6 - Friday, February 17, 1984 - North Shore News

El editorial page

Buses in bad odor

. ancouver Mayor Mike Har- court says the Lower

Mainland bus system ‘‘stinks’’ at the present time. Strong words, but not without cause.

Up to 90 of the new Flyer trolley buses are still grounded each day with short-circuiting problems. Members of the Office and Technical Employees Union — without a con- tract for almost 11 months — are calling for a full-scale strike against the operating company. Meanwhile, the B.C. Transit Authority plans to hike the current 75¢ bus fares on April 1 by amounts varying from 10¢ to 50¢.

North Van commuters are already sharing with their neighbors over town the lengthy delays due to mech- anical troubles, and now the threat

McCarthy, of a complete shutdown. After April

Victoria.

Teed. VOECE OF NAQSTT 3A AJED WEST VASECOUWER

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1 they’ll be hit even harder because of the zone structure of the new fare tariffs — which increases the rush- hour fare to Vancouver to $1. On top of all this, a number of North Van bus routes are to be cut.

Since the provincial agency exer- cises total control of the system, the blame for the whole mess lies square- ly with Victoria. Until it’s cleaned up, mo fare hikes should be imple- mented. Vancouver and North Van City councils have already sent that strong message to the transit czars but, as so often before, Victoria may ignore them.

If North Van commuter-voters want fair value for their transit dollars, they should add their indivi- dual voices to the protest, loud and clear. The address is: Hon. Grace

Parliament Buildings,

Australian wages too high

By HERBERT G. GRUBEL

N AN INTERVIEW I recently on Australian

TV, Prime Minister Margaret Thatcher was ask- ed, ‘‘What would you most like to change in the govern- ment?’’ She replied: ‘*Get md of economic advisers.’’

1 can see what had made Mrs. Thatcher say this.Onthe morning of the previous day she had a session with her political advisers who arous- ed her enthusiasm for new government programs that promised to do much good and ensure the re-election of her party. In the afternoon she met with her economic advisers. They presented hard facts showing the coun- try could not afford these new programs. She had to withdraw her support of them

Politicians know the value of everything and the price of nothing. Economists are dis- liked as the messengers who bring the bad news about the

price.

Discussions with Austra- lian economists have revealed that the country is suffering from the same basic malady as Canada. Wages are too high. As a result, unemploy- ment rates are expected to re- main high in spite of an eco- nomic recovery that is gain- ing momentum.

Australia’s unemployment problem is even worse than that of Canada. In 1974 Austrahan unemployment reached a new high of 2.6 per cent after it had been below 2 per cent since the end of the war. In September 1983, un- employment reached a peak of 10.2 per cent. In turbulent years the unemployment rate has risen by 400 per cent. In Canada during the same period it had only doubled.

Both Canada and Austra- ha are major exporters of natural resources. Both suf- fered from the recent world wide recession, which lowered the prices and de mand for these materials Such recessions and. cycles

have happened before, but were considered to be un- avoidable, like the laws of nature.

According to Austrahan economists, what makes this cyclical episode different is not only its extraordinary magnitude, but also the events that preceded it.

During the post-war years the power of organized labor and the willingness of gov- ernment to manage the economy have increased greatly. In 1979-80 a natural resource boom developed and was anticipated to grow and last for a long time. These expectations led to demands for higher wages in anticipation of increased rents from the natural resources. The demands were met.

Of course, as we know now, the resource boom was small and short-lived. But wage rates are too high for the new conditions.

The traditional methods for lowering wages in real terms without outright con

frontation with the unions cannot be used anymore. De- valuation of the exchange rate raises the prices of trad- ed goods and therefore infla- tion. The widespread indexing of wages, however, prevents a fall in real wage rates through this inflation.

Given the country’s capital stock, which can be increased only gradually, the producti- vity of the least skilled, especially young workers, is lower than the pay unions have obtained for them. Therefore they are, and will remain, unemployed.

Australian economists en- counter the same response | was given in Canada to a similar analysis. The more or less open message by labor leaders and politicians echoes Mrs. Thatcher: ‘‘Go away, we don’t want to know.” Un- fortunately for the enem- ployed the consequences of not heeding the message will remain.

(Dr Grubel of SFU ts pre: sently a visiting professor in Australia.)

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Crack down on foreign freeloaders

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| ‘Hypocrisy’ unfounded | ‘6000%' tax hike

Dear fb ditor

! Lake

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KRauluis in the News € Re

youts nuclear hypocrisy

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wake up' thousand

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Treat

Howard Shaw

West Niancoouver

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trove the worater of a better in

the Pet) 22 Suimday News

Conmrepybanarstenge, aa boenunt deoges

Dear } dito

fam sure West Vancouver Council did mtend to taise the taxes paid by some

hot

semor ocalizens by almost 6O000% But that iss cxactly what thei decmion to

separately bill houscholders

fifty mine dollars a vear for waste disposal has achieved

There are a number of homeowners on thre mumcipablity whol when they apply the age 6S) deduction and the home owners grant to ther tax bill) end up paving the maniasum tan allowed of one dollar Also a number of scntor cilizens have taken asl

vantage of the tax deferral

on Deoteruk The letters Cane from KID Potoe ah

apparently

Robinson of wha my uoknowe to his namesake alo the

sy exe §

other end of the

ruling which allows them to defer taxes until such tune as ther homes are sold

If, as they say. the ovcrall costs for these services have not changed, pust the method of collection, then | suggest to be equitable, an cxaception be made for fall

calcpories

those seniors

who under the above

lan Acthur West Vancouver

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