NEWS IN BRIEF Canadian Arrow Mines Ltd. (CGR:TSE) has changed its

The trough of a recession may not be the best time to reflect on what difficult measures are reMDNMquired to strengthen our economy, but tough times demand tough decisions. Efforts to reduce the MDSOMDNMdeficit while reducing inflation and keeping interest rates at a manageable level must continue. MDNM.T Canada’s economy is still in dire straights, largely because of government deficits that constrain real decision making. With a third of government rev-MDNMenues simply paying interest on the accumulated debt, there is not much room for maneuvering. Taxes are escalating to a frightening level, leading more taxpayers to question whether the cost of maintaining Canada as an independent state is worth it. MDNM But there have been positive steps taken. True, this Conser ative government failed to make the most of a golden opportunity to whittle down the deficit during the past eight years of strong economic growth. But, Finance Minister Michael Wilson has made some solid progress in attacking the deficit. It may not be as much progress as one would wish, but by just about any measure the free spending by government of the 1970s has been greatly reined in. MDNM During his time as finance minister, there has also been improvements for Canadians. On a per capita basis, pers onal incomes, after correcting for inflaMDNMtion, are 16% higher than in 1983. MDNM That’s not to say that inflation has been brought to an acceptable level. It may be impossible to atMDNMtain true price stability –MDNM zero inflation –MDNM but the current level of a out 5% is still unacceptable. ProMDNMvided interest rates do not start climbing to painful levels again, the Bank of Canada’s stated goal to bring inflation down to 3% by the end of 1992 and 2% by the end of 1995 is reasonable. MDNM The fight against the deficit also has to continue, and more vigorously than it has in the past. There is no doubt that there will continue to be a growing demand on global savings to meet the needs of developing countries and the adjustments in central and eastern Europe. C anada and other countries with significant fiscal deficits have to continue to reduce the growth of their debts in order to free up resources needed to support private sector investment and growth. MDNM We support the finance minister’s efforts to further reduce the deficit by cutting back on government spending. The country is being taxed to the limit and only by recognizing that governments cannot do all things for all people will Canada be able to get its fiscal house in order. .N4