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Growth-Cenitres Planning _ | Stross Is On Product _ Trips Low-inco OTTAWA (CP) -- Encourage. ment of "growth centres" and the provision of more govern-| ment money for resource de- vélopment are two of the keys for freeing Canada's poorer re- gions from the 'low - income trap," the Economic Council of Canada said today. Singling out the Atlantic prov- inces and eastern Quebec as the major problem areas, the coun- cil called for a maximum na- tional effort to wipe out re- gional income disparities and give all Canadians a share in today's growing economic pros- perity. The Economic Council's sec- afinual review of the economy sets out in detail the wide differences between regions in incomes, education, capital spending, employment and so- cial services. On a per capita basis per- sonal income in Ontario ran twice as high as that) of Newfound 1 and. Unemploy-| ment rates during the last years had averaged 7.6 per cent of the labor force in the! Atlantic area and only 2.7 per} cent on the Prairies. } RBemoaning these and other indicators of the persistent gap between the have and have-not) regions, the council said it is) time for a broad attack on the} problem and it set out some) "guidelines for action." | Outlining policies rather than) specific proposals, it recom- mended: --Encouragement of "efficient) agglomerations of activity--| growth centres -- within the) different regions in order to| achieve increasing economies! more useful pools of skills, me cee encourage high productivity in these areas. But the council warned against a reliance on quick-and- easy solutions, no matter how attractive they may seem. "Many decades of experience have shown that these tasks cannot be accomplished by jecemeal expenditures, super- icial -expedients, unproductive works and mere transfers of in- come." It also cautioned about erec- tion of provincial barriers against the movement of goods, | capital or labor. These would) Price Hikes Not A Signal _ i hurt rather than help the situa- tion. Dr. John J. Déutsch, chair- man of the council, told a press conference there is a trend to- wards interprovincial trade bar- riers and it must be halted, He also said the council's call for a slowdown in public con- struction projects, in order to take pressure off the constru- tion industry, does not apply to areas east of Trois-Rivieres, Que. | There was a need for more, not less, government investment in that part of the country. raps Of Trend Toward Inflation OTTAWA (CP) -- The Eco- nomic Council of Canada said today there is little evidence) signal a trend towards general) inflatiort. In fact, after allowing for spe-|changes over the past year." |of trying to stretch out public cial factors, it believes a gen- creases is being maintained by} the country. | Part of the council's second annual economic review is de- voted to a discussion of the consumer price index which in November reached a_ record high of 140.2. This was an in- crease of 3.2 per: cent from a year previous, The report says the high rate of increase was largely due to two factors. First was the sig-| "The rate of increase in wage) costs, and more particularly in| labor costs per unit of output lthat the price increases of 1965|in Canada compared with the United States, is perhaps a more worrisome aspect of the On the whole, however, wage stantially outrunning the growth in productivity as they did is previous inflationary periods of| the post-war era. Profit margins also were gen- erally within the bounds of nor- mal movement. "Thus, it would appear that a! considerable part of the recent upward movements in prices, and costs can be accounted for by special factors, some of | mie Council of Canada offers ae . re a cre Rot Demand, OTTAWA (CP)--~The Econo- some advice to the new finance minister the next -budget should stimulate productivity. more than demand or employ- ment. While Finance Minister Sharp is not mentioned specifically, the council's annual review out- iines the fiscal policies it consid- ers appropriate in the next fed- éral budget, now being pre- pared. "Under current conditions, po- licies having a produttivity-sti-| mulating effect should be given) increasing rel ative priority,"'| says the council's review, re-| leased today. . | Council Chairman Dr. John J.! Deutsch told a press conference theereason for this suggestion is that the Canadian etonomy shows signs that demand for goods and services are on the point of outstripping capacity to supply them. In some isolated instances, de-| mand already had outstripped supply--the construction indus- try. That's why the council sup- ported the government's policy spending in the construction lerally low rate of price in-| gains did not appear to be sub-| field. MAKES SUGGESTIONS | The council comes up with a) variety of suggestions about fis- cal policy, government taxation and spending and about mone-| tary policy, the management of | the money supply and credit. Among them: 1, 'Flexibility in posture' on fiscal and monetary policy, in-| cluding supplementary budgets) to deal with economic down- nificant jump in beef, pork them of a temporary nature,/t urns or persistent inflation of scale, larger markets and) puit and végetable prices, re-/and that these movements so I flecting a temporary high de- far have been a good deal less and to avoid uneconomic) ond for these items in the U.S./Pervasive and dangerous than scatter." HELP POORER AREAS | Additional finances for gov-| ernments of the low-income areas to help develop their) human and material re-| sources, particularly educa- tion, training, research,| health, transport facilities and) industrial growth, | d.| where production had slumpe in Second was the sharp gain auto and medical insurance pre- miums. | After deducting these special) cases, the rise in consumer pri-| ces was not out of line with for-| mer years, Other price for different indicators rose| reasons, among) those which occurred in the} early post-war period and the late 1950s." In comparing the current®it- uation with those previous infla-; tionary periods, the council] found a number of factors tend- ing to moderate the cost-price|_ climb, The report did not discount in- "Co - operation among all|them the federal sales tax on/flationary dangers, however,' levels of government in a de-|machinery and building mater-/and said there should be a close| where they may effect long- term economic growth, the pri-| mary objective. | 2, Greater ability to appraise} the effects of policies, especially | in developing more and better| statistics and information and research on human problems as they relate to productivity. 3. Annual projections of im- PACIFIC I8 FIERY About 400 of the world's 600) active voltanoes lie in a '"'circle | portant factor' | continued prosperity unless } remedied, Penning ; Employment portant govern ment spending programs for five years ahead. 4, Careful attention to royal commission recommenda- tions for promotion of more competitive eredit conditions and for removal of the six-per- cent interest ceiling on chart- éred bank loans. 5. Better understanding by the financial community that the basic strategy of Canadian monetary policy is to expand the money supply foughly in line with growing potential out put. On the last point, the council says, it is neither necessary nor desirable to change that strat- LOD iL = xr nae i vw OTTAWA (CP) -- Investment in eé¢ducation should get top priority in Canada because it is crucially important to growth of the economy and to higher liv- ing standards, says the Beo- homic Council of Canada, The council said in its see ond annual review that one step needing immediate atten: tion is rapid, substantial e@x- pansion of education after high school so that no qualified stu- dent faces any financial barrier to higher education, At the same time, high egy for one of tighter money. HIGHLIGHTS BY ECONOM OTTAWA (CP) High- lights of the second annual review of the Economic Coun- cil of Canada: Increased productivity key to achieving full prosperity | goals by 1970. To achieve potential output | by 1970, productivity must expand at a greater rate in | the next five years than in | 1964 and 1965. | we. "cruticially im- in realizing | full economic growth and higher living standards. Education Immediate improvements in worker retraining programs needed to strengthen man- power skills. No qualified student should | face any financial barrier to higher education, Shortage of skilled labor | likely to worsen in next five years, jeopardizing country's Loan feature of govern- ment's new manpower mo- bility program under fire with reservations about idea of improved immediately to the OF REVIEW IC COUNCIL Use Of tax policies, govern- ment spending, money supply and credit restrictions urged as weapons in encouraging greater productivity. More meainingful tax centives, possibily over 10- year period, proposed to en- | courage research and devel- opment, Maximum national effort "low-income" traps, increas: ing employment opportunities, incomes and output. Little evidence in 1965 price | increases that economy road to general inflation, on Although deficit on interna- tional payments reached pos- sibly $1,000,000,000 in 1965, situation not c¢ritical. No reason for complacency in performance of economy in 1965 when output ran at 97 per cent of capacity. Important role seen for Canada in encouraging freer world trade but country must gear itself for reduced trade schools and teaching should be! As Essential For Grow point where all Canadiuns will have the chance to receive a secondary school education, After taking a hard look at education in Canada and the United States as a factor in the economy, the review, re- leased today, concludes that Ca- nadians get considerably less formal education-than Ameri- cans and are fast falling far- ther behind. ~ This seemed to be an im- portant reason for lower living Standards and lower produc: tiyity in Canada, GAPS NOTED Dr, John J. Deutsch, council chairman, told a press confer- ence that ediication is vital to the welfare of Canada. While it had improved over the last 50 years, the improvement was disappointing, leaving serious gaps in high school and univer- sity education. Human resources were the most important factor in a na-, tion's productivity,. Most fun- damental of all in investing in human resources was education. in- | \go to high school. And we go| with this, involving re-training) 1, jadvocated to free poorer re- | areas gions of Canada from their | levels: | "So we say that all should further and say that there should be no financial barrier THE OSHAWA TIMES, Wednesday, Jonuary 5, 1966 13 ity To Education t dian education system" -- is needed for a sharply-increas- ing flow of professional and highly-skilled manpower, Vigorous efforts are necces- sary to improve the quality and methods of education. - "Intensified efforts in these critical areas of education will require a great enlargement of resources in education," Dr. Deutsch said it's up to the governments with respon- sibility for education to act, The council does not suggest that this responsibility be shifted to Ottawa from the provincial gov- ernments. The council says also there is a general need to upgrade and bring up to date the educa- tion and skill qualifications of the existing labor force, includ. ing mangement and professional workers, WANTS FAST ACTION Manpower shortages and defi- ciencies in particular skills con- stituted an existing or impend- ing obstacle to maintaining eco- nomic growth, Immediate action was needed urgently h By and continuing education, The council estimates | --Karnings--in this-region-were shout 18 sae cant helaw the ae- ionai aver Of (op Of ine Girect effects of education on i He 6 HS, -there were iMporiant tiaiect intiu- ences. A region with a gener- ally lower education level failed to support or attract industries relying on educated and skilled workers. Dr. Deutsch described this a "sort of vicious circle 'The council says a major stacle to a satisfactory rate of improvement in produc- tivity and economic growth lies in the general shortage of man- power with. higher education and skills, It adds that future benefits from increased efforts in educa- tion are 'very large' and the: economic returns to the nation "are likely to exceed by @ con- siderable margin those from most other types of expendi ture,' "We recommend that the ad- vancement of education at all levels be given a. very high place in public policy, and that investment in education be ac- corded the higher rank in the scale of priorities," Besides urging immediate at- tention to expanding and im- proving university and high school edugation, the council to deal/ calls for: Vigorous efforts to up- grade teacher qualifications to that improve the quality and meth- to anyone in going to univer-|the return to the economy from! ods of education, sity." The review says must be focused on five main) return than investment in physi-! tional to advance educational) --Gaps in high school facili- ties need to be closed where they afe "seriously inade- quate" for some parts of the| population and in some parts of the country. | investment in education is per- eal and financial assets. | 2,..Closer co-operation among attention| haps 10 or 15 per cent, a better) business, labor and the educa- system plus improved counselling for students on fu- This suggested "relatively;ture manpower needs and the greater emphasis should be| most effective ways of meeting placed on faciliating expanding) them, investment in education in re- lation to expanding investment in other assets," The council WATCH FOR MUM SEATTLE, Wash. (AP)=One finds that re-(0f the letters Santa Claus was --High school drop-outs must|gional disparities in productivity, | Sent last year came from seven- be reduced, More students| living standards and educational|Yeat-old Larry. He told Santa: must be kept in high school| to raise the rate of high) school graduation. EXPANSION NEEDED | --In the face of an unprece-| dented upsurge in the number} of young people, tremendous expansion is required in uni- versity and post - secondary) technical school enrolment. levels within Canada follow a similar pattern to those between Canada and the U.S. The higher the level of edu- cation, the greater the produc- tivity and the higher the stand- ing of living. CITES MARITIMES The council says that in the Atlantic provinces to a marked | | | ue I will leave a drink for you under the tree if Mom doesn't hide the bottle from Dad." "somata enn --Faster development of post-| degree a much lower proportion graduate facilities at the uni-|of the labor force attended high at|school and a still lower propor- | versity level--"the level A. STOLZENFEL'S KENNELS @ Grodming & Clipping ell breeds @ Beoerding & Training @ Pick Up & Delivery CALL BROOKLIN termined long-range economicials, special strains on the con-|watch this year for dangerous| one sip plan. struction industry and interna- pressures and bottlenecks in the|0f fire' around the Pacific The broad aim should be tional price fluctuations. economy. Ocean. CASUAL DRESSES ® Wools ® Crepes ® Knits Regular 25.00 to 39.95 TO CLEAR 14.99 to 19.99 which we have made least|tion went to university than the! progress to date in the Cana-| Canadian average. | barriers by improving its comptitive position. grants for some workers and | loans for others. 655-4487 FUR TRIMMED COATS IMPORTED FABRICS @ Mink ® Persian Lamb ® Natural Beaver Regular 125.00 to 395.00 TO CLEAR 79.99 wn UNTRIMMED COATS @ Mohair ® Tweeds @ Worsted Failles Regular 69.95 to 149.50 TO CLEAR 49.99 «. SUITS WORSTEDS and TWEEDS @ Fur Trimmed ® Walking Suits ® Costumes Regular 79.95 to 195.00 to! FRANKLIN'S «OSHA 64 SIMCOE STREET NORTH DOWNTOWN OSHAWA ANUARY SALE Tomorrow, Jan. 6th... Our Sale Begins This sale is in keeping with our policy of not carrying over merchandise from one season to the next. All our regular stock reduced ! GENUINE SAVINGS UP T0 50% @ ALL SALES FINAL @ NO EXCHANGES @ NO CHARGES AFTERNOON & COCKTAIL DRESSES ® Pure Silks ® Brocades ® Velvets TO CLEAR Regular 45.00 to 95.00 29.99 w» KNITTED SUITS DOMESTIC AND IMPORTED ITALIAN KNITS OPENING SPECIAL 100 DRESSES \SSORTMENT OF DRESSES, OPENING SPECIAL @ CAR COATS @ BULKY SWEATERS @ SKI PANTS @ SKIRTS & BLOUSES ODD SIZES AND COLOURS 2 AND 3 PIECE TO CLEAR 14.9§ REDUCED TO CLEAR Ye PRIC Formerly 49.95 to 150.00 29.99 wo TO CLEAR 4499 x»