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By ALF 5mm; MIA - York (‘emre We are. of course, all becoming increasingly concerned about the cost of energy in Ontario, Prime Minister (‘Iark‘s agreement in Tokyo to permit massive increases in oil prices could cause us even more problems in this connection. Premier Davis has responded wiih some proposals of his own, In AugUSt , he released a paper entitled “()il Pricing and Security: A Poiicy Framework For Canada”. Behind that bland title lurks some shocking news for Ontario residents. The document is based on the premise of a $5 increase in the price of crude oil. occurring almost immediately. Queen's Park The document notes the detrimental effects of a $5 increase on the ()mario economy. and proposes the establishment of a fund, the National Energy and Employmem Adjustment Program. What would be the effect of a $5 increase 'on the ordinary‘consumer in Ontario? It would add $120 to the average home heafing bill. I! would add 1610 25 cents per gallon at me gas pump. Wfial - woilld be the effec‘ of a $5 increase on our economy as a whole? According to the Conference Board in ('anada. Ontario's economy is already ex- tremely precarious without massive energy price hikes. A growth rate of 0.7 per cent is predicted for Ontario in )980. compared with 4.6 per cent for Alberta“ The jobiess rate is expected to jump to 7.5 per cent. h is estimated that an increase of only $1 a barrel in oil c0313 would eliminaxe about 4,000 jobs in Ontario. According to a study undertaken by the Omario Treasury in 1976. an increase of $2 would Energy 0031‘ concerns growmg have significant negative effects and would damage (he competitive position of fourteen major in- dustries, accounting for 180.000 jobs: An increase of $5 a barrel would cieariy lhrow our already fallering economy imo a full scale recession. Who gets the additional money from higher oil prices? massive price increase would be necessary if the federal government is to obtain sufficient revenue to maintain a uniform price for oil across Canada. If [he proceeds are divided.in the current manner. mos! of the revenue goes to the oil companies and Ihe producing provinces. A Premier Davis has proposed that Alberta, the federal government and the petroleum in dustry keep their respective shares of the first $2 of his $5 increase and that the revenue from the remaining 83 be placed at the disposal of a National Energy and Employment Adjustment Program. which would then be used. amongst other things. to do some patchwork repairs on an Ontario economy which had been severely damaged by the $5 inâ€" crease. According to the Provincial Government’s own estimates. a $2 in- crease in the well-head price of oil would mean increased revenues of $196 billion per year to the producing provinces. the oil and gas industry and the federal govern- ment. in the proportions of $880 million $840 million and $240 million respectively. If even $2 of the revenue from a price increase is divided in the same way. we would still be faced with increased oil prices of $4 to $5 a barrel. We. in the Liberal ’nriy. believe ihere is a way to keep one price for oil throughout (‘anada without wrecking Ontario‘s economy, The solution lies in raising the price in such a way ihai we do not have to give additional revenue to the oil Companies or the producing provinces. Each time oil prices rise. the bulk of the money paid by consumers goes io ihe producing provinces and the petroieum industry: only aboui a fifth of the revenue goes to the federal government. which can use it to subâ€" sidize oil prices in Eastern Canada. A $4 to $5 increase would be necessary under exisling arrangements to pay the import subsidy‘ which probably explains the willingness of Premier Davis to negotiate on the basis of a $5 increase. However. a completely different approach is possible. The federal government could raise the necessary money to maintain one price for oil across (‘anada ihrough taxation rather than an enormous price hike. We estimate that a tax of $1 per barrei next January. and $1 per barrel next July would produce enough revenue to pay ihe additional impori Subsidies required by future increases in OPEC oil prices. Revenue would also be available to support energy conservation programs and projects, and develop renewable energy supplies and syszems. While an increase By ALF STONG MLA -â€"â€" York-Centre queen's park averaged over 1980 of $1.50 per barrel would have significant effects on Ontario's economy, it would be much easier to McINTOSI-I, CORTLAND 8 SPARTAN AVAILABLE FOR PICKING NOW DELICIOUS Er SPY AVAILABLE SEPT. 29 - OCT. 21 (DATES SUBJECT TO CHANGE) HOURS: Weekends & Holidays 9 am. till dusk Weekdays â€"â€" Please arrange an appointment sonon Hwy. 17 1 Cm Sid. Nay-g 1 5m 5m mud Klnq SM. No.0 nobiuon 1 0427 YONGE STREET RICHMOND HILL RICHMOND HILL DATSUN LTD Bride. 0' fiépiéé within reach of everyone 0 Scenic surroundings 0 N0 iadders (fuii sized appies from 5,000 pint sized trees}. No throw" ROM take than increases of the magnilude proposed by Premier Davis. What is required is strong political will to present Ihe case for the Ontario consumer in Ottawa, and (0 make it plain that Alberta and the oil companies will not be reaping extra revenue at the expense of the people of this Province. The power so see: the price of oil. and to imâ€" \ blunthll‘ "*V‘ We welcome you to pick your own apples plemem the alternative policy which we have proposed rests solely with the federal governmem‘ Alberta‘s approval. consent and co-operation are unnecessary. The only essential is for the federal government to be determined to recognize that our Province has rights tom and that the time has come to say to Premier [.ougheed. for the present at least enough. Sluan Smith has publicly called upon Premier Davis [0 recall the ()nlario Legislature without delay. GDV'T HOME INSULATION PROGRAM Rebate up to $500. YOUR HOME FOR AS LOW AS IF YOUR HOME WAS BUILT PRIOR T015361 AND IT IS YOUR PRINCIPAL RESIDENCE â€" YOU NOW QUALIFY FOR THE . . .. CALL 486-5757 OR 884-5758 2347 YONGE STREET TORONTO, ONTARIO M4P 2C8 Suburban flame Insulation l M. that enough is Toronto Area THE LIBERAL. Wednesday. September 26. 1979 â€" C~9 . ROOF VENT INSTALLATION '1‘/2 STOREY SPECIALISTS 0 C.M.H.C. 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