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Town
facing 31.74 percent levy increase
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by Neil Zacharjewicz
NORTHEASTERN MANITOULIN AND THE ISLANDS
- The Town of Northeastern Manitoulin and the Islands is planning
to host a public meeting to receive input on a proposed budget
which will feature a large tax increase. Presently, the town
is faced with a budget which would see a 31.74 percent increase
in its combined levy. The proposed budget would see a 40.03
percent increase in the levy for Ward One, a 17.33 percent increase
in the levy for Ward Two, and a 14.52 percent increase in the
levy for Wards Three and Four. At a meeting of council to deal
with the budget, held on September 10 in the council chambers
in Sheguiandah, Clerk - Treasurer Ned Martin explained last
year council chose to put a $279,000 surplus, which was one-time
funding, toward decreasing taxes, instead of putting the money
away for future expenses. Now, in order to balance its budget,
council has to raise $279,000 more than it otherwise would have
to balance its budget. "This is the significant root of the
problem you are facing today," he suggested. "It was like the
last apple on the tree." If council had put the $279,000 aside
for this year's budget, the Ward One levy would have been 21
percent, the Ward Two levy would have been 8.7 percent, and
the levy for Wards Three and Four would have been 4.8 percent.
Councillor Marcel Gauthier pointed out the prior council had
chosen to reduce taxes in what was an election year. "Now, it
has backfired on us," he stated. "Last year is done. We need
to look at what we can do this year," suggested Councillor Bill
Koehler. Making things difficult is that council has a number
of budget items tied to grant funding, which means if council
were to reduce these items, the funding would no longer apply.
As well, there are a number of new items which council has had
to budget for, including rent, an expansion to the library,
an additional crossing guard, landfill development and closure,
the Community Development Corporation (CDC), and the hydro line
relocation which the town is contractually obligated to fulfill.
"There is not a whole lot of wiggle room," Mr. Martin explained.
While council has done a good job of preparing for the costs
it can control, by putting money aside for projects and anticipated
costs, there are a number of items which council has no control
over the costs for, such as the District Social Services Administration
Board (DSSAB), the Sudbury and District Health Unit (SDHU),
the Ontario Property Assessment Corporation (OPAC), the Centennial
Manor, the Manitoulin Planning Board, land ambulance and policing
costs. The municipality also has little control over the assistance
it will receive to pay for these services. Mr. Martin pointed
out DSSAB costs have risen because not only has the DSSAB voted
to increase its budget by 10 percent, but it also has moved
from the one-third caseload, one-third weighted assessment,
one-third population funding formula, which the town initially
benefited from, to a strictly weighted assessment formula which
now costs the municipality more. "The DSSAB makes up its budget,
sends us its requisition, and we have to pay it," he said. Mayor
Ken Ferguson pointed out a number of members of council were
approached by a taxpayer who has experience in dealing with
budgets for the City of Sudbury, who has a suggestion to offer
relief through forward financing. This proposal would see the
municipality list its Community Reinvestment Funding (CRF),
which the town receives from the province based on the costs
of the prior year, as a receivable in its budget. However, he
pointed out there is a risk. If funding is not as high as the
prior year, the municipality would have to make up the costs
somehow. Councillor Al MacNevin suggested this would be an interesting
way of dealing with the problem, but it would only solve the
situation for one year. "We would have to catch up somewhere,"
he noted. "I do not think that is a wise way to go," stated
Councillor Jim Stringer. He said the town already knows it has
huge costs coming for its landfill site, and if the province
were to reduce funding, the municipality would be faced with
a real problem. "No one enjoys having to increase our taxes,
but we could find ourselves in a worse situation," he added.
"I think this gentleman should have an opportunity to show us
how he can save us some money," Mr. Koehler suggested. It was
proposed the individual could raise his suggestions during the
public meeting. "I am willing to listen to what this person
has to say," said Mr. MacNevin. However, he cautioned, "This
is not a meeting for this gentleman. This is a meeting for the
general public." Mr. Ferguson noted part of what the individual
is proposing would see council return the budgets to the department
heads, tell them to cut further, and then explain to council
the effect the cuts would have on operations. "This is not a
budget. Our budget should have been struck in the early part
of the year," stated Councillor Carl Ziegler. Instead, he suggested
the departments are allowed to spend money like there is "a
bottomless pit," and then council attempts to work a budget
around what they have spent. Mr. Stringer indicated the department
heads do what they have done for a number of years, and are
mindful of costs. "For you to keep perpetuating this thought
at this table is insulting to our staff," he stated. Mr. Ziegler
questioned whether council had to recoup all of the $279,000
this year, but Mr. Martin pointed out the province does not
allow municipalities to budget for a deficit. A suggestion was
put forward by Mr. Stringer to have the costs related to engineering
studies of the water treatment plants removed from the budget,
and placed upon only the users who use the system. Several members
of council expressed concern that many of those who are not
on the system still use the water by filling jugs and tanks
when they are in town. No action was taken by council on the
suggestion. The public meeting is scheduled for Friday, September
14 at the Little Current - Howland Recreation Centre, beginning
at 7 pm.
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Prices
up and sales solid at annual fall cattle sale
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by Michael Erskine
LITTLE CURRENT---The lowing of cattle and
the staccato bark of auctioneer Phil Burnford of Kagawong rang
out at the Manitoulin Livestock Co-operative sales barn in Little
Current once again this past Friday, as the Co-op's Annual Fall
Cattle sale got into full swing. "Prices were excellent, the
best that we have seen in years," said Manitoulin Livestock
Co-Operative Manager Mike Stevens. "It was a good day, with
many buyers in attendance. Most of the farmers appeared to be
very happy with the sale prices." Farmers from across the province
came to the sale, seeking to sell or buy stock to fill out their
herds, or, as many farmers indicated when approached by the
Expositor, 'just to get a feel for how the market is going.'
The total value of the sale was "well in excess of $1 million,"
said Mr. Stevens. Although some farmers indicated that the prices
were higher than they had seen at sales in the south, the key
was often in the weight class the cattle were being sold in.
One local farmer said that he had taken his cattle to market
in the south earlier in August, as his pastures had been hard
hit by the lack of mid-summer rainfall, and he said he felt
that in their weight class they did better than they would have
locally. Some buyers, looking for cheaper prices, went away
empty-handed despite travelling for many miles to look over
the Manitoulin offerings. "Prices were too high," said one farmer
from Renfrew, south of North Bay, a comment echoed by a gentleman
from the Bruce Grey area, but it was a sentiment not shared
by farmers who were selling their stock. Asked to comment on
how the prices were this year selling farmers invariably said,
"good." The sale moved 1,067 head in total; 166 steers over
1,000 pounds averaged at 120.72 with a high of 132.00; 218 steers
in the 800 to 999 pound range sold at 129.43 average with a
high of 147.50; 176 steers in the 600 to 799 pound range sold
for an average 146.50 with a high of 161.50; 24 steers 400 to
599 pounds averaged out at 146.71 with a high of 173.00. There
were 27 heifers over 1,000 pounds which went for an average
of 121.75 and a high of 121.75, 134 heifers in the 800 to 999
pound range which went at an average of 121.95 for a high of
136.00, 232 heifers went in the 600 to 799 range, averaging
out at 132.57 with a high at 143.50 and 46 heifers that averaged
out at 155.05 with a high of 161.00. Retired Co-Op manager Hugh
Moggy was on hand to help out with the sale, cattle cane in
hand and noting the bids for Mr. Burnford. "Yes, prices seem
to be pretty good," he said with a smile.
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Softwood
lumber dispute hits First Nations operators hard
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by Michael
Erskine
MANITOULIN---The forests and timber stands around Manitoulin
are largely silent these days as small skidder and lumber truck
operators have been particularly hard hit by the recent softwood
lumber dispute with the US. From large scale operations such
as Domtar Forest Products to the tiny one-man independent skidder
operations, the repercussions of a dispute centred largely in
the West have been particularly severe. "For the small operators
it will be particularly bad," said Gary Eshkawkogan of the Eshkawkogan
Timber Company in Wikwemikong. "Especially for aboriginal operators,
I know a number of people who are losing their skidders or trucks."
"It is very frustrating for a young person who is just starting
out in the industry," said Mr. Eshkawkogan, "to be hit with
the fallout from a political problem that they really have nothing
to do with." In the short term the Eshkawkogan Timber Company
is concentrating on reforestation contracts. "We are heading
out today with 30 men for reforestation," said Mr. Eshkawkogan.
"From our perspective it has really impacted our operations
hard because we are trying to get something going for training
for our workforce in the forestry sector by October or November."
Mr. Eshkawkogan said that as things stand, there is little point
in taking the timber out of the stands. "There is no point harvesting
the fibre if you can't get a decent price for it, you might
as well let it grow." Taylor's Sawmill of M'Chigeeng on the
other hand, has not been significantly affected by the softwood
lumber dispute. "We are more into specialized stuff," said sawmill
owner Gale Taylor. "We do a lot of specialty cuts, for furniture
and such, out of cedar and maple. We do a lot of cutting in
hardwoods. The dispute has a lot more impact on the construction
timbers such as spruce, pine and fir, the stuff you use for
framing houses." Domtar Forest Products has limited its exposure
on the lumber market, especially with the recent purchase of
paper mills in the US last year. "Our product breakdown is 83
per cent in paper and nine per cent packaging, only eight per
cent of our sales is in lumber," said Domtar media director
William George, from the company's head office in Montreal.
"Our exposure has diminished greatly." "Our company simply increased
our prices to match the tariff, "he said. "Most companies followed
suit. The industry is still good, but the fundamentals are still
low." "This is actually a very, very simple business, strictly
supply and demand," said Mr. George. "There have been some incredible
consolidations in the industry in the past 10 years and because
of these deals large inefficient plants have been closed." Mr.
George said that the true impact of the softwood dispute would
be felt by the independents. "It is going to impact on them
a lot," he said. "You have a lot more production right now than
you have demand, with the low prices we are better off not cutting
the timber." "If we were able to pass on the cost of the duty
to the customer there would be no problem, but we cannot absorb
that big of a cost increase and there is certainly no incentive
to produce at a loss," said Mr. George. Mr. George expects Domtar
to weather the current dispute with a minimum of impact. "We
have worked hard at maintaining a high level of customer satisfaction
and loyalty. A lot of companies would just stop producing and
leave their customers out in the cold when it is not immediately
profitable. We will lose money over the short time by supplying
our customers, even when it is not profitable for us to do so,
but we will not increase inventory levels." Domtar has succeeded
in producing in a marginal market through the efficiencies of
its plants. "We have increased the board feet we get from our
trees by 25 per cent without increasing the size of the trees
we are buying," said Mr. George. "We accomplished those numbers
by listening to our employees. With employee involvement we
have improved the efficiency of our plants and accomplished
most of the productivity through reorganizing our resources."
The latest volley in the softwood lumber dispute is just the
most recent move in a struggle that has its roots in the early
1980s. American producers have complained that the system utilized
by Canadian provinces to sell timber on crown land is open to,
and has been used to, unfairly subsidize the lumber industry
in this country. Much of the dispute centres on the fact that
American timber is usually on private land and is therefore
sold at private auction, while Canadian lumber comes from public
lands and is sold through a "stumpage" rate set by the individual
provinces. American lobbyists have insisted that the provinces
routinely set the stumpage rate at a lower rate to encourage
the development of the forestry sector. Industry insiders say
the problem is primarily caused by American concerns about the
western provinces. Analysis of the background numbers used by
the softwood lumber lobby in the US shows that British Columbia
stumpage fees account for nine per cent of the imposed tariff.
Quebec and Ontario account for only two to three per cent of
the total. Other complaints by the US attack subsidy programs
and job training funds. Eastern Canadian industry experts claim
that the significantly greater efficiency of Canadian operations
place their American rivals at a disadvantage far greater than
the stumpage rates, citing plants on the Eastern seaboard which
routinely import logs from Maine and Vermont to be processed
at far more efficient Canadian mills. "Our logs are a lot smaller
than the logs in the US, often just half of the diameter. We
have had to learn to be far more efficient in our recovery and
processing methods in order to be able to compete," said Mr.
George. The players in the lumber dispute have a considerably
different makeup than they did 20 years ago, at the start of
the dispute in 1981. A significant coalition of groups in the
US have weighed in on the side of free trade in lumber, looking
for a better deal for American consumers and more affordable
housing. Thus Canada has allies in the dispute as diverse as
the so-called 'big box' retailers, the Coalition for Affordable
Housing and the NAACP, a black rights organization. Whether
these groups will be able to tip the scales in favour of a resolution
to the dispute in time for the small independent operator, who
makes his living on the tight margins of a very competitive
business remains to be seen.
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