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"It sounds cruel t.ousuggest that the best thing is to cut spending Doug McCready, a professor of economics at Wilfrid Laurier Uniâ€" versity, says Wilson can‘t afford to increase taxes so he‘ll be forced to cut fiscal spending. "There‘s the whole issue of universality that can be cut back mn. There is no reason why, for »xample, that someone who makes over $50,000 gets mother‘s allowance or social â€" security cheques." Those areas, says Gladwish, include transfer payments to the provinces for federally and proâ€" vincially funded programs and the universality of certain proâ€" grams "I don‘t think we have the overall picture that Mr. Wilson has as to where cuts can be made. i think there are areas where spending can be cut without hurting too many people." Budget PAGE A2 â€" WATERLOO CHRONICLE, WEDNESDAY, FEBRUARY 20, 1991 "People are doing two things. They‘re either looking for a deal, or they‘re looking for something that would be less expensive, like a travelling shorter distances," Wilcox said. / As far as fear over the war is concerned, Wilcox said if even one airport terrorist act takes place anywhere in Europe, the travel industry‘s entire summer program will suffer greatly. People are saying, ‘Maybe this is the year to see our own country â€" to drive‘. And I think that‘s what‘s going to happen." Wilcox said tour companies have not reduced rates for Florida vacations during March break, for example. A week in Florida this season costs approximately $600, compared to $400 lag year. But because airlines are not filling airplanes, many aré adopting competitive prices. ; Russ Wilcox, of Uptown Travel in Waterloo, said he has noticed that a lot of people have been waiting to see what will happen with both the recession and the Gulf War, and as a result are booking vacation packages late. : Several local agents say they have noticed a definite downswing in business, partly because people are afraid to travel and partly because people can‘t afford to travel. Travel agents are feeling the crunch as the Gulf War and tough economic times are causing travellers to think twice about vacation plans. War/recession cause downswing is there to assure you that the taxes you pay are accounted for THIS YELLOW STRIP (Continued from page A1) But, says McCready, the govâ€" ernment should also encourage the private sector to become inâ€" volved in the areas where cutâ€" backs are made. _Une area is retraining proâ€" grams. Japan, for example, reâ€" "How the provinces handle cutâ€" backs will be up to the provinces. But there‘s a lot of waste in health care, education and social services and cutbacks could help to increase efficiency." McCready also predicts that Wilson will target the federal transfers to the provinces for cuts and says that cutting back may encourage the provinces to elimiâ€" nate waste. and perhaps leave agencies withâ€" out funds, but that‘s what he‘s going to have to do. However, I think there are ways to do it without cutting too many social programs." * Metro Toronto 965â€"8470 * All Other Areas 1â€"800â€"263â€"7965 * French Language Enquiries 1â€"800â€"668â€"5821 * Telephone Device for the Deaf 1â€"800â€"263â€"7776 For information call the Ministry tollâ€"free Hotson says that cutting interâ€" est rates won‘t solve all the deficit problems, but it will solve many of them. "The fear is that he‘ll cut spending with the excuse of high interest rates and the increasing costs of the gulf war. But there‘s a figure showing that, if he had cut back on interest rates last year, he would have saved $5 billion." But John Hotson, a professor of economics at the University of Waterloo, says, while it‘s a guessâ€" ing game what Wilson will do, the best thing to do would be to cut interest rates. trains their employees an averâ€" age of 100 days a year, where Canada has an average of two days a year. That‘s all funded by the private sector in Japan and is an area where Canada‘s private sector could be encouraged to contribute." "I think he should cut interest He said business is so bad in Ontario that major tour operators have taken 50 to 60 per cent of the airline seats out of the travel market this winter. _ Ballantyne said this is usually a busy time of year, with many tr@vellers heading to the Caribbean. But this year business is "off tremendously". ‘‘We‘ve noticed (a decline in business), but it‘s not so much from the war â€" we‘ll notice that more in the summer when people usually go to Europe. What we‘re seeing now is the result of the bad employment situation," Ballantyne said. "Some people, though, are afraid to get into an airplane, so they‘re getting into cars and driving down to Florida." Wilcox said those travel agencies that are solid will remain, but not without suffering. And those that are on shaky ground will disappear. Bill Ballantyne of Ballantyne‘s Travel in Kitchener has also noted a drop in business. "Their load factors are not as high, and as a result, they‘re being very competitive priceâ€"wise in order to fill the plane," Wilcox said. “'Re cost of flying a plane from Toronto to London‘s Heathrow is the same whether it‘s full or empty. They‘re looking to fill those planes, and if it means cutting their pmfitmarginnndcuttingtheirpriwstomeettheirexpenm, they‘re doing it." ‘"We‘d like to think that people in the government know what they‘re doing, but that‘s not alâ€" ways the case. Why, for example, would the government allow inâ€" terest rates to stay so high and chase away Algoma‘s clients, and then spend billions to get the complz;'e out of trouble?" The federal budget will be tabled next Tuesday, February And, unlike Gladwish, Hotson doesn‘t have as much confidence in the government‘s ability to see the bigger picture and he points to Algoma Steel as an example. try.‘ rates and leave the programs alone. The faster he does it, the less grief there will be in the future. High interest rates were meant to attract foreign investâ€" ment, but instead, it discouraged real investment from local indusâ€" TP\ . Eie )C Poeelh _ _ Fine Intimate Apparel Experience the loveliness ... 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