Letters to the editor

A6

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Brian Lee Crowley and Charles Cirtwill, of the Atlantic Institute for Market Studies, make a good point when they state that eliminating New Brunswick's corporation tax would stimulate provincial economic development ("Nix Corporate Income Tax" Aug. 2).

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By lowering corporate taxes, our provincial government would raise monetary returns on capital and stimulate investment. Zero corporation taxes would send a positive signal to prospective businesses about locating here.

However, the two economists overstate their case, by suggesting all New Brunswick corporations face zero taxation. Most academics realize it's only export industries which drive economic development.

Our government need only give such a large tax break to exporters.

Consider the many fast food outlets run by corporations - an industry which sells its product to domestic consumers. If New Brunswick still maintains its 13 per cent tax rate on large-corporation income for the fast-food industry, the sector would not suffer appreciably, since it does not "compete" with out-of-province businesses.

Consider now two New Brunswick exporters: New Brunswick's forest industry and Ganong's chocolates.

If the provincial government reduced its corporation income tax rate from 13 to zero per cent, for these two sectors, both could reinvest some of the tax savings and be in a stronger position to compete with out-of-province exporters. And, as said, prospective exporters would consider moving operations to New Brunswick.

In 2007-08, New Brunswick collected $267-million in corporate taxes. If our province still taxed companies catering to in-province "consumption" (like fast food restaurants), the province would still receive about $135-million.

DAVID MURRELL

Department of Economics, UNB

We could be in for a bumpy ride

If ever there were any lingering doubts as to who is pulling Mayor Ivan Court's strings, they were pretty much answered with your July 30 story which chronicled port authority chairman Stephen Campbell's futile attempts to meet one-on-one with his worship to discuss the proposed Long Wharf development.

The best he could do, he says, was a session brokered by Pat Riley, business agent for the 163 local longshoremen who oppose Irving Oil's proposed plan to build its corporate headquarters on that little-used piece of waterfront.

Mr. Campbell did get his face-to-face, but only with the inclusion of Mr. Riley and local MLA Abel LeBlanc, himself a former longshoreman.

Needless to say, the tenor of the talks was anything but encouraging and Mr. Campbell says he was dismayed that he was unable to meet with the mayor without the presence of a special-interest group.

In fact, we should all be equally concerned that any union can wield that kind of clout. The mayor's bland assurances that he has not made up his mind on the merits of the project ring hollow.

I would advise Mr. Court that, whatever quid pro quos organized labour might expect, he must understand that what is good for Joe Lunchbucket may not always be in the best interests of the community as a whole. If he is unable to grasp that, we'd better fasten our seatbelts because, for at least the next four years, it's going to be one heck of a bumpy ride.

ERNIE ELLINGWOOD

Saint John

Take diamond ring poll lightly

As someone who has been involved in several academic studies of public opinion in New Brunswick, I applaud efforts to take into account what people think when making important public policy decisions.

However, Wayne Smith's (of W. Smith & Co.) efforts to measure the position of "the silent majority" are seriously flawed and should in no way be taken as a legitimate record of views on the issue of Long Wharf.

My reasons for stating this are twofold. First, it is not a random survey which means that some people have a greater chance of responding to the survey than others.

In other words, people who get the Telegraph-Journal and people who are likely to be in the vicinity of the uptown are more likely to participate than those who live and work on the outskirts of town or who do not read the newspaper.

Second, and more critically, the ballot requests their name and contact information immediately under their vote. So much for the principle of a secret ballot!

This project has been initiated by individuals who obviously support the Long Wharf deal. Given the backlash and attack by the paper and the business community against anyone who has criticized this project, I can imagine that many in "silent" opposition are afraid to attach their names to a ballot and face the potential retribution from the project's supporters.

While this is an excellent publicity stunt, it's an illegitimate way to measure public support or opposition on a critical issue.

JOANNA EVERITT

Saint John

Petitcodiac River reopening lauded

The New Brunswick Historical Society fully supports the action taken to reopen the Petitcodiac River to the natural effect of the tides on this river.

The blocking of the river some years ago resulted in a significant decrease in the tidal bore, one of New Brunswick's most unusual features.

New Brunswick is blessed with a number of unusual features. Too often these features are harmed for mere financial gain, not considering the potential for other purposes. Moncton has set an example to be followed by all municipalities in the province.

ERIC TEED

Secretary, N.B. Historical Society

Be sure you have life insurance

A few months ago I lost my brother due to colon cancer and asked my husband if we had a good insurance policy. He assured me that he had gotten both of us policies. He was not sure where the policy was, but would call the company and get them to send us all the information.

Since then I have found out that neither one of us was insured for life, but for an accident insurance. The premium was low, so apparently he thought we were getting a great deal.

Since we discovered this we have made arrangements to purchase life insurance and are feeling quite happy with the arrangements, but if we had purchased the same insurance five years ago, we would have received a better rate and probably a better policy, however at our age we now fall in a higher bracket.

Since this incident, I have felt compelled to tell people of my misfortune and surprisingly have found many people that have checked their policy only to find the same situation. Some people bought insurance while they were working and after they have left or retired from their company; they thought they still have a policy. Not so.

I do not work for an insurance company, I just want people to check their filing cabinet and see what exactly you have in the line of life insurance.

Get your policy now, while you are young and ask questions to get the right policy for you.

MARY ANN O'HARA

Saint John

No thought put into home purchase

What would possess a non-profit society to purchase a luxury waterfront home to house three youths? ("John Howard Society plans to accommodate at-risk youths at Loch Lomond Road home" Aug. 7)

So many groups work hard doing fundraising events to support these programs and ordinary citizens donate money. Also, our tax dollars help to fund these societies. Someone has to be accountable for so much wasted money.

This purchase was made in complete secrecy because not only would the nearby residents be upset, but also those giving to these societies and we as taxpayers.

No thought was put into the impact on our community. We have an elementary school near this home. More than 500 children attend.

We know that the society does its best to have these homes secure but problems do occur.

Those responsible for buying this home were blinded by the beauty of the home and the area and forgot the purpose of why it was bought. Certainly houses are needed but concentrate on what you need for the youth. Take time to search out what would be a wise purchase with dollars allocated.

As concerned citizens we want this home resold before any money is spent on renovations, regaining over $4,000 in taxes. This home was purchased for more than $300,000.

I am asking government officials to listen to our concerns. As Premier Graham said "at the end of the day, we realize we were elected to lead and we were elected to listen."

JOHN and BARBARA STEELE

Saint John