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the examiner Friday Sept 14 1979 Barries sound tax base By RICHARD THOMAS Of The Examiner Prior to the Second World War industry in Barrie was mainly agricultural in nature But with the arrival of Cana dian General Electric in the 1940s this changed says the ci tys industrial commissioner Bob Hollywood and Barrie began commitment to in dustrial development which has proven highly successful Today there are almost 50 in dustries in Barrie employing about 5400 people and with major industries in the city spending or having spent about $45 million in expansion in he past few months Hollywood estimates another 1000 jobs will be available by the end of Industries such as the new HayesDana Ltd plant on Truman Road are what the city is trying to at tract sound industrial growth is necessary for any growing community but Barries industrial and business growth may be stalled until the an nexation matter with lnnisfil is cleared up Ex aminer Photo WW By LORI COHEN Of The Examiner In five years only 20 per cent of all small businesses started this year will be operating That failure rate concerns the ministry of in dustry and tourism spokesman said this week in Barrie The failure represents tremendous waste of capital and human endeavor said Carl Dyment manager of ad vistory services for the ministry Speaking at the first of series of breakfast meetings sponsored by the Greater Barrie Chamber of Com merce about small business Dyment said the way to im prove the situation is for small business entrepreneurs to become better prepared before starting out capability of those starting out he said RESOURCES HERE Dyment suggests taking advantage of ministry field consultants particularly by those in the manufacturing sector There are 49 con sultants across the province the closest one located in Orillia Dyment said they havent been wellpromoted in the past although that will change He also suggested mak inguse of number of pro grams run by the small business development branch designed to improve management skills He highly recommended that serious business people take courses in business management at their local community college Georgian College in Barrie offers two such courses including one on how to start small business learn in terms of raising capital Dyment said We dont have the Construction director Bob Smith holds model of an amusement park mountain that is being built We want to improve the Canadians have lot to 31 Small business failure means lost resources capability to prepare business plan to give to lenders he said Were not nearly as good as our US counterparts He advises business people to get as much financing under fixed assets as possi sector He challenged those at the ble The government is in meeting to present list of Dont pay cash then look terested in assisting three changes and im for working capital or else there will be problems he warned CHECK PRIVATE SECTOR The private sector should be checked first for money more and the government used as last resort he noted He sees the government getting out of the lending business and taking on the ing new role of trying to lever money through the private many business if it will manufac ture product now being im ported he said He said there are 54000 retail businesses in for Ontario and no need for any Those prospective in existence thinkingof expanding Bank here to help small businessmen By TERRY FIELD Of The Examiner Relief for small businessmen is spelt Federal Business Development Bank says John Geddes new management services of ficer with the crown corporations Barrie branch Eight of 10 small businesses fail within five years and 63 per cent of those fail because of bad management Geddes told The Examiner during recent interview Were here to help small business men were onestop development cen tre he said As part of general expansion program the FBDB is now attempting to improve the service offered and attract more clients who may need help but do not realize the service is available Geddes said In an attempt to help the little man get by the bank has seminar program to discuss topics such as marketing provides information via pamphlets reference library and video tapes on various facets of business operation It also introduces the businessman to myriad of government assistance programs and lends money to people who might be considered heavier risks by chartered banks Anyone interested in starting business expanding their business or buying an ex isting business should come to us Geddes said The Barrie branch serves Simcoe County and Muskoka and Geddes said is out to raise the banks profile in Maple Ont just north of Toronto The lSOfoot Mountain of park In effect Geddes is resource himself for the small businessman He began with the bank three years ago in the loan depart ment There are many more people who need the services we offer than those who take advantage of them My job is to make them more aware of whats available he said The FBDB started in 1974 Before its for mation similar services were provided through the Industrial Development Bank Geddes said Were handling more enquiries now than ever before both because more people want the service and because more people know about us The bank is not competition for chartered banks and does not advertise the fact that it makes money available to businesses While Geddes said the F808 com pliments the services offered by banks the corporations literature says applicants must be unable to obtain financing elsewhere on reasonable terms and condi tions The bank also has case counselling pro gram in which 500 retired businessmen con sult for established or new businesses Ged des said series of oneday seminars are schedul ed throughout the county during the next three months with the first held in Alliston Thursday Weve got everything the businesman needs Geddes said small mountain will be in the centre of the park that is expected to open by the spring of l98 CP Photo must become more efficient When someone comes to him wanting to start corner store Dyment suggests buy out an existing one because there are already so provements for the Barrie business community and start selfhelp organization smal business people and those VWw wem um vvw 1981 In the past year alone com panies such as Rockwell Inter national and HayesDana Ltd have joined the ranks of exis tent corporate giants in Barrie such as Molsons Brewery On tario Ltd Canadian Tampax Corp General Tire and Radio Shack 840 MILLION INVESTMENT HayesDana alone will have invested about $40 million once current $25 million expansion is complete and could employ as many as 800 people within the next two years All of which indicates healthy picture of industrial development in Barrie so healthy in fact that we see ourselves as the major in dustrial area in Central On tario says Hollywood With an assessment mix of about 65 per cent residential and 35 per cent industrial Bar rie is not far off the desired 6040 split which is considered healthy base says Hollywood Barrie has done better than most he says but hasnt yet begun to tap the full potential for industrial development and has no intention of sitting around In terms of growth Barrie has committed itself to population of 125000 by the year 2010 Hollywood says which is predicted on industrial growth And given the right condi tions of national economy see nothing but prosperity for us he adds LAND SHORTAGE The major hitch to Barries plans for industrial develop ment right now however is shortage of available serviced land This is why the industrial commissions promotional ef forts are being kept low key says Hollywood There are about 180 acres of city and privatelyowned ser viced land available in Barrie located mostly in small parcels The city is now crowding its boundaries says Hollywood and the key to the problem lies in the successful annexation of about 15000 acres from lnnisfil Township Without this land Barrie in sense is marking time in terms of industrial development With it the city could locate its in ustry along the spine of Highway 400 key artery of transportation says Hollywood lnnisfil Township however is not prepared to give up the land without fight and pushed the issue before the Supreme Court of Canada this fall lnnisfil isnt quarelling about the fact that Barrie has to ex pand says Hollywood mallest of the large They accept it but their question is how fast and when Barries economic vitality and success is inevitably tied to that of lnnisfils says Hollywood as it is to neighbor ing townships such as Vespra and Oro and even municipalities further north such as Orillia and Midland As our strength grows it enhances the possibilities for them and vice versa Assuming annexation becomes reality and develop ment can forge ahead what kind of industry is planned for Barrie LIGHT MANUFACTURING Mostly light manufacturing says Hollywood compatible with the nature of the com munity itself Many people make the assumption that we are looking for the big Ford motor plant type but in many ways that can be an incredible problem Suddenly in twinkling of an eye you have to supply all the services for thousands of people The city wants happy blend in its industrial mix he says We want the big ones but cheek by jowl we want the smaller homegrown in dustries too And Barries track record in nurturing these types of small incubator industries has been tremendous says Hollywood by providing the type of buildings where they can get started without facing massive capital expenditures Primary industry such as steel mill is not part of the plan for development in Barrie says Hollywood not only because the physical location and en The new Mercedes 280 the smallest of the large Mercedes cars will be shown for the first time at the Frankfurt Auto Show which opens Thursday The use of light alloys in engine and car body different slope of hood windshield and radiator will provide better fuel economy No further technical details are available yet AP Photo Canadians fail to use base capital prOperly Canadians are not making good use of capital markets says Marcel Caron incoming president of the Canadian Institute of Chartered Ac countants We are concerned that there is not sufficient equity or base capital in public and private companies Caron of Man treal said Wednesday on the Steel makers expanding CGpOCHy THOROLD Ont CP Ca nadian steel makers are ex panding their capacity in view of possible world steel shortlt age by the mid19805 the presilt dent of Steel Co of Canada Ltd said Wednesday John Allan predicted an in creased domestic demand for steel as Canadas economic growth improves over the next five years provided there is no radical change in the con stitutional structure of our country and there are no wage and price controls While growth in annual au tomobile output will be modest there should be more capital spending on replacement and modernization needs in the auto industry he told Chamber of Commerce meeting in this Niagara Peninsula community Nonresidential construction is expected to be stronger and major stimulus Will be seen in energy development PREDICT SHORTAUE Allan noted that United States steel producers have been predicting steel shortage in the 19305 but none of them had the money to expand their operations in anticipation of shortage eve of the 79th annual confer ence of the institute Caron takes over his new post today succeeding John Adams of London Ont While 10 years ago 11 per cent was used for equity capi tal common or preferred shares only three per cent is used today and thats not suf ficient La lnstead company assets have grown faster than ex pected so that Were now off balance With an estimated $12 trillion needed to finance new projects in the next decade Canadians will have to raise moreequity Another look vironment arent suited but also because the raw materials and energy needed arent available Also surrounded by townships which have chosen to remain agricultural rather than pursue industry and situated on Lake Simcoeone of the provinces major recrea tion attractionsBarrie isnt about to jeopardize the surroun dings and uality of life which attract in ustry in the first place POLLUTION CONTROLS Hollywood says the city has laid down its ground rules on pollution standards and con lndustry key to growth trols and if industries cant con form to them we dont pursue the discussion any further But industry knows what the standards are and no one is under the illusion that it can dump its effluent holusbolus he says Industry are people and they want to live in an attrac tive environment too For example says Hollywood when General Tire relocated in Barrie from Toron to in 1973 management were worried about how many employees they would lose They lost two junior clerks he says xwo Tax advantage to baby bonus By RALPH ALEXANDER 943$ Dear Sir have just had baby and should be eligible to receive the family allowance payments wonder how go about apply ing how much the payments are and whether they go to me or my husband MJ Dear You can obtain the necessary application form from your hospital or failing that from the Ontario Family Allowance Office at Forrester House 789 Don Mills Road Don Mills M3C 1T5 If your baby was born in Canada you do not need to pro vide proof of birth with your application form as all births in Canada must be registerd with the provincial authorities If both you and your husband have social insurance numbers they should be entered on the application form in the spaces provided The parent who intends to claim an in come tax exemption for child must provide his or her social insurance number 520 PAYMENT At present the monthly payment is $2000 This payment will begin in the month following the month of the childs birth These payments will continue as long as you maintain the child or until the child reaches 18 dies or you cease to be Canadian citizen The Family Allowance is paid to the female parent whenever possible The family allowance payments will be taxable income to the person who claims an exemption for the child for income tax purposes As the exemption for child at about $500 exceeds the $240 of family allowance payments it will usually be most advantageous to have the parent with the higher taxable income claim the exemption for the child Some parents consider the Family Allowance payments to be found money and wish to set it aside for the child If you wish to do this you should be aware of little known income tax advantage to doing this INVEST MONEY Generally speaking if parent gives money to minor child to invest the income earned on that investment is at tributed as taxable income to the donor This is to prevent the parent from splitting his taxable income with the children to take advantage of the childs lower or nil in come tax bracket However in deliberate attempt to en courage parents to save the Family Allowance payments for their children the attribution rules are not applied to in terest earned on Family Allowance payments if invested in the name of the child What this means is that if you deposit the $20 into bank account for you child each month the in terest earned will be considered taxable income of the child While $20 month may sound insignificant at per cent in terest the account would accumulate to almost $9000 by your childs 18th birthday Offer certificates MONTREAL CP The Bank of Montreal will offer new mediumterm investment certificate effective Sept 17 The guaranteed certificates are to be issued by Bank of Montreal subsidiary First Canadian Investments Ltd in amounts of $5000 or more for terms of one to five years the bank said Wednesday Interest rates will vary between 1034 per cent and 114 per cent over the fiveyear period and will be transferrable but not redeemable prior to maturity Job profit program planned for Britain By DOUGLAS GREENWOOD ENGLAND Sweeping new laws to create special boom areas to generate jobs and profits in Britains derelict in dustrial sites are to be pushed ahead in England The UK government under Prime Minister Margaret Thatcher wants to implant in the nowwasted areas of Britain the sort of riproaring freedom from interference that has created boom conditions in Hong Kong Newspapers here report that priority has been ordered for legislation to cut the red tape and bring in tax concessions plus exemption from planning holdups for firms willing to have go in the Enterprise Zones In complete contrast to existing development areas no government grants are in volved The basic ideas about how the new zones will be turned in to employment and prosperityvpromoting boom areas are Detailed planning controls to go Buildings would need to comply only with minimum health safety and antipollution standards The effects of the Community Land Act to be reversed and public authorities to be required to sell off land by auc tion in the open market with new developments free from rent control Entrepreneurs moving in will be exempted from Develop ment Land Tax and perhaps also from local taxes New businesses will be guaranteed that tax laws on invest ment and depreciation will not be changed to their disad vantage Price controls and pay policy will not operate within the Enterprise Zones Other measures that could be declared in applicable include aspects of the Employment Protection Act All of these conditions to be guaranteed for stated number of years The zones as the government sees it would have to be run by new kind of local authority with some of the attributes of the New Town corporations But their purpose would be to create theright kind of en couragement and conditions for enterprise and then to let the firms attracted get on with it The blueprint will involve lot of work for Whitehall civilservrce departments because so many existing laws are affected apart from existing powers But the intention is to make start on presenting the legislation to parliament as soon as possible in the new year and to have the boom areas operative well within the lifetime of the present Tory government All this of course may have already been fully reported in Canada have no way of knowing But what should be pointed out is that these freedom zones are considered to be merely the beginning of total letup on government in terference in business in England by the present govern ment Eventually it is considered the entire country will be relieved of the scourge of government control that has been afflicting not only England but most western countries with their leftleaning philosophies It is even expected that pre sent union strangleholds on business will be effectively removed by Mrs Thatchers coming legislation Secret voting will be made mandatory before strike action can be taken Secondary picketing where plants can be closed even though they are not connected with the major strike will be disallowed Compulsory union membership will also be done away with The unions of course are making loud noises But it is considered that that is all it is bluster For the people of England have had it up to the eyeballs with strikes And even the wives of the union members are picketing now for their husbands to be allowed to return to work Ihings certainly do seem to be achanging in England under the new Conservative government Maybe Joe Clark could take look at whats being planned here and do the same for Canada