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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 

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 

© 1992 

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 

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 

ife for the average Canadian. 

The Taxpayer 

The Canadian T: e 
A politician fighting for 
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. 


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. 


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

© 1992- All mmaierialn The Taxpayer 

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

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- 



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- 

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 

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 

"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- 

"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 

"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 

"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: 

Year established: 

a Mailing Address: 

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- 


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- 

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 

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

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 

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 




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 




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 

"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 

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 

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 

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 

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 


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- 

Let me point out the advan- 

tages of taxpayers and their as- 
sociations working together to 

Taxpayer groups 
around the world 

// i |e 
(/ [Se |€ 

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 

-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 

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 

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- 

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- 

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 


| 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 

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, 

(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. 


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 


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 

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 

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

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 


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 

What did the consultants say 

Did you know? 

Direct-democracy in Switzerland 

© Citizens have had direct democracy since the 13th century. 

© Citizens can initiate referendums with a petition of 100,000 

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 

© The use of referendums was introduced in the Massachusetts 


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 


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- 


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- 


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 







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" 


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 


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 


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- 

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 

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, 


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 

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- 

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 

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 

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 

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- 

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, 

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 


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


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- 

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 — 

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- 

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 = 

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- 

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 
elimination of travel 
allowances...for Regina 

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- 

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- 


e Accountability for caucus 


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

e Allowances for serving on 


: ; 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. 


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

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

We can only hope the Board of Inter- 


Shillington: ould not be consid- 

Haverstock: "Unquestionably the 



present system must change." 

ered personal property of MLAs." 

* Limited allow, 
: SS 
reimbursement ary for 

* Equipment to 


* Members 
are allow 
©€P constituenc ed to 

telephone(s ) th be leaseg 

. and fi €n retur, = 

Machine ang hari: = N€d to supplier 


* Members ail 
any furniture 

for the Office 

Y Office 

OWEd to kee 

* Furniture to 
to next MLA or 
90Vvernment Property 

* Office equi 
leased, the 

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 


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 


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

lpg a 

No Change - not revieweg 


The Taxpayer 

Nov/Dec '92 

An Interview with Sir Roger 

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 


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 

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

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 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. 

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.... 

included privatization - 
Would you comment on 

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- 

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- 

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? 

began to introduce these 
changes was there any re- 
sistance from the general 

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 


those people obviously had 
to go out and find other 

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? 

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- 

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 

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- 

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 

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 

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



stable — 
stable | 




Provincial ratings 

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

long term foreign debt 

British Columbia 

_ Ontario 

- Quebec 

_ Newfoundland 

Nova Scotia 

_ New Brunswick 

: Prince Edward ipland . 2 


AA negative 
BBB+ stable 

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



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- 



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 

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 

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 

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 

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 

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 

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

Assembly" or to "the House 
of Commons in Parliament 

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 

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 

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- 

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 

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 

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

Langley, B.C. 
Mayor, Langley 

Engineered mu- 
nicipal tax cuts 

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

Dr. Herb 

Del Robertson - Regina - President, Saskatchewan 
Chamber of Commerce 

Dave Yaeger - Calgary - Editor, Roughneck Maga- 

Jason Ford - Vancouver - Youth Alliance for Debt 

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 
New Zealand 
Former New 
Zealand Finance 
Minister who in- 
troduced sweep- 
ing reforms 

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

Dr. Richard 

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

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

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 

Lewis K. 
500,000 mem- 
ber U.S. Na- 
tional Tax 
Limitation Com- 

Bjorn Tarras- 
-| 180,000 mem- 
ber Swedish 

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

Charles Bens 
Municipal gov- 
ernment consult- 

Patrick Boyer 
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- 

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 

Thfee sessions on forming 
an effective local ratepayers 

Government regulation as a 
hidden tax? 

The role of influence groups 

Why is the public sector ex- 

Legislative spending limits 

Empowering taxpayers 
through the initiative process 

Reforming the political sys- 

‘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 

Register today by phoning 


fill out and return the following form 

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by Patrick Boyer, QC, MP 

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

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- 

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 

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 

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- 

|  . 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. 


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 


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- 

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 

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 


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 


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- 

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- 

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 


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- 

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 

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- 

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 

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 

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


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 

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- 

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 

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 

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 

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- 
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 

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 

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- 

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 

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. 

© Asher American Inc. 

© Bent Horn Development Inc. 

© Blake and Son (1979) Ltd. 

¢ BP Marketing Canada Limited 

¢ Canadian Petroleum Studies Inc. 

@ The Chancellor Holdings Corpo- 

© ICG Propane Inc. 

© Chatelaine Restaurants Limited 
© Commodore Oils Limited 

e Depanneurs Le Frigo Ltee 

© Fifth Pacific Stations Ltd. 

© First Pacific Stations Ltd. 

© Fourth Pacific Stations Ltd. 

¢ Frontier Insurance Ltd. 

© Fundy Energy Inc. 

© GMI Co. (Bahamas) Limited 

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 

© Morrow Fuel Oil Sales Ltd. 

© Northwest Terminals Ltd. 

@ Pacific Petroleums Ltd. 

© Pacific Pipelines, Inc. 

© Petro-Canada Altamont Inc. 

© Petro-Canada (Argentina) Inc. 

© Petro-Canada Chemicals Inc. 

© Petro-Canada (Columbia) Inc. 

© Petro-Canada Consulting Corpo- 

@ Petro-Canada (Ecuador) Inc. 

@ Petro-Canada Enterprises Inc. 

@ Petro-Canada (Hibernia) Inc. 

© Petro-Canada Hydrocarbons Inc. 

© Petro-Canada (Indonesia) Inc. 

@ Petro-Canada (Malaysia) Inc. 

© Petro-Canada (Myanmar) Inc. 

© Petro-Canada (North Africa) Inc. 

High tech tax 

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 


| ae AE on eae aenel Sete Tes, 

@ Petro-Canada Oil & Gas Inc. 

@ Petro-Canada (Pakistan) Inc. 

© Petro-Canada Petroleum Inc. 

© Petro-Canada (U.K.) Limited 

© Petro-Canada (Vietnam) Inc. 

@ Petro-Canada (Yemen) Inc. 

© Petro-Canada Youth Inc. 

¢@ Petroleum Transmission Com- 

© Prairie Leaseholds Ltd. 

© Rocair Limited 

® Second Pacific Stations Ltd. 

© Sedpex Inc. 

® Servico Limited 

e St. Laurent Petroleum Inc. 

® Third Pacific Stations Ltd. 

© Wayfare Restaurants Limited 

e Xychem Inc. 

© 106616 Canada Inc. 

© 146923 Canada Ltd. 

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

© 146924 Canada Ltd. 
© 158226 Canada Inc. 
© 173116 Canada Limited 
@ 398559 A Iberta Ltd. 
© 1283-9304 Quebec Inc. 

Subsidiaries held at 50-99% 

e Canstar Oil Sands Ltd. (50%) 

© Harvey’s Oil Limited (50%) 

eLes Huiles Du Royaume Inc. 

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

@ Panarctic Oils Ltd. (52.73%) 

@ Petro-Canada Centre Inc. (50%) 

© Petro-Partners (60%) 

e@ West Nova Fuels Limited (50%) 

© 288564 Alberta Ltd. (50%) 

Associates held at less than 


@ Alberta Envirofuels (33%) 

e Alberta Products Pipeline Ltd. 

¢ Downhole Systems Technology 
Canada Inc. (18.31%) 

© Hibernia Management & Devel- 
opment Company Ltd. (25%) 

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

© Joseph Elie Ltee (49.9%) 

© Kenmac Energy Inc. (49%) 

@ Les Huiles Desroches Inc. (45%) 

@Les Huiles Lamontagne Inc. 

© Les Huiles Town & Country Inc. 

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

@Les Petroles Sherbrooke Inc. 

@ Les Petroles Vosco (Canada) Ltee 

@ MacGillvray Fuels Limited 

¢ Montreal Pipeline Limited 

@ Northward Development Ltd. 

Pacific Northern Gas Ltd. (18%) 

© Peace Pipeline Ltd. (10.89%) 

© Petro-Canada Centre Finance 
Inc. (33%) 

e Petrole Chaleurs (1987) Inc. 

@ 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. 
© 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 
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 

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 

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- 

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 

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 

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 

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 

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 

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 

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- 

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

Referendums stop 
massive pay hikes for 


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

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- 

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 

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 

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 

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 
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 

2 324-WB 


Hon. Gerry Weiner 
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, 
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 
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. 


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, 



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 

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- 

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- 

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 


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 

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

source Statistics Canada 


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 

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

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 

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- 

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 

sakopw wjoojopy 


trading partners. Since 1979, | ans spend too much time and 
| ' a a | 
nterprovincial comparison of major 
| B.C. Alberta Sask Man _ Ontario 
1987 1992 1987 1992 1987 1992 1987 1992 1987 1992 
Personal Income Tax' | 51.50 525-1. 4650 °° 455 1:50.00: SS B40 2 es Bo - 600 54.5, 
Flat Income Tax -- ~ 1.0 5 1.50 2.1 2.0 2.0 -- -- 
Surtax No Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Corporate Income Tax 
Small 11.0 10.0 | 5.0 6.0 | 10.0 9.0 | 10.0 10.0 | 10.0 9.5 
Large 15.0 16.0 | 15.0 15.5 | 17.0 17.0 | 17.0 17.0 | 15.5 15.5 
aca os page | ae eee giao. a lg 
Financial Institutions 2.0 3.0 | - 2.01236 3.25 | 3.0. 20.4.8 1.0/1.12 
Employer Payroll Tax - at Bae ae = 1 aoe tee 1.95 
Small Firms. ea nA pee = ie - | 288 a 98 
seal Gas Rasa? | ase ae | eee oe | ggg 
Sales Tax 6.0 bo ot PO 8.0 | 7.0 7 FO 8.0 
Gasoline (¢/\) 7.64 10.07 5.0 90 | 7.0 13.0 | 8.0 10.5 | 83 14.7 
Eee (elcig) See | oo ee o Rpeerartons f. | So wees a ea eee 

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 


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 

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 

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 


1987 1992 | 1987 1992 1992 
a ae eg re eee Gi eee So cee ae 
NA NA -- -- - Flat Income Tax 
NA NA | No No Yes Surtax 2 
| Corporate Income Tax 
3.22 5.75 | 10.0 10.0 7.5 Small 
5.9 8/16.25 | 16.0 17.0 7.5/15.0 Large 
oe gg | <a = ee ee 
97 1.12: | 28 3.0 3.0 Financial Institutions 
3.22 cs. a ee 1.0/2.0 -- | Employer Payroll Tax 
3.22 3.75 -- -- -- Small Firms 
ee es ee ee 
9.0 8.0 12.0 12.0 10.0 | Sales Tax 
14.40 189° | 98 13.7 11.7 | Gasoline (¢/) 
gg sar | yag eas" a5 tae a 

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 

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 | 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, 
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 




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- 

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 

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 

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? 


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- 

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-