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■ \ 12 The Canadian Statesman, Bowmanville, Wednesday, July 6,1994 Section Two Rushwood Truss Holds Open House for Loyal Customers Nominations Sought for Waste Reduction Award XvAX-X-vS® Canada Post Corporation reported income from operations of $26 million million in its 1993-1994 Annual Report tabled today in the House of Commons, Commons, but reported a net loss of $270 million. The costs of a major, multi-year restructuring plan were charged to this past fiscal year. The restructuring restructuring costs included the development and implementation of management and operating systems as well as the realignment of resources. "This restructuring program will enable Canada Post to improve efficiencies, efficiencies, enhance custom service, invest invest heavily in employee training and introduce new technologies and products," products," said Georges Clermont, president president and chief executive officer of Canada Post. "These results are an encouraging signal - not only to our shareholder, but to the millions of Canadian customers customers we serve," added Mr. Clermont. Clermont. "Canada Post is in business to serve. Our long-term survival depends depends on our ability to change our business culture - the way we think, the way we act, the way we present ourselves to customers. All of our future initiatives must have the customer customer front and center. 'I I : The Honourable David C. Dingwall, Dingwall, the Minister responsible for Canada Post Corporation, compli-. mented the corporation: "I am encouraged encouraged to see that Canada Post has achieved an operational profit in this highly competitive market and I believe believe that its restructuring plan will • An income tax refund can give you a prepaid vacation. • To secure your well earned holiday fund in April of next year you must plan today. for more information and a free copy o! my newsletter call: Andrew Rice, H.B.B.A. (Finance) 623-2601 1 Investors 'Croup INVESTORS GROUP FINANCIAL SERVICES INC. Iluildhig futures since l ( H(), result in better service to all Canadians." Canadians." In 1993-1994,: Canada Post processed processed more than 10.9 billion pieces of mail, an increase of 500 million pieces over the previous year. Revenue Revenue increased by $206 million from $3,909 million in 1992-1993 to $4,115 million this year, largely as a result of the acquisition of Purolator Courier. Canada Post consistently achieves Lettermail on-time delivery performance performance rate of 97-99 per cent, as measured by the auditing firm of Ernst & Young. This compares with an on-time delivery record of about 85% in 1987. "Our employees are coming to realize realize that customer satisfaction must come first," said Georges Clermont. "Our customers demand, and deserve, deserve, to benefit from our innovations and improvements. Satisfied customers customers will bring us more business that will lead to a more financially successful successful Canada Post Coiporation." In 1993-1994, Canada Post introduced introduced a number of initiatives aimed at improved service to its customers - which comprise 100% of Canadians. These initiatives include true trial introduction of motorized mail couriers; couriers; the launch of XPRESSPOST, a time-sensitive courier service; EX- PRESSMOVE, a quicker and more comprehensive mail redirection service. service. Canada Post also began marketing its new hybrid mail OMNIPOST product, where customers can send computer-produced messages physically, physically, by fax or electronically. The Statesman Proofreader's Words of the Week...^] distrain - To seize and detain (personal property) as security for a debt, claim, etc. faille - An untwilled silk dress fabric having a light grain or cord. The Durham Region Works Department Department is once again seeking candidates candidates for an awards presentation honouring honouring significant contributions in the field of waste reduction. Since 1990, Durham Region has presented seven "Awards of Merit" to deserving organizations. This year, a number of awards will be presented presented at their second annual Industrial, Industrial, Commercial and Institutional Waste Reduction Seminar, to be held in November. Two awards will be presented to businesses which have demonstrated leadership in' reducing their waste. One award will recognize an individual individual whose hard work and perseverance perseverance has had a measurable impact in the workplace or community. Interested candidates are invited to submit a one-page description, outlining outlining the elements of their waste reduction reduction accomplishments, to the Region Region of Durham, Waste Reduction Division. Mail or fax to the attention of Elaine Collis. For further information, please contact the Works Department at 668-7721. Customers and suppliers of Rushwood Truss received a first hand look at how roof trusses are made during the company's open house held on June 24th. Rushwood Trass, now a division of Millwoik, has been in operation for three months at its new location at 2021 Baseline Road, west of Bowmanville. Pictured Pictured above standing beside one of the company's huge saws are, from left to right, David Hancock, design design and sales representative; managers Ron Rushak and John Little; Rob Lupton of Millwork; Vem Sunday, truss fabricator; and Don Lewis, shop foreman. Canada Post Reports Loss Of Over $270 Million During Restructuring of Operations by Brian Costello PERSONAL FINANCE TEST Do you know which investments pay off best in the long term? How much can you contribute to your RRSP? How much of it can be in foreign investments? Which tax applications were changed in the most recent Federal budget? If you don't know the answers to these questions don't feel too bad the country as a whole didn't either. Actually, you should feel terrible as this test showed that we as Canadians are generally flying blind when it comes to understanding what's going on in the world of finance. Toronto based Marketing Solutions with the help of accountants at Deloitte & Touche designed a personal finance test they used to survey nearly 1,200 Canadians in April. We, as a whole, flunked badly. The overall average was 38%, the best score attained on any question was barely a pass at 53%. No wonder we're struggling when it comes to managing our money. There were ten questions involved. The one answered most correctly was on the elimination of the $100,000 capital gains deduction in the last federal budget. But, only 53% got it right. And, the survey was done only two months after the budget. Some of the participants had money. In this question those with a net worth greater than $100,000 answered correctly 72% of the time. It stands to reason that they may have accumulated some extra wealth because they educated themselves a bit more in money matters. The second best score, 53%, involved defining a capital gain. The choices were between an increase in value of stocks or bonds, an increase in net worth, interest on investments, financial gifts from a family member, increase in value of an RRSP, or "I don't know". 18% didn't have a clue. 11% thought it was interest, 13% felt it was an increase in net worth. The most surprising result to me though was that 10% of those who already own stocks didn't know the definition of a capital gain. Sounds like they aren't getting a great education from their broker. Or, they're using a discount broker to buy some hot tip. Hope it works out for them. 51% of those questioned knew that we get $60,000 deposit insurance coverage at banks and trust companies. That means almost half didn't. That's alarming when you realize how much of our money is tied up in deposit taking institutions. Here's the one I find most alarming. The question asked which investments paid the highest after tax rate of return. 27% said a bonus from your boss, bank interest, net rental income, and dividends from a Canadian corporation or mutual fund all paid the same rate of return after taxes were deducted. I wish I knew the number of times I have written an article or done a radio or television show on the values of dividends. If an individual were to have only one source of income. No pension or salary or interest, only dividends from Canadian stocks or mutual funds they could earn approximately $25,000 a year in tax free income. Sadly, only 43% of the respondents knew that dividends are taxed at a better rate than other forms of income. Mind you, 65% of those who already own stocks or mutual funds knew the right answer. That might explain why they are buying them, right? I was staggered by the response to this question. Which investment has shown the best rate of return since 1950? 26% didn't know. But, some of them weren't born by 1950. But, 21% thought it was Canada Savings Bonds. They had a choice between long term bonds, CSBs, five year GICs, the TSE 300, or the Standard & Poors 500 index in the United States. Only 11% felt it was Canadian or American stock markets. In fact, CSBs were second worst. American stocks have returned an average rate of return of 12.9% a year for the last 43 years, Canadian stocks 10%, GICs 8%, CSBs 7.2%(thanks to the 19 1/2% years) and long term bonds only 6.9%. Obviously investors who have been choosing the safe routes have paid a very heavy price. Marketing Solutions also asked some RRSP questions, like how much we can contribute and what percentage can be in foreign investments. 70% of the respondents didn't know the maximum contribution limit. With Ottawa and the provinces eliminating tax deductions and clawing back social benefits we had better find out how much we can contribute. The RRSP may be the only deduction we have left before long. By the way, the proper answer is 18% of our earned income to a maximum of $13,500. As to the amount of foreign content 21% didn't know, 10% thought all of it (if only that were true), 29% thought none of it and 31% got it right at 20% foreign content. Actually, we can do better than 20%. If you have $10,000 in your RRSP 20% ($2,000) can be in foreign investments. However, if you put the remaining 80% ($8,000) in Canadian mutual funds they also are entitled to 20% ($1600). The total of foreign content becomes 36%. This was a revealing study. Canadians complain about taxes, low yields, high interest rates, small raises and the like but they don't do as much as they could to educate themselves. You had better read more and get a financial planner or it's going to get worse. i