Farmers for economic freedom

Updates from the Prairie Centre Policy Institute from Regina, Saskatchewan.

Hot off the press! Don Baron's Jailhouse Justice and
Canada's Great Grain Robbery
are now available at
http://www.ajagra.com/authors_comment/baron/baron.htm

web posted September 22, 2003

Saskatchewan needs a larger private sector

By Ken Ziegler

In an Action Saskatchewan newspaper feature put out by the Saskatchewan Chamber of Commerce, communications consultant Paul Martin makes a compelling argument for growing Saskatchewan’s private sector. 

Saskatchewan Taxpayer Base 1996                                    

Population                                          1,000,000      100%

Total Tax filers                                      685,120         68%

Non Taxable                                         215,160         21%

Total Taxpayers                                 469,920         47%

 

Benefits exceed Tax Paid                   227,530         23%

Government Employees                      106,095         10%

Net Tax Contributors                       136,295         13%

                                                                                               

The article points out that only 136,000 taxpayers put more money into the government treasury than they take out. In other words the province has a small private sector and is highly dependent on a small percentage (13%) of the population for its social programs. He says, “This explains why Saskatchewan, even with higher personal tax rates than Alberta, can only squeeze only one-third of its government revenues from personal taxes while next door they get 51 percent.”

“Obviously Alberta enjoys the benefit of oil royalty income but, at just over half the government’s revenue stream, personal income tax is even more significant to the government, enabling Alberta to spend more on government services per capita than Saskatchewan,” states Martin. 

Martin also points out that we have lots of kids and lots of seniors, but we have a shortage of those “working age folks” who pay for social programs. And, we are just beginning to feel the effect of an aging baby boomer generation. Projections suggest the number of wealth creators (the one-in-seven who contribute more to the treasury than they take out) could shrink to less than 60,000 over the next twenty years if nothing changes. The problem, of course, is that all those wealth generators can leave Saskatchewan for places that are more business friendly - and there will be no one left to pay for social programs. 

In the article he quotes Fred Smith, a financial planner and former Chamber president, “I think the numbers are pretty scary. I think they demonstrate how dependent citizens of Saskatchewan are on people who create wealth. If I were a public worker, I’d be very concerned about my position. If I’m a teacher, I’m not going to get paid unless there’s wealth created out there.”

“There weren’t social programs 100 years ago. The only reason we have this many public servants is because there has been enough wealth creators – particularly in Alberta and Ontario. The only reason Saskatchewan can afford to pay its civil servants is because we get equalization from Alberta and Ontario. So, if we want better health and education, we have to have more wealth creators because that’s who pays for it,” Smith continues.

According to Martin, the Alberta government generates over 10% of its revenues from corporate income taxes, and Ontario gets about 20%. Saskatchewan, by contrast, hovers around 5%. “In other words, our private sector is less than half the size of Alberta’s in relative terms and a quarter of Ontario’s,” he states.

Martin goes on to suggest that the growing dependency ratio was the driving force behind moves in the past four years to lower personal income tax rates in Saskatchewan, to reduce the urge to move, and to build a stronger private sector base here. 

“The need to create, retain or attract a new wave of wealth generators in Saskatchewan is clear if, – and that’s the key, - if we believe in things like social programs”, Martin concludes.

Ken Ziegler is a lawyer with Robertson Stromberg in Saskatoon, and President of the Prairie Centre Policy Institute.

web posted September 8, 2003

What you see is what you'll get!

By Ken Ziegler

On Tuesday Saskatchewan Premier Lorne Calvert unveiled the New Democratic Party's (NDP) "new vision" for the Province's Crown corporations – vowing to protect them at any cost. In their vision, they see the lowest utility rates in the country, outside scrutiny of government investments, and greater accountability to the public. Mr. Calvert then goes on to describe any public policy that limits government involvement in the economy as "extreme and ideologically driven".

Let's be very clear that the New Democrat's 21st century vision is neither new nor visionary. It's more like a recurring nightmare that has plagued the prairie region for over sixty years.

What makes the current situation really nightmarish is the fact that Saskatchewan has a 12 billion dollar debt, billions more in unfunded pension liabilities, and pays out $760 million annually in interest, and the NDP government thinks the $18 million it gets from Crown corporation profits is a good deal. I'm sorry, but your young people are leaving, your infrastructure is crumbling, your agriculture sector is lagging, your rural communities are in decline, your taxpayer base is shrinking, and you want to hang on to outdated dogma that is proven to be ineffective in creating wealth. Now, that sounds like "extreme and ideologically driven" economic policy.

The following excerpts from the Regina Manifesto, adopted by the CCF (the forerunner of the NDP) at their First National Convention in 1933, suggest there is nothing new or visionary in the NDP's current policies. In fact, with a few minor changes it could easily be mistaken for the Saskatchewan of today.

We (the CCF) aim to replace the present capitalist system by a social order in which economic planning will supersede unregulated private enterprise and competition.

The present order is marked by glaring inequalities of wealth and opportunity, by chaotic waste and instability; and in an age of plenty it condemns the great mass of the people to poverty and insecurity. Power has become more and more concentrated into the hands of a small irresponsible minority and to their predatory interests the majority are habitually sacrificed.

We believe that these evils can be removed only in a planned and socialized economy in which our natural resources and principal means of production and distribution are owned, controlled and operated by the people. Only by such public ownership, operated on a planned economy, can our main industries be saved from the wasteful competition of the ruinous overdevelopment and over-capitalization which are the inevitable outcome of capitalism.

The management of publicly owned enterprises will be vested in boards who will be appointed for their competence in the industry and will conduct each particular enterprise on efficient economic lines. The machinery of management may well vary from industry to industry, but the rigidity of Civil Service rules should be avoided and likewise the evils of the patronage system as exemplified in so many departments of the Government today.

Workers in these public industries must be free to organize in trade unions and must be given the right to participate in the management of the industry.

According to economist Dr. Graham Parsons, the scope and approach to the provision of public services in Saskatchewan hasn't changed much in the past fifty years. The size of government, however, has steadily grown and delivery through the state is nearly always the first preference. He contends that new models are required to support the provincial requirement for wealth creation and growth.

The point is - Socialism is an ideology that doesn't work. And the NDP are wrong to think that they can fix it. If Saskatchewan continues down the same rough and deteriorating road, nothing will change. You will not see your children come home. You will not see any growth in your economy. And you will not see improvements in your health care, your education system or your quality of life. What you see now is what you'll get.

Ken Ziegler is a lawyer with Robertson Stromberg in Saskatoon, and President of the Prairie Centre Policy Institute.

Prairie Centre Policy Institute
#205, 1055 Park Street
Regina, SK
S4N 5H4

Phone: 306-352-3828
Fax: 306-352-5833
Web site: http://www.prairiecentre.org
Email: prairie.centre@sk.sympatico.ca


The CFEN and CFFJ need your help! The battle against the Canada Wheat Board can only continue with your support.

Canadian Farm Enterprise Network
Box 521
Central Butte, Saskatchewan
S0H 0T0
CANADA
Canadian Farmers for Justice
c/o Ron Duffy
R.R. #4
Lacombe, Alberta
T0C 1S0
http://www.farmersforjustice.com/

Write the following and demand free market rights for Western Canadian farmers!

The Canadian Wheat Board
423 Main Street
P.O. Box 816, Stn. M.
Winnipeg, MB
Canada
R3C 2P5

Telephone: (204) 983-0239 / 1-800-ASK-4-CWB
Fax: (204) 983-3841

Email Address: cwb@cwb.ca

Ralph Goodale
Minister Responsible for the Canada Wheat Board
Department of Natural Resources Canada
21 - 580 Booth Street
Ottawa, ON
Canada
K1A 0E4

Telephone: (613)996-2007
Fax Number: (613)996-4516
Email Address: rgoodale@NRCan.gc.ca

 

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