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PAGE 28, WMY The budget:. Defended by Soetens before students By Mike Kowall .&î~ llngof the 1990 federal budget la underwa. Ontario n igMPReeSoe- tens defendedth e budget during hie annual "budget brakfast" meeting held at the Royal Cana- dian Leffion hall in Ajax last 1Ap earing before a mixed crow<f of local business people and high school students, Soe- tens flelded questions on a nuni- ber of topies affected by the previous day's budget. Calling it a "statua quo budget with no tax increases or decreases,» Soetens said finance department officiaIs could not reaî a budget that did not raise taxes. Although opposition critics have slammed FinaneMniter Michael Wilson for his spending cuts and financial analysts ques- tion his long-range forecast, Soe- tens strongly sapprted the minister. He stressedrepeateýdly that attacking Canada's projec- ted $28.5-billion deficit should be the goverrnent's main prioniy <'W. have te bring tlïi. defict down, we can't continue te live with it, itsà as simple as that." However, while the govern- ment la, committed te reduciný' expenditures, Soetens said it Wi 1 flot be done at the expense of lower-income Canadians. "There were no public delibe- rations about changing the universality of our social pro- granis, we will not touch pen- sions and faniily allowanoe." He dismissed arguments that Ottawa's decision te ceut. transfer payments te the provinces by $944-million means that provin- cial governments are being aaked te, do the dirty work of raising taxes. Referrinq specifically to Ontario which was hit hardest by the cuts (money used for health care, post-secondary edu- cation anâ welfare), Soetens challenged the provincial govern- nient not te rais. taxes. Noting that Ontario Treasurer Robert Nixon had boasted the day before of a surplus, Soetens said, that -was based on $950- million'he got from the federal government. «That money went inte general revenues, it was - not used for what it was intended. Not one more nurse was hired, not one more operating room was built.» In replyto a student's question about'a * e1 hik àe e in university tuition fesLeause of the cuts, Soetens was succinct. "It's their jurisdiction but there is no reason why they cant absorb it. It's well withm the hands of the premier not te By Mike Kowali Municipal tax payers can expect te pay the fuil cost of lest weekes "no tax increase' federal budget warns Whitby's deputy mayor.. Councillor Tom Edwards pre- dicte that municipal property taxes will ultimately increase as a resuit cf tii. spending cuts increase user fees." Soetens dealt with a number of tepice raiseb his adience: ament -One person. asked about Canadas pan or refoestation in light of an American govern- ment decision te plant one mil- lion trees annually. Soetens replied that while such a prograin would faîl under provincial control, qI hope that some kind of assistance Would be available,» from Ottawa. .Defence - In ligt of the United States trinuning its defence budget, why is Canada increasing its defence spending? "They. are starting from a much uhgher. numbe in both manpower and money. The. Canadian Armed Forces rilght now would have difficulty resist- L.er si Canada required a atrngr modernized army, <'notbeus were going te war, but because of basic committ- contained in Finance Minister Michael Wilson's budget. "Ini my, view this is a highly detrimental budget," said Edwards, it dlaims te, provide no tax increase but there will be.» Referrinq tote $944 million reduction in transfer payments te the._provinces, Edwards said these fumds «will have te ha picked up somewhere.» "Eltiier by tii. provincial government or by local govern- mente and who pays that?» (Transfer payments are monies given by Ottawa te assist tiie provinces with health care, poat- secondary eeducation and weî- fare coats.) Rather than reducing tiie transfer payments, Edwards felt Wilson should have increased personal income tax. "Thats a much mor equitable wythan increasing propert tay because thats where it wifll end up. A more charitable view of tiie budget was held by Whitby Chamber of Commerce president Bob Stanley. qI think it did address some of the. thinga we were calling for like a reduction in government spending. «Not so much program costa but administrative costs, we're happy with that.» Stanley welcomed Wilson's decision not te increase taxes SEE PAGE 37 ments we have te, live up te." Petro-Cainada - Soetens did not expect the gov ernment te seIl the Crown corporation immediately. "W. paid *10-billion for it but it's onl worth *4-billion on the o»n market, somewhere along the lin. we'il have te absorb thé. difference.w CanadlauBroadcastlng Cor Oin - «We teld thm he1l have te, flnd *400-million on their owfl. They may have te resort te com- merdais on The National or on CBC radio, those free enterprise Mlle. tat. people do te pay Soetens told reporters. later he had empeted a tax increase and w85 surprised there weren't Ifeel ood, about it I think we.re dong. what dYanadians want us te do.» No painless way to reduoe spending1. By Reno Soetens Ontario riding hMP There is no painlesa way te restrain spending. Reducing the deficit is part of our long-termi economic plan, that is building a stronger and mori cmptitive econoeny. It works together with privatizationdergulation, the Labour Mlarket Development Strategy, fr-ee trae and sales tax reform, te build a prosperous economny with more jobs and greater opportunities. We must continue te reduce the deficit if we are te build a secure future for ail Canadians. A lower deficit means lower inflation, lower interest rates, less of a debt burden. It means we will have more flexibllity te make choices on our own priorities as Canadians - for instance, te inveat in new prcgrams for the environmient or regional development or te lower taies. On Feb. 20, Michael Wilson tabled hiesisxth budget as Canada' Finance Minister. The budget is a comprehensive two-year approach te expenditure control. It does not entail any permanent structural changes ini major programa but yields substantial and ongoing fiscal savinga. It affects sixty-per cent. of governiment program spending and will ensr that over the next two years, total prograi spending wiil increase at a rate' well below the average rate of inflation. The following are somne of the major initiatives put forth in' tiie Expenditure Control Plan as outlined ,in, tl~ Budget. The Canadian Exploration Incentives ProéàMni the %ÉLOi11Sanda. project in Alberta and the Polar 8 Icebreakr Project were'al eliminated. The Secretary of State," National Health and Welfare, Small Craft Harbours and social housing had their funding reduced. The govemnment la instituting a policy .that wiil elimirfate grants te businesses. Financial contributions*wiil be repayable, rather than straight grants of subsidies. We will prooeed witii the privatization of some of our Crown corporations, wind up the operations of some agencies, and ask profitable Crown corporations te, return more dividends te the government. Public utilities' income tex transfers and the budgets of. the CBC, Telefilm Canada, Export Development Corporation, Marine Atlantic and the legal aid cost-sharing arrangements wiil be frozen over the next two years. Science and' Technology, Indian and Inuit progranis, Canada Assistance Plan, defence and foreign aid wiil have their annual spending growth constrained te 5 per cent. Established program fiancng te the provinces will also b. frozen over the next two ye lTis will represent less than 1 per cent of total Lgvincial revenue in 90-91 and juat over 1 per cent in 91-92. The federal . goverrnment will be&.ransferring about $9.3-billion* te the governent of Ontario in 1990-91, or about $956 per person, despite the fart that the federal debt burden is much greater than the provinces. Federal debt charges account for 35 cents of every dollar; the comparable figure for Ontario is only about il cents. The expenditure control plan as outlined in the budget does not apply te major federal transfers te persons. Such transfers include Old Age Security, the Guaranteed Income Supplement, Spouse Mllowance, Family Aid and UIC. Equalization and Canada Assistance Plan payments te, equalization-receiving provinces were also ieft unteuched. There are no new taxes in this budget. However, several changes are proposed that wiil improve the management of the incomne tax systemi or increase fairness for taxpayers. For example, the prepayment of the Child Tax Credit wiil b. expanded te, allow 70,000 additional familles with a tetal of 236,000 children te receive the prepayment in 1990 and foreign property limita for 'pension investment will be gradually increased. Six years ago when this governrnent was first electedthe deficit stood at *38.3-billion. This budget forecasts a deficit of $28.5-billion. The expenditure control program, along with measures announiced in December, will sav. $3-billion in the first year and close te *4-billion the following year. Ini five years the savings will total well over *19-billion. Admittedly, much more remains te done. However, you can b. assured that thus go)vernment will continue in the right direction until the deficit la conquered. .I would like te take this opportunity te thank the Ontario Biding Smal Business Caucu for their support in oranizing the budget breakfast. A number of high achool students, sponsored by the amail business caucus, were somne of the. approximateiy 250 people in attendance. If I was te measure Ontario riding's response te tth. budget b~y the. reation of those in attendance, the, response would be overwheimingly favorable (as far as budgets go). I ~ *j~~tj~ Budget will raise property taxes, says Edwards I WEIGHT DUHmRESTRICTION REGULATIONS wiII be in force on roads under the jurisdiction of the Regional Municipality of Durham effective February 26 to approximately April 27, 1990. Vehicle loads are restricted to FIVE TONNES per axie in accordance with Durham Region By-law Number 251-89. Signs wiIl be erected on ail Regional Roads to which these weight restrictions apply. W.A. Tewlvetrees, P.Eng. Commissioner of Warks Reglonal Munlcipality of Durham CORPORATION 0F THE TOWN 0F WHITBY NO0TIC LOAD RESTRICTIONS TO ALL OWNERS AND USERS 0F TRUCKS AND TRAILERS Load restrictions of 5 TONNES PER AXLE will be in effeot from MARCH 1. M9O TO AEaIL 30.199, in the Town of Whitby, where properly worded signs.are displayed. Corporation of the Town of Whitby By-Iaw 1718-84. R. A. KUWAHARA, P. Eng. Director of Public Works 1