa-
tion of Taxpayers was estab-
lished in 1988, and today is
composed of 20 member asso-
ciations from 16 countries on
five continents. Taxpayer as-
sociations are found in Aus-
tralia, Austria, Belgium,
Brazil, Canada, Finland,
France, Germany, Great Brit-
ain, Hungary, Japan, Luxem-
bourg, Norway, Portugal, and
Sweden. There are four asso-
ciations in the U.S. and new
groups are being formed in
Spain and Italy.

Australia’s taxpayer asso-

ciation is the oldest, being
founded in 1919. Second
oldest is the Swedish associa-
tion, which was established
two years later, in 1921. The
Swedish association helped
to start associations in Fin-
land in 1947 and in Germany
after the fall of Hitler in
1949. The German associa-
tion is the largest, with 330
thousand members, while the
Swedish association, with its
180 thousand members, is
one of the largest in propor-
tion to the country’s 8.6 mil-
lion citizens.

curb government spending and
taxes:

-Improved knowledge of

other countries’ tax sys-
tems. With a better under-
standing of the pros and cons of
the tax systems in neighbouring
countries, we may be able to
influence our politicians to
adopt good practices while re-
moving absurd elements of our
country’s tax system;

-Establishment of new

members. Our latest new-
comer is the Society of Hungar-
ian Taxpayers, which was
established in July of this year.
With a strong international or-
ganization, we may be able to
establish new taxpayers asso-
ciations in other countries at an
even faster pace so that, in the
end, we have an efficient,
worldwide network of member
associations.

With better cooperation be-
tween the various associations,
we may be able to assist our

members even when they cross
borders. Of course, stronger

cooperation demands more
work and patience from the

member associations, but in
the long run, I am sure the
benefits will be worth the extra
work.

Bjorn Tarras-Wahiberg is the President of the Swedish Taxpayers Associa
tion and of the International Association of Taxpayers

The frightening case of Sweden

Beware of Invisible Taxes

by Bjorn Tarras-Wahlberg
During the period prior to
1970, Sweden had the most
rapid economic growth in the
world after Japan. Our taxes
were moderate at that time.
After 1970, however, an
enormous increase of the total
tax burden took place. This hap-
pened in a rather sly way be-
cause the taxes that were sharply
raised - the payroll taxes and the
sales tax - are not clearly visible
to the citizen. Some of the taxes
are not even called taxes. The

In 1970, Sweden was experiencing the
However, between 1970 and 1990 the total tax burden increased from 40% of GDP to 56% and today Sweden has
fallen to the lower half among the 24 OECD countries.

payroll taxes, for instance, are
called "employer fees", even
though they are taxes in every
sense of the word. The citizens
have even been duped into be-
lieving that it is the employers,
or the "production", that pay the
payroll taxes, even though most
sensible people understand that
the level of these taxes has a
direct impact on wage levels.
The result of this political
hocus-pocus has been a rise in
the total tax burden from 40% of
the Gross Domestic Product in

pid economic growth of

1970 to a stifling 56% in 1990.
This has opened the way to an
equally enormous increase in
public expenditures - a third of
the Swedish working force is
now employed in the public sec-
tor.

The effect of these gigantic
tax increases on Swedish indus-
trial competitiveness has been
obvious enough. From a top po-
sition in the "growth league" in
1970, we have now fallen to the
lower half among the 24 OECD
member countries.

in the world next to Japan.

Nov/Dec ’92

The Tax

Unmasking the “demand” for services

by Lewis K. Uhler

Politicians frequently claim
that a "demand" exists for more
and bigger programs and
spending. But this "demand" is
not demand as we ordinarily
understand it - in the context of
supply and demand. Why? Be-
cause most government serv-
ices cost the recipient very
little, if anything. There is no
price to regulate demand -
hence "demand" is virtually un-
limited.

If one of your local auto
dealers decided to "market"
cars free, the "demand" would
be virtually limitless. If you
visited your favourite shoe
store and found that $50 shoes
were on sale for 50 cents a pair,
your "demand" for shoes would
probably be limited only by
your closet space.

In 1972, to help develop
Proposition 1 (the constitu-
tional tax and spending limit
for California) for then-Gover-
nor Ronald Reagan, we com-
missioned a study to learn how
much citizens knew about taxes
and government spending.
One section was devoted to the
costs of various government
services. Under the direction
of Wm. Craig Stubblebine, Pro-
fessor of Economics at Clare-
mont McKenna College, our
experts calculated the cost to

each citizen of various state
and local services - roads, edu-
cation, police, prisons, garbage
collection, etc. - based upon in-
come levels. With this infor-
mation in hand, we found that
those surveyed underestimated
the cost to them of government

L BUDGET \

| ee
ae : Ps
;

services by 50 to 70 percent,
irrespective of income level.
In other words, if the real cost
to that person for a particular
service was $100, he estimated
the cost to be in a range of $30
to $50. Respondents had no

idea of the real costs because of |

a __________________.______

Lewis Uhler - President of the 500,000 member U.S. National Tax
Limitation Committee

a lack of pricing information.
There is no reason to believe
we would get different answers
today or that guesses about fed-
erally supplied services would
be any more accurate.

"Free Money”,
Unlimited Demand

And remember, the respon-
dents to our survey were tax-
payers who were actually
paying something for the serv-
ices. When you have a
person who is paying
no taxes and is receiv-
ing a welfare grant,

deep, provided it was at full fed-
eral expense. After beneficiar-
ies were required to pay half the
cost, the locals supported a one-
way channel at a shallower
depth, costing $50 million.

When you put a pricetag on
what has been a "free lunch",
it’s amazing how quickly the
dieting instinct surfaces.

The very fact that price is
largely unavailable to ration
government services is one of
the most compelling reasons

"When you put a price tag

food stamps, medicare,
etc., there is absolutely
no limitation on that
person’s demand for

on what has been a ‘free
lunch’, it’s amazing how
quickly the dieting instinct
surfaces.”

more. In the case of
"welfare" to businesses

and the non-poor, some

of the recipients do pay

taxes, but because there is no
linkage between taxes paid by
that individual/organization
and the federal grant, the gov-
ernment’s funding is consid-
ered "free" money. Hence,
there is little or no suppression
of demand in this instance,
either...

(One example) was in Balti-
more, where local interests sup-
ported a $300 million
double-width channel 55 feet

Economic development or economic

by Craig Docksteader

There are few people who
would question whether a di-
versified, developed economy
is important. However, there is
increasing concern Over gov-
ernment economic develop-
ment programs which may in
fact be hurting rather than help-
ing the economy.

Government economic de-
velopment policies appear to be
based on the following cycle:
1) remove money from the pri-
vate sector; 2) spend the money
to stimulate the private sector;
3) tax any profits that come out
of that spending; and 4) remove
money from the private sector
to pay for any losses that result.

Governments do have a

unique role to play in attracting
investment and industry. Only
governments can ensure there
is a healthy tax climate in place
which will attract new busi-
nesses and ensure optimum
production in existing busi-
nesses and industries.

However, the existing prac-
tice of taxing in order to pro-
vide grants, loans and other
subsidies erodes the potential
of ever achieving such a cli-
mate. In many ways it is like
the proverbial "catch 22"
where, in the process of at-
tempting to stimulate economic
development, the government
contributes to economic de-
cline, resulting in calls for more
government involvement
which produces more taxes and
more economic decline. With-
out question, the sooner gov-
ernments get off this slippery
slope, the better.

Recent developments in the
Alberta oil patch illustrate this
point. In mid-October, the Al-
berta government restructured
oil royalty rates to give the oil

industry millions of dollars of |

tax savings a year. When this
change was announced, Alberta
Energy Minister Rick Orman

made three very significant
statements: 1) changing the
royalty structure will generate
activity and growth in the oil
industry in Alberta; 2) lowering
taxes will create jobs in the oil
field; and 3) the consequent

Alberta government lowered royalties in re oll patch saying this move

growth in the industry would
both help stimulate the econ-
omy and partially offset the
revenue that would be lost be-
cause of the tax reduction.
Perhaps without even realiz-
ing the full ramifications of his

: =.
y he ws Hh

a Uw:

will create jobs. One can only wonder how many jobs have been lost
over the years because of this tax.

that less, not more, should be
done by government - espe-
cially by the federal govern-
ment. The more resources that
are pumped into a system that
has no pricing mechanism by
which to ration those resources,
the greater the waste, ineffi-
ciency, and popular discontent
that are experienced. Pricing,
and price competition, are the
only things that produce reli-
able levels of demand - and the
supply to meet it.

decline?

statement, the minister has ac-
knowledged that the previous
practice of imposing high taxes
on the industry had a negative
impact on the oil industry, and
consequently on the economy
of Alberta. This in turn con-
tributed to unemployment and
economic decline, both of
which typically produce higher
government spending and
lower government revenues.
The irony of this can only be
fully appreciated when one re-
alizes that since 1980, while
heavily taxing the oil industry,
the Alberta government was
handing out loans and grants to
business to the tune of over
$2.6 billion in an attempt to
promote economic develop-
ment and diversification.
Instead of taking money out
of productive sectors of the
economy and selectively fun-
nelling it into potentially less
productive areas - a policy that
has not proved to be beneficial

to taxpayers or to the economy,

the government should leave
that money where it belongs -
in the hands of those who have
already proved they can create

| the jobs and industry we all

want.

The Taxpayer

- British Columbia -

Nov/Dec ’92

What happened to direct
democracy in B.C.?

by Robin Richardson

This past June, Premier
Mike Harcourt told the B.C.
Legislature, "J am committed
to referendum and recall. The
principle is one that our cau-
cus supported when the matter
was before the legislature; we
support it now."

Despite this commitment,
the B.C. government has failed

to address the results of the two
referendum questions asked in
the October 1991 provincial
election in which British Co-
lumbians voted overwhelm-
ingly in favour of the right of
voters to initiate referendum
questions (83% Yes) and to re-
call their MLAs (81% Yes).

The government’s Legisla-
tive Select Committee has

| am committed to referendum and recall.
So why the delay?

been asked to review these two
questions and has asked the
public for written submissions
on these two issues. The Cana-
dian Taxpayers Federation will
be making a presentation to the
committee.

Voter initiated referendums
may be the only way taxpayers
can compel governments to
balance their budgets and re-
duce their debts. Through this
process, voters are able to com-
pel the government to hold a
referendum on a measure sim-
ply by attracting the required
number of signatures.

When a majority votes in fa-
vour of a measure, the govern-
ment is compelled to take
whatever steps are necessary to
implement the results of the
vote, such as by introducing
legislation, even if it doesn’t
agree with the results of the
vote.

At present, only the cabinet
may order a referendum, and
the result is only binding on the
government that initiated the
referendum.

Voter initiated referendums
would change this, giving the
public an opportunity to estab-
lish more direct control over
how they are governed.

The Taxpayers Protection Act

by Robin Richardson

(ey)

On March 22, 1991, the gov-
ernment of British Columbia
passed the Taxpayers Protec-
tion Act (TPA). This act pro-
tected taxpayers from tax
increases to March 31, 1994,
and contained a provision to
prevent the introduction of new
taxes during this tax-freeze pe-
riod. =

The Taxpayers Protection
Act not only limited tax in-
creases but also committed the
government to balancing its
budget over each five-year pe-
riod. Its provisions would have
required the government to bal-
ance its budget by reducing its
spending and not by increasing

taxes. Further, the government
would not be allowed to in-
crease its spending beyond the
growth rate of the British Co-
lumbia economy.

On March 26, 1992, only one
year and four days after it was
passed, B.C. Finance Minister
Glen Clark announced the gov-
ernment would repeal the legis-
lation. :

Clark stated that the govern-
ment had "accepted the inde-
pendent financial review’s
recommendation that the so-
called Taxpayer Protection Act,
with its discredited balanced
budget plan, be repealed." In
fact, however, the consultants
who were hired to conduct the
financial review recommended
nothing of the kind.

The consulting company of
Peat, Marwick, Thorne & Kel-
logg, together with the account-
ing firm Peat, Marwick,
Thorne, did recommend that
the government should either
expand the legislation to in-
clude the Consolidated Reve-
nue Fund and _ crown

corporations or replace the leg-
islation with a highly visible
government policy document,
possibly included as part of the
provincial budget. Neither of
these recommendations were
followed.

What did the consultants say

Did you know?

Direct-democracy in Switzerland

trigger a vote.

sponsors (3% of the electorate).

© Once an initiative receives the required number of signa-
tures it is put to a nationwide vote. It needs 50% of the
national vote and a majority of the cantons (comparable to
provinces in Canada) to become law (an initiative is a
referendum which citizens, not governments, initiate).

e All cantons use citizen initiated referendums, and the signa-
tures of a specified number of citizens on a petition can

Direct-democracy in the United States

initiatives.

U.S. elections include:

@ 12 states allow municipalities to use initiatives.

@ The most famous initiative was Proposition 13 in California
which slashed property taxes in half and compelled major
cuts in government spending.

Examples of citizen initiated referendums voted on in recent

Bay Colony as early as 1640 and the initiative in 1715.

@ 23 states and the District of Columbia now use citizen

Massachusetts: Whether to shut down two nuclear
power plants with poor safety records and whether to

cut state taxes;

Colorado: Whether all proposed tax increases should

be put to a public vote;

Alaska and Oregon: Whether to reduce the salaries

of state legislators;

Colorado, California and Oklahoma: Whether to set
limits on how many terms a state legislator can

serve.

about the debt reduction and
balanced budget plans included
in the legislation? They stated
that "overall, the concepts of a
Debt Reduction Plan and Bal-
anced Budget Plan are sound
and are fundamental to an ef-
fective deficit reduction strat-

egy."

By repealing the Taxpayers
Protection Act, the government
has raised concerns that tax-
payers are, once again, at the
mercy of a government that re-
fuses to recognize limits on its
power to tax and to spend.

Why would any government want to repeal an act that protects taxpayers from excessive
taxation and government spending?

Nov/Dec ’92

ritish Colum

B.C. government fiddles while fiscal house burns

Recently, the B.C. government
confirmed that the province’s
deficit will be much higher than
was originally forecasted. This is
causing concern over whether the
government has lost control of its
spending altogether, particularly
since the deficit was already pro-
jected to be the highest in history.

The Canadian Taxpayers Fed-
eration has released a report
which shows that recent spending
cuts announced by the B.C. gov-
ernment simply nibble at the

problem and won’t go far enough
to ensure that the province’s fis-
cal position remains stable. The
report indicates that B.C. taxpay-
ers are on the hook for $7.5 bil-
lion of debt in the government’s
operating account and over $15
billion of crown corporation and
other debt. The interest paid on
the debt works out to the equiva-
lent of $200 for each family of
four per month.

Richardson pointed out that in
1982, the interest on the debt cost

the same family only $25/month.
However, over the past decade,
government borrowing has in-
creased that figure 800%. This
year alone, the interest on the
government’s operating debt will
exceed three quarters of a billion
dollars. Richardson says the
problem must be dealt with. "If
the current Members of the Leg-
islative Assembly do not get this
very serious situation under con-
trol, and quickly, B.C. taxpayers
will be paying ever more in taxes,

yet receiving less and less in serv-

ices.”

While the government has an-

nounced $82 million
in spending cuts to try
to deal with the bal-
looning deficit,
Richardson says the
move is far too timid a
response. "An $82
million dollar nibble
at an annual deficit

that’s about thirty times that size,
and an accumulated operating

debt that’s 90 times that size, sim-
ply won’t have much of an effect.
It amounts to about the same

“An $82 million nibble at an annual
deficit that’s about thirty times that
size, and an accumulated operating
debt that’s 90 times that size, simply
won’t have much of an effect."

thing as trying to fight a forest
fire with a pail of water."

$24 B

$22 B

$20 B

$18 B

$16B

$14B

$12B

$6B

$4B

$2B

Government of British Columbia Debt

In billions of dollars - accumulated operating debt and total debt": (including crown corporations) - by year

1. Does not include unfunded pension liabilities

Total Debt"
including
crown
corporation
debt

Accumulated
Operating
Debt

by Dean Smith

Canadians have become in-
creasingly concerned about the
economy, which has been battered
by business closures and layoffs. A
number of reasons have been given
for these economic woes, but one
that has been consistently ignored
by most politicians is taxation.

Dr. Richard Vedder, professor
of economics at Ohio University,
has released a study that shows a
strong correlation between high
taxation and slow economic growth
in the U.S.

Vedder writes,
1930s, the typical state had neither
an income nor a sales tax, whereas
today most states have both. Do
these increasingly important taxes
affect our rate of economic pro-
gress? In short, do taxes matter?
The answer is clearly ’yes’."

In his study, Vedder compared
the 10 states with the greatest eco-
nomic growth between 1967 and
1990 to the 10 states with the low-

et ee eS eee eee ee...

The Taxpayer Nov/Dec '92
laxes hurt economic gro th
Recently | had occasion to contact a person in the U.S., and while | was in the process of introducing myself and our organization
he blurted out, "You’re from that country with all those high taxes." There were no sarcastic remarks about living in igloos or snow-
shoeing to work. His impression of Canada could be summed up in one word - taxes.
versely, those states with the great- | tion also held by such other rap- [ Taxes matt |
est rates of growth raised taxes ata | idly growing states as Florida and ad
rate 35% below the low growth | Texas.” "Studies show that
group. The strong correlation be- j States and cities
tween taxes and economic growth | International with higher taxes
show that taxes do matter and must | Comparisons tend to have lower
be considered a factor in what kind Vee Caw & sunlit tontels- economic well-be- —
of economy there will be. | tion at the international level. He ing. They show that ©
ee E found that of the twenty most in- people are more
Similar comparisons dustrialized nations, the five with likely to migrate
This was confirmed in Vedder’s | the highest tax rates (Spain, Ire- away from high-tax
study of neighbouring states with | and, Italy, Denmark and Greece) areas and that busi-
similar economies, climates, and | grew at an average yearly rate of nesses are more
resources. For example, the in- | only 1.72% a year, while those likely to select low-
come levels in Kansas went from | with the lowest (Norway, West tax environments.”
Before the being eight percent lower per capita Germany, the United States, Aus- “Taxation Is impor:
to five percent higher than its | tria and Turkey) grew at an aver- tant in explaining
neighbouring state Iowa, an in- age rate of 2.22% a year, 29%
: , economic rises and
crease Vedder attributed to the | pioher '
: : gner. declines because
lower growth in tax rates in Kansas. taxes crowd out pri-
New York, one of the U.S.’s Why taxes hurt : oe '
highest tax states, has suffered eco- : vate business activ-
nomic decline relative to its lower economic growth ity, witien fs noes
sats sandadaleiseids <email: Diaie Vedder points to a number of productive, dollar
8 3 : reasons why taxes affect economic for dollar, than pub-
Jersey, Pennsylvania, Massachu- ,
growth: lic-sector pro-
setts, and Vermont. grams.”
According to Vedder, "It isnot | » Taxes reduce workers’ dispos- :
an accident that the two fastest able income, leaving less Dr. Richard Vedder

est growth. He found that the rate
of economic growth of the states
with the highest tax rates was a full
20% below the low tax states. Con-

growing states over the past six
decades, Nevada and Alaska, have
no personal income tax, a distinc-

Government employee

Saves taxpayers

$156,000

Gilles Briand is a government
employee who has saved taxpayers
money. Unforeseen problems in the
design and development stages of
the Transport Canada building at
the Dorval airport in Montreal,
Quebec, caused serious difficulties
for pilots using the airport. Glass
skylights that had been installed on
top of the building were proving to
be dangerous because they pro-
duced a strong reflection or glare at
certain times of the day which
blinded pilots using the airport.

Transport Canada tried to remedy
the problem by applying anti-glare
paint at a cost of $20,630. However,
when this failed to correct the prob-
lem, the department decided that the
266 glass panels would have to be
replaced. As aresult, Transport Can-
ada received a bid of $203,000 to
replace the panels.

However, Briand, a Transport

John Sanderson

e
¥
%
d
e
?
iy
s

Canada employee at the Dorval of-
fice, thought of a more economical
solution. He suggested the glass
could be dulled by sand blasting.
Initially, there was strong opposi-
tion to Briand’s recommendation
because of concerns that the proce-
dure had not been tried before on a
structure already in place, and
might be too dangerous because of
the way the building was con-
structed.

After much discussion, it was
decided to proceed with Briand’s
suggestion. Special precautions
were taken to ensure safety, and
after three weekends of work, the
job was successfully completed at
a cost of $47,500.

In the end, this suggestion saved
taxpayers $155,500. As a result,
Gilles Briand was given the public
service’s Award of Excellence in
1991.

money for businesses. Vedder
argues that “dollar for dollar, | »
private activity is more pro-
ductive than public sector ac-
tivity.” Essentially,
government begins to crowd

out the private sector which re-
sults in fewer business starts,
together with layoffs, closures,

etc.

Consumers will also find ways
to avoid paying taxes, which in
turn affects the local economy.
For example, Vedder estimated
that 43% of the cigarettes con-
sumed in Cincinnati, Ohio and
area were purchased in Ken-
tucky because Ohio’s cigarette
taxes are six times higher. In
Canada, we have a similar situ-
ation with the rise in cross bor-
der shopping.

Vedder’s message to

government - cut taxes!

Vedder’s message to govern-
ments is simple: While it’s true there
are a number of factors affecting the
economy which are beyond their
control, the one area that can be con-
trolled is taxation.

If politicians are serious about
turning around Canada’s economy,
it would be wise for them to heed this
message.

e Businesses experiencing a low
rate of return on their invest-
ment may consider moving to
places with lower taxes. In
those instances where the cost
of moving exceeds such bene-
fits, businesses may choose to
expand in lower tax markets
instead of in higher ones.

It’s always someone
else’s fault

One disturbing conclusion of Vedder’s study is that the
“debilitating effects of taxes are not fully felt until two or
three years after adoption. Thus a tax increase approved
in 1992 might start hurting the economy in 1994 or even
1995. By then, voters will not associate the economic
stagnation with the tax increase passed years earlier, and
politicians can blame the poor economy on other factors."

e High tax regimes result in
higher production costs.
Higher taxes also force em-
ployers to pay workers more to
compete with the amount they
would keep if they worked ina
low tax area. This in turn
makes them less competitive,
which reduces sales.

and Technology and Minister for responsible ovine
International Trade, announced
August 4th that Canada will be
lending the Chinese government
up to $28 million U.S. to help
them buy 18 domestic satellite
earth stations.

The satellites will be provided
by Spar Aerospace Ltd. of Ste-
Ministry of Posts and Telecommu-
ment will be purchasing 5 new
earth stations and retrofitting 13,

The loan will be handled
through the Export Development

Nov/Dec ’92

For seventy years central eco-
nomic planning inflicted nothing
but misery and poverty on the peo-
ples of Eastern Europe, and under
central economic planning, virtu-
ally everything was in short supply.
Today, Russians, Hungarians and
millions of other eastern Europeans
are turning away from government
ownership at breakneck speed;
government businesses such as ho-
tels and restaurants, and even
farms, are being privatized at un-
precedented rates. For these na-
tions, the road back from serfdom
has not, and will not, be an easy
one. Individual initiative has been
all but stamped out over the past
seventy years, and this lack of indi-
vidual initiative, combined with the
fact that there is a very poor under-
standing of how wealth is created,
pose two major obstacles for the
former Soviet Union.

According to several senior ana-
lysts who’ve sifted through the eco-
nomic rubble of eastern Europe and
the USSR, there are several very
important lessons that Canadian
politicians and taxpayers can learn
from this situation.

The first lesson they cite is that
government-run businesses are in-
efficient. This does not mean to
say that people who run govern-

CP Photo

After seventy years of central economic planning in Eastern
Europe, food and goods are scarce.

ment owned businesses are ineffi-
cient. Instead, they say that gov-
ernment businesses are inefficient
because they’re not motivated by

the same things that motivate a pri-
vate business.

In the case of a government run
business, there’s no such thing as

bankruptcy because the bottomless
purse of the taxpayer is always
waiting to be reached into. They
also say that wage demands by the
employees of a private company
are restrained by the profitability
and efficiency of the business, but
when it comes to government-run
businesses, there are no such con-
ditions.

Secondly, analysts say that gov-
ernment businesses are overpriced.
They say they’re overpriced be-
cause government agen-
cies and businesses do not
have to be competitive. In
the overall scheme of
things the longevity, suc-
cess or failure of govern-
ment business doesn’t
have anything to do with
its profitability, or its effi-
ciency. And in addition to the fact
that government businesses don’t
pay tax, in many cases they don’t
even pay for such things as the cost
of borrowing. This, they say, has a
detrimental effect on the entire
marketplace, as efficient busi-
nesses and efficient investment are
crowded out by government.

Thirdly, they say that govern-
ment businesses are unresponsive.
A privately owned business must
respond to the needs, wishes and

demands of customers. Service has
to be a priority because service,
combined with price and quality, is
what keeps the business growing
and what keeps customers coming
back. Such is not the case in gov-
ernment-run businesses. Citizens
and taxpayers are simply forced to
take the kind of service and quality
of service they get regardless of
how good it is.

Inefficient, overpriced, and un-
responsive; the first three letters of

Government agencies and busi-
nesses tend to be Inefficient, Over-
priced and Unresponsive.

those words ironically spell I.0.U.
These are the factors which ana-
lysts say characterized Soviet soci-
ety. Ironically as well, there are
politicians and special interest
groups right here in Canada today,
who are still saying that taxpayers
and citizens can make themselves
wealthier by making government
even bigger, and by getting govern-
ment involved in more businesses.
Maybe they should reconsider re-
cent history, and then think again.

Reverse Robin Hood economics

by Jason Ford

I am going to be blunt - it is time
for the citizens of this country to
wake up to reality - before it is too
late!

Almost a third of every dollar
the federal government collects in
taxes goes to service the national
debt, a debt which has topped four
hundred billion dollars. This
amounts to $15,000 for every man,
woman, and child in this country.
If we include municipal and pro-
vincial debts, a family of four owes
over $100,000. And that doesn’t
even include Crown corporation
debts or the unfunded liabilities of
government pension plans or the
Canada Pension Plan!

How did things get so bad?
That answer is very simple - Cana-
dians don’t like taxes, but do like
government services. We are right-
fully proud of our social support
networks and government pro-
grams, but so far, we have been
entirely unwilling to pay for them!

For years, governments have
pandered to this contradiction.
They say "Here are all the services
you could ever want, and more, and
hey, you don’t have to pay for

them! ‘eo borrow the

money!" It’s a quaint little lie, and
one we’re beginning to pay the
price for.

Of course, the bills do come due
- eventually. We’ve just chosen to
pay for them at a later date. What’s
worse, we must also pay the mas-
sive interest from this debt. And
that interest is compounding con-
tinually, meaning the younger you
are, the more you will have to pay
in taxes to cover the cost of services
which were used up long ago.

It’s like the government has de-
cided to apply Robin Hood eco-
nomics in reverse -- robbing from
the next generation to pay for the
overspending of this generation.
I’m not an economist, but you don’t
have to be one to be absolutely
dumbfounded by the immorality of
deficit spending.

We must begin to understand
that government debt is simply de-
ferred taxation at a much higher
cost. When governments spend
without taxing, at some point it
must tax without spending. The
only way a government can pay its
debt is to take that money from its
citizens - or to defer it to the next
generation.

The youth of this country have
more at stake in Canada’s debt cri-
sis than anybody else, for it is we
who will suffer the most because of
it. My generation will be forced to
pay for the fiscal irresponsibility of
the generation that preceded it.

As children, our parents taught
us that "you can’t get something for
nothing." There’s a word for say-
ing one thing and doing another -
that word is hypocrisy. We are per-
haps the first generation in modern
history whose standard of living

will be reduced because of the de-
sire of our parents to enjoy a higher
standard of living than they could
afford.

Simple common sense tells us
that deficit financing - living be-
yond our means year after year - is
nothing more than a tax on our fu-
ture. The word "tax" can mean
more than just government reve-
nue. As a verb, it means "to put
strain on"; as a noun, it means "a
heavy burden." Deficit spending is
a strain and a burden that will de-
stroy the productivity of future gen-
erations.

It would be like a parent buying
a house and deferring the payments

until the child could grow up and
make them. Once you step back
and look at the situation, the bare-
faced dishonesty of it all is, frankly,
disgusting.

The Youth Alliance for Debt
Freedom proposes a three year
spending and taxation freeze on all
levels of government, mandated by
binding legislation. Programs
would either not grow at all or
would grow at the expense of other
programs which would be cut back.
This would give time to evaluate
and streamline existing programs
to determine which could be
trimmed or abolished to make way
for more important programs.

At the same time, Canadians
have to reassess their expectations
of government. If the taxpayers
don’t stop demanding more gov-
ermment spending, they will be un-
able to escape the certainty of
higher taxes.

The next time politicians offer
to buy your vote with the future of
Canadian youth, don’t let them.
The next time they offer you some-
thing, ask who will pay forit. This
is not just a request for balanced
budgets - it’s a plea for fiscal hon-
esty, integrity, and responsibility.
And it’s up to you!

Jason Ford is President of the Youth
Alliance for Debt Freedom

In the good old days, parents provided for their kids. However, as a result of reverse Robin

nomics

ents have not only spent their children’s inheritance but left them a ma

Photofest

The Taxpayer

Nov/Dec '92

- Saskatchewan -

Saskatchewan upgrader downgrades

province's finances

by Todd Diakow

The government of Saskatche-
wan has threatened to hold an in-
quiry into the construction of the
NewGrade heavy oil upgrader,
located in Regina. The govern-
ment is putting pressure on Con-
sumers’ Co-operative Refineries
Limited (CCRL), the operator of
the plant, to renegotiate the fi-
nancing agreement to limit the |
government’s future losses.

The upgrader was built by
CCRL using federal loan guaran-
tees amounting to $275 million.
The Saskatchewan government
of the time authorized a $360 mil-
lion loan guarantee plus an in-
vestment totalling $232 million
($154 million initially and $78
million for cost overruns).

The government is particu- |
larly concerned because it ap-
pears the province’s investment
is in grave danger. Continued

cash losses and a string of operat-
ing difficulties, including explo-
sions and fires, have added to its
concern. In fact, the government
has already written off its entire
$232 million investment in the
corporation, and is looking for

ways to renegotiate its loan guar-
antees.

The government’s announced
intention to take CCRL to task

should come as no surprise to the |
taxpayers of Saskatchewan. The |

February 1992 Financial Man-
agement Review Commission,
chaired by Don Gass, stated, "The
province’s ability to monitor the
performance of this project and to
work with its joint-venture part-
ner to reduce its financial expo-
sure is severely restricted under
the agreement.”

With little or no say in the op-
eration of the plant, there are
some who fear the refinery may
default on its loans, leaving tax-

payers holding the bag. Others

fear that, because of the project’s
size, our politicians may be in-
clined to continue bailing out the
project with tax dollars.

The 1991 Annual Report of the
Crown Investments Corporation
of Saskatchewan states that if the
government hopes to recoup the
money it put into the project, the
province’s only recourse is to dis-
pose of the assets of NewGrade
which would have to be removed

Todd Diakow: Saskatchewan people simply cannot afford all the government |
é they’re being forced to pay for.

from CCRL’s property and sold.
As a result, the province would
likely only recoup a fraction of
the money it had on the line. If the
upgrader continues to lose
money, taxpayers are at risk of

their taxes."

The new Saskatchewan cabi net

having to pay out the entire $360
million loan guarantee, and pos-
sibly a portion of the $275 mil-
lion guaranteed by Ottawa. If this
happened, the provincial govern-
ment’s total loss in the project

would rise to over $600 million.

By demanding alternatives to
the present agreement, the gov-
ernment may be taking the first
step toward stemming the flow of
red ink from this project.

Economic renewal
an illusion?

The Canadian Taxpayers Federation
has responded to the Saskatchewan gov-
ernment’s newly unveiled plan for eco-
nomic renewal with a shrug.

Research Associate Todd Diakow ob-
served that, although the proposal contains
many commendable goals, it fails to clearly
address the pressing need for restraint in
government spending and taxation.
said, "The people of Saskatchewan simply
cannot afford all of the government they are
being forced to pay for. New programs,
policies, and initiatives will do little for the
economy if people are broke from paying

Diakow noted that last year, Saskatche-
wan taxpayers picked up a tax bill equiva-
lent to over $16,000 for a family of four. In
addition, this same family is on the hook for
the equivalent of $6,600 as a result of the
provincial deficit, provisions for losses,
and writeoffs,

Diakow points out that "without sig-
nificant restraint in government spending
and taxation, economic renewal in Sas-
katchewan is an illusion. Any plan for
economic renewal which does not re-
strain the tax burden and government
spending is incomplete and will likely

have minimal success."

Roy Romanow
Rm 226 Legislative Building —
Premier

Ed Tchorzewski

Rm 312 Legislative Building

_ Finance, Deputy Premier, Municipal Fi-

nance Corp.

| Janice MacKinnon ~
Rm 315 Legislative Biiiding:
Associate Finance, Crown Investment

' Corp., Sask. Pension eae Gaming Com-
mission

Dwain Lingenfelter

Rm 322 Legislative Building
Econ. Development, SEDCO
Louise Simard

Rm 334 Legislative Building
Health, Status of Women, SADAC

*Lorne Calvert

Rm 345 Legislative Building
Associate Health, Souris Basin Dev.
Authority, SaskEnergy, SaskPower

Carol Teichrob | :

Rm 361 Legislative Building

Education, SCN, SPMC

Ned Shillington

Rm 307 Legislative Building

Labour, SaskTel, Workers =
Board

Darrel Cunningham

Rm 30 Legislative Building
Agriculture and Food, Ag. Credit Corp.,
Ag. Dev. Fund, Sask Crop Ins.

Bob Mitchell

Rm 355 Legislative Building
Justice, Indian & Metis Affairs,

Public Service Comm., Sask Human
Rights, Sask Police Commission, Sask Se-
curities Comm.

*Murray Koskie

Rm 340 Legislative Building E Migiinnys &

Transportation, Sask. Grain Car Corp.,

_ Saskatchewan ee RE
Carol Carson
Rm 303 Legislative Building
Community Services, Sask. Municipal.

Board, Sask. Arts Board, Sask Assessment _

Mgmt. Agency
Berny Wiens

Rm 346 Legislative Building
Environment & Public Safety
John Penner
Rm 346 Legislative Building
Energy and Mines, Sask. Research

*Pat Atkiason

Rm 302 Legislative Building
Social Services, Seniors Secretariat,
New Careers Corp., Legal dees:
*Eldon Lautermilch

Rm 306 Legislative Building
Natural Resources, Rural Development,
Liquor Board, Wetlands Conserv. Corp.,
Forest Products Corp., Water Corp.
*Keith Goulet

Rm 43 Legislative Building
Provincial Secretary, SGI
Legislative Building

Regina, Saskatchewan

S48 0B3

*indicates new Cabinet Minister

Nov/Dec ’92

The Taxpayer 11

- Saskatchewan -

Making allowances for MLAs

Saskatchewan MLAs have re-
ceived thousands of requests from
taxpayers asking them to do some-
thing about the way their allowances
are administered. After months of
waiting, it appears that the Board of
Internal Economy has begun to tackle
the issue. The board was to meet in
December to discuss the policies gov-
erning the use of MLAs’ expense al-
lowances.

Many MLAs have already sig-
nalled they will be pushing for
changes. Social Services Minister Pat
Atkinson, in a letter to the Taxpayers
Association, said "I agree that the ac-
countability of MLA offices needs to
be improved. And, I will continue to
work towards making improvements
in this area."

Labour Minister Ned Shillington
says "I agree that furnishings and
equipment purchased by MLAs for
constituency offices should not be

Neudorf: "Would
support...the
elimination of travel
allowances...for Regina
MLAs."

considered the personal property of
the MLAs. That was not what was
intended when the assistance was first
provided to members.”

Tory MLA Bill Neudorf seems to
concur. He stated that the Progressive
Conservative caucus "would support
1) all office space, equipment, sup-
plies and related expenses being as-
sumed directly by the Legislative
Assembly..., (and) 2) the elimination

of travel allowances and per diems for
Regina MLAs."

Liberal Leader Lynda Haverstock
had this to say: "Unquestionably the
present system must change. Given
the economic state of the province,
those in charge of the public purse
must become models for the people
and literally lead the way." Many
other MLAs are on record as support-
ing more accountability in these poli-
cies.

Changes on
the way?

Earlier this year, the Board of Inter-
nal Economy requested that the Finan-
cial Services staff of the Legislative
Assembly Office review the matter of
MLA allowances for consideration by
the board. The result of this request
was a confidential report prepared by
the Financial Services staff in
June 1992, and obtained by
the Taxpayers Association.
This report recommends
sweeping changes to the di-
rectives which govern the use
of MLA expense allowances.
The report is summarized in
the table to the right.

While these proposals go a

long way to dealing with tax-

payers’ concerns, the recommenda-

tions do not address a number of other

allowances and benefits in need of re-

view:

e Accountability for caucus

funds;

e Per diem allowances, particu-
larly for Regina MLAs;

e Allowances for serving on
committees;

: ; Ite

It appears that many Saskatchewan MLAs are ready to change the
policy that allows them to keep the constituency furniture and equip-
ment purchased by the taxpayers.

lig

e The tax free status of a portion
of their remuneration.

nal Economy goes further than these
recommendations in addressing these is-
sues.

We can only hope the Board of Inter-

Shillington: ould not be consid-

Haverstock: "Unquestionably the

wer

present system must change."

ered personal property of MLAs."

* Limited allow,
: SS
reimbursement ary for

* Equipment to

ance:

* Members
are allow
©€P constituenc ed to

telephone(s ) th be leaseg

. and fi €n retur, =

Machine ang hari: = N€d to supplier
ne

Constituenc

* Members ail
any furniture

for the Office
ave

Y Office

OWEd to kee

* Furniture to
to next MLA or
90Vvernment Property

* Office equi
leased, the
Supplier

Pment to be

relati Ves Or th

* Members

eir own : Prohibj
c i
ompany hiring relatives ripe from
+ own company sis
Tavel expenses

* No recej
Pts necess
un ary ;
ulred to

expenses *

air ravel logs

Substantiate

Access to inf

* MLA allowa ormation
: NC@s ar
Subject to Access, °t ~—| © Allowances ;
formation a to be subiece, Information to
ation t0 Access
ae to

Information

* Other MLAs receive
$155/day for attengin
S€ssions or Caucus :
Meetings

lpg a

e
No Change - not revieweg

The Taxpayer

Nov/Dec '92

An Interview with Sir Roger
Douglas

Sir Roger was the architect
of New Zealand’s economic re-
newal, and is recognized
worldwide as an authority on
reducing the size and cost of
government. The following is
a compilation of a number of
interviews held with Douglas
over the last two years.

THE TAXPAYER: | under-
stand you were the Finance
Minister when New Zealand
implemented a national
Goods and Services Tax.
What was the process you
followed in implementing
that tax?

DOUGLAS: We introduced
a Goods and Services tax of
10% right across the board - no

exceptions. At the same time
we got rid of a distorting
wholesale sales tax, and on the
day it was introduced, we had
major reductions in personal
income tax. We reduced the
top (income) tax rate from 66%
to 48%, and later down to as
low as 33%.

You need a tax system which
does not rely on any one form
of taxation for the major part of
its revenue. Otherwise you
have a system where if people
can avoid that particular form
of taxation, they can avoid pay-

ing tax altogether. In New Zea- |

land, we had some very wealthy
people avoiding all taxation be-
cause they were able to avoid
personal income tax. This was

eee

Conference Speaker

ernment in 1984.

distorting in the OECD."

Sir Roger Douglas won an international reputation as the
Finance Minister responsible for New Zealand’s liberalization
program when the Labour Party replaced a Conservative gov-

Euromoney magazine chose Sir Roger as Finance Minister
of the Year in 1985. The OECD describes the tax system which
Roger Douglas designed for New Zealand as “one of the least

Douglas reduced the personal income taxes from the top rate
of 66% to 33%, and introduced a 10% GST, moves which had
the support of over 60% of New Zealand’s population.

At the same time, Douglas successfully downsized New
Zealand’s government and removed government subsidies to
businesses, etc. As aresult of these reforms, New Zealand went
from running yearly deficits to having surpluses.

Douglas retired from politics in October 1990, and set up his
own international consulting firm. He will be a featured speaker
at the Canadian Taxpayers conference scheduled for January
22-24, 1993 in Calgary, Alberta.

Sir Roger Douglas

primarily because of the num-
ber of exemptions that we had
which we have since moved to
remove.

THE TAXPAYER: What
about the poor and low in-
come people? How did the
government deal with them
at the time of GST implemen-
tation?

DOUGLAS: We protected
them where we could through
the tax system. But if we could
not do that, we assisted them
primarily through what we call
the family support payment
system. We gave them some
additional payments that
helped the actual acceptance of
the Goods and Services tax.

THE TAXPAYER: Was
the implementation of the
tax accompanied by any sig-
nificant fiscal reforms such
as spending cuts and down-
sizing government?

DOUGLAS: There were
considerable changes made in
the size of government, particu-
larly in terms of the assistance
which government gave to
business. We basically went
for a very neutral tax system -
we got rid of tax breaks and
subsidies right across the
board, and that’s what enabled
us to reduce the rate of income
tax. It would be fair to say that
we never really got on top of

Taxpayers Chairman Norm Baker interviewing Roger Douglas
ike is ee

social welfare expenditures, or
health or education expendi-
tures. That still remains a job
to do in New Zealand.

THE TAXPAYER: In the
process you introduced a
number of policies which
have been described as
quite revolutionary.

DOUGLAS: I wouldn’t de-
scribe them as revolutionary,
really. I would describe them
as more common sense, more
as practical economic practice,
if you like....

THE TAXPAYER: These
included privatization -
Would you comment on
that?

DOUGLAS: We’ ve sold our
airline, we’ve sold the state in-
surance office, and our paper
corporation, and the New Zea-
land steel industry, and a num-
ber of other businesses....
We’re looking at selling New
Zealand Rail. We haven’t actu-
ally got into the area of selling
any of our electricity industry.
We had a philosophy in New
Zealand, if you can call it a phi-

New Zealand - An example
for Canada?

In 1984, New Zealand’s Fi-
nance Minister, Roger
Douglas, started his country on
a road to financial recovery.
During his term as minister,
Douglas trimmed government
spending, made government
departments more accountable,
and allowed businesses to be-
come more competitive in the
world marketplace. Asa result
of his efforts, New Zealand has
successfully restructured both
its economy and its govern-
ment.

Douglas’ prescription? Tax
reform, together with an elimi-
nation of exemptions, perks,
and subsidies. According to

| Douglas, “You can either have

low rates of tax in a neutral
system without exemptions,
subsidies, and tax concessions,
or a high rate of tax with perks,

concessions, and incentives.
When you confront people di-
rectly with that choice, in my
experience, virtually without
exception, they want the low-
Tate option."

The reforms that Douglas
started continue to have a dra-

‘matic effect on New Zealand’s

economy. Inefficient state-
owned corporations went from
being a drain on taxpayers to
being profitable. Productivity
in government departments and
corporations went up as much

as 100%, and the number of em-

ployees required was reduced
substantially. New Zealand has
even started paying down its
national debt. pos

Nov/Dec '92

losophy, that we’d never privat-
ize anything until the stage was
right to permit competition. We
felt that privatization was re-
ally secondary to the issue of
getting the regulatory environ-
ment right that will permit com-
petition to take place.

THE TAXPAYER: | under-
stand that there were also
reforms in the bureaucracy
and other government hold-
ings.

DOUGLAS: There were
some major changes in the level
of employment within a lot of
the government sectors. For
example, six or seven years ago
there were 22,000 people em-
ployed in railways. There’s
now only 8,000 and they’re es-
sentially carrying the same ton-
nage. At Telecom (the
government telephone system)
there were 27,000 people, and
now there’s only 13,000 or
14,000, and yet Telecom has
more output. So, to some ex-
tent you could say there are
fewer jobs in some of these in-
dustries, but they’re much more
efficient. Real costs have been
lowered and that will help the
economy create jobs else-
where. The real question is:
Were those. people ever em-

The Taxpayer

ployed in the first piace?

THE TAXPAYER: As you
began to introduce these
changes was there any re-
sistance from the general
public?

DOUGLAS: I think there
was, obviously, some opposi-
tion. I mean, more particularly
from those people who had
gained privilege from the pre-
vious arrangement. I think
you'll always get that. I mean,
wherever government creates a
handout or a subsidy, you have
a few people getting a huge
privilege at the expense of the
majority of the population.
Now, when you reverse that,
these people will obviously
complain about their lost privi-
lege. If you’ ve got overmanag-
ing on your wharfs, if you’ve
got double the number of peo-
ple required to do the job, then
that is a privilege for the people
who work on the wiharfs.
They’re probably being paid
more than the average person in
the country, and they’re only
doing half the work they should
be, so that’s a privilege and the
cost is being spread very

widely over the rest of the pub- |

lic. I think that’s what our pol-
icy was about: getting rid of

privilege.

THE TAXPAYER: A lot of
those people obviously had
to go out and find other
work.

DOUGLAS: That’s true. I'll
tell you a story. In ’87, at the
general election, I went to a
public meeting and one gentle-

man got up and asked me a
question. He said, "Mr.
Douglas, I’m a victim of your
policy." So I waited and he
went on to say that he had been
employed in the forestry de-
partment for 15 years and as a
result of my policy he had been
made redundant. He had taken
his redundancy money and he’d

Douglas: Within a month of its introduction, the GST in New Zealand |
had over 60% support because the government introduced a majer in-
come tax reduction along with it.

set himself up in business. He
said he now employed three
people, and wondered when
was I going to do it to the rest
of the public service?

THE TAXPAYER: Why
would a Labour (democratic-
Socialist) government em-
bark on the kind of free
market initiative your gov-
ernment chose?

DOUGLAS: Because we
kept our objectives in mind.
We didn’t get locked into the
means of doing things. We al-
ways kept the end of what we
were trying to achieve upper-
most in our minds. You know,
often we get into a debate, say
on privatization. And you have
one group of people saying pri-
vatization is great, and that
everything should be in the pri-
vate sector, and the other
group’s saying that everything
should be in the public sector.
That’s beside the point. It
seems that ownership is much
less important than competi-
tion. It’s competition that
drives creativity and that’s
where it should stay. If, as a
result of that, things have to end
up in the private sector, so be it.
But competition is of the up-
most importance.

Ship of state gets shot across the bow

On October 14, Standard &
Poor’s (S&P), a New York
based credit rating agency,
downgraded Canada’s debt rat-
ing on its senior foreign cur-
rency debt from a triple A
rating (AAA) to a double A
plus (AA+). It also down-
graded the following crown
corporations: the Canadian Ex-
port Development Corpora-
tion, the Federal Business

Development Bank, and the
Farm Credit Corporation as
well as the government guaran-
teed debt issues of Petro Can-
ada Ltd., the crown

corporation that holds the gov-
ernment’s shares in Petro Can-
ada.

The downgrade affects
about $7.5 billion (U.S.) of
Canada’s foreign debt and in-
creases the rate the federal gov-

ernment must pay to borrow
this money. In effect, S&P said
that there is now a greater risk
than before that Canada and its
crown corporations will not re-
pay this debt.

In its news release S&P
stated, "The downgrade re-
flects the progressive deterio-
ration in Canada’s current
account deficit in recent years,
a consequent sharp increase in
its already sizable external
debt burden, and the prospect
of only a moderate improve-
ment in the balance of pay-
ments in the medium term. A
key contributing factor is the
high level of total government
debt."

The constitutional crisis ap-
parently had no impact on the
S&P downgrade, as it was
based on the nation’s fiscal
condition prior to the cam-
paign.

This was the first time that
S&P has lowered Canada’s rat-
ing since the agency began
analyzing the country’s debt in
1978. Asa result, of the seven
most industrialized countries
in the world, Canada now
shares the lowest rating with
Italy.

It would appear that this
downgrade was a shot across

the bow. First, it only affects a
small portion of total govern-
ment borrowing and secondly,
AA+ is still S&P’s second best

rating. Nevertheless, it reflects
a growing concern over Can-
ada’s deteriorating financial
position.

International ee :
Standard & Poor's rating of the long term foreign debt of a
the seven most industrialized countries

Country
U.S.
Britain
Germany
Japan
France
Canada
Italy

Rating

Outlook
stable
stable
stable
stable —
stable
stable |
negative

AAA
AAA
AAA

—AA+

AAt

Provincial ratings

- Standard & Poor's rating of the provincial governments’

long term foreign debt

Province
British Columbia
Alberta
Saskatchewan
Manitoba

_ Ontario

- Quebec

_ Newfoundland

Nova Scotia

_ New Brunswick

: Prince Edward ipland . 2

_fotrated

Outlook
stabie
AA negative
BBB+ stable

A+ Stable —
AA negative
fe ‘stable —
A> Stable
negative —

Rating
AA+

The Taxpayer

Nov/Dec '92

- Alberta -

Albertans still waiting for
freedom of information

When it comes to releasing
government information for
public scrutiny, it appears that
the Alberta government is in
no hurry.

This past February, the Tax-
payers Association presented
Premier Don Getty with the sig-
natures of over 20,000 Alber-
tans calling for Freedom of
Information (FOJ) legislation.
This capped off a province-wide
campaign, and culminated in a
commitment by the government
in its Throne Speech "to ensure
full disclosure of information is
protected in law.”

The new law was touted as
the government’s "flagship" bill
for the assembly’s spring ses-

Lloydminster Meridian Booster

sion. However, after several de-
lays, the legislation never made
its way onto the legislative
agenda, and the session ended
before it was introduced. As a
result, the government has
failed to produce even a draft
version of its Access to Informa-
tion law.

FO] legislation has been in-
troduced by each opposition
party, and a number of Pro-
gressive Conservative leader-
ship candidates have
committed themselves to the
principle of such legislation.
Nevertheless, experience in
other provinces indicates that
taxpayers must pay close at-
tention to the details of any

The Alberta Heritage Fund and the Lloydminster upgrader
The Lloydminster upgrader is scheduled to be in full production soon, and already Alberta's taxpayers have lost $88 million
on the province's investment. The investment was made as part of a $309 million investment by the Heritage Trust Fund.
Inits 1991-92 Annual Report, the Fund reported that cost overruns of $365 million dollars, for which the Alberta government
is partially responsible, had prompted the write down of the value of the investment by $88 million. The Fund's Investment
Committee is composed of members of the Alberta Cabinet.

FOI legislation to ensure that
the government doesn’t write
the legislation in a way that
restricts public access to im-
portant government records,
such as the details of govern-
ment loans and grants to pri-
vate businesses.

The Association has called
on the government to release
its draft legislation immedi-
ately to allow the public time
to analyze and recommend
changes to the bill. Until it
does so, Alberta will continue
to be one of only two jurisdic-
tions in North America with-
out legislation guaranteeing its
citizens access to public infor-
mation.

Jason Kenney of the Taxpayers dropping off coupons at the Premier's

office calling for Freedom of Information legislation in Alberta.

A tale of

two companies

Alberta taxpayers should
keep a close eye on their wal-
lets this fall. The Westcan
Malting plant is scheduled to
open, and taxpayers are on the
hook for $9 million on the
project.

Westcan is the new face on
the block in the Canadian
malting industry. The com-
pany will be producing barley
malt for use by breweries, and
will be facing off against
Canada Malting, a company
that has undergone a decade
of restructuring to make it one
of the more efficient and com-
petitive malt producers in the
world.

The Alberta government’s
decision to fund the start up

of a new plant in a highly
competitive industry didn’t
sit well with Canada Malting.
The company’s vice-presi-
dent of operations, Sandy
MacKay, put it this way: "It
was a particular sore point
with us that the government
of Alberta, after years of re-
ceiving tax money from our
company, would turn around
and use those tax dollars
against us."

Considering that Canada
Malting’s expansions will
add more malting capacity
than Westcan’s entire plant
will have, we can only hope
the Alberta government
doesn’t end up crying in its
beer.

A recent study indicates that people
are using - and abusing - the health care
system more often. The report of the
Utilization Monitoring Committee,
which was established to monitor usage
of the health care system, indicated that
between 1981 and 1991, the average
number of visits to the doctor for each
Alberta resident rose 165%. In one year
alone, between 1990 and 1991, doctor
visits rose 15%.

The number of doctors is also rising.
In 1981, there were 1.25 doctors for
every 1,000 people. By 1991, that fig-
ure had risen to 1.62.

With health care costs consuming
27% of the provincial budget, the drive
to control runaway government spend-
ing must begin at home. We all have a
role to play - and it starts with recogniz-
ing one simple truth: Nothing in life is
free.

What does universal health care
mean to you?

To some, medicare is a “sacred
trust". To others, it’s a sacred cow. Still
others regard it as aright, an entitlement
which carries no obligations.

The one attitude that is almost uni-
versal about medicare is that it’s free.
In reality, nothing could be further from
the truth.

Last year, the government of Alberta
paid out $2.3 billion for direct health
services such as doctors’ services, com-
munity health services, and hospitals.
In contrast, the province’s health care
premiums brought in only $344 million.

The cost of health care for the aver-
age Alberta family of four works out to
$3,500 a year - $5,500 if you include
indirect costs such as long-term care,
abuse programs, and administrative
costs.

Nov/Dec ’92

The Taxpayer

DEY eych saw -Veitrelameielie(=

It is time for frustrated taxpayers to end their complacency and take action. Taxpayers must let elected officials know ex-
actly what they think about high taxes and wasteful government spending. This means: letter writing, petitions, rallies,
and helping people become informed about the issues.

Put a petition together

Petitions are a powerful
way to communicate with
legislators. Since it only
takes a few seconds to sign a
petition, it doesn’t take much
time or effort to collect a
large number of signatures.
The circulation and presenta-
tion of a petition is also an
excellent way to get media
coverage, and that can sig-
nificantly increase the impact
of your message.

Remember that for a peti-
tion to be accepted for tabling
in the Legislature or Parlia-

ment, a specific format must
be used. While any petition
will influence a politician, it
will be particularly effective
if it can be tabled. Consult
with the office of the Clerk of
the Legislature or of the
House of Commons for de-
tails on the correct format to
use. The following outlines
the basic requirements for ta-
bling a petition in a Legisla-
ture or the House of
Commons:

1. The petition must be ad-
dressed to “the Legislative

Assembly" or to "the House
of Commons in Parliament
Assembled".

2. The petition must be
written, printed, or typed on
paper of ordinary size.

3. The petition must con-
tain a prayer (request) asking
that Parliament or the Assem-
bly take some specific action.
The wording of this prayer
should be respectful.

4. If the petition contains
more than one page, the
prayer must be at the head of
each page.

5. Each person who signs
the petition must indicate his
or her address.

6. The petition must con-
tain at least 25 signatures and
addresses, at least three of
which must appear on the first
page.

7. Signatures and ad-
dresses must be signed by
each signer for themselves,
and names and addresses may
not be erased or crossed out.

8. Only Canadian resi-
dents may sign petitions to
the House of Commons; peti-
tions to provincial legisla-
tures should be signed solely
by residents of that province.

9. The petition must seek
action on a matter within the
jurisdiction of that level of
government.

10. The petition cannot re-
quest the expenditure of pub-
lic funds.

Letters to the editor

The letters to the editor sec-
tion is one of the most widely
read sections of any newspaper.
As taxpayer issues become in-
creasingly important and topi-

cal, editors will be more in-
clined to publish your letter. If
your letter is published, it will
send a message to literally thou-
sands of people. Here are a few

points to consider:

1. Your letter must be short.
Each newspaper has its own
standard for letter length, so
make sure your letter is no
longer than the average size
published in the paper.

2. The article should be
timely. Try to tie it in with a
current news story.

3. Newspapers receive a lot
of letters, so don’t be discour-
aged if your letter isn’t publish-
ed the first time. Try again.

4. Make sure you put your
name, address, and telephone
number on your letter and sign
it. Newspapers normally do not
publish anonymous letters, but
may consider withholding your
name if requested.

5. Stick to one subject, and
present arguments to support
your point. Use quotes and
facts/figures to support your ar-
guments.

Get involved -

write your
MLA or MP

One of the simplest ways to
become involved is by writing
a letter to your MLA or MP. As
a taxpayer, you need to realize
that special interest groups
often flood politicians with let-
ters to persuade them to spend
more of your hard-earned tax
dollars. Here are some points
to consider:

1. Keep your letter short.
Get to the point immediately,
and try to keep it to one page in
length.

2. Be polite. If your repre-
sentatives believe that you will
not vote for them no matter
what they do, your letter will
probably be ignored. You may
disagree on the issue, but don’t
be abusive.

3. Make your letter per-
sonal. Use personal examples
that support your statements
and concerns.

4. Write on one issue.
Don’t ramble on or write a long
list of gripes or complaints.

5. Handwritten letters
have impact, but only if they’re

legible; typewritten is also fine.
Make sure your return address
is on the letter.

6. Enclose relevant news-
paper clippings or other ma-
terials to support your
arguments. If you are writing
about a particular piece of leg-
islation, attempt to use its offi-
cial name if possible.

7. Don’t write for the
sake of writing. Make sure
you have a relevant topic.

8. Ask what your repre-
sentative is going to do about
your concern. If the response
is vague, send another letter
asking specifically where they
stand on your issue.

9. Pay attention to de-
tails! Make sure you spell
their name right, and use the
proper forms of address. It is
proper to address the Prime
Minister (or a former Prime
Minister) as "The Right Hon-
ourable"; Cabinet Ministers
and Premiers should be ad-
dressed as "The Honourable",
with the salutation "Dear
Madam Minister" or "Dear Mr.
Minister.". MLAs and MPs
should be addressed as
Mr./Mrs./Ms Surname, MLA
or MP. Remember, your letter
will have more impact if you
show respect for the person’s
position.

10. Don’t just write when
you have a complaint. If your
MLA or MP takes a pro-tax-
payer position, make sure you
send a letter thanking them for
their support.

Kate Pipke giving Craig Docksteader over 300 signed coupons calling on
Alberta MLAs to reform their pension plan.

The Taxpayer

Joel Fox

Los Angeles,
California
President,
250,000 mem-
ber Howard
Jarvis Taxpay-
ers Association.
. | Senior spokes-
i} man on Proposi-
tion 13

Joe
Lopushinsky
Langley, B.C.
Mayor, Langley
B.C.

Engineered mu-
nicipal tax cuts

Kevin Avram
Victoria, B.C.
Founder , Cana-
dian Taxpayers
Federation

Dr. Herb
Grubel,
Vancouver,
B.C.
Professor,
Economist,
Author

Del Robertson - Regina - President, Saskatchewan
Chamber of Commerce

Dave Yaeger - Calgary - Editor, Roughneck Maga-
zine

Jason Ford - Vancouver - Youth Alliance for Debt
Freedom

Canadian Taxpa'

Don’t miss this opportunity to register for the first ever

ers Conference

January 22-24, 1993 - Convention Centre - Calgary, Alberta

| Sir Roger
Douglas
Wellington,
New Zealand
Former New
Zealand Finance
Minister who in-
troduced sweep-
ing reforms

Irene Ip
Toronto,
Ontario
Economist,
Author, Senior
Policy Analyst
with the C.D.
Howe Institute

Dr. Richard
Vedder

‘| Athens , Ohio
Economist and
taxpayers advo-
cate, Ohio Uni-
versity

Jason Kenney
Edmonton,
Alberta
Executive Direc-
tor, Association
of Alberta Tax-
payers

Don Gass - Saskatoon, Sask. - Former Chairman,
Saskatchewan Financial Review Commission

Link Byfield - Edmonton, Alberta - Editor, Al-
berta/Western Report Magazine

Dr. David Elton - Calgary - President, Canada West
Foundation

Lewis K.
Uhler
Sacramento,
California
President,
500,000 mem-
ber U.S. Na-
tional Tax
Limitation Com-
mittee

Bjorn Tarras-
Wahlberg
Stockholm,
Sweden
President,
-| 180,000 mem-
ber Swedish

&’ | Taxpayers As-
soc.; President,
International Tax-
payers Assoc.

Charles Bens
Toronto,
Ontario
Municipal gov-
ernment consult-
ant

Patrick Boyer
Toronto,
Ontario
Member of Par-
liament, Author

Craig Docksteader - Edmonton, Alberta - Senior
Operations Officer, Canadian Taxpayers Federation

Ken Dillen - Saskatoon, Sask. - Former Member of
the Manitoba Legislative Assembly

Robin Richardson - Victoria, B.C. - Director of Re-
search, Canadian Taxpayers Federation

Featured Topics

How taxpayers beat the sys-
tem - The story of Califor-
nia’s Proposition 13

Direct democracy and refer-
endums

Canada’s fiscal position
‘How broke are we?

Should Alberta introduce a
sales tax? - A debate

How can | make a differ-
ence? - A primer on taxpayer
involvement

Thfee sessions on forming
an effective local ratepayers
association

Government regulation as a
hidden tax?

The role of influence groups

Why is the public sector ex-
pensive?

Legislative spending limits

Empowering taxpayers
through the initiative process

Reforming the political sys-

tem
‘Panel discussion featuring
former NDP MLA Ken Dillen,

* Tory MP Patrick Boyer, Sas-
katchewan Liberal Leader
Lynda Haverstock, NDP MLA
Bob Pringle and Reform
Party representative Ray
‘Speaker

-§00-661-01387

Or
fill out and return the following form

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Information on discounted accommodation in Calgary
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democracy

by Patrick Boyer, QC, MP

but not legally binding), are an
important part of our democratic
transformation.

The idea is not to destroy or
displace our existing parliamen-
tary procedures or the role of
elected representatives. Rather,
it is to enhance their effectiveness
through the use, from time to
time, of direct voting by all Cana-
dian citizens on fundamental
questions concerning our coun-
try’s future. The process comple-
ments, and does not compete
with, parliamentary democracy.

Several positive benefits flow
from greater use of direct democ-
racy.

Governing without

‘The belief that the people
should be partners in government

rather than onlookers is not some consent leads to
fringe idea, but is fundamental to .
a healthy democracy. The re- disenchantment

First, we need to recall that
democracy is governed ulti-
mately with the consent of the
governed rather than by their co-
ersion. If a majority opinion can-
not be developed in support of a
position, the country can be in
serious trouble; clever efforts by
political leadership to cobble to-
gether a new arrangement with-

the people along
long-term diffi-

straints on direct democracy we
have experienced in our history
have come from the political es-
tablishment who "know best”
what the people want, and who
often give it to us no matter how

much we protest.
The use of referendums and
plebiscites would make Canada a
/ rough- oing democracy.

The Taxpayer _

The transformation of Canada as a

ment with Canadian government
and politics has much to do with
the series of major policies imple-
mented in our country which did
not involve the democratic exer-
cise of consensus-building.

Referendums inform

A referendum or plebiscite
does much more than produce
numbers to be counted - it offers
an education process of great
value for the country.

During the four to six weeks of
a referendum campaign, Canadi-
ans participate in a national
“teach-in". The pros and cons of
the ballot question are vigorously
debated in the news media, at
service clubs, union halls, Cham-
ber of Commerce meetings, and
around the family supper table.
The exercise becomes one of con-
structive learning and self-defini-
tion as Canadians ask hard
questions about who and what we
are in relation to the decision we
face in marking the ballot.

Referendums get
people involved

Through the process of direct
voting on issues, Canadians
change from passive spectators
into active participan

As well, direct democracy in-

Proposition 13

Citizen-initiated referendum rolls back
taxes in California

___Nov/Dec ’92

_ particular ideas or
proposals.

an important issue
| to the people is an

Referendums give people es opportunity to came more informed on
important issues.

will cost about $70 million less
than it otherwise would because
the referendum voters’ list will be
used again and simply revised.
This point alone is a good

ment for ‘maintaining a perm

volves every voter. The direct
voting process touches every-
body, not just the privileged few
who can appear during the work-
ing day at hotel rooms or commit-
tee room hearings to iin their

“Some have sug- —
gested that to submit

"First, we need —

abdicationofleader- to recallthatde- —
hip. Hor , th .
opposite is usually © Mocracy is gov-
the case. Indeed, in ened ultimately
bolder leadership to With the consent

define an issue, dis-
til it to its essence,
and ask the people to
express their
wishes.

of the governed
rather than by
their coercion. If

Former Prime @ majority posi-
Minister Arth ;
Meighen, writing tion cannot be

on this subject in
1937, said that on
those rare occa-
sions when a ques-
tion comes before
Parliament that
would “affect a
positive principle
of the constitution
or government of
the country", a clear
public mandate

developed in
support of a po-
sition, the coun-
try can be in
serious trouble."

nent voters’ list!

should be obtained. There is no
better way to do this than
through a plebiscite or referen-
dum.

| . Are referendums
L. _ costly?

Howard Jarvis - deceased

On June 6, 1978, California voters put state
and local governments on notice that the tax-
payers would henceforth be in charge. By an
overwhelming two to one vote they approved
Proposition 13, a ballot measure co-authored
by Howard Jarvis and Paul Gann to roll back
property taxes, limit future increases, and give
taxpayers the right to vote before other taxes

could be imposed.

The impact of Proposition 13 was felt
across the country, causing similar reactions
in other states and rattling the halls of Con-
gress, creating a climate that helped bring in
the federal tax cuts of 1981. To average Cali-
fornia homeowners, Proposition 13 meant
they would no longer be threatened with sell-
ing their homes to pay for the rapidly escalat-
ing property taxes.

plebiscites and referendums is
that they are costly. The October
1992 Canada-wide vote cost $138
million. However, by far the
largest component of this cost
(about $85.5 million) relates to
the cost of preparing and revising
the voters’ list. Certainly, a point

that next year’s general election

One of the criticisms against -

all taxpayers can appreciate is _

The cost must also be evalu-
ated in terms of the other expen-
ditures made on "public
Participation”, whether on travel-
ling parliamentary committees or
regional conferences or the other
halfway houses to democracy.
Together, the cost of these ex-
ceeds the expense of a Bie +4
hensive referendum.

And there are other costs, too,
which a referendum avoids. Who
can measure the money, time, en-
ergy and emotion spent in the
three-year ratification process for
the Meech Lake Accord, which
ended in its rejection without the
people being directly invo
How much better to face the issue

Nov/Dec ’92

and resolve it in five weeks.

Conclusion

All public issues are complex
and intricate, yet ultimately the
decision comes down to a choice
between two words - yes or no.
My argument is simply that for

The Taxpayer

major decisions, a better choice
can be made collectively by a
large group of informed people
than by a smaller group. I believe
in the collective wisdom of well-
informed people.

Certainly not every issue has
to be “put to the people". The

main work of enacting laws, re-
solving issues, and debating pub-
lic concerns must continue in our
elected and deliberative legisla-
tive bodies. Direct voting in a
referendum or plebiscite is such a
special democratic device that it
ought not to be trivialized or

overused.

While the debate can become
emotional and the confrontations
difficult, that is what democracy
- what real life, for that matter -
is all about. A cathartic exercise,
while draining, is ultimately posi-
tive and creative, and our Cana-

dian identity can be strengthened
as we are forced, in very specific
terms, to speak out and debate
with one another about the kind
of country we want. The direct-
democracy process actually helps
to define what it is to be Cana-
dian.

by Patrick Boyer, QC, MP
The October 26 constitu-
tional referendum became the
third time in our history -- after
an 1898 plebiscite on prohibi-
tion of alcohol and the 1942
plebiscite on conscription for
overseas military service --
that the people joined as part-
ners with government and leg-
islators in the public process of
making a decision about a tran-
scending Canadian question.
We’ ve already had a good
run at direct voting - over 60
provincial plebiscites and
many thousands at the munici-
pal level. Early in this century,
Direct Legislation Acts were
passed by the legislatures in
B.C., Alberta, Saskatchewan
and Manitoba, while Ontario
had a Direct Democracy
League. It all reflected the
strong populist and agrarian
movement of that era. These
efforts -- and the many plebi-
scites over the years of our his-
tory -- were supported or
initiated by the so-called
mainline political par-

ties. Most previncial plebi-
scites covered the liquor issue
in one way or another, but a
host of others have embraced
constitutional, cultural, eco-
nomic, and health issues.

In 1919, for example, Brit-
ish Columbia’s male voters
went to the polls in a referen-
dum on giving women the right
to vote, and in a 1937 plebi-
scite B.C. voters endorsed the
concept of government-run
medical insurance. Albertans
voted in 1948 on the question
of nationalizing the province’s
electric power companies, Sas-
katchewan voters trooped to
the polls in 1956 on the issue
of time zones, and Manitoba
farmers voted in 1959 on the
method of marketing coarse
grains.

More recently, Quebecers
voted in 1980 on "sovereignty
association", Prince Edward
Islanders in 1988 on a fixed
link to the mainland, and vot-
ers in the NWT voted in 1982
and again in May of this year
on dividing the Territories in

two.

In October, 1991 voters in
British Columbia and Sas-
katchewan answered ballot

Provincial Archives of Albert

History of referendums and
plebiscites in Canada

questions on recall, citizen-in-
itiated referendums, abortion

and balanced budgets.

Nearly 100 statutes give rise

to direct voting, so it has been
an important part of our legal
infrastructure over many
years.

Prime Minister William MacKenzie King (right) initiated a vote on conscription in 1942

eis |

At the Taxpayers Conference January 22-24, Joel Fox, President of the
Howard Jarvis Taxpayers Association, will be telling the story of how
| taxpayers rolled back taxes in California through Proposition 13.

Ordinary people can make
a difference!

by Joel Fox

In California prior to Propo-
sition 13, property taxes aver-
aged three percent of the
property’s assessed value, with
property reassessed regularly,
sometimes annually. Because
of skyrocketing inflation in the
cost of real estate, govern-
ments reaped windfall profits
while retirees and those on
fixed incomes were often
forced to sell their properties
to pay the increased taxes.

Proposition 13 restored san-
ity to the taxation process by
rolling back property taxes to
1975/76 levels, placing a one
percent Cap on property tax as-
sessments and limiting future
increases to no more than two
percent per year. While prop-
erty would be fully reassessed
to market value when it was

sold, the new owner would
benefit from the two percent
per year cap on assessment in-
creases.

During the debate on Propo-
sition 13, politicians and oth-
ers in the tax-and-spend lobby
predicted disaster if the initia-
tive passed. The opposite
proved to be true.

After one year, the bloated
state and municipal bureaucra-
cies were reduced by 103,000
jobs without hurting essential
services. The reduced taxes
helped boost the state’s econ-
omy, which resulted in 552,000
new private sector jobs.

Nevertheless, many in the
public sector have refused to
give up their opposition to
Proposition 13. Our organiza-
tion, the 250,000 member

Howard Jarvis Taxpayers As-
sociation, has been forced to
remain active fending off at-
tacks on taxpayers. Govern-
ment officials have tried to get
around Proposition 13’s tax
limitation provision by dis-
guising taxes as "fees" or "as-
sessments", while other
spending advocates have used
the courts in frantic efforts to
reduce Proposition 13’s effec-
tiveness.

Despite their efforts, how-
ever, Proposition 13 has re-
mained basically intact for
nearly 14 years, and has saved
California taxpayers over $155
billion! As Howard Jarvis
once said, "We proved that
when taxpayers unite and act
together, there is no political
power on earth which can stop
us."

The Taxpayer

Nov/Dec ’92

How did we get ourselves into this
mess in the first place?

Government spending has
been climbing at a frightening
rate for nearly two decades now,
and rumblings out of Ottawa that
this year’s deficit will be in the
$35 billion range is pretty good
reason to conclude the spree
isn’t over.

Fifteen years ago, back in
1977, the Auditor General de-
clared that federal spending was
out of control. At the time, the
Trudeau administration was

spending $43 billion a year, and
because taxes were only raising
slightly more than $30 billion,
they were borrowing over $10
billion to make up the differ-
ence.

The Auditor’s call went un-
heeded by Trudeau, Chretien,
Axworthy and that bunch, and
instead of restraining the already
out of control spending binge,
they decided to spend even
more. They poured more money

In 1977, the Auditor General declared that the spending
government was out of control.

of the Trudeau

into giveaway programs, ex-
panded the public sector, and en-
hanced bureaucratic perks.
Seven years later when Mul-
roney came to office, total fed-
eral spending had reached an
unbelievable $109 billion and
annual borrowing on behalf of
taxpayers had climbed from just
over $10 billion to $38 billion.

To put the Trudeau years into
perspective, consider the fact
that back in 1968 when Pierre
came to office, our total accumu-
lated national debt stood at
$16.7 billion: We had fought two
world wars, been through the de-
pression of the 30s, and all we
owed was $16.7 billion. After 16
years of Pierre Trudeau and the
short blip that was Joe Clark,
Canadian taxpayers were on the
hook for $200 billion. What is
especially significant about
these years is not only that
Trudeau left us with this huge
unpaid bill, but that he racked up
the debt during a time when the
government had access to more
tax revenue than any other gov-
ernment to that point. Under the
Trudeau Liberals, from 1977 to
1984 alone, they piled up more
than $150 billion in government
debt, and increased spending
from $43 billion a year to $109
billion.

It doesn’t take a Chartered Fi-
nancial Analyst to figure out that
moving out of control spending
of $43 billion a year to $109
billion in seven years does not
constitute getting control of
things. Add to this the fact that
they increased borrowing from
just over $10 billion a year to
$38 billion, and one gets an ac-
curate picture of just how disas-
trous the Trudeau administration
was at financial management.

Now, after nine years with
Brian Mulroney as Prime Minis-
ter, federal spending has gone
from $109 billion to $160 bil-
lion, and government borrowing
has averaged an annual $30 bil-
lion.

Today, we’re to the point
where the interest on our accu-
mulated borrowing is control-
ling our federal budget, and
indeed our lives. It’s become
the largest single federal expen-
diture, eating up huge chunks of
tax revenue. Annual interest is
in the area of $42 billion, which
is the equivalent of nearly $200
a month for every person in the
country who files an income tax
return.

Another way to look at it is
that it takes all the money col-
lected in corporate income tax,
all the money collected from the

GST, all the money collected in
sales taxes, all the money col-
lected in excise duties, plus a
few billion more, just to pay the
interest. Add to this the fact that
the Mulroney government is
continuing to borrow over $30
billion a year, which means the
interest payment will be even
higher next year, and you have a
pretty clear picture of just what
kind of shape we taxpayers are
in.

Mulroney increased federal
spending from $109 billion to
$160 billion a year

Letters....

I had a chance to read your paper
the other day, The Taxpayer. How
much is a subscription to The Tax-
payer? Doyou publish in Eastern
Canada - Ontario? Or is it just
published out west? I think it’s
time that finally some information
is coming out for the average tax-
payer. I really enjoyed reading
your paper. Any information you
could send me would be greatly
appreciated.

M.D. Sylvan Lake, Alberta

Ed.'s note: "The Taxpayer" is now being
sent from Prince Edward Island to Van-
couver Island.

A lot of emphasis should be
placed on making the politicians
accountable for the promises they
make before an election and hold
them accountable for what they do
once elected. It seems most of the
time their promises are just re-
versed.

Also the federal government
has to be reminded that the even-
tual cost to taxpayers has to be
considered when making deci-
sions. They have simply forgotten
the value of money. It means noth-
ing to them that spending has got-
ten out of hand.

A.S. Wadena, Sask.

I am ashamed to admit I fall in the
category of those who do not be-
lieve they can make a difference.
Your informative paper gave me a
glimmer of hope. I am requesting
more information on your cru-
sade, the degree of involvement
that I would be allowed to play
and a subscription for more of
your papers. Thank you for your

interest which in turn has sparked
mine.

C.H. Coaldale, Alberta

Ed.'s note: The first step to getting in-
volved is getting informed.

I wrote our local MLA for all the
particulars concerning the amount
of severance pay and pension we
taxpayers are going to be paying a
former provincial MLA who has
now won the nomination for the
Reform Party in the next federal
election.

So now he will receive a sever-
ance package and pension from
the Tories. If elected and he stays
on for six years, he will get an-
other severance package and pen-
sion! Boy, is this fellow ever
milking the system. We the tax-
payers are sure candidates for
punishment.

K.L. Okotoks, Alberta

Ed.'s note: After six years federal MPs
are able to receive their pension, but
are no longer eligible to collect a sev-
erance package. In Alberta, however,
an MLA receives both a severance
package and a pension when they retire
or are defeated.

I think money raised from lotter-
ies should be used to help out hos-
pitals and health care instead of
using it to buy briefcases for
MLAs and for sports complexes.
C.H. Alberta

Could you please send me a copy
of The Taxpayer for March/April
of 1992 and bill me for it? Also
please tell me what your subscrip-
tion fee is. Your paper is ex-
tremely interesting, even though
the items it reports are so very

depressing to over-taxed Canadi-
ans!
BH ee

I have a brain teaser for you.
When are Canadians going to
wake up from their slumber and
realize that what’s needed here is
a total, complete reform of our
entire system and the inclusion
into our system, for the first time
in history, of a bit of democracy?
How long will it take?

R.W. Mt. Lehman, B.C.

Ed.’s note: Citizen initiated referen-
dums are one way for taxpayers to have
a more direct say in the democratic
process.

As a small business, my husband
and myself were very concerned
about some of the companies
listed receiving money. Plus the
fact the government should not be
in the banking business when
there are so many cutbacks in
many required services.

D.M. Qualicum Beach, B.C.

I have just finished reading the
July/August copy of your paper.
The copy was given to me by my
father. I found the articles both
eye opening and alarming. I think
this paper should be placed on
every elected official’s expensive,
solid walnut, bought by taxpay-
ers’ dollars desk.

T.A. Broadview, Saskatchewan
Ed.’s note: We send "The Taxpayer” to
almost every federal and provincial
politician across Canada.

There is more important informa-
tion in one issue of The Taxpayer

than I can get from a dozen other
reading materials. I was never
aware that this existed and wonder
what can be done to make people
more aware of this publication.

It was handed to me by a busi-
nessman and I sure can use it as I
am in constant contact with poli-
ticians all the time and I write
letters to the editor in our local
papers. I am looking forward to
your next issue.

D.S. Edmonton, Alberta

I read with great interest your pa-
per The Taxpayer the other eve-
ning during a work break. It’s
about time someone had the cour-
age to speak out on the excesses
of government being paid for by
taxpayers.

G.P. Lethbridge, Alberta

Thank you for your copy of The
Taxpayer. What a tremendous
newspaper you have. Every tax-
payer in the country should be
forced to read it. What a glorious
change would follow. It’s having
a tremendous impact in my com-
munity.

P.M. Bewdley, Ontario

Congratulations on a job well
done....More people should be
aware of where our tax dollars go
and it is reassuring to know that
you are independent of all politi-
cal or institutional affiliations.
K.M. Calgary, Alberta

I just stopped for a coffee at a
service station in Hafford (Sas-
katchewan) and saw your newspa-

per there. I picked it up and took
it home and read most of it from
cover to cover. I would be inter-
ested in finding out how you
subscribe to the paper and what
is the cost. Please send the
above information, and I would
like an extra copy of the
July/August issue for a friend.
May God have mercy on our
great country.

E.K. Saskatoon, Sask.

We were quite impressed with a
copy of the paper you publish,
which we had time to skim
through at a friend’s home. We
have often talked about the need
for such information being made
public.

F.R. Eastend, Sask.

Several weeks ago as we were
traveling we noticed your paper at
"Gopherville" where we stopped
for lunch. We found it most inter-
esting and were surprised to see
the amount of money paid to our
MPs, etc.

N.R. Douglas, Man.

Could you please send me your
magazine published by the Cana-
dian Taxpayers Federation? I had
the opportunity to read a copy of
it and I really had my eyes opened.
D.D. Rocanville, Sask.

Letters to The Taxpayer may be
edited for length and clarity. Our
mailing address is The Taxpayer,
200-1315 Scarth St., Regina,
Sask., S4R 2E7.

Nov/Dec ’92

The Taxpayer

Drilling for dollars in the oil patch: Petro-Canada

When most taxpayers think
of Petro-Canada, they think of
a string of gas stations and a
few oil wells. In reality, Petro-
Canada is a huge maze of num-
bered companies, subsidiaries,
and partially owned corpora-
tions which operate all over the
world. And most of it was paid
for with tax dollars.

Petro-Canada has been re-
organized to allow the govern-
ment to sell it to the private
sector. To date, 30% of the
company has been sold or is in
the process of being sold.

Unfortunately, government
involvement in Petro-Canada
has been extremely costly to
taxpayers. More than $5 bil-
lion has been put into the com-
pany by the government and it
is also on the hook for over a
billion dollars in loans and
loan guarantees.

Four billion dollars of the
government’s investment was

Subsidiaries held at 100%

e Amauligak Exploration Inc.

e Arctic Pilot Project Inc.

¢ BP Marketing Canada Limited

¢ Canadian Petroleum Studies Inc.

@ The Chancellor Holdings Corpo-
ration

e Depanneurs Le Frigo Ltee

¢ Frontier Insurance Ltd.

If the governments of Man-
itoba, Saskatchewan, Alberta,
and B.C. have their way, tax-
payers will be paying for a
$200 million satellite.

The project was proposed
in 1989 when the four western
provinces approached the Ca-
nadian Space Agency with a
project to gather earth sci-
ences information by satellite
and then sell the information
to customers around the
globe. Now, after a two mil-
lion dollar feasibility study
which was primarily funded
by tax dollars, the agency is
preparing to approach cabinet
for the authorization to go
ahead with the project.

If approved by cabinet and
the participating provinces
(some Atlantic provincial

“, also expr >ss-

in the form of cash. This is the
equivalent of almost $600 per
family of four.

Former Auditor-General
Kenneth Dye even went to
court to try to force the govern-
ment to allow him access to the
records on Petro-Canada’s pur-
chase of Petrofina. The courts
decided that Mr. Dye’s mandate
didn’t include examining
whether that purchase was
worth it or not.

Kenneth Dye later told The
Taxpayer (May-June 1991) that
he was "trying to get to the bot-
tom of a $1.7 billion transac-
tion. With the tax loopholes in
it, it was probably $2.4 billion
for a corporation worth perhaps
$1.4 billion. So the taxpayers
paid a lot of money for what
they got, and I never got to the
end of the audit."

Here’s what your taxes paid
for, according to the 1991 Pub-
lic Accounts record.

e Independent Fuels & Lumber
Ltd.

@ Pacific Petroleums Ltd.

@ Petro-Canada (Ecuador) Inc.

@ Petro-Canada Enterprises Inc.

@ Petro-Canada (Hibernia) Inc.

@ Petro-Canada (Malaysia) Inc.

High tech tax
expenditures?

ing an interest in the project),
the satellite, dubbed Green-
space, will have a lot of com-
pany. It- would join earth

sciences satellites being

Should provincial governments which are running massive deficits

be spending tax dollars on satellites? @

Government investment in Petro-Canada has cost the equivalent of almost $600 per family of four

eles

| ae AE on eae aenel Sete Tes,

@ Petro-Canada Oil & Gas Inc.

@ Petro-Canada (Pakistan) Inc.

@ Petro-Canada (Yemen) Inc.

¢@ Petroleum Transmission Com-
pany

® Second Pacific Stations Ltd.

® Servico Limited

e St. Laurent Petroleum Inc.

® Third Pacific Stations Ltd.

e Xychem Inc.

launched by Japan, the United
States, the European Space
Agency, and Canada’s own
RADARSAT satellite, due for
launch in 1995.

Subsidiaries held at 50-99%

e Canstar Oil Sands Ltd. (50%)

eLes Huiles Du Royaume Inc.
(50%)

® Marchand Petroleum (Canada)
Inc. (50%)

@ Panarctic Oils Ltd. (52.73%)

@ Petro-Canada Centre Inc. (50%)

e@ West Nova Fuels Limited (50%)

Associates held at less than

50%

@ Alberta Envirofuels (33%)

e Alberta Products Pipeline Ltd.
(35%)

¢ Downhole Systems Technology
Canada Inc. (18.31%)

@ International de Services Indus-
triels et Scientifique, S.A. (27%)

@ Les Huiles Desroches Inc. (45%)

@Les Huiles Lamontagne Inc.
(49%)

@Les Petroles Saint-Jean-Sur
Richelieu Inc. (49%)

@Les Petroles Sherbrooke Inc.
(47%)

@ Les Petroles Vosco (Canada) Ltee
(49%)

@ MacGillvray Fuels Limited
(49%)

¢ Montreal Pipeline Limited
(23.8%)

@ Northward Development Ltd.
(17%)

Pacific Northern Gas Ltd. (18%)

e Petrole Chaleurs (1987) Inc.
(49%)

@ Petro Sud-Ouest Inc. (49%)

@ Petrole De La Maurice (Canada)
Inc. (49.99%)
© Petroles M. Miron Inc. (49.9%)
© Redwater Water Disposal Co.
Ltd. (21.36%)
® Sulconam Inc. (7.6%)
© Sydco Fuels Inc. (49.99%)
© Syncrude Canada Ltd. (17%)
e TransNorthern Pipeline Ltd.
(33.3%)
© WestCoast Energy Inc. (36.5%)
Foothills Pipe Lines Ltd. (50%)
Pacific Northern Gas Ltd. (43%)
Saratoga Processing Company
Limited (25%)
Vancal Properties Ltd.
W.T. Investments Inc.
Westcoast Energy Marketing
Ltd.
Westcoast Energy Pipelines Ltd.
Westcoast Gas Inc.
Westcoast Petroleum Ltd.
Westcoast Transmission Com-
pany, Inc.
Westcoast Transmission Com-
pany Limited
Westcoast Transmission Com-
pany (Alberta) Ltd.

Editor’s Note: The company has sold
its interests in WestCoast Energy Inc.,
and has sold 5% of Syncrude, leaving it
with 12% of that company. Interna-
tionally, PetroCanada is active in Viet-
nam and Yemen.

Former Auditor General Kenneth Dye
suspected that Petro-Canada paid $2.4
billion for Petrofina, which may have
only been worth $1.4 “"@

The Taxpayer

Nov/Dec ’92

Are Canada’s airlines being
taxed to death?

by Jason Kenney

The recent controversy over
the fate of Canada’s airline in-
dustry brings to mind a quip:
"If something moves, tax it; if
it still moves, regulate it; and if
it stops moving, subsidize it!"
This seems to pretty well sum-
marize what has happened with
Canada’s airlines.

It now appears that Can-

The Conference Board
of Canada found that the
primary reason for the
Canada’s airline

question may provide some
clues on how we can help sal-
vage a healthy domestic airline
industry.

There are a number of com-
plicated factors which have put
Canadian Airlines and Air Can-
ada into dire straits, not the
least of which is their com-
bined debt load of $7.7 billion.
The prolonged recession hasn’t
helped either. But beneath
these obvious pressures lies a
case study of how government
taxes can drive an entire indus-
try into the ground.

Like all Canadian compa-
nies, our airlines have to ab-
sorb Canada’s high tax regime
in everything they do, giving
their American competitors an
immediate cost advantage.
The biggest albatross around
the neck of Canadian carriers
comes in the form of direct
taxes on air travel and
aviation fuel. In fact, a
recent report by the
Conference Board of
Canada found that "the
primary reason for (the

industry’s lack Of Canadian airline indus-

__ competitionis the — try’s) lack of competi-

higher fuel tax burdenin tiveness is the higher
Canada.

ada’s two major airlines have
nearly stopped moving, and
governments are being called
on to save them with tax dol-
lars. Unfortunately, those
looking for a bailout have ne-
glected to ask one important
question: Just how did our air-
lines get to the verge of bank-
ruptcy? The answer to that

fuel tax burden in Can-
ada."

While the U.S. federal gov-
ernment levies no aviation fuel
tax, our federal government
charges 4 cents a litre to fill up
in Canada, with provincial
governments getting an addi-
tional 4 cents per litre.

This year alone, federal and
provincial fuel taxes will take
more than $270 million out of

Bad debt keeps
coming back

Maislin Industries Ltd., a
transport company headquar-
tered in LaSalle Quebec, was
placed into receivership on July
11, 1983 and declared bankrupt
October 19, 1983.

Nine years later, Canadian
taxpayers are still on the line
for loan guarantees the govern-
ment made on behalf of the
company. In total the govern-
ment made guarantees of
$27,000,000 in U.S. funds on
behalf of Maislin.

To date, the government has
paid out $20,361,132 US to
creditors as a result of these
guarantees. However, there is
still $8 é” outstanding and

the government is expecting it
will have to make further pay-
ments to settle the remaining ob-
ligations once certain issues are
settled in the U.S. Federal Court.

Loan guarantees are used
when a business wants to bor-
row money from a bank or other
agency. If the company lending
the money believes the assis-
tance could be at risk, it may
require the company to get a
guarantee (in Maislin’s case -
from the government) before
lending the money. The guaran-
tee states that if the company
defaults on its loan to the bank,
the government will pay out the
remaining debt.

the pockets of Canada’s air-
lines. Air Canada alone spends
about 5% of its operating dol-
lars on fuel tax, amounting to
$150 million a year. In fact,
without the burden of Canada’s
prohibitive fuel taxes, each air-
line would actually have been
in a position to make a profit
last year.

The biggest tax grab on air

travellers comes in the form of
the federal government’s Air
Transportation Tax, which will
cost consumers $550 million
this year. The tax amounts to
$10 plus 10% of the airfare,
plus the 7% GST. On a $400
fare from Calgary to Toronto,
there are $80 in additional
taxes. This pushes the price
above what many potential do-

mestic travellers can afford,
giving American business trav-
ellers yet another competitive
advantage.

What an irony. Having
taxed and regulated the airline
industry to near death, some of
our politicians now think they
can undo what they’ve in-
flicted with yet another tax-
payer-funded bailout.

Consumers hurt by
rise in taxes

The Chairman and CEO of
Sun Life, John McNeil, says the
company’s policyholders will
bear the burden of a rising and
"terrible" tax burden.

McNeil told a meeting of the
company’s shareholders that
the majority of taxes the com-
pany pays has nothing to do
with whether the company
made a profit. Costs of regula-
tory licences and fees were $2.9
million and provincial govern-
ments extracted $16.6 million
in premium taxes which were in
addition to the company’s cor-
porate income tax.

Normally, the $4.5 million
the company paid in GST
would be credited back to
them, as it is with most busi-
nesses. However, because life
insurance is exempt from GST,
the company must absorb the
costs of the GST it pays out. In
effect this makes GST a hidden
tax for purchasers of life insur-
ance, since the cost must be
passed : the consumer in

the form of higher premium
prices. Normally, businesses
are able to subtract the GST
charges they pay on goods pur-
chased for the company from
the total amount of the GST
they collect.

In total, McNeil said, the
company paid $111 million in
taxes, while dividends to indi-
vidual participating policy-
holders amounted to $98
million.

McNeil is very concerned
about the alarming growth in
the amount of taxes that must
be paid even when the company
is losing money. He worries
that governments are tripping
over each other in a desperate
search for more things they can
tax. According to McNeil, "In
the hunt for revenue, expedi-
ency takes priority over princi-
ple and economic welfare."

McNeil appealed to govern-
ments at every level to recog-
nize that their insatiable quest
for revenue will hurt everybody

- the consumer, in higher and
increasingly unaffordable
prices; the company, in lost
business and profits; and ulti-
mately the governments, as the
revenues they were counting on

dry up.

McNeil says consumers pay
the taxes that government im-

poses a

Nov/Dec '92

The Taxpayer

Manitoba deficit hits $442 million...

Manitoba’s 1992-93 deficit
will be $112 million higher than
the government initially pro-
jected, and the federal government
is being blamed for the increase.

In his 1992-93 budget, Finance
Minister Clayton Manness stated
that the province would have a
deficit of $330.5 million based on

revenues of $5.12 billion and ex-
penditures of $5.45 billion. How-
ever, according to the second
quarter report the deficit will be
coming in at $442.5 million.

The government says a drop in
equalization payments from the
federal government is responsible
for the increased deficit. This is

new De ee

Because of this | year 's , deficit, a family of four in Manitoba
will one day have to pay $2,357 in additional taxes - plus
interest!

not surprising, since the Manitoba
government had budgeted for a
$91 million increase in equaliza-
tion revenues in this year’s
budget. That amounts to a nine
percent increase, over 400%
higher than the rate of inflation.
Anticipating these higher reve-
nues, the government planned to
raise its spending by $209 million
over last year’s levels. Now, how-
ever, the federal government has
warmed provinces that income tax
revenues are down because of the
poor economy, resulting in a drop

in equalization payments.

To make matters worse, the
Manitoba government is facing a
jump in the costs of its social assis-
tance programs.

In light of this, the government
plans to implement further restric-
tions on staff hiring, and to cut back
on “discretionary” spending -
spending that can be put off to a
future year or cancelled altogether.
However, even with these reduc-
tions, the government is still plan-
ning to spend 99.9% of what it
originally budgeted.

At the same time, the govern-
ment clearly has more room to cut
spending. Manitoba spends over
$340 more on its programs for each
resident than do the two provinces
most similar in size, Nova Scotia
and Saskatchewan. If the Mani-
toba government were to cut its
spending to comparable levels, its
deficit would be cut in half.

If the government is to success-
fully balance its books, it will
have to reduce its spending in-
stead of relying on increases in
taxes and other revenue.

..0F iS it closer to $643 million?

The Manitoba government’s
deficit for 1992-93 would be $201
million higher if the government

. didn’t plan to transfer that amount

from the province’s so-called
"Fiscal Stabilization Fund" - the
name of a fund created in an ear-
lier fiscal year, largely through
borrowing.

In other words, this year’s defi-
cit would be almost $200 million
higher if the government weren’t
using previously borrowed money
to avoid the appearance of bor-

rowing money.

The Fund was created in 1988 by
the provincial government as a
"rainy day fund", using borrowed
money. Unfortunately, when a gov-
emment is running a succession of
deficit budgets, it’s always raining,
and the Fund is quickly being used
up.

When the $201 million is trans-
ferred into the province’s account
later this year, the Fund will be
reduced to $114 million. Of this
amount, only $36 million is in the

form of cash and available for the
government’s use. For this rea-
son, even if the government keeps
its 1993-94 expenditures and
revenues to this year’s level, next
year’s deficit would rise by at
least 37%, to $607.5 million.

The provincial auditor has
called on the government to end
the practice of having a separate
Fund because, as he says, “it re-
sults in the incomplete presenta-
tion of the government’s financial
statements."

Manitoba government grants

The Manitoba Department of
Industry, Trade and Tourism is
charged with a number of responsi-

Each year the department gives
away approximately $15 million in
taxpayer dollars under a variety of

programs such as the Canada-Man-
itoba Tourism Agreement, the Can-
ada-Manitoba Urban Bus

In addition, the department
funds a variety of studies and feasi-
bility projects, and helps compa-

The following is a breakdown of
the amounts approved by this de-
partment for the fiscal year 1989-

bilities, but its main focus is eco- programs. Agreement, and the Canada-Mani- __ nies find commercial markets for 90. The amount each actually
nomic development and tourism. Included in these are established _ toba Health Industry Initiatives. new technology and products. received may vary.

4-12 Electronics Corp. ......sssssssssesssssesssssssensees $1,705.69 Crystal Spring Hog Equipment .. «$2,000.00 Manitoba Centres of Excellence - U of Man...$230,012.00 Rimer-Alco North America

A&M Soil Services (1975) Ltd. «$12,274.60 Custom Castings Ltd. ........+ $601.50 Manitoba Horse Racing Commission .......$4,866,687.25 Rimer-Alco North America ....

PP FR UCR UIE, Scan cocncesacnivatscabeanssstbnven $1,345.06 Custom Steel Products INC. ...sssssssssessssssessesssesse $414.81 Manitoba Hotel ASSO. IMC. ....sssesssssessssssseseseee $15,000.00 Rimer-Alco North America ...

ABI Biotechnology Ine. ........... «+1.§32,293.69 Daiyasu Trading Canada ...... $9,000.00 Manitoba Hydro for Ecolaire Canada Ltd. ... $122,364.61 Riverlife IC.......escssssssssee ssoe

Acme Bedding & Furniture Co. .....sssssssssseseseses $3,942.50 De Newol Soles & Laces $411.20 Manitoba Lodges & Outfitters Asso. Inc.......... $9,838.00 Robert Mathes Agencies Ltd. ........ssesccssssesssesen $964, 73
Acme Chrome Furniture Ltd. ........:.sssecssssseseses $2,000.00 Designed Genetics Inc. . $4,275.00 Manitoba Marketing Network Inc........... -_.$30, 000.00 ROSS FOOdS ......sssssssssessssene

Acme Design (1987) Ltd. .........cscssssssssesseseseseens $1,601.30 Discovery Canada Merchandisers Ltd, $1,233.50 Manitoba Museum of Man and Nature.......... $209,000.00 Royal Marine Industries Ltd. ..

Advanced Applications inc. . ea $26,954.56 Drea COND. <cicsssvoncisssddaesapasoercsdiaeere eee 92.58 Manitoba Research Council .........s:csssss " 711,400.00 Safe-T-Heat Products Ltd. .. $982,
Advanced Composite Structures inc. .++475,000.00 E-ZCUtIAC. sssscsssssen 191,412.21 Manitoba Restaurant & Foodserv. Asso........ $20,000.00 Select Marketing Ltd. ........ $10,000.00
Aerotech International INC. .......:ssssssssssssesnssseees $1,938.73 Elders Aqua Farms iE ORS $274.00 Manitoba Schools Science Symposium .......... $1,200.00 Solmundson Gesta Hus. . $29,761.08
Agri-Tech Canada Ine. ........ $48,551.94 Electro Trac Circuits Ltd. . .$10,000.00 Manitoba Society of Occupational Therapists.....$514.47 SSOUERI MAN fa sas aceasn scents odcecdsettivecencad $2,500.00
Altoba Development Lta. .... $67,042.46 Elmer's Welding & Mfg Ltd... Baskasaawhcgreeeeivas AOR $388.14 Manitoba Theatre Centre ........sesssssesessseesssnes $20,000.00 Tarmac Mfg & Distributor .. $2,000.00
Ambutech INC. 0... $4,750.00 Equinox Industries Ltd........... $10,000.00 Manlab Instrumentation Ltd. .. 003,248.50 Tartan Farms.....sssssesse + $2,792.08
Ancast Industries Ltd. $1,192.57 Farmer's Alfalfa Products Ltd. ... $2,385.00 Mennonite Heritage Village (Canada) ine. $14,550.00 Technology 2000 Inc. ....... 000.
Andy's Millwork Ltd..... $2,000.00 Fashion Lady IMC. .....sssssssss00 $1,089.36 Mennonite Village Museum (Canada) Inc. .....$20,000.00 The Forks Renewal Corp. .

B & B Scuba INC. ....sssesssssesessees ..$7,350.00 Festival du Voyageur Inc. . $40,000.00 Mid-Canada Equip. Sales Ltd.................ssses+ $2,000.00 TKM Software Ltd. .........00.

Barrier Free Access a aS eR eae aR $276.20 PTR GMI sactetsreaiecs costa hocnvevsvonconnsowe $1,915.30 Mid-Canada Equip. Sales Ltd........ $38,114.47 Tops Manufacturing Ltd.

Barsuca Inc. .. pied ceaaanimianucdetes $530.11 Folk Arts Council of Winnipeg Inc. ...... $98,000.00 Midhurst Sport Boat Mfg & Dist. Ltd. . 11 796.33 Tops Manufacturing Ltd J
Bonar Plastics Ltd... saad ceiessoeissesastif nated $601.50 Fort Garry Industries Ltd. ......... $4,000.00 Midland Manufacturing Ltd. ......... ..$7,500.00 Tourism Ind. Asso. of Manitoba-Central..... $167,600.00
Bonar Plastics Western Ltd... «$3, 186.30 IA Seer $10,000.00 Mind Computer Products ......scsosssssssssesesesesesen $488.30 TOUFISM WinMipeg .....sssessssesssessssssessesnssseseee :
Border Chemical Co. Ltd. ....ssscsssssssrssseesssseseees $3,575.60 Franklin Enterprises Ltd. ... $1,111.19 Natco Mfers & Distributors Ltd. wae $626.25 Tourism Winnipeg Inc. . aie

Brandon Economic Dev. Board «$15,600.00 Frontiers North Inc. ...... $1,250.00 Natura Brand Health Foods ..... $5,240.75 WROWNIE NIN asa cs cdinscsnespnvovesiccvens I
Bristol Aerospace Ltd. ...........0.+ .$70,000.00 Gill kt, . - $1,500.00 New Flyer Industries Ltd. .... $1,344.23 Trace Design Company Ltd. ..........sssssssssssseses $1,652.94
Burrows Lumber Inc... ue $959.11 Galen Pharma . RE SS SAE $32,284.47 Norberts Manufacturing ....sssssssecsscssssssessesssseceesene $325.00 Triman Industries Ltd. ...........

CH Inns & Suites Inc. $1,000,000.00 GPT (Canda)(GEC Plessey Telecom. Ltd.) ...$10,000.00 North Associates Canada Ltd. . A Tumer Beverage Systems Inc. ...... a

Cad Systems INC. ........00 $10,780.27 Great Canadian Travel Co. Ltd .....ssssssssesssen : Northern Heritage Centre .. ad ! Turtle Mountain Community Dev. Corp. ........-
Cadorath Plating Co. Ltd. ..... seaseeesg 1,946.00 Great West Van Conversions Ltd. nn Northern Manitoba Regional Science Fair... $1,200.00 Urban Idea Centre ......essssssssesssesseee ;
Canada Anglo Machine & iron Works Lt... $601.50 Guertin Bros. Coatings & Sealants Ltd..........+ Northern Paint Canada Inc. . Vansco Electronics Ltd. ....

Canada West Fndin. (Strategic Research) ...$10,000.00 Harferd Prod. of Canada Ltd, .......0+00+. ‘ ; Online Business System I Vidir Machine Ltd. ........

Canadian Aging & Rehabilitation Heartland Canada Discovery Tours 53,268.00 Otto Bock Orthopedic Ind. of Canada Ltd... $43,685.00 Virginia’s Soap Ltd. ..

PROCICUDIN CORD, <Sicimecsinscssecssenssnrsesivec $1,100,000.00 Ba gs sascnccoanncosoonnncneobcectignsa $950.00 Pace Setter Swim & Gym Wear Inc. Voisys Inc. .........

Canadian Healthcare Telematics Inc. ........0.¥ —— 00 Hexagon Design Group ... $87,037.40 Palaschuk, Dr. Peter .......ssssseese RES WII i ahs ciace trast oa ev anericoion

Canadian Society of Asso. Executives ........ HFL Manufacturing Inc. ........ $1,875.00 Peregrine Manufacturing Ltd. .. Wasagaming Marketing Committee Inc

Canadian Tool & Di@ Ltd. ........ssess0ee Hunter Wire Products Ltd. $601.50 Phason Electronics (1989) Ltd. ............. Waterite Inc. ........0

Canwest Bedding Ltd. . L.D. Fashions Lt. ......... $1,250.00 Pine Island Lodge Man. Ltd/Venture Wayfarer Holidays Ltd.

Cap Cad IMC. ......cssssssseseesseeeeees Independent Chassis................ .«.§600.00 Manitoba TOurs Ltd. .........ccscsesssesesesssesesesesnee Western Economic Diversification (ABI Biotech)

Carman Potato Blossom Festival Inc. Ind. Commercial Equip. Mfg Ltd. $3,020.00 | Pixsoft Inc. .. a : (Galen Pharma) ....sscsscsesessntserstnen $13,000.00
Cue Me ne Infotech INC. sninnnennnne - $7,500.00 | Pollard Banknote Lid. ... z ' Western Manitoba ScienceFair .......... “$1,200.00
Challenger Sportswear Inc. . Infotech Inc. ........ 97,500.00 Portage la Prairie Chamber of Commerce .... $20,000.00 Westland Plastics Ltd. ..........s0 {$2,000.00
Chaudhary Products Ltd. .... Inventronics Lid. efhcesncisesittaed pTisboapictsoasgenciereaeh $462.78 Prairie Implement Mfers Asso... $1,500.00 Westnofa of Canada Ltd. .. $7,495 62
Churchill GrOUP ssn Jay-Lyne Products Mig. Lit... - $1,693.93 | Precision Metalcraft In... .. $794.75 | Westnofa of Canada Lit. . $785.32
City Sheet Metal Co. Ltd. Kar-Way Wall Systems ING «.csnsnnseesn $4,000.00 | Prolific GIOUP «rsstsessssninnnnnnnenee $123.88 | Wild Thang ... "$309.26
Command Start ING. runnin Kim Baby Products... $1,14658 | Pulse Engineering Ltd. ...................... $665.50 | Winn-o-Bar Enterprises Ltd. . “$712.98
Communigraphics Printers Aid Group.........+0.. Leisure Travel Vans .........cscssessssssesssssesssssssessees $1,536.47 GND a ects cicstbsSossnaigcsostaon Siok Sacha $195.47 Winnipeg Chinatown Dev. (1981) ) cor. . $2 phon
Conadian A-World Science Fiction Linear Systems Ltd. .........000» $10,835.00 R W Packaging Ltd...........sssss- $1,166.96 Winnipeg Inti Children’s Festival inc. ... $33,200.00
Convention Bid Ine. nn Loewen Manufacturing Co. Ltd... $538.01 | Regal Furniture Mig Ltd.. ..... $1,263.20 | Winnipeg Minor Soccer Assoc. Inc... $8,287.50
Cree JeWAlety ann Lower Fort Garry Vol. ASSO. .nennunnnans $2,500.00 r People .. $661.83 | Winnipeg Plasma Lab. Ine... .
Cryodynamics Mani DNOURIQOURY WAGs occisasassconscsspseetcconinssnscoasoninicee $5,000.00 rier Nature Tours Sinsamnucee $4,000.00 Winnipeg World '91 Inc. a

The Taxpayer

Scorched earth - the Ontario
government’s hunt for new revenues

Few people are aware of how
much they spend for government
services over and above their
taxes. Governments are increas-
ingly using non-tax revenue, such
as service and regulatory fees, to
meet shortfalls in their budgets.
In this way, they can actually cre-
ate the illusion that a particular
department will receive less
when they have simply shifted
the funding burden from tax to
non-tax sources.

The search for non-tax reve-
nues has become a deadly serious
high stakes game for government
departments. The future of their
programs, and the bureaucratic
jobs that come with them, is on
the line. Little wonder, then, that
when the government of Ontario
requested ideas from civil ser-

vants on how it could generate |

more revenue, they were flooded
with ideas that ranged from the
novel to the bizarre.

One recommendation sug-
gested that two to three crown
agencies be privatized or re-
scheduled to take them off gov-
ernment books. Another
proposed that "sins" be legalized
and taxed.

One creative bureaucrat
wanted to sell information data-
bases to the public, while yet an-
other proposed the setting up of a
registration system for luxury
items to allow the government to
tax those items when they’re re-
sold.

Farmers will appreciate a pro-
posal to charge licences for trac-
tors and off-road vehicles - even

Referendums stop
massive pay hikes for

politicians

Through citizen initiated ref-
erendums, taxpayers become the
watchdog of government spend-
ing.

Take the case of the Washing-
ton state politicians who, in 1973,
gave themselves a massive pay
increase. The governor’s salary
was increased 45%, from $32,500
to $47,300 a year. The salary of
the Lieutenant Governor rose
120%, from $10,000 to $22,000,
while the Secretary of State’s sal-
ary increased 73%, from $15,000
to $26,000. The politicians also
increased their pensions by as
much as 193%.

Washington taxpayers were
incensed with the increases, par-
ticularly when the politicians
tried to introduce the pay hikes in
such a way that they couldn’t be
put to a referendum vote. In-
stead, the citizens of Washington
initiated a referendum that asked
the question "Shall elected offi-
cials’ salary increases be limited
to 5.5% over 1965 levels, and
judges the same over 1972 lev-
els?"

In the State of Washington, a
referendum can be initiated if a
petition containing the names of
4% of the registered voters is
gathered. When the necessary

number of names were gathered,
the question was put to a vote,
and the citizens of Washington
state overwhelmingly rolled back
the politicians’ pay increases.

Swiss referendums

The citizens of Switzerland
have long benefited from the use
of referendums, and Swiss politi-
cians are generally very careful
about how they spend tax dollars
because of the power referen-
dums have to control excessive
spending and taxation.

However, in 1977 the Swiss
government attempted to insti-
tute a value added tax, very simi-
lar to Canada’s GST. Unlike
Canada, however, the Swiss were
able to stop the tax by way of a
referendum.

Referendums are a form of di-
rect democracy that provide citi-
zens with the opportunity to
influence the political process.
Canadians realize that govern-
ments must collect taxes in order

to be effective. However, as Ca- |

nadians continue to be over-
whelmed by high tax levels,
referendums may offer the only
hope for making politicians pay
attention.

x) stopped GST with a citizen-initiated referendum

those that remain on their own
land - under the guise of allowing
purchasers to check the history of
the item. Businesses are also a
favourite target, as a number of
bureaucrats proposed that compa-
nies be hit up for more fees when
they meet government regula-
tions. One proposal even sug-
gested that food handlers be
required to purchase an annual
permit so the government could
charge them for it!

One high flyer suggested that
government frequent flyer points
be donated:to charity or used for
even more frequent flying. An-
other proposal, which was more
down to earth, suggested that
highway construction and main-
tenance be privatized and toll
booths established.

Of course, many of these rec-
ommendations will never be im-
plemented. However, the
government has already ap-
proved over $56 million in new
non-tax revenue initiatives, in-
cluding charges for environ-

mental tests and mandatory envi-
ronmental certificates of ap-
proval ($8.9 million), and for
processing information returns

Nov/Dec '92

for corporations ($8.1 million).

Now, if they only asked for
suggestions on how they could
cut spending....

Due to runaway spending, oe government is desperate for
ncome

Who to write:

Each issue of The Taxpayer provides information

about the spending, borrowing, and taxing practices
of the various levels of government. If you would
like to respond to the information we present, why
not write your MP or MLA a letter?

To assist you, we have provided the addresses of
a few of the key people in the federal government.
You can get the names and addresses of other MPs
from Elections Canada at 1-800-267-8683.
member, when writing to federal Members of Par-

liament, postage is not required.)

When writing to Members of Parliament, address
your letter to them at the House of Commons,
Ottawa, Ontario, K1A 0A6. When possible, use the

Member’s office number.

Rt. Hon. Brian Mulroney
Prime Minister of Canada
Room 309-S

Rt. Hon. Joe Clark
Constitutional Affairs
Room 165-EB

Hon. Pierre Blais
Consumer and Corporate Affairs
Room 445-CB

Hon. Bernard Valcourt
Immigration
Room 656-CB

Hon. Don Mazankowski
Finance/Deputy Prime Minister
Room 209-S

Hon. Charlie Mayer
Grains & Oilseeds
Room 175-EB

Hon. Tom Siddon
Indian Affairs
Room 121-EB

Hon. Kim Campbell
Justice

2 324-WB

(Re-

Hon. Gerry Weiner
Multiculturalism
Room 533-CB

Hon. Benoit Bouchard
Health & Welfare
Room 325-EB

Hon. Otto Jelinek
National Revenue
Room 133-EB

Hon. Michael Wilson
Minister for International Trade,
ISTC
Room 515 - S, CB

Hon. Gilles Loiselle
Treasury Board
Room 807
Confederation Building

Hon. Robert De Cotret
Secretary of State
Room 333 - WB

Hon. Barbara McDougall
External Affairs
Room 231 - WB

Hon. Perrin Beatty
Communications
Room 312-WB

Mr. Jim Hawkes, MP
Gag Law Legislation
Chief Government Whip
Room 105-A

Hon. Jean Chretien
Leader of the Opposition
Room 409-S

Hon. Audrey McLaughlin
Third Party Leader
Room 531-S

When is the last time you wrote
your Mem f Parliament?

+ -h 2: 2
‘ee eae

Victoria city employees make 10.5% more
than private sector employees doing compa-
rable work.

Edmonton city employees make 8.6% more
than private sector employees doing compa-
rable work.

City

When an employee asks for a raise,
there are two things that usually deter-
mine what that raise will be: The em-
ployee’s productivity, and the company’s
ability to pay for the increase.

Unfortunately, the public sector is not
subject to the same constraints. In fact, a
recent study by the Canadian Federation
of Independent Business indicates that
municipal workers in Canada’s largest
cities enjoy wages and benefits that are,
on average, 27% higher than their coun-
terparts in the private sector. .

As aresult of this study, we now know
that, on average, the following is true
about municipal employment:

1.City employees work less. Full-
time employees who work in public ad-
ministration are expected to work fewer
hours than their counterparts in any other
comparable occupation. The average
municipal employee puts in an average
34.11 hours of work each week compared
to 36.44 for a private sector employee.

2.City employees get paid more. Ex-
pressed in 1992 dollars, the study indi-
cates that municipal workers received an
average $38,035 per year, while those in
equivalent positions in the private sector
averaged $34,793 - almost 10% less.
This is particularly true in Regina where,

tity

Regina city employees make 32.8% more
than private sector employees doing compa-
rable work.

L =

Winnipeg city employees make 24.5% more
than private sector employees doing compa-
rable work.

employees earn more

as a group, municipal workers receive
wages and benefits one third higher than
their counterparts in the private sector.

3.City employees receive better
benefit packages. The study found that
municipal workers consistently receive
almost double the benefits received by
the private sector. This difference is
equal to the amount government pension
contributions exceed those of private
companies. In fact, municipalities rou-
tinely pay pension contributions of seven
to nine percent on behalf of their employ-
ees, compared to an average of 1.5% in
the private sector.

4.City employees have more job se-
curity. Municipal employees tend to
stay in their jobs longer than those in the
private sector, with 42% of employees
having stayed in their jobs for 10 years or
longer, compared to less than 27% in the
private sector.

CFIB recommendations

The CFIB report outlined a number of
recommendations to deal with the dispar-
ity in wages and benefits. These recom-
mendations can be summarized as
follows:

1. Government wages and benefits
should follow rather than lead the private

If we owe the national debt to
ourselves, is it still a problem?

There are many people who feel the
national debt isn’t a problem because,
they say, "we owe the money to our-
selves." These people feel that, be-
cause Canada’s national debt is largely
financed by Canadians through Treas-
ury Bills and Canada Savings Bonds,
we can handle it and even let it rise.
Nothing could be further from the truth.

In the first place, debt is debt. The
holders of our debt, whether Canadian
or not, expect to be repaid. All we’ve
done is promise them that tomorrow’s
taxpayers will be the ones to repay
them. Unfortunately, today is when the
bills from the runaway spending of the
70s and 80s is coming due. And if

we’re finding it hard to manage the cur-
rent debt load, imagine how our chil-
dren will feel!

Secondly, Canadians are no longer
able to manage the financing of Can-
ada’s debt alone. About 18% of the
gross federal debt and 25% of the gross
provincial debt is owed to investors out-
side the country. And the problem is
getting worse, as the accompanying
chart shows.

So the next time somebody feeds you
this line, ask them when was the last time
they donated their Canada Savings Bonds
to the government rather than expecting
to be repaid. Then tell them you don’t
buy it.

sector. Any gap between government and
private sector wage and benefit levels
should be eliminated over a 10 year pe-
riod.

2. Better data should be made avail-
able to allow direct comparisons between
the public and private sectors.

3. Government negotiators and those
responsible for arbitration
of civic employee labour
disputes should be subject
to strict guidelines to en-
sure wages and benefits
reflect the taxpayers’ abil-
ity to pay and that they
enhance the tax competi-
tiveness of the commu-
nity.

4. Legislation should
be passed to ensure em-
ployer contributions to
public sector pensions are
no higher than private sec-
tor norms.

5. Independent wage
policy review committees
should be established to monitor wage
and employment growth and to guide
long-term strategy.

6. End the practice of allowing sick
leave to be accumulated and added to the

study

employee’s compensation in the form of
earlier retirement or cash.

7. Give public sector managers and
employees greater flexibility to manage
their personnel in the most cost-effective
manner possible.

The study warns that the consequences
of inaction on this issue will be severe

"This is not to blame the individual,
however. It is perfectly rational behav-
iour for one to choose the best possible
employment package from a range of of-
fers or career paths. The problem, in-
Stead, lies with the system of public
sector management in Canada.” - CFIB

"Without action, Canada is in danger of
becoming a two-class society - employ-
ees of the private sector suffering while
the economy becomes overtaxed and less
competitive."

Total foreign and domestic debt of the federal and
provincial governments -

source Statistics Canada

500
450
400
350
300
250

Canadian held debt
Foreign-held debt

5 O-

>. Taxpayer

Nov/Dec ’92

A future with less government --- New
prosperity plans for Canada

In late October the federal
government released the final re-
port of its Prosperity Initiative. It
was an effort begun in 1990 "to
produce a plan of action to secure
Canada’s future economic and so-
cial well being.”

The report, entitled Inventing
Our Future, was written by an in-
dependent group of twenty Cana-
dian business, labour, and
academic leaders. Its findings
were based on the results of hun-
dreds of forums held across the
country.

The report attempted to diag-
nose the most serious threats fac-
ing the Canadian economy, and
made 53 specific recommenda-
tions.

The plan is refreshing in that
it points to government taxation,
deficit-spending, and regulation
as the most severe impediments
to economic growth. The solu-
tions recommended by the com-
mission are also encouraging.
They look to individuals, the pri-
vate sector, and local communi-
ties as the most effective agents
of change and growth.

Following is an excerpt from
the report which outlines why
Canada must "free up private in-
itiative and lighten the burden of
government":

Unleashing Innovation: Getting
the Policy Framework Right
What actions can govern-
ments take to help create oppor-
tunities for innovation?
Our current tax burden is
higher than that of our major

the proportion of our national in-
come going to pay taxes has in-
creased from 30 percent to 37
percent. Over the same period,
the United States, our main trad-
ing partner, saw only a small in-
crease, from 29 percent to 30%.
This has nothing to do with our
national health and welfare pro-
grams; Canada’s tax increases
happened long after these basic
programs were in place.

Why such a large increase? |

Because for years all levels of
government in Canada have been
competing with each other by in-
troducing programs and services
of all kinds on borrowed money.
However, these programs failed to
raise national productivity and
generate enough new wealth to
pay for themselves. Regardless,
governments continued to borrow
money, and today they owe more
than $615 billion--an amount al-
most equal to one year's entire
output of our goods and services.

The size of this debt and the
burden of financing it is threat-
ening the ability of governments
to maintain our social programs.
Just servicing the debt costs gov-
ernments, in aggregate, one third
more than they spend annually on
either health or education.
Worse, the addiction to deficits
and borrowing continues. We
must find ways to provide public
services more efficiently, thereby
lowering the costs of government
and eliminating the need for defi-
cits.

In addition, our tax regime has
become so complex that Canadi-

money trying to find the least-
cost path through a maze of tech-
nicalities. They could better
spend this time and money build-
ing competitive enterprises.

The solution? Governments
at all levels must learn to live
within their budget constraints
and make appropriate trade offs
to restore fiscal responsibility,
economic flexibility and the abil-
ity to maintain our social pro-
grams. At the same time,
Canadians must accept that some
reordering of priorities is neces-
sary and that we cannot continue

to subsidize businesses.
Governments should reach
agreement on a set of principles
for taxation so that systems can
be simplified and their impact on
overall economic activity can be
assessed effectively--govern-
ments themselves should be held
more accountable for their im-
pact. To help the country sustain
its prosperity and foster high per-
formance enterprises that cap-
ture growing world markets,
Canadians need tax systems that
do the following: raise the reve-
nues we néed for the services we

use, without inhibiting our ability
to compete internationally; en-
courage an expansion of invest-
ment; reward risk-taking; and
allow entrepreneurs to accumu-
late a sound capital base.

In short, to free up private in-
itiative and lighten the burden of
government on the economy, a
number of things must happen: a
reduction in our deficits and the
costs of government; an improve-
ment in our tax systems; and co-
ordination of government
policies.

sakopw wjoojopy

TAL figures are percentages unless otherwise indicated. Personal tax rates are a perceniage of federal taxes. Flat income tax is a percentage of income. Quebec's personal tax rates are not included because the province collects in-
-come tax directly, and no direct comparison with other provinces is possible. “Cost in dollars for a family °Provincial sales tax applied on top of this tax 4. Does not include the city of Vancouver municipal gas tax

Nov/Dec '92

Auditor General’s Report

Government lands a

In his 1991 Auditor General’s Re-
port to the House of Commons, Denis
Desautels reported that the Depart-
ment of Public Works spent $3.3 mil-
lion in 1972 to purchase Block 56 in
downtown Vancouver, close to where
B.C. Place now stands. The land
could accommodate a building large
enough to give every federal govern-
ment department leasing land in that
city with a home.

The building never got built. After
spending $800,000 for the building’s
preliminary design, the government

bad deal

cancelled construction plans in 1978
as an austerity measure.

Meanwhile, the Department
spends $24 million a year on lease
payments in Vancouver, while the
land (which has since risen in value to
$27 million) has been put to another
use - as a parking lot.

This wasn’t the first time the Audi-
tor General expressed concern over
Block 56. In the 1984 Auditor Gen-
eral’s Report, Kenneth Dye reported
that the cost to the taxpayers of hold-
ing Block 56 as a parking lot was $1.7

Block 56 - Vancouver, B.C. - Wasted tax dollars for years

Rae

million a year, while the rental re-
ceived from the parking lot was only
$12,000 per year.

In his 1984 report, Kenneth Dye
summarized the situation this way:

"Real property is not managed in
a way that recognizes its value. In the
private sector, real property is held
for some benefit, usually to meet a
need for accommodation or as an in-
vestment to earn revenue. The gov-
ernment holds real property to
achieve many objectives besides
meeting the need for accommodation
or earning revenue. Nevertheless,
due regard for economy and effi-
ciency implies taking into account the
full costs of each property and its
contribution to these several objec-
tives. This is not done with federal
real property.”

This year, the government finally
sold the land to the City of Vancouver
for a Roman Coliseum style library
and 21 story office tower. When
completed, the offices will be leased
out to - you guessed it - the federal
government. Canada’s Minister of
Justice, Kim Campbell, praised plans
to finally build something on the site.
As Campbell said, "This site has re-
mained underutilized for 20 years."

Taxpayer update
As a footnote to this story, we

discovered that the federal govern-
ment’s involvement in Block 56

_hasn’t quite ended. To close the
* sale, the government extended a $20

million interest free mortgage to the
City of Vancouver, and may be in-
volved in discussions for further fi-
nancial involvement.

= | &

The Taxpayer

Atlantic provinces

Governments
gamble their

The governments of
Atlantic Canada annu-
ally cash in on a very
lucrative business ven-
ture. They formed the
Atlantic Lottery Corpo-
ration in 1976 to admin-
ister provincial lotteries
in New Brunswick,
Newfoundland, Nova
Scotia, and Prince Ed-
ward Island.

In 1990-91, the cor-
poration made a $74
million profit, making
the company the re-
gion’s most profitable

corporation. Of course,
it’s easy to make money
when your "product"
holds a monopoly, and
is illegal for anyone
else.

And who are the big
winners in all this ac-
tion? The federal gov-
ernment, which makes
the rules, also ensures it
gets a payout. The fed-
eral government re-
ceives $45.3 million a
year so that the prov-
inces can ply their trade
without competition.

tax rates, 1987 and 1992

Nfld

Note: Some provinces change gasoline and tobacco taxes on a quarterly or monthly basis reflecting changes in the retail price. Tax rates effective Jan. 1, 1993 or the most current. Source: Manitoba government budgat documents and
2 provincial finance departments.

The Taxpayer

Nov/Dec '92

Industry, Science and Technology handouts

The Department of Industry, Science and
Technology Canada (ISTC) was formed by a
merger between the Ministry of State for Sci-
ence and Technology and the Department of
Regional Industrial Expansion. According to
the department’s 1990-91 Annual Report,
ISTC is led by three ministers: The Minister
of Industry, Science and Technology, the Min-
ister for Science, and the Minister of State
(Small Businesses and Tourism).

007 Enterprises - Whitehorse, Yukon sss SEDO
11 Mile Trek Ltd. - Coral Harbour, NWT ......... 21,500
144072 Canada Ltd. - Elliot Lake, Ont .......... 49,858
148556 Canada Limited - Little Current, Ont ..... 42,746
311313 Alberta Ltd. - Alberta................4.. 2,636
333111 Ontario Ltd. - Brampton, Ont........... 285,000
344474 Alberta Ltd. - Calgary, Alta............. 16,875
353528 Alberta Inc. - Banff, Alta ................ 2,550
411301 Alberta Ltd. - Grimshaw, Alta .......... 33,751
501801 Ontario Ltd. - Fort Frances, Ont......... 26,961

5200 Investments Ltd. - Penticton, B.C. , Repayable 70,000

539652 Ontario Ltd. - Armstrong, Ont .......... 30,050
565970 Ontario Limited - Kitchener, Ont ........ 22,500
566232 Ontario Limited - Oakville, Ont........... 1,200
617047 Ontario Limited - South River, Ont ....... 62,200
645621 Ontario Inc. - Sault Ste. Marie, Ont ...... 47,400
697060 Ontario - North Bay, Ont............... 69,930
733465 Ontario Inc. - Thunder Bay, Ont ......... 94,990
741666 Ontario Inc. - Kenora, Ont ............. 22,433
741666 Ontario Inc. - Kenora, Ont. . sine shea tO; 10%
746406 Ontario Limited - Desbarats, Ont . .. 4,800
799200 Ontario Inc. - Parry Sound, Ont ......... 28,600
799757 Ontario Inc. - Nipigon, Ont ............. 18,810
862346 Ontario Limited - Moonbeam, Ont . 9,923

9003 Yukon Ltd. - Whitehorse, Yukon, Repayabie . . 72,800

951914 Ontario Limited - Bramalea, Ont ........ 10,000
A.C.M. Composites Inc. - Drummondville, Que ... 20,532
A.G. Simpson Co. Limited - Oshawa, Ont ........ 4,250
A.G. Simpson Co. Limited - Scarborough, Ont ..... 4,250
A.G. Simpson Co. Limited - Scarborough, Ont ..... 4,250

A.K. Electromagnetic Inc. - Dollard Des Ormeaux, Que 56,250
A.R. Fromme & Asso. Ltd. - Whitehorse, Yukon... 33,250

ABC Wilderness Adventures Ltd. - Golden, B.C. .. 16,200
ABC Wilderness Adventures Ltd. - Golden, B.C.

FIG DAV ADIOS ib ns ics eri aha cnse etsy a Pel vine oka et orgie 72,400
Abingdon Travel Agency Limited - Vancouver, B.C. 25,000
Accessible Isolation Holidays - England .......... 1,484
Accutrak Systems Ltd. - Regina, Sask., Repayable 12,500
Ace Canada Inc. - Toronto, Ont ............... 32,500
ACEACQ - Charlesvourg, Que ............-.-- 45,000
Acme Decalcomania Limited - Toronto, Ont...... 10,000
AD! Diagnostics Inc. - Rexdale, Ont . ......... 499,780

Advanced Materials Engineering Ctre - Halifax, N.S. 30,000

Advanced Metaltech Mfg. Corp. - Guelph, Ont ... 259,150
Advanced Systems Inst. Found.- Burnaby, B.C. .. 1,000,000
Advisory Com., The Ladies’ Dress - Toronto, Ont . 30,000
AEA Electronic Ltd.- Richmond, Ont .......... 83,017
Aero Machining Ltd. - Montreal Nord, Que ...... 498,804

Aerospace Ind. Assoc. of Canada - Ottawa, Ont .. 25,000
Aerospatiale Hemmingford Inc. - Hemmingford, Que 226,850

Ahousaht Education Authority - Ahousaht, B.C. .. 250,000
Air Alps Ltd. - Squamish, B.C., Repayable ....... 19,280
Aivilik Lodge - Repulse Bay, NWT ............. 98,117
Ajax Precision Mfg. Ltd. - Weston, Ont .......... 85,475
Aklavik HTA - Aklavik, NWT... ......-...---20- 4,750
Al Picard Cabinets Limited - North Bay, Ont ...... 81,600
Alberta Department of Tourism - Edmonton, Alta . 656,357
Alberta Department of Tourism - Edmonton, Alta .. 32,500
Alberta Department of Tourism - Edmonton, Alta .. 38,500
Alberta Department of Tourism - Edmonton, Alta .. 47,000
Alberta Department of Tourism - Milk River, Alta.. 836,400

Alberta Forestry, Lands & Wildlife - Edmonton, Alta 18,472
Alberta Forestry, Lands & Wildlife - Northern Alta . 37,500
Alberta Input Television Fndtn - Edmonton, Alta ... 6,171
Alberta Municipal Affairs - 1.D. #17, Alta ......... 45,973
Alberta Science Centre Society - Calgary, Alta ...
Alberta Vocational Centre - Slave Lake, Alta ....

Alberta Vocational Ctre - Lesser Slave Lake, Alta . 19,500
Alberta Vocational Centre - Lac La Biche, Alta .... 38,353
Alberta Voc. Centre - Slave Lake, Alta .......... 21,937
Alex Beaulieu - Yellowknife, NWT
Algoma Byproducts Corp. - Sault Ste. Marie, Ont .. 4,625

Algoma Roofing & Mfg. Inc. - Elliot Lake, Ont ..... 38,669

Algonquin Industries Int'l Inc. - Huntsville, Ont. . 100,000
Algonquin Industries Int'l Inc. - Huntsville, Ont <=, 6,708
All Tech Tours - Fort Smith, NWT ............--- 2,031

Allelix Biopharm aceuticals Inc. - Mississauga, Ont 216,803

Allelix Crop Technologies - Mississauga, Ont... . 594,099
Allen-Bradley Canada Limited - oo Ont. . 405,687
Alliak Tours - Cambridge Bay, NWT . 2a wa ee
Alliak Tours Ltd. - Cambridge Bay, NWT ingwis ake erent

Allied Signal Aerospace Canada - Rexdale, Ont, Provision-

ally Repayable . . . 5,127,000
Ambeault, Dianne Elizabeth - ‘Desbarats, Ont Seen 1o,00
Ameublement El Ran Ltee - Pointe-Claire, Que ... 25,000
Amoco Canada Petroleum Co. Ltd. - Alberta...... 49,662

The department was formed in February
1990 to "promote international competitive-
ness and excellence in Canadian industry, sci-
ence, and technology”.
involves the department in a number of areas,
including tourism, research and development,
aboriginal economic programs, regional de-
velopment and the defence, shipbuilding, and
aerospace industries.

Out of a total budget of more than one

This mandate

Amptech Corporation - Calgary, Alta Gasca ss
| Anderson, Gerald - Prince Albert, Sask .......... 13,450

Andrew Canada Inc. - Whitby, Ont .............. 25,000
Anne Murray Centre - Springhill, N.S. ......... 503,586
Antoine, Frederick Gordon - Merritt, B.C. ......... 18,870
Apalilu Oilfield Services Ltd. - Wabasca, Alta...... 24,763
Apex Metals (Kitchener) Ltd. - Kitchener, Ont ..... 10,000
Aratek International Inc. - North York, Ont ....... 499,166
Archebe Industries Ltd. - Rae-Edzo, NWT . ... 8,269
Arctic Coast Tourist Asso. - ae Bay, NWT... 36, 855
Arctic Safaris - Yellowknife, NWT . ~ 10701
Arctic Waterways - Coppermine, NWT. side = 3 oe ee
Amand Laferriere - Astorville, Ont.............. 27,750
Artcraft of Montreal Ltd. - Anjou,Que_ .......... 25,000
Arvin Special Machinery Ltd. - Chatham, N.B. ..... 21,570
Arvin Special Machinery Ltd. - Chathar, N.B. .. .. 498,380

Asso. of Alberta Fly-In-Fishing Lo - Grande Prairie, Alta 1,707
| Asso. of Canadian Mountain Guides - Vancouver, B.C. 36,732

Atlantic Sleep Products Ltd. - Scoudouc, N.B. ...... 1,200
Aulajuq Limited - Chesterfield Inlet, NWT ........ 54,600
Auld Reekie Lodge - Gowganda, Ont .......... 27,566
B & B Scuba Inc. - Winnipeg, Man ............... 4,900

B & G Rentals - Fort McPherson, NWT ........... 5,600
B & | Manufacturing Ltd. - Port Coquitlam, B.C. ... 140,337

B J's Tour House Ltd. - Aberdeen, Sask ......... 70,000
B&E Furniture Mfg. Co. Ltd. - Weston, Ont, ........ 1,200
Baker Creek Chalets Ltd. - 1.D.9, Alta ........... 41,973
Ballin Inc. - Montreal, Que ........ cee cccecneees 1,200
Ballistech Systems Div. of ATS Aerospace - Saint Hubert

MONDO yc 6io s+ Sno-s: s 450 os taints aang alee sae aac 212,825

Banff Rocky Mountain Resort Ltd. - Banff, Alta .... 93,982

Barbara Switzer - Hecla Island, Man es
Baronet Inc. - Ste-Marie, Beauce, Que .......... 25,000
Bathurst Inlet Lodge Ltd. - Bathurst Inlet, NWT ... . 32,534
Bathurst Inlet Lodge Ltd. - Yellowknife, NWT ...... 11,423
Bavarian Meat Products Limited - North Bay, Ont . 250,000
Bay Mills Limited - Midland, Ont ................ 25,000
Bayridge Minaki Ltd. - Minaki, Ont .............. 13,100
B.C. Charter Yacht Centre - Vancouver, B.C. ..... 10,100
Beaulieu of Canada Inc. - Stratford, Ont .......... 1,200
Beck Electric - Concord, Ont ............0-0 200s 4,250
Beck Electric - Scarborough, Ont ............... 83,750
Bed & Breakfast & Country Inns Asso. -

Murray River, PE] ........ E . 6,262
Bedford Furniture Industries Inc. - North York, Ont 18, 750
Bedwell Harbour Resort Ltd. - Bedwell Harbour, B. Cc.
Repayable .... . 500,000
Belanger Comm. Inc. - ‘lle- A- La- Crosse, Sask . . 54,500
Belbois Ltee - Montreal, Que ...... 14. acce ow ple
Bellevue Pathe (1972) Que - Montreal, ‘Que face 245,016
Bellwinner Industries Limited - Belleville, Ont... ... 99,293
Beothic Fish Processors Ltd. - Badger’ faa Nfld . . 21,292
Berkline Ltee - Anjou, Que ....... ee ee 1,200
Bertrand Faure Limited - Mississauga, Ont. nai a Ste ae
Bertrand Faure Limited - Mississauga, Ont....... 100,000
Big Lake Masonry - Yellowknife, NWT .......... 140,000
Biomatics Inc. - Montreal, Que ..........++..0-- 73,305
Bird, Roderick - Southend, Sask................ 35,500
Black Clawson-Kennedy Ltd. - Owen Sound, Ont, Provision-
PRU AEREU ICID ro srw 5c = 2 Yel Tinsa ar ots awinianceeitase 859,810
Black Water Designs Limited - Foymount, Ont .... 17,625
Blackfeather/Ecosum mer - Baffin Region, NWT... . 19,994
Blackmon, M. Delores & Mike - Jans Bay, Sask ... 29,275
Blain, Les A. - Salmon Arm, B.C. ............05- 35,000
Blouse Metal Products Ltd. - Waterloo, Ont ....... 25,000
Boeing of Canada Ltd. - Downsview, Ont, Provisionally
IORI Ss ccs se Set 28 w oatee + Slane Wiese 51,000,000
Bombardier Inc. - Saint Laurent, Que, Provisionally
Repayable . . - 11,537,000
Bombardier Inc. - ~ Saint Laurent, Que, Provisionally

PIO DRUOIO erag La baa ove. Sara nis ionic eae 38,386,950
Bombardier Inc. - Saint Laurent, Que, Provisionally
PAY ON ack 5) Scasenelg- bn 5g se ra nas ca koto lera 5,540,553
Bombardier Inc. Div. Montoneige - Valcourt, Que . 212,586
Bonnyville Health Centre - M.D. #87, Alta ......... 3,833
Boutique Tricot Inc. - Montreal, Que ............ 1,200
BowMan Byron - Ahtahkakoop Res., Sask... .... . 32,000
Boyson Oilfield Services Ltd. - Grande Prairie, AB .. 5,713

Bradbury Tamblyn & Boorne Ltd. - Richmond eg Ont 25,000
Brandt Industries Ltd. - Regina, Sask . 25,000
Brewster, Bud - |.D.#9, Alta ........ . 13,328
Briar Int'l Business Resources - Cape Dorset, NWT . 4,917

| Bristol Machine Works Limited - ey Ont .... 573,750
Britex Ltd. - Bridgetown, N.S., .......---- a yf
| Brown, George - Lytton, B.C. 12, 000
Brunet's Holdings Ltd. - Goodsoil, Sask . . 96,650

billion dollars, the department hands out 75%
of its funding in the form of grants and contri-
butions. These are approved under 110 pro-
grams, including the Defence Industry
Productivity Program, the Shipbuilding In-
dustry Assistance Program, the Western
Transportation Industrial Development Pro-
gram, the Special Program for the Thetford-
Mines Region, the Industrial Recovery for
Southwest Montreal Program, the Technology

Outreach Program/Technology Opportunities
in Europe Program, and the Entrepeneurship
Awareness Program.

The following are the contributions/grants
approved for payment in 1989-90 under just
some of the programs the department admin-
isters. The amounts which the companies
eventually received may vary. This list should
not be construed as a criticism of any of these
businesses.

Buffalo Bay Resort & Marina - Middlebro, Man .... 92,500
Bundschuh Fashions Ltd. - Calgary, Alta ........ 12,000
Burgess Power Train & Mfg. Inc. - Val Caron, Ont. 225,630
ene Centre for Entrepreneurship - St. Catharines,

Wishes a7 is one RR ee Lah Sata 12,000
Burgoyne Centre for Entrepreneurship - St. Catharines,

WO ee scar Gee STS ara Serta pS ib Gein cs 0 ecacetespioter Oi 8,500
C.H. Inns & Suites Inc. - Gimli, Man ........... 550,000
Cadmi Microelectronics Inc. - New Brunswick .... 567,000
CAE Electronics Ltd. - Ville Saint-Laurent, Que .. 321,800
CAE Electronics Ltd. - Ville Saint-Laurent, Que .. 143,200
CAE Electronics Ltd. - Ville Saint-Laurent, Que .. 200,000

CAE Electronics Ltd. - Ville Saint-Laurent, Que . 1,976,000
CAE Electronics Ltd. - Saint-Laurent, Que

aU MMMM sino F a ectaieaie ina «ose vn ¢. 6 te6cecart 2,475,000
Calko (Canada) Inc. - Quebec ................ 150,000
Calko (Canada) Inc. - Quebec ................ 671,750
Camopliast Inc. Div. Lasalle - Richmond, Que ..... 95,242
Campbell, Ben - La Ronge, Sask .............. 43,200

Camperduck Local Fur Council - Duck Bay, Man ... 8,000
Can-Man Tourism Development Agreement - Winnipeg,

LL ae eee Bes Se Set aieaeogr eg RS Te 30,000
Can-Man Tourism Development Agreement - Falcon Lake,
MBG 8 oi,,s sin ccnmpnies Fane ening De Cha Tea 20,000

Canada Forgings Inc. - Welland, Ont, Repayable . 586,350
Canada North Expeditions Ltd. - Yellowknife, NWT 11,802
Canada North Outfitting Inc. - Baffin Region, NWT . 24,500

Canada-China Trade Council - Toronto, Ont... .. 600,000
Canadian A.S.E. Ltd. - North York, Ont ......... 100,000
Canadian A.S.E. Ltd. - North York, Ont ........... 7,463
Canadian Chamber of Commerce - Ottawa, Ont... 25,000
Canadian Chamber of Commerce - Ottawa, Ont... 22,000

Canadian Exporters’ Association - Ottawa, Ont ... 50,000
Canadian Foundation for Economic Education - Toronto,

OEE ois tua os Sloan cane Me see ce vis dip cS tata be 25,000
Canadian General-Tower Limited - Ontario .... . . 350,000
Canadian Holidays - Richmond, B.C.. .......... 99,750

Canadian Inst. of Biotechnology - Montreal, Que 1,116,000

Canadian Labour Market & Prod. Centre - Ottawa . 48,810
Canadian Marconi Co. - Kanata, Ont, Provisionally

illen Mele: REE estas 2p tt 55S Sea aa Page en 1,750,000
Canadian Marconi Co. - Kanata, Ont, Provisionally

NI ORN 0 hat rere was Gao b oo ne -a.en i 3,440,000
Canadian Meat Council - Calgary, Alta ........... 3,000
Canadian Pacific Hotels Corp. - Edmonton, Alta .. 153,000

Canadian Pacific Sea Safaris Ltd - Vancouver, B.C. 25,000
Canadian Soc. of Asso. Executives - Winnipeg, Man 32,500
Can. Territorial Helicopters Inc. - Fort Smith, NWT . 70,000
Canadian Union College - Toronto, Ont ......... 10,000
Canadian Wine Institute - Mississauga, Ont ....
Canadvac Travel Services Ltd. - Caledonia, N.S., .. 8,750

Canoe Arctic Incorporated - Fort Smith, NWT ...... 1,240
Cantrav West Services - Vancouver, B.C. ........ 31,250
Capa Software Publishing Corp. - Saskatoon, Sask,

Oe ORR a ae en a ae 97,755
Cape Broyle Inn Limited - Cape Broyle, Nfid....... 7,775
Capilton Corporation - Sioux Lookout, Ont ....... 36, 420

Cardium Service & Supply Ltd. - Edmonton, Alta .. 15,000
Carmacks Development Corp. - Carmacks, Yukon . 48,000
Carman Retail Merchants Association - Carman, Man 5,000

Caroline - Meadow Lake, Sask ................ 16,080
Carriere Industrial Supply Ltd. - Lively, Ont ...... 127,500
Cartan Tours, Inc. - Illinois, USA .... ........... 8,982
Cascade Publishing Ltd. - Fort Smith, NWT ...... 10,500
Casimir, Allan Leonard - Kamloops, B.C. ........ 26,850
Cavalier Enterprises Ltd. - Calgary, Alta ........ 153,000
Cavendish Promotions - Cavendish, PEI ........ 150,000
Cayuga Aerospace International - Cayuga, Ont .. 312,500
CCL Technologies Inc. - Willowdale, Ont ....... 494,600
Cdn. Asso. Women Executives & Entrepreneurs -

"TEGO AED GW scat a ns de She Senin co 6D 6 oe azo 25,000
Cdn. Asso. For Home-Based Business - Ottawa, Ont23,160
Centrac Industries Limited - Toronto, Ont ........ 18,000

Central Interior Shuswap Co-Oper. - Kamloops, B.C. 38,000
Centre D'Entrepreneuriat Du Coeur Du Que -

FNS EU VMN ors rrak se bie ae vind c's e's oie. o's bie ease 42,000
Cen. Des Techno. Textiles (Que.) Inc. - Quebec . 3,540,000
Cen. For New Venture Development - Calgary, AB, 10,000
Ceramics Kingston Incorporated - Richmond Township,

OE sas ee na ene Css mn sia's. ooo einle Sea a 500,000
Certified Brakes Div. of Allied Signal - Mississauga, Ont 10,000

Chaisson Cabinets & Carp. Ltd. - Elliot Lake, Ont .. 36,750
Champagne Aishihik Indian Band - Whitehorse ... 25,600
Charles Haogak - Sachs Harbour, NWT........... 9,630
Charles, Robert C. - Stanley Mission, Sask ....... 30,500
| Charlie Kudlaurok Taxi Service - Sanikiluag, NWT .. 5,936

i) é

Nov/Dec '92

Chartier, Lorrie - Buffalo Narrows, Sask ......... 26,000
Chehalis Enterprises Inc. - Agassiz, B.C. . - 120,000
Chemac Industries Inc. - Kelowna, B.C. ........ 425,000
Cherniak Giblon and Company - Toronto, Ont .... 91,940
Chickite, Maxwell - Campbell River, B.C. . 30,000

Chinook Country Tourist Assoc. - Lethbridge, Alta . . 9,857

Christina Felix - Tuktoyuktuk, NWT............. "16,486
Chromalox Inc. - Rexdale, Ont ............... 229,874
Chromalox Inc. - Rexdale, Ont ................ 25,000
Cine Groupe J.P. Inc. - Montreal,Que ......... 149,532
Circa Telecommunications Inc. - Calgary, Alta .... 19,125
Circuit Graphics Ltd. - Burnaby, B.C. .......... 19,800
City of Lethbridge - Lethbridge, Alta ............ 15,000
City of Saskatoon - Saskatoon, Sask .......... 50,000
City of Whitehorse - Whitehorse, Yukon ......... 16,920
City of Yellowknife - Yellowknife, NWT .......... 26,936
Cleveland Range Ltd. - Downsview, Ont ........ 24,450
CME Telemetrix Inc. - Waterloo, Ont .......... 99,900
Coastal Towing Co. Ltd. - Vancouver, Repayable .. 98,660

Coghlan, Brian J. - Kirkland Lake, Ont .......... 12,000
College Tool and Die Ltd. - Mississauga, Ont .
Colorcraft Signs & Screenprinting Ltd. - North Battleford,

Sask. . 5 avis Pots vaca, «a's;
Com Dev Limited - Cambridge, Ont. ere 231,250
Coming Event Fashions Ltd. - Montreal, Que ..... 25,000

Compar Connectors Div. DGW Electronics - Markham, Ont,
Provisionally Repayable. . Scag iu. s) BO NEOO
Compar Connectors Div. DGW Electronics - Markham, Ont,
Provisionally Repayable. . ay . 358,100
Comptec International Ltd. - - Surrey, B. C. ..+. 25,000
Computing Devices Canada Ltd. - Nepean, ‘Ont . 4,502,105
Computing Devices Canada Ltd. - Nepean, Ont .. 600,000
Confection Drolet Inc. - Lac-Drolet,Que ......... 25,000
Confection Vetibec Inc. - Daveluyville, Que ...... 15,600
Conference Board of Canada, The - Ottawa, Ont. 199,750
Conseil De L'Ind. De L'Hydrogene - Montreal, Que 750,000
Conseil Int'l De La Petite Entree - Quebec,Que .. 31,000
Conservation Energy Sys. Inc. - Saskatoon, Sask . 19,875
Control Data Canada, Ltd. - Nepean, Ont, Provisionally

FROM SING i ooec ca cn pe nati as cee os 5,537,500
Coordinate Tool Ltd. - Mississauga, Ont........ 145,000
Copper Cliff Mechanical & Steel Fabrication -

CopnerCit, OM 2. cmicstem peter oe ce nee 146,400
Coral Harbour HTA - Coral Harbour, NWT ........ 6,000
Cormorant Local Fur Council - Cormorant, Man... 10,500
Corp. Centre De Dev. En Pates Et Papier -

Troisnivieres, QC: =) Acie Sam teeemieers. sc. 60,000
Corp. De Dev. Econ. & Comm. Du Ctr. Sud -

Whore 06 es cictcta pee eubad) sacs ose 10,000
Corporation D’Entretien Predictif - Montreal, Que . 85,792
Corporation D'Entretien Predictif - Montreal,Que . 29,352
Corp. D'Usinage Metro - Ville Saint Michel, Que . 489,000

Council of Forest Ind. of B.C. - Vancouver, B.C. 2,740,000
Crestline Coach Limited - Saskatoon, Sask ...... 22,500
Crocker, Connie - Chemainus, B.C... .......... 21,750

Crystar Research Inc. - Victoria,B.C. ......... 197,850
Crystar Research Inc. - Victoria, B.C. Repayable . 230,000
Cutsey Business Systems Ltd. - North Bay, Ont . 136,705
Cyclone Manufacturing Inc. - Mississauga, Ont .. 203,000
D & M Building Components - Rainy River, Ont ... 19,500
Daco Contracting Ltd. - Fort Qu’'Appelle, Sask ... 135,500
Dalsa Inc. - Waterloo, Ont, Prov. Repayable ... 1,258,500
Dalsa Inc. - Waterloo, Ont, Prov. Repayable ... 1,601,500
Dap Electronique Canada Limitee - Vanier,Que .. 48,636
Dap Electronique Canada Limitee - Vanier,Que ... 1,410
Darby Manufacturing (Sudbury) Ltd. - Sudbury, Ont 51,971
Dare Foods Limited - Hamilton, Ont ............ 25,000
Dartmouth Tourist Commission - Dartmouth, N.S. . 17,500
David Bromley Engineering Ltd. - Canmore, Alta ... 8,500

David Thompson Country Tourist Coun - Red Deer, Alta 13,335
David Thompson Country Tourist Coun - Red Deer, Alta 1,310

Dayco Products Canada Inc. - Weston, Ont ....... 9,429
De-In Industries Ltd. - Debolt, Alta.............. 50, 902
Decoma Intl. Inc. - Concord, Ont, Repayable ... 6,817,518
Decor-Rest Furniture Ltd. - Weston, Ont ......... 1,200
Dellcom Industries Inc. - Woodbridge, Ont ...... 145,097
Dept. of Animal Science (U of A) - Edmonton, Alta . 3,725

Dept. Industry, Science, Technology CDA. - St. John's,
RUM eT, at ioe sin aaiey sR Wimuigy in bia Gis 8,500
Dept. of Culture, Recreation & Youth -

PE ING io ae kina ale ate an <ieisie. s,s 120,000
Deschambault Forestry Ltd. - Deschambault

MMR IN soon ha eck side waidieioiw ae Side dn ae 96,000
Desourdy-Biotherm ica-Consulgaz - St.-Hubert, Que 30,000
Dettah Bus Services Ltd. - Yellowknife, NWT ...... 7,420
Dew Engineering & Develop. Ltd - Ottawa, Ont .. 206,600

Diamond Canapower Div. Babcock & Wilcox - Burlington,

PNR inn el eicisite et gls mh sl C ea oe TERE ok 16,350
Dick, Arthur M. Jr. - Alert Bay, B.C .. . 2.2.22... 26,000
Dick, Simon - Simoom Sound, B.C. ............ 30,000
Digital Dynamics Limited - Stratford, Ont ....... 197,500
Dika Industries Ltd. - M.D. 136, Alta ............ 57,323
Dionne Concrete Products - Earlton, Ont ........ 33,737
DJ's Snack-And-A-Half Ltd. - Missinipe, Sask .... 59,500
Dominion Controls Company - Stratford, Ont .... 100,000
Dominion Controls Company - Stratford, Ont ..... 10,000
Donald Cardinal - Hay River, NWT .............. 7,143
Donlee Precision Div. General Donlee Ltd. - Toronto, Ont,
Provisionally Repayable .................08. 182,730
Douglas C. Wright - Britt, Ont ................. 17,500
Dowty Canada Limited - Ajax, Ont, Provisionally

IORI VOR nis < 5 0:3 cic sce cen cece Oe 1,107,000

Douglas Twiss - Beaver Creek, Yukon ........... 3,840
Dowty Canada Limited - Ajax, Ont, Provisionally

ROA EING no os 5G Bins yr oy Fam Nee 4,525,000
Doyle, Steve - St. Joseph, Ont ................. 35,945
Drago and Anna Kokanov - Halfway Lake, Yukon .. 12,000
DSH Door Systems Hardware - Concord, Ont ..... 18,750
Du Lac Auto Sales - Ste. Rose Du Lac, Man ..... 138,125
Durand-Raute Ind. Ltd. - New Westminster, B.C. .. 25,000
Durocher, Tony - lle-A-La Crosse, Sask ......... 30,000
Dutailier tng. -St-Pie;: Ques. = «eciesrcwicsic secre seen ne 1,200
Dymond Clay Products Ltd. - Haileybury, Ont .... 750,000
Eagletronic Industries Inc. - Downsview, Ont... .. 320,000
Earlton Creamery Limited - Eariton, Ont ......... 13,680
Eco. Dev. & Tourism GNWT/TIA-NWT -

Wipes RUN anki sice dln ase a dom aroma ecesce sd 69,300
Ecole Des Hautes Etudes Commerciales -

Montreal, Que . pe cnsiactned aven (a ne
Ecology North - Yellowknife, NWT . Se eM
Ecosummer Canada Expeditions (1985) Ltd. -

Vancouver, B.C. Rr oa ore fo
Edmonton Convention ‘& Tourism Authority -

SCI os ce wie « aidn's4 o> 2 Re ee 57,000
Edmonton Northlands - Edmonton, Alta........... 3,308
Edward Kemp - Berens River, Man.............. 50,300
Eg & G Canada Ltd. - Vaudreuil, Que ........ 1,550,000

Eicon Technology Corporation - Lachine, Que ... 300,000

Elan Corporation - Chatham, Ont . 2,500
Elan Corporation - Chatham, Ont . <5 519 olsen
Elbertsen Industries Ltd. - - Kingston, Ont <cestaete ate eee

Electrohome Ltd. - Kitchener, Ont

Provisionally Repayable ...............008. 2,034,000
Electrohome Ltd. - Kitchener, Ont ...... . 13,050
Electrohome Ltd. - St. Catharines, Ont, Repayable 285, 775
Electrohome Ltd. - 5 ncaa -Lake, Ont

Repayable ..... em « c'e u 4a cece Gee
Elijah Allen - Inuvik, NWT siaceals ste pce aly ae eee 4,313
Elite Carpet Manufacturing Ltd. - Waterloo, Ont ... 25,000
Elmira Stove & Fireplace Inc. - Waterloo, Ont ..... 13,500

Emcon Emanation Control Ltd. - Nepean, Ont... .. 124,519
Emcon Emanation Control Ltd. - Nepean, Ont .... 411,130

COT ON, COT oo sie ena ccace san’ 5 octlv alee wom 7,575
Energy Management Systems - Mississauga, Ont 223,576
Equipement Electroline Inc. - Montreal, Que ...... 17,700
Equipement Electroline Inc. - Montreal, Que ..... 124,690
Equipement Electroline Inc. - Montreal, Que ...... 20,250
Eskasoni Economic Development Corp. -

RENNES 56 'a0..s'0-5;0- Ur loiniv @ a.aid.0, 9 sucha Sinan 83,524
Espersen, Steen Kaae - Dryden, Ont ........... 11,000
Excel Metalcraft Ltd. - Aurora, Ont .............. 10,000
Excentrotech Precision Inc. - Downsview, Ont... .. 273,500
Exeltor Inc. - Bedford, Que ................05- 173,250
Exeltor Inc. - Bedford, Que ...............0000e 70,750
F &PT&F Entrepreners - Britt, Ont ........... 19,600
F.R. Webster & Co. Ltd. -1.D. #9, Alta .......... 337,941
Fabrex Inc. - Trois-Rivieres, Que ............... 24,700

Faculty of Cont. Education (U of C) - Calgary, Alta 196,912
Faculty of Management (U of C) - Calgary, Alta .. 158,400

Faculty of Management (U of C) - Calgary, Alta ..... 712
Fairview Chamber of Commerce - Fairview, Alta ... 19,633
Fairview College - Meander River, Alta .......... 28,105
Fairview College - Northern Alberta ............. 24,228

Falher Regional Tourism & Trade Society - — River

#130, Alta . eee . 3,930
Farwest Adventure. Ltd. - - Vancouver, B. C.. ies "23,825
Fastforms Inc. - Guelph, Ont .................. 25,000
Fell-Fab Products Limited - Hamilton, Ont ........ 97,500
Ferguson Lake Lodge - Rankin Inlet, NWT ........ 5,000
Ferguson Lake Lodge - Rankin Inlet, NWT ........ 3,838
Fersten Modes Ltd. - Montreal,Que. ........... 1,200
Festival of Canadian Fashion Inc. - Toronto, Ont .. . 25,000
Festival of Canadian Fashion Inc. - Toronto, Ont .. . 15,850
PRO te LOL 1G ARG oe, wieeie-0lv cones petevoue 14,980
Fisher River Local Fur Council - Koostatak, Man .. .. 6,000
Fleetline Bus Line - Holyrood, Newfoundland, ..... 19,125

Fleetwood Metal Industries Limited - Otterville, Ont . 95,282
Fleetwood Metal Industries Limited - Otterville, Ont .. 7,388
Fleetwood Metal Industries Limited - Tilbury, Ont ... 8,875

Flexi-Coil Ltd. - Saskatoon, Sask ............... 25,000
Flin Flon/Cranberry Portage LFC -

Cranberry Portage, Man .............ce cece eee 7,500
Floyd Rude Hauling Ltd. - La Glace, Alta ......... 10,292

Focal Technologies Inc. - Dartmouth, N.S.
Fondation Jacques Gagnon Inc. - Quebec, Que ... 25,000

Fondation Jacques Gagnon Inc. - Quebec, Que .... 5,000
Forintek Canada Corp. - Ottawa, Ont .......... 36,897
Fort McKay General Stores Ltd. -1.D. #18, Alta... .. 7,657
Fort McKay Trucking Ltd. - 1.0. #18, Alta ......... 24,886
Fort McMurray Reg. Venture Init. Council -

Fort McMurray, Alta. . 4,500

Fort Simpson Village Council - Fort Simpson, NWT . 6,300
Fort Simpson Village Council - Fort Simpson, NWT 56, 007
Fort Vermilion-High Level Gen. & Aux. Hosp. -

High Level, Alta ....... . 1,407
Fortress Mountain Skiing Inc. - “I, D. #5, Calgary, ‘Alta 4,375
Fortress Mountain Skiing Inc. - |.D. #5, Calgary, Alta 26,250
Fortress Mountain Skiing Inc. - |.D. #5, Calgary Alta 36,750
Fourre’s Gas & Repair Service - Wabowden, Man . 37,900
Fox Creek Chamber of Commerce - |.D. 16, Alta .. 38,914
Fox Creek Further Education Coun. - Fox Creek, Alta 2,113
Frank & Cathy Pope - Norman Wells, NWT ........ 4,504
Frank’s Household Maintenance Services - Yellowknife,
Ease ese come Ss nie, 5 ARIS hace Sie ean oe wile Ve 26,892

+ te

The Taxpayer

Franklin Enterprises Limited - Winnipeg, Man .... 293,820
Friends of the Athabasca Oil Sands -|.D. #18, Alta 109,213

Frontiers North Inc. - Churchill, Man ............. 2,500
Furnco Products Manufacturing Inc. - Midland, Ont . 1,200
Future Grafix Inc. - Sudbury, Ont............... 25,350
Futuretek Manufacturing Inc. - Mississauga, Ont . 205,000
Fyremaster Equipment Sales & Service Ltd. -

Yellowinile, NWT | ...ss.eek tek esec kl eng. 6,390
G. & E. Maunder Enterprises Ltd. - Conklin, Alta .. 27,678
Gagne, Gerald A - Rutherglen, Ont ............. 39,960
Gameti Corporation - Yellowknife, NWT .......... 6,312
Garant Div. De Hanson Kidde Canada Inc. -
Saint-Francois-De-La-Riviere-Du-Sud, Que ............
Garden Hill Local Fur Council - Garden Hill, Man .. 24,000
Garden of the Gulf Court & Motel Inc. -

Summerside; PEI. .’...c.. a sswusak ss ducem owes 15,156
Gaylord Forest Products Limited - Tweed, Ont ... 118,344
General Wire & Cable Co. Div. Cooper Ind. -

GUNG SOM. S:. . \ ccceinis sine ng eo ane 13,875
Gennum Corporation - Burlington, Ont, Provisionally
FRRVIMIID 25. 5.3'< nse vay agence SAB os ania ue 1,929,500
Gentec Inc. - Sainte-Foy, Que . mrp sere: Berit ey
Gillam Local Fur Council - Gillam, “Man . git oS 12,750
Gilles A Lacombe - Ramore, Ont............... 22,500
Gilles Begin Lumber Ltee. - Clair,N.B. .......... 11,250
Girard, Leon - Moonbeam, Ont ................ 23,600
Gjoa Haven HTA - Gjoa Haven, NWT .......... 29,308
Gjoa Haven HTA - Gjoa Haven, NWT ........... 4,668
Glas-Aire Industries Ltd. - Langley, B.C. ... - 6,100

Glen J. Polsky & Jeannette A. Polsky - Verner, Ont. ‘10, 600
Glen Roberts Arts & Crafts Village - Trout Creek, Ont 33,660
Glenayre Electronics Ltd. - Vancouver, B.C.

Fn! SCE ROMEEE TEP ETRE 1,323,161
Gods Lake Narrows Fishermen's Asso. - Gods Lake
SUTIN. 56°58 cits ois aly o's oes acearkeR Geen 6,000

Gold Rush Inn Ltd. - Whitehorse, YukonRepayable 48,000
Goodman's Landing Fisheries Inc. - Jackhead, Man . 5,250

Government of Yukon - Whitehorse, Yukon........ 6,480
Government of Yukon - Whitehorse, Yukon....... 80,000
Government of Yukon - Whitehorse, Yukon....... 24,000
Grace Knitting (1982) Ltd. - Montreal, Que ........ 1,400
Grand Rapids Fishermen's Co-Op - Grand Rapids,

NR cas oi clors sac, os Sie nascent 1 a yi See 12,000
Grande Prairie Regional College - Grande Prairie,

UTA on ss « Sunray bun pE Lee tae see ne 12,622

Granicor Inc. - Saint-Augustin-De-Desmaures, Que 25,000

Great Bear Lake Excursions - Fort Franklin, NWT . 12,377
Great Bear Lake Lodge Ltd. - Yellowknife, NWT ... 13,649
Great Bear Lodge - Inuvik, NWT . . 24,500
Great Bear Trophy Lodge - Coppermine, NWT . . 11,627

Great Escape Vacations Ltd. - Alberta .......... 11,437
Great Resorts & Inns of Nova Scotia - Waverley, NS 17,500
Great Slave Lake Lodge Ltd. - Yellowknife, NWT ... 8,915
Green Gables Inn (Canmore) Ltd. - Canmore, Alta 117,226

Grid Developments Ltd. - Brooks, Alta ......... 105,672
Groupe DMR Inc. - Quebec ...............2- 1,293,625
GSR Technologies Ltd. - Edmonton, Alta ....... 499,768
GSWi inc. - Nobel, Ont... esa ease. sais seein eel 192,250
GTR Victoria Visitor & Convention Bureau -

Vittles B62) occ ss veiw so lak bee ele 98,125
Guildline Instruments Ltd. - Smith Falls, Ont ...... 76,135
Gunn, Brian M. - Jesmond, B.C., Repayable...... 82,848
Guy Brent Gibson - South River, Ont .......... 39,625
Guy's Photo Centre - Cochrane, Ont............ 35,022

GWA-YEE Hydro Auth. Trust - Kingcome Inlet, B.C. 95,000
H.A.W.O. Holdings & Investments Ltd. - Faust, Alta 13,452

H.D. Brown Enterprises Ltd. - St. George, Ont .... 25,000
Haines Junction Chamber of Commerce -

Haines Junction, Yukon . om . 5,040
Haley Industries Limited - Haley, Ont, Provisionally
HORAUAINE. . tharos ay sak Adee cone aoe 430,897
Hamlet of Broughton Island - Broughton Island, NWT 9,830
Hamlet of Pangnirtung - Pangnirtung, NWT ...... 22,211
Hansen, Albert - Pinehouse, Sask .............. 39,500
Harferd Productions of Canada Limited -

WRITRDNG RANEY is,» sisictbiges Alnus aaa o's « wacatarerasd dik AMG TOS
Harold Frost - Old Crow, Yukon................. 7,000
Hat Travel Ltd. - Medicine Hat, Alta............. 16,502
Havlik Tectinologies Inc. - Cambridge, Ont

CUMIN aoa. 5 aces eda eprint 235,000
Hematite Mfg. Div. of Pavaco Plastics Inc. -

MMI 3 40'S Sle ities © a dd» be SKE ws 51,157
Henry Elvis - Ochapowace Reserve, Sask ....... 31,550
Heroux Inc. - Longueuil, Que ...............06. 25,000
Hickie Borman Holidays - Vancouver, B.C. ....... 22,250

High Arctic Sportfishing Camps Ltd. -

A SearTAISERCg ERAS INNW ficooed h.c ace ci.nie'* «5p prd'e. were 7,624
High Level Entrepreneuriat Soc. - High Level, Alta . 23,992
High Prairie Regional Health Complex -

UAT R ANN MN cee Gkoat cio <aep ease los xin.n ise, waves 5,076
High Prairie Regional Health Complex -

CANS tet RR pers eicdcts: os iakib gah a's. < o-ne-esibaves 5,306
Hilinex Packaging Inc. - Burnaby, B.C. .......... 18,975
Hillebrand Estates Winery Limited - Niagara-On-The-Lake,
Ont . ith kanieca COMO
Hilton ‘Beach Lumber Company Limited -

Bot Sid ERS a ee a 10,150
Hochelaga Aerospace Inc. - Laval, Que

Provisionally Repayable...................0. 383,194

Hochelaga Aerospace Inc. - Laval, Que, Repayable.215,039
Hockley Valley Resort Limited - Orangeville, Ont
FRR IND eis 5 cop eed etna lenniss dees 3,075,000

Hoddinott, William and Diane - Restoule, Ont .... 19,600
Hofer-Tech Corporation - Oakville, Ont ........ 494,700
Holmes, Howard - Merritt, B.C. ................. 5,200

Honeywell Ltd. - North York, Ont
Provisionally Repayable.................... 7,151,500

Horizon Holidays Ltd. - Yellowknife, NWT ....... 21,000
Horwath, Louis W. - Blind River, Ont............ 22,750
Howrie, Dale & Shynkaruk, Derrick -

North Battleford, Sask= 225520 0556. SS 11,850
Hudson Bay Diecasting Limited - Brampton, Ont .. 10,000
Humchitt, William - Waglisla, B.C. . cone SO;000
Hydro-Quebec-L.T.E.E. - - Shawinigan, ‘Que... . 157,500
Hydro-Quebec-L.T.E.E. - Shawinigan, Que ..... 420,000
Hydro-Quebec-L.T.E.E. - Shawinigan, Que...... 142,500
Hydro-Quebec-L.T.E.E. - Shawinigan, Que ..... 500,000
Hypernetics Limited - Arnprior, Ont............. 18,000

lafrate Machine Works Ltd. - Thorhold, Ont ..... 100,000
Ice House 1989 Ltd. - Whitehorse, Yukon
ICSB Canada - Windsor, Ont.................--
Inco Limited - Sudbury, Ont ..... s+. 1,598,100
Industries Dettson Inc. (LES) - Sherbrooke, Que ars
Industries Dettson Inc. (LES) - Sherbrooke, Que .. 41,750

Inniskillin Wines Inc. - Niagara-On-The-Lake, Ont . 25,000
Innovative Research Inc. - Regina, Sask ........ 67,761
Innovative Research Inc. - Regina, Sask ........ 98,728
Inotel Inc. - Sherbrooke, Que................. 155,375
Inotel Inc. - Sherbrooke, Que..:.............-5- 8,000
Institut De La Technologie Du Magnesium -

Ste-Foy, Que . : . 1,000,000
Institut De La Technologie Du Magnesium -

sie-Foy, Quels. .) ov ctteresite Carew tices ces 1,800,000
Institut De Recherches Politiques - Ottawa, Ont... 10,000
Inventronics Limited - Edmonton, Alta ......... 372,500

J & M Nakoolak Arts & Crafts Shop - Coral Harbour,
9,200
J & S Tyler Precision Prod. Inc. - Mississauga, Ont 195,000

J.V. Ventures Ltd. - The Pas, Man ............ 220,900
J.W. Madsen Holdings Inc. - Lloydminster, Sask .. 92,500
James D. Howard - Fairview, Alta . rey |
James Fiddler Trucking Ltd. - Prince Albert, Sask . 24,000
Jan K. Popiel - Ft. Assiniboine, Alta ............. 6,270
Jas-Day Investments Ltd. - Jasper, Alta ......... 51,000

Jasper Park Chamber of Commerce - Jasper, Alta 29,750
wel'Ko Lid.=hort Rae; NW dsiaees sot cee: 1,178
Jet Moulding Compounds Limited - Ajax, Ont... .. 10,000
Jeyco Machine Products Ltd. - Mississauga, Ont ... 4,250

Joe Mercredi - Fort Simpson, NWT ...........- "g9, 600
Joseph Rusas - Whitehorse, Yukon.............. §,775
K B Circuits Ltd. - Saskatoon, Sask............ 217,250
Kangirsliniq Development Co-Op Ltd. -

Feanikirt Weert, eit eee ede ec ome 13,125
Karen Murray - Whitehorse, Yukon, Repayable ... 33,200
Kasba Lake Lodge - Baker Lake, NWT .......... 1,155
Kathleen Diana Lyon - Englehart, Ont .......... 20,000
Kautex of Canada Inc. - Windsor, Ont ........... 7,437
Keddy Motor Inns Limited - Pugwash, N.S. ..... 149,000
Keddy Motor Inns Limited - Pugwash, N.S. ..... 420,000
Keddy Motor Inns Limited - Pugwash, N.S. ...... 21,000
Kensington & Area Tourist Assoc. - Kensington, PEl 4,568
Key Marina Inc. - Britt, Ont...................4- 20,500
Keyano College - Fort McMurray, Alta ........... 8,884
Keyano College - Fort Chipewyan, Alta ............ 884
Keyano College - Fort Chipewyan, Alta .......... 9,017

Kimik Coop. Asso. Limited - Lake Harbour, NWT .. 70,000
Kimik Coop. Asso. Limited - Lake Harbour, NWT . 116,060

Kiwi Canada - Burlington, Ont...........-...4. 15,000
Kkawilther Handicrafts - Wollaston Lake, Sask .... 27,550
Knit-Rite Mills Ltd. - Winnipeg, Man ............ 13,500
Kodiak Log Ltd. - Sault Ste. Marie, Ont ......... 78,500

Kondor United Aircraft Parts Ltd. - Oakville, Ont . 427,500

Kool Kids Radiator Shop Ltd. - Lipton, Sask ...... 24,200
Kootenay Manufacturing Company - Nelson, B.C. . 21,375
Krebsz Electroplating Ltd. - Cambridge, Ont .... 336,850
Kropf Industrial Inc. - Parry Sound, Ont ......... 25,435

Kuoni Travel Ltd. - England. . SRE Se OE
Kusawa Outfitters - Whitehorse, "Yukon Fb ee eee
L.H.M. Technologies Inc. - Woodbridge, Ont ....
La Crete Sawmills Ltd. - La Crete, Alta......... 152,857

Lacelle Renovation Centre - Hearst, Ont ........ 31,090
Lady Ann Furs - Haileybury, Ont............... 46,370
Lady Sandra of Canada Ltd. - Montreal, Que ...... 1,200
Lambert, Dennis - Fort Frances, Ont .......... 10,711
Land of the Mighty Peace Tourist Assoc., Alberta . 18,468
Langdon Hall Ltd. - Blair, Ont ................4- 80,865
Lavallee, Richard Allan - Piapot Reserve, Sask ... 30,000

Lawrence Bedspread & Novelty Co. Ltd. - Montreal, Que 1,200

Lawrence Sinclair - Berens River, Man.......... 50,300
Leisure Services Inc. - Kensington, PE] ......... 12,250
Les Consultants Genicom Inc. - Montreal, Que .. 302,500
Les Consultants Genicom Inc. - Montreal, Que ... 65,000
Les Consultants Genicom Inc. - Montreal, Que ... 32,000

Les Derailleurs D.A.D. LTEE - La Guadeloupe, Que 30,000
Les Entreprises Sommex LTEE - Cap-De-La-Madeleine,
06-55 54.4 hae ety 100
Les Industries De la Rive Sud LTEE - ‘Quebec Pia lyeeu
Les Industries Patenaude Inc. - Laval, Que, Provisionally
Repayabien i. o25 it 5 cc ctw pamele cence eters 941,536
Les Jeunes Entr. Du Que. Metr. Inc. - Quebec, Que 16,000
Les Meubles J.E.F. Inc. - Montreal, Que 1,200
Les Plastiques Daniel Leblanc LTEE - Saint-Romuald-

EY Etchemnte cic eewces Seco h ps tbe ees 17,247
Les Tourbieres Premier LTEE - Riviere Du Loup, Que 30,000

Les Tricots Parktown (1983) Inc. - Montreal, Que ..
Lighthouse Hotel Ltd. - Cochin, Sask
Likro Precision Ltd. - Mississauga, Ont ......... 220,000
Linamar Machine Ltd. - bape Ont, Provisionally

Repayable ..... . 723,110
Lincoln Harbour Projects Inc. - ‘St. ‘Catharines, Ont . 38,474
Linda Brundige & Robert Brundige - Bonnyville, Alta . 7,567

- 1,200

Lingerie Pink Lady Inc. - Montreal,Que ........... 1,200
Lise Trepanier David - Kanehsatake, Que ........ 10,450
Little Grand Rapids Local Fur Council - Little Grand
Rapids, Man ...... = . 4,625
Litton Systems Canada Lim ited - ‘Etobicoke, ‘Ont,
Provisionally Repayable ................... 4,461,650
| London Winery Limited- London, Ont .......... 24,750
Long Manufacturing Ltd. - Oakville, Ont .......... 10,000

Long Manufacturing Ltd. - Mississauga, Ont ...... 10,000

Long Manufacturing Ltd. - Cambridge, Ont ....... 10,000
Longjohn, Eugene - Sturgeon Lake Reserve, Sask . 30,000
Loon Lake Const. Asso. Inc. - Loon Lake, Sask... . 42,650
Lu-Say Creations Inc. - Montreal, Que . . 1,200

Lukala, Frederick & Shirley - Richards Landing, Ont 10, 000

Lutheran Women’s Missionary League - Edmonton . .. 2,839
M & M Motel & Cabins - The Pas, Man ......... 111,327
MN D Confectionery - Lac Brochet, Man......... 22,312
M.R. Makenny & Assoc. - Rockyview No. 44, Alta... 4,498
MacDonald Dettwiler Technologies Ltd. -

Richmond, B.C . . 24,750

Machinage Abipa ‘Machining (Canada) Inc. - Chomedey,

Que . . 117,500
Mackay Lake Lodge (89) Lid. - ’ Yellowknife, NWT . 150,000
Mackie Automotive Systems Inc. - Oshawa, Ont .. . 22,500
Magsons’ Bear Hunting Service - Lynn Lake, Man . 39,060
Maligne Tours Ltd. - 1.D. #12, Alta .............. 22,723
Man. Dept. of Industry, Trade & Tourism - Grand Beach,

Man .... . 37,500
Man. Dept. of Ind., Trade & Tourism - ‘Winnipeg, ‘Man. 650, 000
Man. Dept. of Ind., Trade & Tourism - Winnipeg, Man 56,329
Manfred A. Seiler - Sheguiandah, Ont ........... 32,000
Man. Museum of Man & Nature - Winnipeg, Man . 125,000
Manitoba Reg. Trappers Asso. - Grand Rapids, Man 6,000

Marathon Realty Company Limited - Calgary, Alta .. 4,375
Maricko Investments Ltd. - Waterton Lakes

Park, Alta. . SEL eee es 19278
Maricko Investments Ltd. - ‘LD. 4, Alta ak 15,559
Marmot Basin Ski-Lifts Ltd. - 1.D. #12, Alta ........ 4,650
Marmot Basin Ski-Lifts Ltd. - Jasper, Alta ......... 6,125

Marques, Jose - Beardmore, Ont ...............- 15,012
Marsan Foods Limited - Scarborough, Ont ....... 25,000
Maximum West Ranch & Country Club Ltd. - Kananaskis,

| SSB ee cf ie Pikes fo ee cee 98,732
Maximum West Ranch & Country Club Ltd. - Foothills

Mie Hat; Alla o3.5 taut eee ere oe 22,095
Maynard Lake Lodge - Kenora, Ont .............. 9,710
Mayne Inn Resort Hotel Ltd. - Mayne Island, B.C.
FRIOVOINS pce Fikes ace mise e Opes ee se 144,000
McBeth Point Fishermen's Asso. - Jackhead Harbour,
i BRR ee seek Sep ge Sere OY Late a 23,030
McCulloch, Donald - Little Current, Ont ........... 7,875
McFarlane, Merdick Earl - Providence Bay, Ont .. . 30,900
McLean, Leon - Spanish, Ont.................- 33,062
Measurex Inc. - Longueil, Que, Provisionally

Repayable ..... -. 1,022,450
Medallion Computer Corp - Sault Ste. ‘Marie, Ont ... 7,690
Medical Devices Canada - Etobicoke, Ont . . 2,625,000
Medicine Hat Inn 1988 Ltd. - Medicine Hat, Alta .. - 44,130
Meewasin Valley Authority - Saskatoon, Sask .... . 99,000

Men's Clothing Mfrs. Asso. of Ont. - Don Mills, Ont . 24,947
Menasco Aerospace Ltd. - Oakville, Ont, Provisionally

lo SE eS ge eee ir soto ik eee 2,500,000
Mennonite Heritage Village (Canada) Inc. -

Steinbach, Man ..... .... 9,700
Merco Industries Ltd. - - Woodbridge, Ont . . . 305,000
Mesotec Incorporated - Sherbrooke, Que . Res 455,000

Methy Construction & Maint. Corp. - La Loche, Sask 52,420

Metrowerks Inc. - Montreal, Que, .............. 207,250
Metrowerks Inc. - Montreal, Que, ............... 42,750
Meuble Ideal LTEE - St-Charless De

Jo NE eo Eteach eae eee Ore 1,200
Meubles R.S. Inc. - St-Laurent,Que ........... 24,750
Michael Hoffman/Leo Bruyere - Ear Falls, Ont..... 71,128

Midcan Metal Processors Inc. - Thunder Bay, Ont . 221,814
Mike M. Zelman & H. Darlene Zelman - Athabasca, Alta 516

Milton Manufacturing Inc. - Richmond, B.C. ........ 5,000
Min. of Reg Dev.-Tourism Branch - Victoria, B.C... . 32,500
Min. of Reg Dev.-Tourism Branch - Victoria, B.C... . 20,000
Min. of Reg Dev.-Tourism Branch - Victoria, B.C... 125,000
Min. of Tourism & Prov. Secretary - Victoria, B.C. ... 2,199
Min. of Tourism & Prov. Secretary - Victoria, B.C. .. 19,500
Min. of Tourism & Prov. Secretary - Victoria, B.C. . . 57,500
Min. of Tourism & Prov. Secretary - Victoria, B.C. . . 15,000

Minto Resorts Ltd. - Whitehorse, Yukon.......... 18,810
Mintronics Systems Corporation - North Bay, Ont .
Mirolin Industries Inc. - North Bay, Ont
Miroy Distribution - Hearst, Ont .............--. 26,000
Mitec - Ottawa, Ont
Modusteel Building Systems Inc. - South River, Ont 97,250
Moloney Electric Div. Hammond Mfg. Holding -

EO SNES oso sca o's. 8s 2p, 5 5 6 Ree meceee ere eR wintm 25,000
Moonbeam Concrete Prod. Inc. - Moonbeam, Ont . 50,000

Moose Lake Local Fur Council - Moose Lake, Man .. 3,000
Morin, Hector - Southend Reindeer Lake, Sask . .. . 20,050
Morphet, Don - Little Current, Ont .............. 33,950

The Taxpayer Nov/Dec ’92

Morris Skookum - Carmacks, Yukon ............-. 3,000
Mount Peyton Outfitters Ltd. - Bishops Falls, Nfld, .. 8,437

Mount View Barbeque Catering Ltd. - Banff, Alta .. 15,589
Mr. Kirby Groat - Fort Simpson, NWT. ........... 3,150
Museatex Audio Inc. - Ville Saint Laurent, Que .... 27,160
Museatex Audio Inc. - Ville Saint Laurent, Que ... 203,910
MWG Apparel Corporation - Winnipeg, Man ...... 15,000
Myrias Research Corporation - Edmonton, Alta,

Mepeyae 5 oo cat tae en tices eee ie 2,239,000
Nancy G. Dress Corp. - Montreal,Que ........... 1,200
Nanuuk Outfitting Services - Lake Harbour, NWT .. 14,770
Naocha Enterprises - Yellowknife, NWT ......... 25,000
National Entrepreneurship Dev. Institute -

Toronto, Ont R00 ee oe ed Peer eC cae ae BER 29,250
National Slag Limited - Hamilton, Ont ......... 170,496
National Woodcraft Ltd. - St-Leonard,Que ........ 1,200
Ndu Tah Uko’e - Trout Lake, NWT ............. 21,296
Near North Laboratories Inc. - North Bay, Ont -++. 52,454
Nee-Chee Trucking Ltd. - Pine Falls, Man....... 181,000
Neilson Leisure Group PLC - England, ete EO
Neilson, Colin and Patricia - Stratton, Ont ........ 20,000
Nelson House Fishermen's Association -

Nelson House, Man .... . 67,000
Nelson House Local Fur Council - Nelson House, Man 24,500
Nelson Silviculture Ltd. - Weyakwin, Sask........ 19,100
Neto Investments Ltd. - Vancouver, B.C.......... 24,750
New Flyer Industries Limited - Winnipeg, Man .... 45,833
New Flyer Industries Limited - Winnipeg, Man .... 54,626
New Flyer Industries Limited - Winnipeg, Man ... 228,579
New Found Tours Ltd. - St. John's, Newfoundland, 15,990
New Tech Dental Inc. - New Liskeard, Ont ....... 93,000
Nexus Engineering Corp. - Burnaby, B.C. ........ 25,000

NHB Industries Ltd. - Peterborough, Ont ......... 25,000
Nicole Jacqueline Zurbrigg - South River, Ont .... 34,125
Nil Norsat International Inc. - Surrey, B.C. ....... 22,500
Nogier, Gerald and Bird, Les - Martensville, Sask . 250, 000
Nor-Am Electrical Limited - Port Credit, Ont

Provisionally Repayable...................0. 982,350
Nor-Sled & Supplies Ltd. - Thompson, Man
Norcast Inc. - New Liskeard, Ont .............. ara
Nordican Boat Company Inc. - Thunder Bay, Ont .
Norman Wells Investments - Norman Wells, NWT .
North American Aboriginal Exports Inc. -

BMA EMG cic a Peta Te oe vs Vea cts ae 16,000
North Haven Log Homes Ltd. - Cole Bay, Sask ...
North Star Outfitters Ltd. - Eskimo Point, NWT .... 15,000
Northem Forest Industries Ltd. - Lac La Biche, Alta 152,857
Northern Airborne Technology Ltd. - Kelowna, B.C. 202,825

13, 090

North. Alta Raiway Model Asso. - Peace River, Alta . 99,516
North. Analytical Ltd. - Whitehorse, Repayable .... 67,200
North. Frontier Visitors Assoc. - Yellowknife, NWT . 32,886
North. Gold Custom Coffee Service -

Kirkland Lake, Ont . vi
Northern Handicraft Coops - Prince Albert, ‘Sask . . 4,000

Northern Lights Fishing Lodge Ltd. -

ERDIACOT CRY MARS io sete y cts i565 cw areca Lacheeeeay 19,800
North. Meat Packers & Abattoir Ltd. - Trout Creek, Ont 61,500
Northern Village of Pinehouse - Pinehouse, Sask .. 57,940
Northland Aircraft Service Ltd. - Ignace, Ont ...... 90,400
Northlands Career College - La Ronge, Sask ..... 26,300
Northside Auto - Norway House, Man Tre
Northwest Territorial Airways Ltd. - Yellowknife, NWT 10,643
Norway House Fishermens' Co-Op Ltd. -

Norway House, Man
Norwood Foundry Limited - Nisku, Alta .......... 25,000

Nova Scotia Dept. of Tourism & Culture - N.S. . 50,439
Nova Scotia Dept of Tourism & Culture - N S. a: 500
Nova Scotia Dept. of Tourism & Culture -

WOVMOCUUM sree s Sag ict ay cats cates ee Guess 82,704
Nova Scotia Dept. of Tourism & Culture - Halifax,N.S. 64,306
Novatech Inc. - Ste-Julie, Que ..............0-. 25,000
Novatronics Inc. - Stratford, Ont............... 131,000
Nunatext Publishing Corporation - Iqaluit, NWT ... 26,250
NWT Financial Management Co. Ltd. -

PVOIOWHRUND IMME ete cs ce scce ss ccccuecerees 7,700
O & O Transportation - Stony Mountain, Man ..... 11,762
Oceanwood Country Inn - Mayne Island, B.C.

TSN eee elas Ss ve cs 00k ec ba ee eae é 77,278
Olivier, Blain - Skead; Ont .................02. 16,380
Olukhatomuit HTA - Holman Island,.. .......... 41,400
One 2 One Corporation - Haliburton, Ont ........ 60,000
Oneida Canada Ltd. - Niagara Falls, Ont ........ 47,950
Ontario Bus Industries Inc. - Mississauga, Ont .... 25,000

Ontario Social Development Council - Toronto, Ont 45,000
Ontario Social Development Council - Toronto, Ont 30,800

Original Log Cabins Ltd. - Ignace, Ont .......... 99,690
Original Machine Tools Inc. - Mississauga, Ont .. 480,000
Ostashek Outfitting Limited - Whitehorse, Yukon ... 7,400
Oxford House Fishermen’s Association -

RSMAS FOCI, WEE eno les ciecnce: 0 go ee rio-wle.d ie 16,000
P & D Aircraft Leasing Ltd. - La Loche, Sask ..... 31,500
P.E.|. Farm Vacation Association - Orwell, PEI ..... 2,570
P.J. Wallbank Mfg. Co. Ltd. - Plattsville, Ont ..... 100,000
Pacific Destination Resorts Ltd. - Chemainus, B.C.
FABGRVED Gy sows eos sis s Siac he ook bres vere eine 475,000
Pacific Rim Institute of Tourism - Vancouver, B.C. . 12,000

Pacific Western Transportation Ltd. - Calgary, Alta . 22,685

Panorama Resort Ltd. - Invermere, B.C. ......... 13,900
Paper Mill Rewinding Inc. - Thunder Bay, Ont ..... 99,000
Paradise Lodge & Bungalows - Lake Louise, Alta . 318,103
Paul Starr - Livelong, Sask. ............00ee ees 30,000
Paulatuk HTA - Paulatuk, NWT .............005- 4,300

ars:

Nov/Dec ’92 The Taxpayer 31
Payne, James Michael - Pointe Au Baril, Ont ..... 22,000 Skiing Louise Ltd. - Lake Louise, Alta ............ 8,663 Tsa Cho Dena Forestry Corp. - Lower Post, B.C. .. 28,000
Peace Valley Cons., Rec. & Tourism Soc. - Smeda Enterprises Centre Inc. - Grande Prairie, Alta 32,400 Tul Safety Equipment Limited - Hawkesbury, Ont . 219,732
Biuesky; Alidse ss sas. iae a eae ee we a 564,200 Smokeyday, Christopher - Kinistin Reserve, Sask . . 13,250 Tulugak Co-Operative Ltd - Broughton Isl. NWT .. 93,345
Pebra Inc. - Don Mills, Ont .............02006- 10,000 Solmundson Gesta Hus - Hecla, Man ...... .. 14,881 TW Manufacturing Inc. - Saint Hubert, Que ...... 490,000
Peerless-Cascade Plastics Ltd. - Windsor, Ont... 100,000 South Bruce Lakeshore Econ. Dev. Corp. - South Bruce Underwood, George - Saanichton, B.C. .......... 8,313
Peerless-Cascade Plastics Ltd. - Windsor, Ont..... 9,891 Lakeshore; Ont.«... 830s 5s SS eae ieee 3,750 Underwood, Mary A.J. - Saanichton, B.C. ........ 29,500
Pega Aerospatiale Inc. - Saint Leonard, Que .... 215,360 South Indian Lake Fishermen's Asso. - South Indian Lake, Unifin International, Inc.- London, Ont .......... 25,000
Pembina Educational Consortium - Whitecourt, Alta 11,250 NUR 5s, 0 5 orang aieghie a ee eres 87,500 University of Victoria - Victoria, B.C. ............ 10,000
Penney, Mr. Donald G. - Grey River, Nfld ........ 28,803 Southstar Developments Inc. - Renfrew, Ont... ... 26,730 Urban & Regional Information Systems Asso. -

Performance L.T. Inc. - Laval, Que ............ 243,150 Spar Aerospatiale Limitee - Saint Anne De Bellevue, Edmonton, Alta: . <.. :.....:<s cecemmasisnmosueen 5,756
Peter Bouchie - Berens River, Man ............ 50,300 Que, Repayable . av . 1,001,822 Utik Lake Lodge - Utik Lake, Manitoba, ......... 156,375
Pharmaco - Vancouver, B.C. ... re tenor Spar Aerospatiale Limitee - Saint Anne ‘De Bellevue, Vac Developments Limited - Rexdale, Ont ...... 296,500
Pictou County Tourist Asso. - New Glasgow, N.S. . 17,500 QS FeGA YAU seco cise os sss + oo ses 2,692,786 Vac-Aero International Inc. - Oakville, Ont ...... 245,000
Pine Bungalows Management Ltd. - Jasper, Alta .. 72,233 Speer, Sam E.C. -lron Bridge, Ont ............. 11,920 Vancouver Int'l Triathlon Society - Vancouver, B.C. 25,000
Pine Island Lodge - Hecla island, Man ........-. 24,033
Pioneer Diesel Injection Ltd. - New Liskeard, Ont . 82,500
Placage Tecnickrome Inc. - Montreal, Que ...... 239,340

Plante, Tom & Schultz, Glen - Hudson ~ Sask . 25,700

Pocha, Stuart - MacDowall, Sask . 20,250
Poly-Ure Castings Ltd. - Eariton, Ont rere Sos
Polytech Coatings Ltd. - Mississauga, Ont ....... 58,275
Polytech Coatings Ltd. - Mississauga, Ont ........ 6,000
Poplar River Local Fur Council - Poplar River, Man 17,500
Porcupine Advance Limited - Timmins, Ont ...... 99,000
Port Alberni Maritime Heritage Society -

Port Alberni, B.C., Repayable ................ 200,000

Portage La Prairie Chamber of Commerce -

Portage:La Prairie, Man... ...6c.ckwiccescee vee 15,000
Powder King Ski Village - Mackenzie,Repayable .
Powell Equipment (1978) Ltd - Thunder Bay, Ont 423,300
Pratt & Whitney Canada Inc. - Longueuil, Que

Provisionally Repayable ...............-.. 81,300,000

Pratt & Whitney Canada Inc. - Longueuil, Que .. 3,669,544
Pratt & Whitney Canada Inc. - Longueuil, Que .. 9,850,000
Premier Spring & Mfg, Ltd. - Ayr, Ont .......... 10,000
PEI Preserve Co. Inc. - Hunter River, PEI ........ 6,125
Prince, Dixon - Ft. St. James, B.C.............-- 2,925
Prior Data Sciences Ltd. - Kanata, Ont, — 2,497,500
Pro-Gestion Estrie Inc. - Sherbrooke, Que . ... 5,000
Prototype Circuits Inc. - Scarborough, Ont ...... 356,225
Prototype Circuits Inc. - Scarborough, Ont ...... 495,000

Pukatawagan Fishermen's Inc - Sisipuk Lake, Man 16,000
Pulp and Paper Research Inst. of Canada - Pointe-Claire,

IG 50 2s'5 SF ath ean Be ee arenes os 100,000
Pyramet Industries Ltd. - Edmonton, Alta ....... 250,184
Pyramid Riding Stables Ltd. - |.D. #12, Alta ...... 14,239
Pyrok North America Inc. - Temagami, Ont ..... 983,777
Qaivwik Ltd. - Yellowknife, NWT ...........--.. 10,899
QCC Communications Corp. - Saskatoon, Sask .. 99,492
Qualitex Kitchens Inc. - Markham, Ont .......... 25,000
Quality Door Hardware Limited - Thunder Bay, Ont 51,000
Quality Fabrics Limited - Montreal, Que .......... 1,200
Quality Meat Packers Limited - Toronto, Ont ..... 25,000
Quantic Laboratories Inc. - Winnipeg, Man...... 235,007
Queen Charlotte Wilderness Exped. - Vancouver, B.C. 24,600
Queen's University - Ottawa, Ont ............... 2,000
R & Y Holdings Ltd. - Green Lake, Sask......... 16,800
Rabesca's Resources Ltd. - Rae-Edzo, NWT...... 5,223

Racal Filter Tech. Ltd. - Brockville, Ont, Prov. Rep. 85,000
Racal Filter Tech. Ltd. - Brockville, Ont, Prov. Rep. 980,000
Rainbow Adventure Tours Ltd. - Yellowknife, NWT 14,324

Rainford Corporation - Scarborough, Ont....... 426,423
Rains, Roger - Emsdale, Ont. . Ser eee erate fc
Rebel Slacks Co. Ltd. - Montreal, “Que anaes ics 1,200

Rector's Machine Shop Ltd. - Sault Ste. Marie, Ont 55,000
Red Cross Historic Trail Rides - Makwa, Sask .... 19,180
Red River Exhibition Association - Winnipeg, Man 750,000
Red River Marathon Canoe Race Inc. - Winnipeg, Man 4,636
Reg’s Taxi - Split Lake, Man ...... iv acevo: gee
Regal Bedding (1977) Ltd. - - Winnipeg, Man . 2 oe a, e00

Regency Int'l Develop. Fund - Yellowknife, NWT . 240,240
Reid, Martin & Sons Ltd. - Minaki, Ont .......... 40,500
Rexwood Products Ltd. - Haileybury, Ont........ 30,000
Rheal Demore - Noelville, Ont ................ 18,800
Richard John Blake - Fort McPherson, NWT -,.... 83,468
Richard R. Desjardins - Turnor Lake, Sask ...... 18,000
Richard Storr - Aklavik, NWT ...............0. 13,750
River Trails North Ltd. - Fort Smith, NWT ......... 9,271
Riverlife Inc. - Winnipeg, Man ................. 42,500
RJK Mobile Mechanics Inc. - Yellowknife, NWT . 12,862
Roberts, Don - Terrace, B.C. .... _ 27,000
Rockm aster International Ltd. - Lac La Biche, Alta . 29,439
Rocvent Inc. - Sudbury, Ont ....... end amis ot ee
Romax Tool Corporation - Agincourt, Ont . Fen ree "209, 500
Romzap Limited - Niagara Falls, Ont, Repayable 3,325,000
Ronald D. Williams - Yellowknife, NWT ......... 10,382
Rose Arts Ltd. - Inuvik, NWT .................. 7,427

Rossville Amusement Centre - Norway House, Man 5,670

Roto-Form Div. Tesma Int'l Inc. - Rexdale, Ont ... 10,000
Roto-Form Div. Tesma Int'l Inc. - Rexdale, Ont .. 100,000
Rotoflex International Inc. - Mississauga, Ont.... 486,933
Royal Architectural Inst. of Canada - Ottawa, Ont . 20,000

Royal Architectural Inst. of Canada - Ottawa, Ont . 13,100

Royal Drilling Services Ltd. - Creighton, Sask .... 99,750
S C Travel - Bathurst Inlet, NWT ...... a erate, eee
Sila Lodge - Keewatin, NWT . .. 9,450
Silkway Destination Man. Inc. - Vancouver, B. C. 21,500
Simmons Limited - Brampton, Ont. . Ay ees eh)
Singer Lighting Co. - Toronto, Ont ............. 24,450
Siniktarvik Ltd. - Rankin Inlet, NWT ............. 3,498
Slave Lake Gen. & Aux. wane & eee -

Slave Lake, Alta ........ Chea eee

Spill Tech Industries Inc. - Sault Ste. Marie, Ont. .. 255,600
Standard Products (Canada) Ltd - Mississauga, Ont 90,150
Standard Products (Canada) Ltd - Stratford, Ont .... 5,511

Stanley Associates Engineering Ltd. - Europe ...... 8,700
Starlite Marina Limited - Sturgeon Falls, Ont ...... 54,000
Stedfast Inc. - Granby, Que. . se ees + 396, 158

Stephens, Norman D. - New Hazelton, B. C. duis 0,200
Stone Marine Canada LTEE - Iberville, Que, seven

Repayable . . : . 855,000
Stone, Charles - “Mosquito Reserve, Sask ere 30,000
Stork Craft Ltd. - Richmond, B.C. . ee reas EOD
Strite Industries Limited - Cambridge, Ont east s < 498,500

Sudbury Welding & Engineering Ltd. - Sudbury, Ont 209,200
Sum merberry Commercial Fish. as Inc. - Moose Lake,
Man 3.00) cen 5 eae . 7,000
Superior Hardwood Veneers Lim ited -

Sault Ste. Marie, Ont.. ; sigtutir sc OM AAS
Superior Millwork Ltd. - Saskatoon, ‘Sask . «.- 16,125
Susan Shoe Industries Limited - Hamilton, Ont . enaceate 1,200
Swilynn International (Can) Corp. - Thunder Bay, Ont 25,000
Sworin Enterprises - Grassland, Alta ............ 5,116
Syndel Laboratories Ltd. - Vancouver, B.C. ....... 46,383
Taiga Sports Fishing Ltd. - Yellowknife, NWT ..... 11,299

Talossteel Limited - Sudbury, Ont ............. 243,250
Tamarac Develop. Corporation - Fort Smith, NWT .. 8,851
Technologies Securiplex Inc. - Point Claire, Que
Provisionally Repayable ...................+. 657,425
Teco Precision 85 Inc. - Saint Laurent, Que ...... 86,250
Teleflex (Canada) Ltd. - Richmond, B.C. ......... 25,000
Temagami Wilderness Centre Ltd. - Temagami, Ont 14,636
Terra Nova Biotechnology Co. Ltd. -

RNIN M a ove 5 0 '5a 0 ows 0 s,0'5 5's sae 295,800
Tesma Inti Inc. - Concord, Ont, Repayable .... 4,096,699
The Boardwalk Theatre Co. Inc. - Winnipeg Beach, Man 4,000
The Canadian University Ind. Coun. - Hamilton, Ont 635,000
The Electrofuel Mtg Co. Ltd. - Toronto, Ont ...... 352,390
The Forks Renewal Corporation - Winnipeg, Man . 625,000
The Goldbelt Gazette - Creighton, Sask ......... 10,300
The Great Canadian Travel Co. Ltd.- Manitoba .... 5,380
The Hills Health & Guest Ranch - 100 Mile House, B.C. 16,000
The Institute of Internal Auditors Inc. - Calgary, Alta . 2,948
The Montreal Board of Trade - Montreal, Que .... . 30,000
The Queensway Machine Prod. Ltd. -

NG ICOR ERE rere 5 eee ciety satelite iamsete sc 364,432

The Sanderson-Harold Company Ltd - Paris, Ont .. 25,000
The Water's —— Marine Limited - Nelson, B.C.

Repayable .. ceimaeate - 482,875
The “J" Group - : Yellowknife, NWT . Pie te re eee 1,697
Thomas Cook Limited - England .... gids das. 10,720,
Thomas Edward Leonard - Port Alberni, B. C. 27,800

Thomas Kudloo - Baker Lake,..............-..-- 2,252
Thomson & Nielsen Electronics Ltd. - Kanata, Ont 220,250
Thomson Family Fam - Assiniboine Reserve, Sask 86,200
Thorburn Aviation Ltd - Clarenville, Nfld........... 9,594
Timber Bay Development wie -

Timber Bay, Sask ..... 25,000
Titan Steel & Wire Co. Ltd. - - Surrey, B. Cc. 24,750
Titan Wood Products Ltd. - Mississauga, Ont ...... 1,200
Toromont Industries Ltd. - Toronto, Ont .......... 11,250
Tourism Ind. Asso. of Man. - Brandon, Man........ 1,858

Tourism Ind. Asso. of the NWT - Yellowknife, NWT . 20,790
Tourism Ind. Asso. of the NWT - Yellowknife, NWT 477,470
Tourism Ind. Asso. of the NWT - Yellowknife, NWT . 75,576
Tourism Ind. Asso. of the NWT - Yellowknife, NWT .. 9,468
Tourism Ind.. Asso. of the NWT - Yellowknife, NWT 525,004
Tourism Ind. Asso. of the Yukon - Whitehorse, ..... 4,680

Tourism Ind. Asso. of the Yukon - Whitehorse, 41,040
Tourism Ind. Asso. of the Yukon - Whitehorse, 43,200
Tourism Ind. Asso. of the Yukon - Whitehorse, - 10,944

Tourism Winnipeg - Winnipeg, Man .......... s 150,000
Tournage de Precision Airborne LTEE -

Saint Leonard, Que . 8 454,896
Tournage de Precision Airborne LTEE - -

Saint Leonard, Que . ee 200,000
Town of Faro - Faro, Yukon ....... eee ere re
Town of Fort Smith - Fort Smith, NWT Senator a tet 10,412
Town of Gimli - Gimli, Man . SMe Ce eee Maid =
Town of Inuvik - Inuvik, NWT . eee hee . 840
Tozer, Shane - Elliot Lake, Ont. sine 18, 900

Traditional Pursuits Co. Ltd. - Fort Qu’Appelle, Sask 39,675
Travel Manitoba - Manitoba.................... 16,000

Travel Manitoba - Winnipeg, Man .............. 79,381
Travel Manitoba - Manitoba ..................4. 9,500
Travel Manitoba - Manitoba ................... 90,000
Travel Manitoba - Winnipeg, Man .............. 29,731
Travel Manitoba - Manitoba,................... 18,555
Travel Manitoba - Manitoba. ................... 57,500
Tri-Gram Developments Inc. - Iqaluit, NWT ....... 33,088

Vancouver Public Aquarium Asso. - Vancouver, B.C.
PREMIER 29S 5. <b. Ga ao ceeds ceed ek 1,000,000
Varian Canada Inc. - Georgetown, Ont, Prov. Rep. 494,919
Varian Canada Inc. - Georgetown, Ont

Provisionally Repayable.................... 3,384,361
Veltri Stamping Corporation - Windsor, Ont ..... 100,000
Veltri Stamping Corporation - Windsor, Ont ....... 7,439
Ventra Group Inc. - Chatham, Ont............. 100,000
Ventra Group Inc. - Windsor, Ont ...........-005 6,550
Venture Arctic Outfitters Ltd. - Yellowknife, NWT .. 16,002
Ventury Homes Inc. - Bowmanville, Ont ......... 12,900
Ver-Temp Glass Inc. - Belleville, Ont........... 369,373
Versatile-Wales Ltd. - Elliot Lake, Ont .......... 18,000
Victorian Brass Works Ltd. - Concord, Ont ........ 1,200

Vide Et Traitement Can. Inc. - Boucherville, Que 400,000
Village of Haines Junction - Haines Junction,NWT . 28,400
Vogue Brassiere Incorporated - Willowdale, Ont ... 25,000
Vortek Industries Ltd. - Vancouver, B.C. ......... 35,000
VRA Precision Inc. - Oakville, Ont .............. 95,000
Vulcan Automotive Equipment Ltd. - Vancouver, B.C. 4,000
Walker Exhausts Div. Tenneco Canada Inc. - Cambridge,
7 gE Ee Ee eee Ree re! 100,000
Wanipigow Producers Co-Op Ltd. - Wanipigow, Man 4,500
Wasagaming Chamber of Commerce -

WGMR eT N MAR 6525.5 os x15 Sa Saiets wie > dean eee 7,500
Watercolour Bath Products Inc. - Mississauga, Ont 102,946
Watson, Larry - Tehkummah, Ont .............. 25,200
Wayside Industries (1983) Limited - Saint John, N.B. 25,000
Webb-Qaivvik Ltd. - Yellowknife, NWT .......... 19,036
Welding Institute of Canada - Oakville, Ont ....... 28,000
West County Veterinary Clinic Asso. -

SSRN EMMI! PUWOEN 55 sims. sae sb cain ve'ane aca db tesa 44,330
West Edmonton Mall Ltd. - Edmonton, Alta....... 14,685
West Travel, Brennan Tours Division - Alberta ..... 9,341

West-Lock Fasteners Corporation - Athabasca, Alta 55,374
Western Archrib, Div. of 316291 Alta. Ltd. -

MVR RATD PANEL 6 55's d.9 otk cas wie etan wtatwazs Sele 12,221
Western Arctic Nature Tours - Inuvik, NWT ........ 3,675
Westem Canada Farm Progress Show - Regina, Sask 10,000
Western Glove Works Ltd. - Winnipeg/Manitoba, .. 15,000
Westmet Stampings Div. Cosma Intl. Inc. - Downsview,

RAN teg 655s 6 ons Fac a See aS eee eR « 100,000
Westronic Inc. - Calgary, Alta ................ 240,000
Weyakwin Log Homes Ltd. - Weyakwin, Sask .... 96,000
Whistler Centre For Bus. & The Arts - Whistler, B.C. 50,000

White Point Holdings Limited - White Point, N.S. .. 17,500
Wildrose Logging Co. Ltd. - Grande Prairie, Alta... 59,363
Wilson, Philip V.- Hazelton, B.C. .............. 30,000
Winbri Corporation - Bruce Mines, Ont .......... 10,395
Windsor Plastic Products Limited - Windsor, Ont .. 10,000
Wingco Leasing Inc. - Downsview, Ont

Epieint GSR ATROG® 5°25 a-aneda shh os Fee ek 14,985,895
Wingco Leasing Inc. - Downsview, Ont

GMT IMAIMD, 555 crass wake new em ven kDa 31,733,190
Wingrill Inc. - Brighton, Ont..............00005 169,059
Winnipeg Int'l Children’s Festival Inc. -

MME ONG NN os ertncntitats <i ninic'e a's. 5p Sea e ee 36,300
Winnipeg Minor Soccer Association - Winnipeg, Man 1,219
Winnipeg World '91 Inc. - Winnipeg, Man ........ 20,000
Winnipegosis Co-Op Fisheries Ltd. -

Ween gS, MAN ©. otis re wale nina dc wuied Were 37,500
Winter J. Lennie - Norman Wells, NWT .......... 27,496
Women Business Owners of Manitoba Inc. -

VS SL Speen a soins 5 ip ae ot. 15,000
Women Inventors Project - Waterloo, Ont ........ 25,000
Wordsnorth Communication Services Ltd. - various locations
epg tort SE aie, ook ay OS ee 35,702
World Wide Adventure - Inuvik, NWT .......... 18,536
World Wide Baby Basics Infant Wear Ltd. -

MME Be 5. oo Fda oes a Sa dca aR 21,525
Y & C Holidays Inc. - Richmend, B.C. ........... 5,800
Yamnuska Inc. - |.D. #8, Alberta ................ 2,109
Yellowknife Great Slave Lake Cruises -

MMMM INEM 1, Sanches ss ctsan oo a ak-0oeehaic en 2,129
Yellowknife Great Slave Lake Cruises - Yellowknife . 3,675
Yellowknife Wholesale - Yellowknife, NWT ....... 38,003
York Landing Local Fur Council - York Landing, Man., 12,000
Young Entrepreneurs of Sask. - Regina, Sask ..... 2,275
Young Entrepreneurs of Sask. - Regina, Sask . 45,000
Yu, Ricky =Elliot Cake; Ont. oo. vic ce ewccte ues 35,000
Yukon Anniversaries Commission - Whitehorse ... 25,200

Yukon Game Farm Ltd. - Whitehorse, Repayable . 128,800
Yukon Goldpanning Championship - Whitehorse ... 9,936
Yukon Historical & Museums Asso. - Whitehorse ..
Zahler Automotive Prod of Canada -

OM ate PAI ION sis ig acicceviicn oo od Galeed's LAS 94,500
Zenith Graphics Ltd. - Vancouver, B.C. ..........
Ztest Electronics Inc. - Mississauga, Ont

The Taxpayer

Nov/Dec '92

What are you going to say then?

by Kevin Avram

"Canada is a nation of losers,
with all the bad attitudes losers
usually develop...a sense of en-
titlement, a tendency to free-
load, a reluctance to change,
and an inability to face both
reality and their own weak-
nesses. Combined with a his-
torical dependence on
governments to take both the
initiatives and risks, these atti-
tudes make Canadians blame

governments rather than their
own behaviour when things go

| wrong.”

This is how an article in the

Financial Post described Cana-

dians, but before you go and get
your dander up, just think about
it for a minute. Would it not be
correct to say that Canada has
become a nation in which large
segments of the population are
trying to live at the expense of
somebody else?

The nation’s day care advo- |

cates want "the government” to
pay for the daily care and nur-
ture of their children; large seg-
ments of the business
community believe "the gov-
ernment” should be "helping"
them out in their businesses.
The promoters of official
bilingualism and multicultural-
ism want billions of dollars
from "the government" to pro-
mote their isms throughout the

country. The thousands of bu-

reaucrats who collect pay
cheques from "the govern-

ment" have demanded and |

fought for wages and benefits
that are beyond the reach of
many taxpayers.

The CBC, which receives
roughly a billion dollars a year

from "the government" was |

marginally cut back, prompting
many to call for heads to roll.
Advocates for Via Rail traveled
across the country demanding
that “the government” hand
over millions of dollars to the
money losing train service. And
our nation’s newspapers, on a
daily basis, are full of spokes-
persons demanding money
from "the government” for all
kinds of things.

Canada has become a nation |

in which a lot of people seem to
think "the government" can
solve all our problems. The Fi-
nancial Post referred to it as "a
historic dependence on govern-

Could this year’s federal deficit
be the second highest in history?

In his February budget, Fi-
nance Minister Don Mazank-
owski projected that the deficit

_for 1992-93 would be $27.5 bil-
_lion, down $4 billion from the
“previous year. He has now con-
firmed that he will be off that
target by a substantial margin.
In fact, the deficit is now ex-
pected to be the second highest
in history and according to
‘some analysts could come in as
‘high as $35 billion.

Mazankowski was predict-
ing substantial increases in
government revenue over the
previous year, and he decided
to increase government spend-
ing from $155.5 billion to
$159.6 billion. Like a person
borrowing from one credit card
to pay off another, Mazank-
owski gambled on increased
revenues to make up the differ-
ence.

However, instead of being

Mazankowski: What will he do to deal wit
CRaise taxes LC) Reduce spending L)Go deeper into debt

}

h the deficit?

higher, the revenues for the
first six months of 1992-93 are
actually lower in comparison to
the same period last year. Per-
sonal income tax is down over
two billion dollars, corporate
income tax is down almost a
billion and the GST revenues
are down another billion. On
the other hand, because of sig-
nificant premium hikes, reve-
nues from Unemployment
Insurance are up by almost two
billion dollars.

Unfortunately, while reve-
nues are down, the spending in-
creases are on line as program
spending is up over two billion
dollars.

As a result, the government
is facing a deficit that will not
only be larger than initially pro-
jected, but will likely be larger
than last year’s deficit.

So what is the government
going to do? In order to deal
with this unexpected shortfall
in revenues the federal govern-

ment could increase taxes. |

However, considering the state
of the country’s economy, tax
increases would only do more
harm.

This leaves spending cuts as
the best alternative. Time will
tell whether the government is
prepared to face up to the eco-

nomic realities and make the |

serious spending cuts neces-
sary to bring its spending in
line with its income.
Unfortunately, there is a
third option. The government
could sit idly by and watch the
country sink deeper into debt.

| ment." Personally, I think they

are quite accurate.

It seems that a large portion
of our population views "the
government” as some kind of a
benevolent sugar daddy who
dispenses favours, goodies and
candy mints from pockets

which have no bottom and are |

always full.

I received a letter some time
back from an 18-year-old girl
expressing her views on the
huge debt Canadians are piling
on their kids. In part, here’s
what she had to say:

"As an 18 year old, I fully
realize that the previously
amassed debt will be my gen-

| eration’s responsibility to pay.

This is unacceptable to me. As
a responsible adult, I refuse to

| burden my children with this

debt - the way your generation
has burdened mine."

If you think about it, you’ ll
realize that this young girl said
essentially the same thing as
the Financial Post. They just
used different words.

Some of you who are read-
ing this right now are among
those who believe "the govern-
ment" should be doing more to
make your life easier. Just for
the heck of it, why not sit back
and imagine how you’re going
to feel when your grandson or
granddaughter looks you in the
eye and asks why the only leg-
acy you left them was one of
crippling debt and unpaid
bills? What are you going to
say then?

agi ae

Why should our children be punished for the excessive spending
of this generation?

Fy
rs,
ia

MPs line up at the
“park” barrel

Among the many perks
available with their jobs, Mem-
bers of Parliament and Senators
are also able to visit national
parks and historic sites free of
charge compliments of the Ca-
nadian taxpayer.

A letter sent out from Envi-
ronment Minister Jean
Charest’s office in May re-
minded MPs and Senators that
this perk is available to them
and invited them to contact his
office for a season pass.

Although not everyone took
advantage of this perk, there
were at least one hundred re-
sponses received according to
the Environment Minister’s of-
fice.

The reply letter to those re-
questing a season pass stated, "I
am pleased to enclose a pass
that is valid for operating a pas-

senger vehicle in any of the na-
tional parks and for admission
to all national historic sites
where fees are applicable.
.. Your visits to these special
places will, I trust, be most en-
joyable.”

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