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BUDGET REMovEs Continued from page one recommendations as con structive and imaginative He emphasized however that the tariff recommendations are so complex that the government will canvass all sections of the industry and others before making decision He noted that Canada agreed in 1953 at the Commonwealth trade and economic conference to assure free British entry of vehicles and parts and was aware of its obligations under the General Agreement on Tar iffs and Trade No negotiations to alter GAil agreements would take place until the gov ernment might decide to pm ceed in the national interest Removal of the excise tax was welcomed by the Canadian Automobile Association claim ing 600000 private motorists as members General Motors of Canada said the full impact of the re duction will be passed on to consumers So did Ford Motor Company of Canada Dr Bladen said it is ana chronistic to taxthe auto today as luxury Dr Bladena rcport empha sized that removal of the excise tax is just part of program for the continued development of the automotive industry in Canada INTEGRATION URGED His recipe points at integra tion of the industry with that abroad specifically the falter ing Canadian parts manufac turer hard hit recently by im ports Many of thine enter Canada dutyfree or at reduced rates it they go into Canadian cars bearing certain level of Ganalt dian content Dr Bladm sketched new schedule of Canadian content on which duty free entry could be claimed for foreign cannalrers Mr Fleming summed up the Elladen suggations on tariffs this way manufacturer could earn free entry not lonly of parts but also of vehicles by achieving or arranging suf ticicntly high volume of produc tion in Canada tth production which could be of completed vehicles or of parts might be sold in Canada or abroad Some observers saw the pm posed tariffs on British cars and pads as one weapon péhc government may use to op so any united Kingdom plan to DISCOUNT DOLLAR Continued from page one financial structure and institu tions including the Bank of Canada and seek new means of generating Canadian savings for capital investment Uberalfinanciai critic Wil ilam Benidicksun said the bud 891 didnt live up to Mr Flem ings expansionist promises It was to have been lemings flip flop budget reversing government policies but it wasnt even that WILL ATTACK AGAIN Mr Bcnidickson continues his attack when the budget debate resumes Thursday Opposition Leader Pearson is sued statcmeut saying the Commons fgot expansion all right in wind words and debt The budget was re cognition of the governments failure after four years Observers saw chances of an early election fade when Mr Fleming announced no big per sonal tax cuts Removal of the auto excise tax affective today is esti mated to cut around $140 from the price of $3000 car if the saving is passed on to buyers The excise tax cut will ac count for $66000000 of the $100 000000 in tax reductions pro vided by the budget in full Year Mrchming read his 24000 word speech in two hours and 38 minutes It was twicethe length of nor mal budgets but not record SEES RECORD HIGHS He forecast record highs in budgetary spending and reven ues for the current fiscal year which began April He predicted budgetary ex penditures rising to 56415000 000 from $361000000 Hc fig ured economic growth would offset the tax reductions and in crease revenues to 55765000000 from $5516000000l Addition of $607000000 in old age pension payments ex cluded from budgetary accounts wonld boost total spending ver the $7000000000 mark he pension fund would get $640000000 in non budget re venues from its special car marked taxes The $650000000 budget deficit forecast would bring to $2056 500000 the total in five annual deficits in row Mr Fleming said the hudgets economic impetus would bring significant improvements in the countrys prospects FEW TARIFF CUTS The finance minister concen trating on his planned moves in the financial field provided only smattering of tax and tariff changes He didnt touch consumer taxes on liquor and tobacco ex cept for change effective next Jan to permit economic Ca nadian production of king size cigarets containing more tobacco few items were exempted today from the 11 per cent sales talc Tariffs were in creased on some textile items poultry record players and power lawn mowers and re duced on other textile products motorcycles pineapple juice and parts and engines for power lawn mowers The personal income tax changetbat will probably affect the most people is provision that volunteer firemen may rc ccive up to $800 in tax tree al lowaucesL from municipalities retroactive to 1956 Another change effective in the 1961 tax year wipes out the ceilings on medical expenses thatmay be deducted in com THE KINSMEN putiug taxable incomes Stiu an other added to the tax exempt list is electronic speaking aids for persons who have lost their vocal chords due to cancer The big change in corporation tax will give temporary 50 per cent increase in the rate of tax free depreciation n1 iowances on now capital plant and equipment expenditures ex needing companys normal capital outlays This will em brace nssots purchased from now until March 31 1903 and apply only in the first tax year in which the asset is acquired Mr Fleming said the price advantage to Canadian produc crs from the dollars discount wont last forever They had to keep competitive nndany un warranted price or wage in creases could cost them the op portunity to reap the full bencJ fits of the discount move The budget gave no hint of how far the government intends to push down the dollars value Mr Fleming said this pro gram will be geared to other policies aimed at reducing in terest rates and thus slowing down the inflow of foreign cap ital that has put upward pres sure on the exchange rate major objective he said is to meet Canadian capital re quirements as far as possible from Canadian savings rather than from abroad Other policies tailored to the same general goals Government encourage ment to further reduction in Canadian lending rates Continuation of federal bond borrowing in the short term field for at least the next several months Cancellation of $245000 000 in bond holdings of the un employment insurance fund that have been overhanging and um settling the bond market They will be exchanged for nonmar ket government bonds purchase fund to buy medium and long tam gov ernment bonds in the market spending up to $100000000 in the next 12 months TUTAL NOT GIVEN There was no suggestion in the budget as to how much money might have to he put intothe exchange markets to depress the dollars value This Wouldllsk Jackie ToVBetum Relic RENFREW CF Premier Leslie Frost of Ontario said Tuesday Jacqueline Kennedy should be asked to intercede on the part of Canada to regain 17th century asrrolabe lost by Samuel lie Champlain The astrolabe uow the pro petty of New York museum was lost by the French explorer in 1613 while he was on an ax ploration trip to Georgian Bay via the Ottdiya River Mr Frost in an address at Henfrew County centennial cel ebrations noted that the United States presidents wife recently had urged the returnof articles of historical value to the place of their origin He suggested that Mines Min ister Maloney and Renfrew County Warden Simpson should get in touch with Mrs Kennedy and ask her to send back our astrolabe Mr Frost noted that the in strument formerly used for measuring altitudeswas found in 1667 near the county town of Cobden14mjlcs nnDthWest of here on the Ottawa River He said it had been sold privately for very small amount cLua or same WISH TO EXTEND THEIR SINCERE THANKS TO THE MANY CITIZENS WHO HAVE HELPED MAKE THEIR BINGOES GREAT SUCCESS DURING THE PAST SEA SON WE HOPE TO SEE YOUALL AGAIN WHEN THESE BINGOES START AGAINVIN SEPTEMBElt Barrie kinsmen Club depends on market conditions and on how far the government wants to push it but it appears possible the amount could run to sevcral hundred million dol Iars year Mr Fleming said he will need $900000000 in cash this fiscal year to cover the budget deficit and inch non budgetary finan cial operations This will have to be raised by bond borrowings and compares with last yaars $222800000 in crease in bond debt But it doesnt include the planned exchange market ups cratinns or the $100000000 bond purchase fund Informants said the latter would probably involve short tcrm financing toreplace the longer Icrrn bonds purchased and thus mcan no additional borrowings on balance LEADS TO LOANS However the exchange mar ket operations to depress the dollars value would eventually mean ncw borrowings though this might be stretched out by arrangements with the Bank of Canada Personal income tax will be applied to wivcsrand families of Canadia servicemen and diplomats utsidc Canada as it already is to the husbands Mr Fleming also announced he will try to work out with prov vincial cooperation program for portable industrial pea sions which worker can take from job to job and for super vision of the many private pen sion plans to ensure their sol vency The new federal provincial tax arrangement proposed for next year wouldrmean $300 000000 cut in federal personal and corporation income tax rates starting next Jan But this was being done to provide the provinces with ei bow room to levy their own taxes in the revenue fields va cated by Ottawal If the prov inces did this as expected it would mean no tax saving for Canadians Government Will WerkrToward Pension Plans 0n Portable Basis OTTAWA CPiFinance Min istcr Fleming announced Tues day night the government will consult provincial authorities on plans to work towards private pension plans on portable ba SIS He saidnone ol the factors that may prevent workers from seeking better jobs and contrib uting more to the general econ omy of the country is that they cannot take their pension rights with them to their new jobs Mr Flaming also said the fed eral government is considering measure of supervision over private pension plans to ensure that money in them is properly invested One of the difficulties was that the field is split between federal and provincial constitui tional authority with large part of it resting with the prov inces However the federal gov crnment is willing to take lead to see if co operative plan can be worked out with the provinces The portability of pensions hevsaid may serve in avery constructive way as stimulus to the productivity of the whole economy by providing the inlli vidual worker with wider range of free choice in seeking employment Mr Fleming said that there IMPERIAL Please Note Due To Its Length ALAMO STARTS at 630 and had seldom been trouble with em government supervision of Now Showing NO ADVANCE iN PRICES FOR THIS BIG ROAD SHOW ATTEACTIO joint the Elnopeanl Common Market Automakcrs have faced rising tide of imported vehiclu with Britishsublldinrlel of Gen eral Motors and Ford and Vnhwageu of Germany the main competitors Last year 160000 units as percent of Canadian sales were imported Canadian pro duction of all vehicles totalled about 896000 compared with the record high of 4813001111958 Dr Biaden who visited Cana dian US British and Europ ean plaan set out his own views firmly on various sub ieots Hes nondriver but his wife operates French made Citrcon He is middleroad man be tween high protection and free trade be said believe there is point beyond which the cost of having an automobileindustry in Can adawouldbesohighastobe come politically intolerable to LIIB country He attacked the British View presented at public hearings here last October that the small foreign car met special Canadian demand and did not cut into Canadian auto sales in fact imports tended to depress usedcar prim and the consequent lowcr trade in values have the same effect on the sales of new Canadian cars as an increase in their prices He noted that any move to ward freer trade as covered in his proposals is going to hurt some Canadian sections of the industry It was his hope that his proposals were sufficiently expansionist that the pain of dislocation and readjustment will be borne largely by he community POOHPOOIIS CRITICS lle dismissed critics of his integratedmarkets theory who suggested atio al indcperlv deuce might suffer believe that trade which increasesour wealth and indus trial strcngth can contribute to the development of our cultural and political independence he said High volume production was important to the autoin dustry in cutting costs For thatreason hc scoffed at suggestions made to him for an allCanada carhe had called it the Beaverto meet Canae dian consumer demands In fact he defended thein dustry assailed by Premier Frost of Ontario among number of commission wlt nesses for builtin obsolescence chrome fins and flashy model changes Consumer competition deter mined what the manufacturers did he said He had been impressed by the growing strength of foreign automakers Strengthening the Canadian industry was imper ative to help it meet even stronger competition The Canadian industry was not distrsed but it needed help He said he regrets that the American parent companies of the Canadian auto producers gont farm out morn research ere the solvency of pension funds Many pension plans are based on government annuities or are managed by insurance comps nies There are however large numberof plans administered by trustees and there is no fed tbem Most of the provinces have no supervision beyond sti pulating the qualifications of trustees What is projected is de gree of supervision of trusteed pensionplans in the public in terest comparable in soma respect with the supervision tra ditionally exercised over insur ance companies HAKA Auro RADIO Low PRICED RADIOS GUARANTEED REPAIRS 29 Collier St PA 60579 Budget Rejects Most Of Coynes Proposals OTTAWA CF Never has the Imseen presence of one man weighed so heavily on federal budEat Threaded through Fi Minister Flemings entire budget address Tuesday nlght weretha ideas of James Coyncsomc of them incorpor ated in government poliq but must of them rejected Seldom did Mr Homing miss an opportunity in his 24000 ward speech to dispute the Coyne theories The speechs main summation This budget and MrCoyne were simply not compatible The central bank governor had warned against heavy defi cit financing against largo fed eral cash borrowing and against any tax cuts in fact he sought temporary increasc in personal and corporation in come tax rates Mr Fleming chose peace time record deficit $550000 000 for lSslsza ddICf which with nonbudgetary cash needs will mean nearly 8000000000 in federal borrowing He lead theline on general tux rates and even reduced few DISAGREE AGAIN Mr Coyne had said federal borrowing would drive up inter est rates Mr Flaming said the government is trying to encour age reduction There was one major common ground Use of the exchange fund to purchase Unitcd States dollars and thus bring the Ca nadian dollar to discount But ML Fleming saw Mr Coynes statements as being in fundamental conflict government policy The Bank of Canada governor might agree with some points in the buuct but it is in the basic elements that the differences lie the minister said Mr Fleming repeated the govemments intention to legiss late Mr Coynes removal not ing the almost incredible ra fusal of Mr Coyne to resign the post at the governments behest The governor himself was not in the Commons to hear the budget speech He was about 400 miles away in Stafford Ont REJECTS SPEECH reporter offered to show him Mr Flemings budget ad dress No dont want to read if Mr Coyna answered dont want to have anything to do with it MrFlcming hinted at press conferenca Tuesday night at the possibility of return to an ar bitrarflyset hack of Canada by terrst rate as signal to banks and investors of the central banks monetary policies At present the central bank rate is floating Mr Fleming said Mr Coyne in his last annual report opposed any return to the formersystem of setting the ratefixed by the bank before the floating rate was adaptedln November 1956 in his speecn Mr Fleming reiterated that Mr Coyoe had lost the confidence of the gov ernment and the banks board hresday night he added that the governor also has lost the confi dence of the financial commun ity And the government believed that substantial deficit could promote economic exuansion bir Coyne had been preaching farmora austere and rigid doctrine FILLED 1600 WORDS Mr Flemings direct refer ences to 1dr Coynathey filled 1600 words in special section in his speechwere balanced by the indirect rcfcrences in which he referred to suggestions in some quarters but left no doube that many of them came originally from the governor At one point he said that in some quarters it was believed major structural maladjust ments in the economy were to blame for disappointing pruduc tion levcls unemployment and the balanceofvpayments dcficit it was thinly veiled refer ence to Mr Coyne who often has referred to these struc turnl faults jThe analysis which supporls these proposals is in my judg ment basically wrong said PIAIIRS Limbsnil BRINGS EVERLBQDYS FAVORITE STQRY IAMIIUS Feature Times 740 945 llm Mr Fleming Consequently the conclusions are also erroneous 1dr Coynes proposals were contained in Feb 15 memor to the government which be released Monday Ht said that Mr Fleminghad not found time to discuss the pro posal with him Tbe minister told reporters Tuesday night ML Coyne had never asked for such discus sion DISAGREEDON DEFICITS The underlying difference be tween Mr Coynes ideas and government policy were in the field of taxation and deficits dcflcit does not merely by its existence make an import ant contribution to employment and economic growth Mr Coyne had said Mr Fleming said the budget proposes to use big deficit as means of stimulating the economy Mr Coyne had advocatcd new taxes and higher taxes in luxury goods and on personal and cor poration incomes adopted without apology and forth rightly justified as part of the cost of lullemployment pol icy Mr Fleming made no funda mental change in personal and corporation income tas rates He also left unchanged the taxes on cigarets and liquorexcept for technical change in the excise tax on clgarcs which will makeprolfilction of king size cignrcts ln Canada eco nomically possible Most contentious proposal by the outgoing governor was for temporary tariff surcharge of 10 per cent on the value of im ported goods In contrast Mr Fleming took special pains to Starts Tomorrow TODAY ONLY SUZIE WONG Restricted p111 and 925 pm 133 DAR EXAMINER8 WEDNEDAY JUNE II stay well clear of protectionist import controls Many of Mr Coynei propoa aals found their way into the budget however He had proposed abolishing the Wspercent excise tax on cars The government did that Mr Coyoe had suggested ex panding the lending power of the ind ti al Development Bank Mr Fleming did that too The governor wanted sink ing fund set up to be uscd for buying government securities on the market Mr Fleming Inc nounced fund of 900000000 Ia being set up to buy mid and lpng term government securi tcs Mr Coyne had suggested an increase in rates of contribution to the unemployment insurance fund removal from the fund of responsibllity for noninsurance risks and investment by the fund in special nonmarketable government securities be it deemed in time of need an lhat proposal Mr Flem ing went at least part way He said the funds entire portfolio will be taken over by the tiea sury at bookvllms to be placed by nonmarketable bonds which could be redeemed by the government as required DEI VIZLN THEATRE PA 01191 or 0MPEll nu eoioa wearerArm PLUS sulan sauna 13 GHOSTS Colour sror LOOKVand LAUGH Best Feature Save 101 Solo Mlllltillllllli lacail Feature Save 22c Buys lb 11ka Chocolate strawberry Banana lb tins NESTLES lllllll 27s Fcntureli Save ltd Burnr lb un llinly Moore Stew mil 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