Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 20, 1983, Winnipeg, Manitoba 1 3 Winnipeg free april 1983 budget 83 development decision at least a month rl7 a troll Stimac no Tnp tar up of or Grammont u by Fred Youngs any decision to inject Federal Money into a proposed multimillion Dollar development in downtown Winnipeg is at least a month employment min ister Lloyd Axworthy said last As the minister said there is no plan for a massive development North of Portage Avenue Between Colony and Edmonton despite a floors of such a he said there a num Ber of other proposals being considered by the three Levels of no decision was Axworthy said in an interview from any Story like that is purely propos i expect any decision to be made for three or four said who will be in Winnipeg Friday Foft Alks with the province and City on Core the rumoured scheme for North Portage would include a million development incorporating a new Csc building and a National re rate sector emphasis wins Lalonde mends by Chris Smith Marc the Man vilified As the architect of a nationalist Energy won some friends in the business world last but while business spokesmen said they Felt Lalonde first budget was right for the economic they warned they will be closely watching his Job creation measures and the ballooning Federal the finance minister Drew Praise for budget measures to create jobs through Federal mainly in the ailing construction while House builders get break by Chris Smith House builders can look to the future again with a budget provision liberalizing the use of registered Home owner ship savings a on month Extension of a Grant to new Home buyers will cover local builders who overbuilt to meet the previous april 30 Hosp contributions Are limited to a but the new provisions allow plan holders to deduct from their taxable income any amount needed to bring contributions to that is an unprecedented tax incan said Brian Hastings of the Mani Toba Home builders the Hosp change will drive a lot of people out of apartments and into new said University of Manitoba economist Norm the tax savings from the deduction could amount to another to he the change applies to those buying newly constructed houses and associated furnishings before people will also be allowed a tax free withdrawal of All or part of an Hosp to buy new Home furnishings or appliances before the end of this Ottawa was concerned about the amount of Money sitting in and the new provision is an incentive to get people to use that said Al of the certified general accountants association of the Hope for increase in housing construction will create More demand for mortgage Money and could raise interest he finance minister Marc Lavonde also announced that million More will be allocated to the Canadian Home ownership stimulation which should allow it to continue close to the end of the program offers Grants to buyers of new Hastings said the Extension will cover houses started to meet the april 30 deadline for footings to be in the but for which there May not have been enough funds for it Means builders can continue to Start knowing the Grants will be available to Spur he the association had been hoping for an Extension of the Grant program of longer than one month to get builders Over the usually wet he offering the private sector an incentive package to create longer term it was the recognition that the Pri vate sector is the one to create lasting jobs that Drew the most and from Winnipeg chamber of Commerce president Lloyd Mcginnis called it a Good recovery budget and said it is appropriate for the nation Aid to mainly in the form of tax credits and investment will help create new jobs and new he Al Brackman of the certified Gener Al accountants association of Manitoba said the budget will have the stimulative effect the government if it had been instituted in no we be in the economic shape we Are in Brackman the Economy has been screaming for Job creation for a couple of the projection of jobs by the end of 1984 is fairly said University of Manitoba economist Norm while the unemployment rate is expected to drop Only one per cent to per cent by the end of next it will be much easier to get a Job Cameron proposals for an indexed Security investment which would exempt from tax the inflationary portion of capital gains on publicly traded com Mon shares in Canadian is useful and should have been instituted 10 years Cameron but Lalonde forecast of rapid re covery of real economic growth in 1984 is faster than the econ omy can he the Only Way to get he is with higher volumes of exports or a Large increase in dont Estic but the Federal deficit of billion will still be Cameron Back where it started unless taxes Are raised or spending slashed in 1985 or High interest rates will be the order of the Day again and the Economy will be right Back where it started in the Short term spends Quicias Youcan program is not Well thought said Al chairman of the Manitoba Branch of the investment dealers association of any Short term jobs Only last As Long As it takes to spend the he and the increased spending Only raises the deficit the Money is not Well he and wont give people the Job training they Mclaughlin said the tax measures to Spur investment in business Are More attractive than the Best part of the he was the plan to allow companies to pass through unused tax credits to buyers of new share Mclaughlin said that is a Good especially for Small and me Diu sized Mcginnis said the chamber was concerned budget measures would Over stimulate the Economy and feels la Londe is Overly optimistic about the rate of but what the finance minister chose to do is he Barbara Morrison of the Canadian federation of Independent business said she is Happy for the first time after a Federal this one has the potential to create a climate of which is what its All she doubling of duty free limit delights Border towns a decision to double the limit on the value of goods Canadian tourists can bring Back into Canada duty free has drawn rave reviews from officials in a number of towns frequented by Manitoba grand Forks mayor Bud Wessman said he was delighted by the unveiled last night in Federal finance minister Marc la Londes budget in a Surprise Lalonde announced the quarterly tourist exemption will be bumped from to and the annual exemption will increase from to 300 effective no doubt about this will have a positive Wessman said in a Telephone i dont know what the impetus but to Rne its a Good but Wessman said he would like to see Canada and the reach parity on the amount of duty free goods tourists can bring citizens still have Edge in the amount they can bring he in announcing the Lalonde denounced pressures for protectionism As shortsighted and counter product it is in Canadas Best interest to maintain an open trading system subject to International he Fargo mayor Jon Lindgren said Rais ing the limit was a refreshing change from its indicative Tif an enlightened Lindgren joked that doubling the limit wont turn the Economy but we appreciate Stan president of the thief River chamber of com said the move will have a positive Impact on search Council building on the old Pauls College a an parking an arts at least one major a new Myca building and a residential about jobs would be a Well placed source told the free press last week that both the Csc and the National research Council build Ings were being considered for the Pauls site and everybody just hold ing Back because of the other government sources cautioned at the time that any discus Sion of a development was premature As talks were still under mayor Bill Norrie last night Dis missed reports the development had been decided upon As he added there is probably some truth to speculation the cites Core would Benefit from a Federal budget initiative to invest in capital projects As a Way of stimulating the Economy and creating finance minister Marc Lalonde announced a special recovery package in his budget last fifty per cent of the Money is for about 100 capital projects across when asked what was giving Rise to persistent reports that a development was in the Axworthy said he suspected they were coming from somebody at City i prefer to do things in an orderly Way and not simply make propos als that Haven been considered and worked Axworthy said participation from the province and City would be one of the says one of the key consider Axworthy said he had held general discussions with provincial and Federal officials on How Winnipeg might use capital spending in the Federal but All we could do is take a look at what some of the options would everything was on hold until the budget was brought Ive got to spend some More time talking with other people before a decision is he adding there have been lots of ideas and lots of proposals for the Federal and provincial tax changes for typical in 1 983 and 1 984 As a result of budget income 1983 tax change 1984 tax no i in 1 two under 4 pref the tax otherwise payable in these brackets is the Impact at this income level is due to maintaining the threshold income level for the child tax credit at typical taxpayers with lower incomes shown in the table Are not affected by this typical taxpayers with incomes of or above in 1983 Are also not affected As they were not receiving child tax credit Rich will poor people say Al Al spokesmen for Low income groups rap guaranteed income for wealthy by Paul Gessell the Canadian press Ottawa the poor will Benefit marginally from some proposals to revamp personal income tax Deduc but the budget yesterday will do More to help the say leaders of groups representing poor Terry Hunsley of the Canadian coun cil on social development and Patrick Johnston of the National Antipoverty said portions of the Bud get read like a guaranteed annual income for those wealthy enough to play Money there was Little Aid for the country poor and too few jobs created for the million the two Public works projects announced in the budget will create jobs for unemployed construction workers but other jobless people will be left to continue collecting unemployment insurance or Johnston under proposals to change several existing deductions on the income tax a married person with two Chil Dren earning annually will see his or her annual income tax Bill drop by this year and next this represents annual reductions of jobless workers see Little Joy ahead by Greg Bannister Manitoba unemployed will not jump for Joy Over finance minister Marc Lalonde budget if unemployed Winnipeg electrician Orest Lysak is any measure of general i see nothing in what Lalonde has said that will get me Back to said who has been out of work for 16 months and is no longer eligible for Pic Mere one per cent there might be More jobs in 1984 than there were in but unemployment is Only going to drop a Mere one per he i dont see anything in it that is going to bring about real changes in married with two is just finishing a manpower upgrading in looking for anything in the Way of a Job right his comments were echoed by Gary another unemployed it looks like there might be jobs for a few thousand people out of but weve got million out of work in this said the father of who has been out of work eight i dont see How it can help in about to run out of Pic benefits in a couple of weeks and my wife is Home on maternity we bring in just enough to get by on trained As a bricklayer in said he thought the government should have stressed Perma nent the budget will create jobs for the summer so people can qualify again for Pic and Ottawa thinks that will make the unemployed but its not nobody wants to be Manitoba labor leaders generally applauded the Job creation aspects of the but expressed suspicion Over tax credits and other concessions made to its a drastic improvement Over the last two budgets in that it is expansion said Dick Martin president of the Manitoba federation of in not very with the Large tax Breaks to especially to mining and Oil Martin said he opposed that Sec Tion of the budget because the mining and Oil sectors traditionally Are not labor intensive and do not create Many jobs compared with he said he also was unhappy there were no requirements imposed on the private sector to guarantee jobs in return for tax Martin also voiced concern about the budget provisions calling for lower Tariff rates on imports from developing he said this could kill Cana Dian industries such As the garment Trade which is hard pressed now by imports from maximum benefits Pat regional Vic president of the Canadian association of Indus mechanical and Allied said he was very disappointed there was no Relief for the i really expected them to increase the maximum amount of payments or the maximum amount of time people can collect he like Mcevoy applauded moves to stimulate the construction Industry and the Home building Indus but said he feels it will Only make a Dent in the per cent and per cent its not a hell of a Johnston should that same person earn the tax bite will increase by this year and next year in creases of and per Middle and High income families can Benefit from a new pro Gram to encourage individual invest ment in the Stock Market and More generous provisions for registered Home ownership savings plan Contri both schemes require an accumulation of capital which the poor obviously do not All whether Rich or will be hit by a increase on tobacco and alcohol sales taxes beginning As Consumers could suffer from a six percent sales tax levied on Cable and pay television everyone earning enough to file taxes will lose the Standard Deduc Tion for medical expenses and Charita ble donations next claims can be made with finance minister Marc Lalonde claimed in his budget speech the Volun tary sector had requested this saying it would encourage donations to charitable organizations offering tax but Andrew a spokesman for National voluntary said his group is opposed to the the poor will Benefit from an in crease to 20 per cent from three per cent in the employment expense de the maximum deduction will remain at helping Only those earning less than childcare deduction a Standard tax reduction available to everyone will be decreased to in 1985 and in 1986 and starting in the reduction will be gradually eliminated for taxpayers earning the annual childcare expense deduction of up to a child will be increased to a maximum of this the total claim per family will increase to from this proposal is a sop to the Middle Johnston Many poor such As single cannot afford to Send their children to daycare centres will not the child tax which was in 1982 and was to drop to in will remain at the net Benefit is Johnston the income above which he child tax credit is reduced by five cents for every additional Dollar of family will be held at the 1982 level of for the threshold level in creased with new Cable to tax to go right on Cable to subscribers can expect monthly fees to Rise following the introduction of a six percent tax on Cable programming in last nights fed eral my that rather Hugh president of greater Winnipeg Cablevision said last night when told of the tax that adds it right on to the custom ers he Comack said the which takes effect july 1 and will cover charges for Cable to pay to and movies shown on hotel to will add about 35 cents to a subscribers Basic monthly Bill of and about to the Bills of pay to i imagine there will be quite an Adverse reaction from the Cable Indus try and from Comack noting subscribers already pay a six percent provincial the Industry is going to carry quite a he adding the tax will take a big bite of Cable operators he said it was too Early to say if it would scare away potential though any tax creates an Adverse Lalonde said the tax will help finance expenditures associated with the new Federal broadcasting policy recently introduced by communications minis Ter Francis Comack said he was caught flatfoot de by the tax because he didst expect the government to use direct taxation to raise funds for the Canad an broadcasting i guess its quite a Surprise because i didst expect it at this Jack general manager of Videon Cable refused comment on the saying he Hast had a Chance to examine the pertinent Section of the Videon has about Homes in its licence area on the West Side of the red while greater Winnipeg Cable has about Homes in its licence area on the East Side of the 1 ;