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"Covers Prince Edward Island Like” The Dow"
- DURING BUDGET SPEECH LAST NIGHT
notes. The galleries were packed
lion. 3. Earle MacDonald, Pro- vincial Secretary-Treasurer (left) is seen delivering his Budge
Speech in the Legislature last night. Premier Matheson (centre) and Hon. Dougald Macxlnnon (ex-
treme right) thumb through the estimates for the coming year. Hon. Keir Clark is busy taking
Province To Receive Less Under New Tax Agreement"
Under the new tax sharing ar- rangement with Ottawa. effective April 1 of this year. Prince Ed- ward Island will not receive a payment as high as it would if the present tax rental agreements were continued. Hon. 3- Earls MacDonald, Provincial Treasurer. revealed in the course of his bud- let speech in the Legislature last evening.
tin his Budget speech in the House of Commons on March 14. Finance Minister Harris had stated that "for the sight Provinces which are continuing to rent all three tax fields (individual income. corpor- stion income and succession dut- iesi the new scale of payments in 1957-58 are stimated to be 0210 million which is 840 million. or 20 per cent, above the 1060-51 scale oi paymaits.")
in dealing with this subject in the Legislature last night lion. Mr. MacDonald said:
"in each of the budget speeches of recent years we find reference to the Federal-Provincial Tax lien- tal Agreement. the subject assumes unusual signifi- cance for us because' the present agreement will expire at the end of this month. March 81. 1957. and the question of its renewal or substitution is of very great import- ance to the Province of Prince Edward Island.
The purpose of the present A-
Gives Views On
Coal Turbine
MONCTON (CP) - The Canadi- an National Railways is interested in my research work regarding coal-burning as turbine locomo- lillel. Dr. 0. solsndt said in an interview here Tuesday.
The assistant vice-president of research and development for the c.N.R.. en route to deliver a lee- WN at diarlottetown. discussed
"'9 IITMVIII locomotive experi- gnsnts mud and the United tatas. if he iiiousiu the .oMl.l;MftiOI would benefit from such H-Ml loocomotives. he replied: On the whole the Maritlmes do not have sultalde typeg of whichoouldheusedtobapcup ""”'l' "1 "me casinos These are some Maritime cosl' mines. l""'""- Which do produce coal low in sulphur and ash content Dr. solandt ' um. . on .3.f.'Z':."'.'l Til ”...'.i
Vould cause harmful eon-
Court Ddtision
greements was to establish a more equitable system of taxation throughout Canada by reducing duplication of direct taxation and oi machinery for the collection oi same. They were also designed to give a greater measure oi stability to the revenues oi the Provinces in order to enable them more ads- quately to carry out their respon- sibilities. and to enable Canada, with the co-operation of provincial governments. to carry out fiscal and other national policies intended to maintain high levels of employ- ment and production. The agree- ments were to make it financially possible for all provinces in per-
form their constitutional functions themselves and to provide a reason able Canadian level of provincial services without an abnormal bur- den o,i taxation.
"Under the 1952 piiposals the Province of Prince Edward island was guaranteed a minimum annual income of 32,977,015. for the next five years. We were also guaran- teed additional amounts based on the Gross National Product for the year preceding the year of pay- ment. over that for the year 1048. instead of to the three years pre- ceding. as in the 1947 Agreement. thus makln the payments more
Continued on page 1:, Col. .1
. I . . Polio Clinics
Functioning
For Extended Age Groups
Dr. M.L. Donnell, Minister of Health for Prince Edward Island, announced last 'aight that polio
children in the extended age range as indicated earlier this year. l-ieretofors. only children ll months of age up to Grade X stu- dents were eligible. Expectant mothers were also eligible. The new programme includes child- ren from six months of age to young people. up to. but not reach- ing. their 19th birthday by Decem- ber 81. 1057. Expectant mothers who have not received their ino- culations will also be eligible. Work has already begun in the Charlottetown schools and at Prince of Wales College. Dr. Bonnell add- ed. Next week clinics will be held at St. Dunstan's University. Clinics have also been held in Sum- mersids. K s n s I n g t o n. Mont-
Boys Injured By Dynamite SAINT -I01-IN, N.B. (CP)-Two
boys suffered minor injuries Tuss- day when they exploded four
coal sticks of dynamite. among 23 sticks
and 2! blasting caps they found in woods at nearby Loch Lomond.
Police said George Crawley, I, and Bernard Deal. 10, apparently thought the dynamite sticks were firecrackers and set a match to the caps. Pour exploded. spatter- ing them with small pieces of the
copper casings.
Permits Hanna
To Stay In Canada At Present
wmcouvs: - from the woralglnisiii 'h..aau'
IIOUII .
STATEMENT IN . for in-
in Ottawa. a spokesman
migration Minister Pickersgiil said
8
3
sgua and Georgetown. Immunization against polio will be administered in all schools throughout the provlncethis year in conjunction with the general immunization programme against diphtheria, whooping cough. teta- nus and smallpox annually car- ried on by the Department of Health.
The programme is -u,' the Public Health Nursing Divi- sion under the direction of Miss Mona Wilson. Public Health Doc- tors. nurses and many local doc- tors, nurses and school teachers all play a very active part in the programme.
. .-
AMMAN. Jordan (Reuters)-. Prime Minister Suleiman Nabulsi says Arab countries should unite in a policy to "regain our stolen home in Palestine." in a speech to refugees at Jericho he said: "We do not want foreign Innis-
to hear the .. ,
U. K. Strike Outlook Is Brighter Now
LONDON (Reuters) -- Bids to settle Britain's ll-day-long ship- yard strike took a decisive turn Tuesday when the unions and em- ployers sgrecd to cooperate with a government-a ' l d court of inquiry.
This agreement came little more than 12 hours after talks between both sides broke down completely on a new wage offer.
Labor Minister lain MscLeod im- mediately announced he would set up a court of inquiry. but union leaders postponed a decision on their attitude to the court until an executive meeting Tuesday. The meeting decided to co-op- ate.
Mr. MacDonald deliver peech.
PARLIAMENT YESTERDAY
Tuesday. March 8. 1957-
Revenue MinlstertMcCann indi- cated court action may be taken against the Canadian edition of Reader's Digest for non-compli- aasrnn a special as. 1 -
The senate approved in prin- ciple a government bill increas- ing benefits paid disabled seamen and their dependents. Wednesday. March 21. 1957-
'i'ha Commons resumes the bud- get debate. The Senate sits.
Corner Brook Plans New Nursing School
CORNER BROOK, Nfld. (CF)- Western Memorial Hospital has an- d plans to build a 8875.000 nurses residence and training school to alleviate a nursing short- age and induce young women from the west coast area to join the profession Admlnis t r a t o 1- Fred Whittaker said the school when completed would produce 15 reg-
istered nurses annually.
REVENUE NEEDS
3-Cent Gas
STRESSED
CHARLUTTETOWN. CANADA WEDNESDAY, KARCH 27, 1957
WEATHER
cioueywsiiiiniss-nae turepnestheedwlndaid.
interspers- law-Ihlid
Charlottetown 20 and 38.
ax Increase
ls Announced In Budget
Several Briefs Presented To Education Committee
stating that the program of edu- cation in this Province was gear- ed to serve only the twenty per cent of the students who would go on to later professional studies. Mr. John Lenty told the Legisla- ture's Committee on Education that he believed technical and farming courses should be avail- able to pupils from the Grade I level.
Mr. Lenty appeared at the pu- blic hearing in the Legislative Chamber yesterday morning with a delegation from the P.E.I. Fed- eration of Home and School As- sociations. Other members of the group were Mrs. Earl Lavers, recording secretary; Rev. Erie Robin. secretary; and Allison P. MacLean, vice president.
The brief paES9nLCd by the group noted that a large number of po- pils were unable to ,' i Grade 10 or the high school pro- gram and suggested these pupils be given "on an exploratory basis. the opportunity for further advance ment by a closer integration of the available facilities at the Provincial. Technical School or as they are set up at present in Summerslde".
P.W.C. TEACIIEli8' BRIEF
A large number of citizens at- tended the hearing at which three other groups also presented briefs. opening the hearing was a dele- gation from the teachers of Prince of Wales College. They were
Messrs. James Coyle, who read. the brief, Robert L2Clair and Ri-' chard Matheson who form thel Salary Committee for teachers at the College.
The brief expressed the opinion the greater part of our ills in edu- cation stem from three chronic causes: low salaries. lack of stable and guaranteed increments. and lack of financial recognition of adadcmic qualifications. Because
of these they felt no proposals for attracting candidates to the teaching profession will be success- ful uniil the salaries will stand comparison with the inducements offered in other fields. it was their firm conviction that an ade- quate salary is the essential con- sideralion and strongest induce- ment.
in support of ihclr contention
Continued on page 1:, Col. 5
A .'l-cent per gallon gasoline tax and a change in the method of collecting and remitting the tax on tobacco sales. calcu- lated to bring in more revenue. were announced in the budget speech delivered in the Legislature last night by Hon. 8. Earle Mac- Donald. Provinclal Treasurer.
Total revenue for the coming fiscal year. 1957-58, was estimated at 513,200,971 and total expenditure at 515,685,417. Allowing for debt retirement Mr. MacDonald fore- cast an increased liability from next year's operations of 31.815. 046. The estimated total net debt
Steel Tenders For Ch'town
Naval Centre
Being Called
OTTAWA (Special) - Tenclersfor the actual work of construc-
ior steel for the new naval training establishment at Charlottetown are being called on Wednesday of this week, it was learned here Tues- day by Neil A. Matheson (L- Queens) the tenders are being call- ed by Defence Construction Lim- ited. the establishment that looks after the construction of buildings for tire Department of National Do- fence.
The data on which the tenders for the actual construction of the building will be cabled will depend on the time at which the steel is available. The steel when it is procured will be allocated to the
successful bidder in the tenders
tion.
Mr. Matheson also had on the or- der paper a question regarding the grading of the land in the area around the building. The contract will cover the construction of the building and the grading job. The reply also indicated that approxi- mately flfty to sixty feet around the perimeter of the building will be graded according to the spec- ifications which have been prepar- ed by the Department of National Defence.
The site for the building was purchased from Simon Paoli in August of 1955. it is located at the foot of 1-iavlland and Water streets on -th, water front.
'CRUMBS FROM RICH MAN'S TABLE -- Charges Ottawa Has Paid No Heed To Island Pleas
"Lilia Lazarus and Dives" was the comparison drawn by Dr. L-G. Dewar in the Legislature last night in commenting on Provincial Treasurer fviacbonaldls predica- ment in seeking to obtain crumbs from: "The Rich Man's Table Finance Minister Harris at Ottawa. The Conservative member from
Second Prince followed 1-ion. Mr. MacDonald in the Budget Debate.
Continuing the parallel taken from scripture. Dr. Dewar said. "although the Provincial Treasurer
By The P.E.I.
L B. MacMiIIsin Is Honoured
legislature
wasDepaty Worksfrem tiiettisnebe sith sfth nib dIlsPb wlswm .IiseIInm- aswad
has not reached the stage yet. none the less. he will at some time ascend into the bosom of Abraham' and when the rich man asks for mercy 1 am afraid the reply be will receive will be nei- ther parliamentary nor scriptural"
Dr. Dewar referred to the bud- get speech as a voluminous report likely to cause mental indigestion but more apt to cause mental de- pression. He said the island was assured it would not receive any less from the Federal Treasury but here was no indication it woud receive more.
"Prince Edward Island." he said I
"was the province most dia- crlmlnated against in all of Can- ada. i wonder if we are not in the midst of alsqueene to force us to join some other province and so eliminate our fiscal needs altogeth- er". SORES OP LAZARUS
Dr. Dewar said the Provincial Treasurer like Lazarus had a num- ber of sores to contend wi . He said he had the sores of d eas- ing revenue and increasing lia- bllitics along with underpaid pu. blic servants and school teachers.
He spoke of the great gulf which existed between the national econo- mio picture and that of Prince Edward Island. On the one hand he pictured embarassing lncreaa. ing surplusses while on the other he saw decreasing revenues The
34 Dead In U. S. Blizzard
KANSAS CITY (AP)-The st". gering toll of damage and death left across the . .....-desolate Great Plains by a hit-and-run spring hlluard mounted Tuesday as tin stormblew itseifoutintheohb valley.
Nine states counted 84 dead, b- cludlng salon from exposne. in from car monoxide polaonlgg, twofromflre, fourfromexertion and is in attributable traffic seei- dents.
Meanwhile. the psnhsndies d Texas and Oklahoma. eastern New Mexico and Colorado. western Kansas and Nebraska dug mesa
Near pedfd by tomorrow. The task of rescue and
DR. LG. DEWAR
national scene showed great ex- pansion of natural resources while the local situation indicated an absence of natural resources.
"We must view with alarm an lnrriasc of two and a half million dollars in our provincial deficit. Something drastic must be done. we are not told how long this can go on", said Dr. Dewar.
He said the budget speech was "a remarkable attempt to mani- pualtc ii mass of figures In an attempt in present a pleasant pic- ture".
Dr. Dewar adjourned the debate and will rnnllniie when the House meets toda.V at 3.00 p.m.
Hammarskiold Winds Up Talks
Cairo fkeuiersl -- United Na- tions Secretary-Gcnaral Dag Ham- marsiuold wound up his talks with Egyptian leaders here Tuesday night amid reports that a settle- merit of-the Suez Canal problem may be in sight.
Egyptr foreign minister. Mali- mosid Fawsi. Tuesday night handed notes outlining Egyptian views on
A said "Hans- 's talks will the Egyp- tian government have no-
will then stand at 823.869,8m. On ordinary account the Minister W4- geted for a surplus of 51,064,154.
He estimated that the increase in gasoline tax will produce S300.- 000 additional revenue, bringing total revenues from this source to at least 52,095,000. The new rate will bring the gasoline tax up to sixteen cents per gallon which, Mr. MacDonald noted. will still be lower than the rate in Nova Scotia and wi1l.equal that now in force in New Brunswick. it is pro- posed to rebate one cent of the increased gasoline tax to farmers and fishermen.
The budget proposals contain in- creased appropriations for agricul- ture and fisheries, transportation and development of basic resour- ces.
CURRENT YEAH
For the current fiscal year and- ing March :1, total revenues of 311,116,009 are forecast. leaving an overall deficit of 81,708.83 after
sinking funds
expenditures pse- , adnoa&a-hdisdesaad- ditional Omoooevar the forecast
Forecasts Debt Increase Of 51,815,046 Next Year
increase in for the present fiscal year. mainly ,lor teachersi salaries. inspection of schools, and transportation and tuition of rural school children. in addition. the Minister of Education is requesting 8125.000 for rural and senior high schools. making a to- tal govcrnment expenditure for ed-
ucation of 51,660,490.
ments and subsidies
the tax rental payment. 1955-56. LAST YEAR'S ACCOUNT!
1956, Mr. MacDonald said:
erall deficit you will he ed that Province has down to a bare minimum.
Due to rise in gross national product. an increase of 5553.60! is expected this fiscal year under the present federal- provincial tax rental agreement, which expires on March 31. For the coming year. however. revenue from Ottawa un- der the new tax-sharing arrange- legislation. amounting to 54,812,185, will re- present a t50,000 drop as a result of adjustment made in the cur- rent year for a re-calculation oi
Quoting from the Public Acounts for the y e a r ended March 31.
"An examination of these ac- counts shqw current revenue 0! 39,(Ii2,669.05. current expenditures of 38.439.146.50, and is surplus on Ordinary Account of 8623.522.55 ai- tsr providing Sinking Fund account.
During the same period 34,387.- 636.01 was spent on Capital Ao- count. This may seem a very large amount but when you take into consideration the revenue pro- ducing assets acquired and the ov-
convinc-
the Government of till kept expenditures
Our total expenditure Ordinary and Capital for the fiscal was mad- rie- ed March 31, 1056 smountad to 311.910.041.40. Oisr Revenue for the period was &.3I.748.0o; ior
OTTAWA (Speciall - Finance Minister Harris told Angus Mac- Lean, Conservative. Queens. in the Commons Tuesday that he has not yet received from the Dom- inion statistician a survey of pop- ulati figures dealing with Prince Edward Island.
Mr. MacLean asked if the min- ister had obtained the figures re- quired to be furnished to him as soon as possible aster Feb. hi un- der the 1952 tax rental, agreement between the Dominion Govern- ment and P.E.f.
in the debate on the hospital insurance legislation last night Mr. MacLean praised the work of the general medical practitioner and Health Minister Martin inter- Jected that Dr. W.J.P. Machiilian of P.E.l. was an excellent ex- ample. Mr. Mat'Lean agreed. The P.1-1.1. member pointed out that specialized forms of treat- ment had caused additional costs which could leave a family un- able to provide the education for children it desired.
Mr. MacLean believed a great field remained for medical science in preventing and curing disease and money spent in this would re- turn dividends. Thcrr was a great opportunity for research into here-
Fincince Minister Queried By Mr. Mciclean In Commons
dity in relation to susceptibility to disease.
QUOTES ISLAND PREMIER
Mr. MacLean noted that Pre- mier Matheson had said the insur- ance plan was beyond the financ- ial abillty of P.E.l.. the added cost in addition to present expenditure! in the field being estimated at 81.- l.'i0.o00. He feared that as far as the Marltimes were concerned the insurance plan would be a case of that "to him that hath more would be given and from him that hath not even that which he hath shall be taken away." He did not think the Maritime Provinces could take advantage of the plan unless the DominIon's share was at least 50 per cent.
Mr. Martin lniorlccted that on the basis of 1956 figures the Dom-
inion contribution to P.l'7.l- W01-lid be over 60 per cent. Mr. Maci.can replied that was not the interpret- ation the P.E.I. gnvernmeni had placed on the DroP053l hi". he Wm glad to have the ministers state- ment.
Mr. !liacl.can concluded that no real solution of health care would be rcaclicrl until the whole field of Dominion-Provincial fiscal pol- icy was readjusted.
.m::-
Sales. To
TUCK1-:R's ,TOWN. Bermuda and Britain Tues- day night wound up which will result in Britain bui- ing t1i5.Wi.0ili worth of Canadian uranium in the next five years and probably even more in no ceeding years.
Prime Minister Macmillan said he and Prime Minister at. Laur- ent had "two very useful days" of discussions.
Also taking part were Porelll Secretary Selwyn Lloyd. Canadian External Affairs Minister L. 3.
Production
Minister C. D. Howe. The discus- sions followed the Big Two coo- between Macmillan and
Plan Uranium
U.K.
aura "bold experiment which Vin demonstrate to the world that use aniusn can be used for POICONI
,- iii is iv.
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