Fighting for Taxpayers

New Blog

2009-09-24T08:37:00.003-06:00

Thanks to all of you who have been loyally reading our musings on this space for the past 4+ years on this site. It has gone under more than a couple face-lifts over that time, but has always remained here.

However, with the launch of our new and improved website at www.taxpayer.com, we have integrated a blog right into the site. While the current layout and features of the blog leave a little to be desired, we are now posting there and will be working over the next few months to improve the layout of that blog.

The new blog can be found here: http://www.taxpayer.com/blog

Please bookmark that site.

This site, will remain as an archive.

Thanks for your continued reading.

Scott Hennig

National Communications Manager

The health tax must go

2009-09-22T16:47:00.003-06:00

The B.C. government's deficit is expected to accumulate to a whopping $5.5 billion over the next three years. How will the government get us back to budget surpluses? Its only "plan" seems to be the hope that higher tax revenue from greater economic growth will eventually reduce it.

But if history is any guide, B.C.'s stealth-health tax may be the first accelerating tax hike in the battle against the deficit, leaving people standing still while government revenues rise.

Federal finance minister in the Chretien Liberal government, Paul Martin, defeated the federal deficit in the 1990s primarily with tax hikes. The worst was an increase in personal income taxes through a stealth process known as de-indexation. Others included new deficit reduction taxes and higher payroll taxes. The result was stagnating after-tax income for families and skyrocketing revenues for government.

The health tax appears to be the first volley in the same direction here in B.C.

Many British Columbians believe the MSP, or health tax, is an insurance premium paid for health services, similar to the auto premium paid to ICBC. Nothing could be further from the truth. The MSP is a poll tax -- a per-person tax charging a fixed amount per individual. The health tax doesn't go to fund health care in the province anymore than it funds education, roads or anything else -- it goes directly into general revenue. Without a doubt, this tax would have been eliminated long ago had it been named the ‘bureaucrat salary enhancement levy.'

The health tax is going up this year and has the potential to spiral completely out of control as it will rise by the same proportion as the health care budget every year.

Politicians must do what every family does when it hits rough times -- limit spending. To ensure long-term economic growth, it must cut taxes and to start, it must eliminate the health tax.

Deficit spending nightmare

2009-09-14T15:09:00.001-06:00

B.C.'s deficit is spiraling out of control because of a huge increase in spending. If the government spending spree is not brought under control, current and future generations will be left with a legacy of debt and higher taxes.

Why is deficit spending wrong? It creates three problems: higher debt servicing costs; young people left saddled with a financial burden they didn't create; and once the boomer generation retires, there won't be enough taxpayers working to pay the taxes to finance the debt and pay the pension benefits of future retirees. This spending spree endangers the retirement security of the boomer generation.

Debt servicing costs are exploding. By 2011, B.C. taxpayers will be paying $8 million per day to finance the debt. Hard-earned dollars that could go to pay for services people want, or better yet -- left in peoples' pockets -- go to bankers and bondholders to pay the interest on the debt.

We can't expect future generations to take on a massive tax burden for spending they didn't vote for to get things, like billion dollar convention centres or fast ferries, they probably won't want. In 2011, every child born in B.C. will owe more than $11,000. Is it right to leave a fiscal hangover to unborn children to pay for our free-spending ways?

The demographic reality is that we'll have fewer and fewer young people paying into the system through taxes, relative to those taking out. According to Stats BC, the number of people aged 15-24 will drop by 2.5 per cent between 2009 and 2029 while the number of people 65 years and older will almost double. Tomorrows taxpayers left to foot today’s bill will strain under an unsustainable tax burden unless spending is brought under control.

Taxpayer Victory in Ontario

2009-09-14T11:56:00.003-06:00

Premier McGuinty, at long last, has agreed to post Ministerial and senior bureaucrat expenses online for the public to view. This will take effect April 1st, 2010.

Better late than never! Taxpayer.com has been advocating for such a change for years and welcomes a positive step towards greater transparency and accountability in Ontario.

We encourage the Premier to follow the example from the City of Toronto over that of the federal government as to how to implement such a change.

Corruption in Canadian Brokerage and Banks

2009-09-11T09:50:00.003-06:00

The CTF received this letter from Larry Elford and received his permission to reprint. His assertions are beyond our ability to corroborate, but his insights and comments seemed worth passing on.

If I could speak with my prime minister, here is what I would like to say.

In 2004 I resigned my career of twenty years inside the brokerage industry, mostly working with major bank owned brokerage firms. I resigned because of my failure to have an impact on raising the matter of ethical failures. Failures which I witnessed each and every day within my industry. Ethical failure I found to be standard industry practice, despite codes of ethics, codes of conduct and rules to the contrary. Virtually none of the rules are enforced when they interfere with revenue.
My efforts to support change fell on deaf ears and I failed to bring anything like “best practices” into my own industry. I failed. I left.

I took on personal project to inform and educate the public about financial abuse by people claiming “trusted financial advisor” status. I was dealing in crimes and abuses which earned millions of dollars within every investment office that I knew of.

In 2005, after a fund company employee took his own life, in circumstances of management retaliation so brutal they can only be described as “corporate and legal torture”, I decided that I needed to inform yourself and others of the magnitude of the crimes against Canadians, the ease with which they were perpetrated and the lack of enforcement in Canada. I failed to gain your attention to the matter, and I failed to interest your Parliament in addressing these types of crimes.

At that time I was then dealing with an example where financial abuse of customers had placed over $800 million into the pockets of the investment firm. This case is on file with the standing committee on finance. It failed to raise an eyebrow within your government.

In 2007 or 2008, the market for toxic ABCP investments imploded, catching everyone with their pants down. It left $32 billion missing in action from our Canadian economy. The supposed authorities who now claim to investigate this matter, were in fact well documented participants in the legal tricks that allowed this $32 billion to disappear in the first place.* I ask how you can preside over a system which lets conflicted regulators aid financiers and then allows the same conflicted regulators to investigate the damage done? http://www.investoradvocates.ca/viewtopic.php?f=1&t=140&start=0

I testified in Ottawa to a standing committee on finance on these matters, and yet I still have failed to properly engage those at the top. No change. No response. I failed.

I add up the crimes against Canadians, against our economy, and I conclude that clever, cunning white collar fraudsters are putting more money in their pockets each year in Canada, than the economic damage done by each and every other crime in the entire country, combined. http://www.investoradvocates.ca/viewtopic.php?f=1&t=179

Here is where you have failed as leader. Failed to set aside political self preservation in favor of the public interest. Failed to protect Canadians from abuses by rich and powerful parties. Failed to protect our economy from infection by financial pandemic.

The very best you have done is to hire one securities commission head, to begin work on a new national securities commission. Hired from one of the very securities commissions who participated in the legal “tricks” that allowed each of these crisis to infect Canada. Perhaps will allow them to infect Canada for years to come. Even Richard Nixon was known to say, “you cannot trust the people who made the mess, to clean it up.”

You have failed to understand that allowing the foxes to guard the henhouse is an example of “worst practices”. You have failed to give us anything that looks like “best practices”. You are failing on giving us a modern, honest, unconflicted securities regulation. The industry makes more money on dirty, dishonest, and conflicted.

We deserve better. We deserve a leader who understands this and does not fail to act, when our entire economy, our financial future, and the financial health of Canadians is at daily risk from financial predators.

With respect for your position, you have failed us and you have failed the position.
Each and every Canadian, with exception of fraud artists and banksters, are now paying the price. Fraud artists and banksters are toasting what a great country Canada is to commit white collar crime.

Larry Elford
Executive director of www.investoradvocates.ca
(former CFP, CIM, FCSI, Associate Portfolio Manager, retired)
Lethbridge AB

Ballooning and Never-Ending Deficits

2009-09-10T14:41:00.002-06:00

Canada's Finance Minister today announced the deficit will balloon to $55 billion. He says the budget won't be balanced until 2015. That is 7 years of huge deficits. This is a financial disaster of immense proportions. Who would have thunk that a Harper government would oversee such an spending disaster.

Ouch!

Deficit Daydream Believer

2009-09-10T12:46:00.000-06:00

B.C.'s deficit is spiraling out of control, but not because of what the government wants you to believe. Although the finance minister claims the return to deficit spending is because of a huge fall in revenue, a closer look at the books shows it is actually because of a huge increase in spending.

B.C.'s new budget, released on September 1, shows the deficit spiraling to $2.8 billion in 2009-10. B.C.'s finance minister said this is because "we are facing a loss of $2 billion in expected revenues in the current fiscal year." How interesting it is, then, to look at the B.C. budget and see expected revenues falling by only $720 million in the current fiscal year. Darn those pesky numbers.

So if revenues aren't down by as much as the government says, just what is sending B.C.'s deficit to new heights? Out of control spending. Government spending has skyrocketed to $40 billion in 2009, up $2 billion from 2008. If the government had held spending at 2008 levels, the deficit would have been $642 million, not all that much more than the original estimate. So the massive $2.8 billion deficit is a result of a spending blow out, not falling revenue.

Dropping the fiscal fantasy shows the B.C. government has a spending problem, not a revenue problem. If we care about the well-being of our children and grandchildren and want to leave them with something other than a legacy of debt and higher taxes, we need to turn the direction of government spending around, get rid of the deficit, and start reducing the debt.

Regina dome: high cost for sure, public support less so

2009-09-09T13:43:00.003-06:00

If a domed stadium in Regina cost $500 million including land costs and was split between the three levels of government, it would be pricey indeed. This would be a cost of $5 for every Canadian, $172 for Saskatchewan residents outside Regina, and $985 for every man, woman, and child in Saskatchewan. That final total is equivalent to two years of season's tickets!

STC asked to pick up Greyhound slack

2009-09-09T13:38:00.004-06:00

Now that Greyhound is threatening to remove routes from northern Ontario, Saskatchewan's NDP has suggested that Saskatchewan Transportation Company should take over some of the bus routes. At least they are only talking about potentially profitable routes for the provincial crown corporation. However, one commenter on the Leader-Post article may have put it best: "if Greyhound can't make a profit how can STC?"

How will HST affect BC Insurance?

2009-09-09T10:08:00.001-06:00

Even the Insurance Corporation of British Columbia doesn't know.

MP Pension Pay Revealed For The First Time

2009-09-09T07:24:00.005-06:00

The CTF has a pay stub for the first time revealing MP pension pay. Former two-time MP Garth Turner has provided the Canadian Taxpayers Federation with a copy of his MP Pension pay stub. It reveals he received $26,417 in 2009 dollars.

In providing the information Mr. Turner asked the CTF to post the following:

"I've provided this evidence of my pension for almost nine years' service in the House of Commons for a reason. Not to say it is too high or too low, that I deserve it or not, or to suggest how the system should be changed. I fully understand how privileged I've been to be an MP, and how the compensation for being in Parliament exceeds what most families have to live on.

"I do this because the system needs more transparency. I had a beef with the CTF when my pension was misstated. They got it wrong and to their credit have corrected it. Meanwhile, I certainly have nothing to hide. This money comes to me from Canadian taxpayers, of which I am one."

The CTF will continue its campaign against lavish MPs pensions. Transparency can only advance our efforts.

All Things HST

2009-09-08T09:00:00.005-06:00

Can't get enough of the discussion around harmonizing provincial sales taxes? Here are a few reports for your bedtime reading...

1) 2001 University of New Brunswick - The Effect of the Harmonized Sales Tax on Consumer Prices in Atlantic Canada
2) 2005 Mount Allison University - An Analysis of the Impact of Harmonized Sales Tax on Provincial Revenues in Atlantic Canada
5) 2006 University of Toronto - Coordinating Federal and Provincial Sales Taxes: Lessons from the Canadian Experience
6) 2007 University of Toronto - The Economic Impacts of Value Added Taxation: Evidence from the HST Provinces
7) 2007 C.D. Howe Institute - Lessons in Harmony: What Experience in the Atlantic Provinces Shows About the Benefits of a Harmonized Sales Tax
8) 2008 C.D. Howe Institute - Slicing the Pie: Federal Assistance for Provincial Sales Tax Reform
9) 2009 Ontario Chamber of Commerce report - Made in Ontario: The Case for Sales Tax Harmonization

Greyhound attempt to "shake down" taxpayers

2009-09-04T12:22:00.003-06:00

Greyhound is cutting service in Manitoba and northern Ontario, a move the federal government says is designed to "shake down" taxpayers. Fortunately they don't seem too eager to give into intimidation from the Texas-based bus company and hand out subsidies. Click here for more.javascript:void(0)

Ontario seizes bikes using 'Civil Remedies' Act

2009-09-03T15:29:00.002-06:00

Our board member Karen Selick explains in the Globe and Mail...

Bicycle-store owner Igor Kenk may or may not eventually be found guilty of theft. Certainly, the 2,865 used bicycles seized by police in a high-profile raid on his Toronto premises last year need some explaining, especially after 573 of them were returned to people who proved rightful ownership. But Mr. Kenk's criminal trial on 100 criminal counts related to stolen bicycles and drugs won't begin for at least six months.

Meanwhile, the Ontario Attorney-General's office has decided to skip the niceties of waiting for the trial. This week, they brought a separate court application to confiscate not only the remaining 2,292 bicycles but also Mr. Kenk's $700,000 shop and two trucks. The government is proceeding under the Civil Remedies Act, which the province enacted in 2001.

Why not wait and see if there's a conviction? Simple. The provincial law makes it much easier than federal law to confiscate a suspect's property.

Election Forecast: Let’s Try Logic

2009-09-02T10:14:00.002-06:00

Most pontificating over the issue of a fall election has been based on hearsay, intuition, and well, dice-rolling. Such speculation is brought on when journalists spend too much time in a relatively empty room called “Summer in Ottawa”. For a change, let consider this (if we care to) from a logical perspective.

First, lets operate from the asumption that all leaders and parties appoach election timing from the perspective of self-preservation and/or potential gain. Next, lets examine the motivations behind each leader and party.

Gilles Duceppe and the Bloc Quebecois: The Bloc has had much of its polling success based on its steadfast opposition to, and demonize of the Harper government while simultaneously accusing the Liberals of spinelessness for not doing the same. Many of the Bloc’s Montreal-area MPs are nervous about a relatively resurgent Liberal Party there and would thus not favour an election right now, but from a higher (ie: leader’s) perspective, the potential net gain of several currently Conservative seats would offset this. While that’s cold comfort to those Montreal MPs, their leader decides how they vote in Canadian politics.

As the Bloc has staked its ground on being Quebec’s bulkward against the Harper Hoard of the Western Steppes, he has little wiggle room out of his vote of no confidence.

Bloc, check.

Michael Ignatieff and the Liberal Party: Chantal Hebert, as usual, provides some of the best punditry (I’m assuming she spent her summer outside of Ottawa) on the predicament of Team Iggy. With his statements on withdrawing support for the government, he would loose face beyond recovery if he were to re-nag and return to the Dion and post-coalition era of abstentions and false threats. At this point, the Count is beyond the point of no return, baring an unfathomable climb-down. While polling numbers indicate that Ignatieff has a chance of forming a minority, anecdotal evidence leans towards a 3rd Conservative minority. That is not necessarily a loss for Ignatieff however; as Harper may wish to leave on a winning note following the vote and clear the way for new - and if Iggy’s dreams are fulfilled, less capable - leader.

Liberals, check.

Jack Layton and the (New?) Democratic Party: The NDP has made itself the leftist bulkward in English Canada, playing a similar role that the Bloc plays in Quebec. If there’s one thing you can say for them, its that their consistent, both in what they stand for and in how they vote, which is against everything. With reports and rumors wirling that a deal could be be in the works to keep the government afloat, one has to consider what is on the table. With Layton having proclaimed himself the immobile human shield of the English Canadian left, it is hard to see how any compromise would be enough to appease his core supporters. If however; by some chance Monsieur Layton could force the the government onto a course of Keynesianism, massive deficit spending and a retreat from most of its long held positions, he may be able to look his supporters in the face and say…“coalition?”

NDP, check.

Stephen Harper and the Conservative Party: Harper has only one motivation to want an election, and that is to win a majority government. Since that is not in the cards (barring, events?), he has no interest in having one, but is still confronted with the reality of having to deal directly with the NDP. While one would be inclined to see a lot of similarities in the practical policy applications of the government today if one wipes away party labels, continued moves leftward would only continue to inflame the base of his party. Harper has managed to hold his troops together in the face of adopting a plethora of Liberal demands in the last budget, but acceding to the NDP’s more rigorous cookbook may prove a bridge too far. Further, meeting the NDP’s demands would simply keep the government in office for a short period of time, but would likely come with zero guarantee of passing its legislation. In essence, this would leave only the Executive branch of government in power while the legislature hangs in limbo. When faced with a brief life extension leading to eventual defeat in a non-confidence vote months later, coupled with stomaching even more opposition policy on one hand, and facing the electorate for a renewed minority mandate on the other, the choice becomes clear.

Conservatives, check.

Ministerial Accountability in Ontario Defined

2009-09-01T12:58:00.000-06:00

This clip from “Yes Minister” sums up quite succinctly the attitude the Ontario government when it comes to holding ministers accountable for their…’trip’ ups.

Elections Canada Refuses to Collect Money Owed Taxpayers by Political Parties

2009-09-01T09:35:00.000-06:00

When is the last time anyone was told by the government that they “refuse to take your money”? Documents have recently surfaced indicating that in a bizarre case, the federal Conservative Party is suing Elections Canada for refusing to accept nearly $600,000 in in duplicate GST rebates.

For those of you who probably think that you read that incorrectly, you did not. The government (via Elections Canada) is refusing to accept repayment for money that was overpaid to the Conservative Party. Making the logic of Elections Canada even more dizzying is its own defence that the Conservative Party repaying the amount owed would “create and unfair playing field”. “Unfair to whom?” one might ask. Seemingly, it would be “unfair” to the Conservatives for having to pay it back while the other parties do not, which leads to a screamingly obvious solution, that Elections Canada should require all parties to repay the duplicated rebate.

Columbus a model for Edmonton?

2009-08-31T19:22:00.004-06:00

Battle of Alberta's Andy Grabia put me on to a new report out of the John Glenn School of Public Affairs in Columbus, Ohio.

It looks at the economic benefits of the Arena district in Columbus.

Ironically, Patrick Laforge, newly appointed arena ~~salesman~~ spokesperson for the Katz group also cited Nationwide Arena in Columbus as the model for Edmonton. While, Mr. Laforge and I are likely to disagree on most things about the new arena, here we agree, Columbus is a good model for Edmonton... particularly because it was 100% privately financed.

Anyway, I digress... the new report from Columbus (paid for by the team) makes all kinds of wild claims about the economic benefits of the new arena district. And it goes into detailed calculations showing, what should be completely self-evident. I mean, should it shock anyone that a bunch of vacant lots and former jail grounds on which you put a large real estate development, is now producing more economic benefits than the land did before? However, they fail to look at the rest of the city to see what wasn’t developed instead or what areas have lost tenants to the arena district and therefore have suffered.

It’s all just a big closed loop. There are x number of businesses that can successfully operate in any given economic region. Period. Putting them all in one building or spreading them out around 10 mile radius doesn’t matter, it’s the same economic benefit.

They at least attempted to look at money that was coming in from outside the region, but again, make the wrong assumption that these are new dollars, or are dollars that otherwise wouldn’t have entered the same city. Who’s to say that these same people going to Blue Jacket games wouldn’t otherwise be going to a college football game, a movie or a concert in Columbus if they didn’t have an NHL team. People’s entertainment budgets are fixed, to which entertainment they flow might change, but that’s it. If you stop going to Oilers games, you will likely go to more concerts, Esks games or play more golf. From an overall economic benefit argument, it makes zero difference.

Although, I did find the report interesting, in so much as it provided some financials on the team, and the arena.

For example:

I also found the city spending data on infrastructure info, very interesting as well. Good numbers to use for comparison. Although they still attempted to make the ridiculous Tax Incremented Financing (TIF) argument to suggest that the city is recouping its “investment.” Again, they make the wrong assumption that the number of businesses in any given city is not fixed. The restaurant that’s in the arena district would have been built regardless, whether inside the district or not, and the city would have collected the exact same amount in taxes. It's the same shell game that Mayor Mandel is attempting to pull over on Edmontonians under the name: Community Revitalization Levy (CRL).

The only economic benefit that I can find in the whole report is the $3.8million the city collected in taxes from visiting teams over 6 years. So, thanks to the Blue Jackets and the new arena the city gets a whopping $633,333 per year in additional revenue. At that rate, the City of Edmonton could pay off a $300-m taxpayer-funded investment in 1,000 years or so.

Bottom line: If done right, a new arena (or any land development) can be used to spruce-up a specific area or vacant lot, if that’s your goal. But more often than not it’s done wrong, and you end up having what we currently have in Edmonton with an arena jammed between two freeways and acres of parking lots surrounding it.

But in Columbus, it was done right. It re-shaped a vacant space in the downtown, created a new arena for an NHL team, and didn't cost taxpayers anything (other than public infrastructure).

All the faux economic benefit arguments should be shelved, as should the TIF, CRL shell game schemes.

Alberta: revenues down, deficit soars

2009-08-28T15:37:00.003-06:00

Nothing that $6.9 billion won't cure. However, if the Stelmach government had kept spending increases to the rate of inflation plus population, it would still run a $44 million surplus this year.

Ontario may use tax dollars for in-vitro fertilization

2009-08-28T15:33:00.003-06:00

Ontario taxpayers could be on the hook for three in-vitro fertilization payments per user at $10,000 a pop. In Quebec, that's how it works already.

Climate change doubters

2009-08-28T15:14:00.003-06:00

Two great recent articles on climate change... The first, Farmers lukewarm on global warming theory, shows that Canadian farmers aren't experiencing longer growing seasons as the scientists claim. The second, from a retired chemistry professior and former senior administrator at the University of Regina, says that "a lack of understanding of climate change and its causal factors is leading us to yet more boneheaded economic decisions.

John Williamson New DComm for Harper and PMO

2009-08-27T14:49:00.002-06:00

Former CTF Federal Director John Williamson has been named the new Director of Communications to Prime Minister Harper. The CTF wishes John the best of luck in his new role. We can only hope he will have more influence on the inside in efforts to get taxes lowered, to reduce waste and to make government more accountable.

Good luck John.

We wish you luck and success! You will be hearing from us soon and often.

"Hockey Stick" Global Warming Graph Debunked

2009-08-27T14:03:00.002-06:00

How did people come to believe that temperatures were radically warming in recent years? Much of it had to do with a so-called hockey stick chart that showed a history of relatively stable temperatures with a sharp increase at the end. This was thoroughly debunked. Click here for a thorough account of how and why.

How much does medicare cost you?

2009-08-27T13:57:00.004-06:00

Thanks to the Fraser Institute, you can now know.

Dividing the Canadian population into 10 income groups (income figures are pre-tax) shows what families from various income brackets paid for public health care insurance in 2008:
- Average cash income of $11,309; $389
- Average cash income of $24,271; $1,076 paid for public health care insurance
- Average cash income of $32,866; $2,214 paid for public health care insurance
- Average cash income of $41,637; $3,449 paid for public health care insurance
- Average cash income of $51,298; $4,862 paid for public health care insurance
- Average cash income of $64,415; $6,245 paid for public health care insurance
- Average cash income of $78,430; $7,750 paid for public health care insurance
- Average cash income of $96,217; $9,873 paid for public health care insurance
- Average cash income of $122,321; $12,877 paid for public health care insurance
- Average cash income of $232,739; $29,575 paid for public health care insurance

Looking at common family types, this calculation finds that the estimated average payment for public health care insurance in 2008 was:
- $9,572 for the average 2 adult family
- $9,855 for the average 2 adult and 1 child family
- $10,191 for the average 2 adult and 2 child family
- $3,484 for the average unattached (single) individual

It is critical to recognize that these estimates count only the direct costs of Medicare. They do not count administrative costs subsumed by other government departments that support health care through activities such as tax collection, or other privately borne costs related to the financing and operation of Medicare such as tax compliance or the private burden of waiting for health care.

Disharmony in Lotus Land

2009-08-27T12:43:00.003-06:00

Among the many broken promises of the B.C. Liberal government was the surprise sales tax harmonization announcement. While harmonization may bring greater investment and more high paying jobs to the province in the long run, the short run reality is that hard-pressed families will be paying more for many goods and services, and the timing couldn't be worse. Harmonization should only proceed if families pay less in total tax.

Citizens are outraged about harmonization, and rightly so. During the recent provincial election, the B.C. Liberals said they would not harmonize the sales tax. This seems to be yet another snap decision made, like the carbon tax, with no consultation by a paternalistic government. This sudden and unexpected turnaround is a slap in the face to all British Columbians.

Families must get a break, as the cost of goods formerly free of PST will go up by 7%. The best option would be a cut to personal income taxes. Reducing the burden of income taxes for all British Columbians could be best achieved by increasing the basic personal income tax exemption. There is plenty of room for the government to leave more money in the pockets of taxpaying families, increase the incentive to work, save and invest, and lower the impact of the HST.

Although the HST may have some positives in the long run, the arrogance of the tax change coupled with higher taxes for consumers make it mandatory for the government cut other taxes. This will get government out of our pockets, and allow hard working families to spend their own income in a way that best serves their needs. Moreover, it should be the only way British Columbians should accept the HST.

An Open Email to James Moore, Minister of Canadian Heritage

2009-08-26T13:24:00.005-06:00

The following email was sent by the Canadian Taxpayers Federation to Canadian Heritage Minister James Moore on August 26, 2009.

>>>

Dear Minister Moore,

I am writing to you today to inquire as to what measures your department has taken to address erroneous comments made by staff to the Standing Senate Committee on Human Rights during the approval stage for the Canadian Museum for Human Rights.

As you may be aware, on March 3, 2008, Ms. Lyn Sherwood, an official with your department, went before the Committee and had the following exchange with Senator James Cowan:

Senator Cowan: This is not one of those projects where the federal government is left to pick up anything over and above the $165 million that is contributed by other parties, is it?

Ms. Sherwood: The total budget is $265 million. You are putting your finger on a very real risk in the current environment, which is the impact of inflation on construction budgets. That has been factored into planning and is one of the reasons for the urgency of this bill because at the moment the purchasing power of that $265 million is being eroded at the rate of between $800,000 and $1.5 million per month.

As you are aware, on May 22, 2009, the museum announced $45 million in cost overruns, bringing the total cost for the project to $310 million.

However, using the high end, per month inflation figure ($1.5 million) that Ms. Sherwood noted at the March, 2008 Senate hearing, the museum should only have been $22.5 million higher when the overruns were announced in May, 2009 - 15 months later. Thus, cost overruns of $45 million were double the high end figure provided to the Senate.

Further, during an August 10, 2009 meeting with museum staff, the Canadian Taxpayers Federation was told the cost overruns were originally $58 million and that changes were made to the design of the facility to reduce the overruns to $45 million.

In other words, the estimate provided to the Senate by Ms. Sherwood was off by $35.5 million or approximately 157%.

Surprisingly, during the meeting with museum officials, staff indicated that they were not aware of any pay cuts or other repercussions to those involved with the project as a result of the $35.5 million mistake.

In addition, it is important to note that the federal government listed the Museum’s cost at $265 million as early as April 20, 2007. However, that same budget figure was presented at the Senate hearing almost a year later. Oddly enough, while department staff spoke at the hearing about the importance of factoring in construction inflation going forward, they appear to have neglected to update their own figure.

As you are aware, taxpayers, through various government bodies, are once again being asked to contribute even more funding towards the museum to help pay for the cost overruns.

Could you please indicate if any staff within your department, or at the Museum, received pay cuts and/or other repercussions as a result of the museum’s cost overruns. Further, was the department aware that the cost of the museum was above $265 million when it provided that figure to the Senate committee? Finally, please indicate what action has been taken to correct the erroneous comments that were made before the Senate Committee.

Thank you for your attention to this matter. I look forward to receiving your response.

Sincerely,

Colin Craig
Provincial Director, Manitoba
Canadian Taxpayers Federation

Cc: Senator James Cowan

Please note that this email, and your response, will be posted on the Canadian Taxpayers Federation’s blog – www.taxpayerblog.com

Throne restraint to the wind

2009-08-26T09:38:00.003-06:00

The B.C. Throne Speech delivered on August 25 sets a tone of fiscal restraint, but that is undermined by a continued commitment to green madness.

When the premier said "I hate budget deficits, I think they take away from future generations," he was right. Deficits tend to spiral out of control, creating a legacy of debt and higher taxes for present and future taxpayers.

This government has a spending problem, not a revenue problem, and now finally appears to be cutting back on the spending spree, in some areas at least.

What wasn't announced, merely hinted at, was relief to families from the introduction of the Harmonized Sales Tax. That should come on September 1 when the new budget is introduced. The Canadian Taxpayers Federation has been calling for income tax cuts to help families bear the burden of increased costs for goods and services now subject to a higher sales tax.

But the government is not jumping off the global warming bandwagon. It will be breaking yet another key election commitment by meddling with the mandate of the B.C. Utilities Commission. The mandate of the BCUC is to keep costs low for electricity users, not approve projects just because the premier thinks they are a good idea.

Remember that the B.C. Utilities Commission rejected BC Hydro's deal with Alcan - that deal was proclaimed by the premier on one of his pedestals. BC Hydro had to renegotiate with Alcan and ended up bringing a $65-120 million in savings for electricity users. If we lose the safeguard against meddling for political purposes, electricity rates will skyrocket.

Continuing to pursue green job creation will mean job destruction, just as it has where it has already been tried. Since 2000, Spain, the country used by President Obama as an example of how to create green jobs, has lost 2.2 jobs in the non subsidized sectors such as mining and food processing for every so called green job created. That's because the tax dollars to create green jobs are diverted from productive sectors of the economy. Subsidized jobs are unsustainable, no matter their colour.

Museum Expenses: Time to Cross Our Fingers

2009-08-24T10:50:00.006-06:00

On August 10, 2009, the Canadian Taxpayers Federation (CTF) met with the CFO and COO with the Canadian Museum for Human Rights. A number of interesting details came to light.

First, while the museum's cost overrun figure has publicly been reported at $45 million, the CTF learned the original overrun figure sat at $58 million. To get the overrun figure down to $45 million, a number of changes were made to the project.

Secondly, the CTF asked if the officials were aware of any repercussions or pay cuts to staff as a result of the cost overruns. The museum's officials responded that they weren't aware of any.

Finally, while the museum is covered under federal access to information legislation, the fundraising body for the museum - the Friends of the Canadian Museum for Human Rights - is not. That means that unless a government body makes a formal announcement about its donation to the project, taxpayers will only find out about the contribution if it is leaked or uncovered through information requests. Such was the case when it was discovered that Manitoba's crown corporations had secretly made donations towards the project.

Given the massive cost overruns for the project, it is truly appalling that heads did not roll at the federal government after the debacle was discovered. After all, consider what federal bureaucrat Lyn Sherwood told Senator Cowan during a March 3, 2008 Senate Committee on Human Rights hearing.

Senator Cowan: This is not one of those projects where the federal government is left to pick up anything over and above the $165 million that is contributed by other parties, is it?

Ms. Sherwood: The total budget is $265 million. You are putting your finger on a very real risk in the current environment, which is the impact of inflation on construction budgets. That has been factored into planning and is one of the reasons for the urgency of this bill because at the moment the purchasing power of that $265 million is being eroded at the rate of between $800,000 and $1.5 million per month.

Using Ms. Sherwood's high end figure for inflation costs ($1.5 million per month), the project should have been only $22.5 million higher by May 22, 2009; the day the overruns were announced. However, as noted earlier, the project was actually $58 million higher than expected. In other words, Ms. Sherwood was only off in her estimate by 157% or approximately $35.5 million.

Imagine that - federal bureaucrats make a $35.5 million budgetary mistake and no one is held accountable for the blunder. Only in government.

The museum's officials told the CTF they don't have any expectation for cost overruns in the future. However, given the last price tag for the museum was off substantially and no elected official seemed to care, it seems like we'll just have to sit back and cross our fingers.

Anti-Bloc coalition proposed

2009-08-21T16:29:00.002-06:00

Mark Milke, former CTF Alberta Director, has said there's no better time to cut the vote subsidy to the Bloc. Funding to the Conservatives, Liberals, NDP, and even the Greens was healthy, while Bloc donations were not. It is a party that is in a financial sense overwhelmingly reliant on the federal government and Canadian taxpayers--two institutions they exist to separate from.

Click here to read Milke's article.

Taxpayer-funded BC tattoo removal

2009-08-19T11:24:00.006-06:00

A government program to remove gang tattoos has been launched in British Columbia. Scott Hennig of the Canadian Taxpayers Federation says the program is a waste of tax dollars. Removing a tattoo takes as many as 15 treatments, each of which cost $100.

Generous Sask health worker pensions

2009-08-18T14:05:00.003-06:00

On his blog "Fair Pensions for All", Bill Tufts has done a great breakdown of the Saskatchewan Healthcare Employees Pension Plan (SHEPP). For every dollar contributed by a health care employee, the province puts in $1.12. This is a pretty sweet deal for SHEPP pensioners.

The average wage in the health care sector in Saskatchewan is $46,742 per year. The average pension from SHEPP is based on a 2% per year with maximum pension at 35 years. This means a benefit of close to 70% of retiring income or $32,719 including CPP.

Of this pension of $32,719 the CPP would contribute $10,905 and the pension plan contributes about $21,814.

The big question is …
A private sector employee pays 4.95% of annual income into the CPP plan to get $10,905 per year in pension income.

The public sector employee in SHEPP pays 5.58% to get $21,814. How can the public sector employee pay in the same and twice as much in taxpayer funded pension?

Canada is addressing pension reform at all levels of government. Fairness between the public sector and public sector pensions is one the key issues that needs to be addressed.

No Pota$h? No stadium

2009-08-17T12:46:00.003-06:00

The Saskatchewan government budgeted $1.9 billion of revenue from Potash this year, but now expects to get just $637 million. It's just one more reason to think twice about building a new domed stadium for the Roughriders. Saskatoon resident Bob Heidt makes the case well in his letter to the Star-Phoenix, "Dome a private venture."

Next Convention: Drop the “Democratic” from NDP

2009-08-17T08:17:00.003-06:00

After a contentious debate in the federal New Democratic Party over if it should drop the “New” from its 48 year old name, the party refused to allow a vote over the issue. What a party decides to call itself - even if it happens to be the 2nd oldest party in the House of Commons - is not normally a matter of concern to most people, but it does speak to the NDP’s interesting conception of both “new” and “democratic”.

Next convention, it should allow a vote on the issue, but perhaps on dropping the word “democratic”.

What the duck?

2009-08-13T14:54:00.002-06:00

What inspired this video? Click here to find out.

TransLink is inefficient and must reform

2009-08-12T10:37:00.001-06:00

It's time to elevate the discussion on public transit in the Lower Mainland from who pays - transit riders or taxpayers, to who is the transit system supposed to serve - transit riders or a bloated government bureaucracy.

Ever wondered why airline fares have fallen dramatically over the past few decades but public transit fares have gone nowhere but up? It's because the airline industry has gone through dramatic reforms while public transit providers, such as the Lower Mainland's TransLink, have not. Until TransLink is reformed, transit riders and taxpayers can expect to continue to pay more for less.

The single most important reform in the airline industry - increased competition - helped bring down fares for consumers. Falling airline fares meant airlines had to bring down costs, which improved productivity - airlines got more from less.

TransLink has no such cost discipline. This means management caves in to any excess salary demand because any cost increase is just passed along to bus riders as higher fares or to taxpayers as higher taxes. Productivity falls because we get the same or less for more.

But is the airline industry special? Can the same reforms happen with public transit? Reforms in Europe show how public transit can be improved for the benefit of both taxpayers and transit riders.

In England, the City of London tendered-out the operation of its bus service. Between 1984 and 1999 productivity of the bus service increased by 3.7 per cent -- meaning it cost less to transport passengers for every dollar of capital and operating expense -- and ridership increased by 11.7 per cent. Thanks to this success, London continues to tender-out bus services.

For TransLink, between 2005 and 2008 the cost to transport one passenger one kilometer increased by 19.1 per cent. TransLink's own ten-year plan shows ridership is estimated to increase by only 2.3 per cent per year to 2012 and 1.5 per cent annually thereafter.

As both the Canadian airline industry the European transit experience show, transportation is a service that can achieve higher productivity with the right type of reform. Instead of continuing to be a high cost supplier of transit services, TransLink needs to tender competitively to reduce both its costs and its fares to boost unsubsidized ridership.

Olympics Hire Civil Servants Through Tax Dollars

2009-08-11T16:27:00.003-06:00

Given the times, our own Maureen Bader calls this a ridiculous and outrageous idea.

An Open Letter to Minister Selinger on HST

2009-08-11T15:36:00.004-06:00

The following letter was sent today to Manitoba's Minister of Finance on the issue of sales tax harmonization.

In short, the CTF will only support harmonization if governments can demonstrate it will be revenue neutral for families.

Further, as noted in the letter, any funds the province receives from the federal government for moving to harmonization should be put towards debt repayment.

HST Consequences

2009-08-11T10:23:00.005-06:00

A harmonized sales tax is a reality in BC and a possibility for Manitoba and Saskatchewan. Check out these TV reports for more.

Canadian tax dollars give Bloc 86% of their funds

2009-08-11T09:10:00.003-06:00

The staggering truth about the per vote subsidy and who pays the $9.4 million to pring MP propaganda is here.

Scott Hennig, a spokesperson for the Canadian Taxpayers Federation, which is opposed to all forms of federal government financial support for political parties, called the Ten Percenter program "bizarre," and decried what he called the perpetual election campaign being waged on the taxpayer's dime.

"I think it's bizarre that a B.C. MP would be sending [a flyer] to someone in P.E.I. ... We're in a perpetual campaign and regardless of whether we're in a campaign or not taxpayers' money shouldn't be spent buying election ads. I think most people pay their taxes with the hope that they're going to get services for them, not attack ads, or brochures, or streets littered with signs and campaign buses all over the place, that's not what taxpayers pay their money for."

HST Interview on 570 Kitchener

2009-08-10T15:12:00.000-06:00

The following radio interview was broadcasted live on 570 AM Kitchener, August 7, 2009.

Click Here To Listen

More paid volunteers for the Olympics

2009-08-10T11:09:00.003-06:00

A week or so ago, the Vancouver Olympic Organizing Committee, VANOC, called out to the private sector for 1,500 more highly skilled "paid volunteers."

But let's get real here. What company in the private sector, even in good times, has extra employees hanging around that it could send off to work someplace else at their cost? Probably not too many because if they did, they wouldn't be in business for long.

That means what VANOC is really talking about is more paid volunteers courtesy of the taxpayer.

And sure enough, the taxpayer is going to have to cough up for more paid volunteers for VANOC. The B.C. government is scouting around right now for 250 bureaucrats to start working full-time for VANOC, and the salaries will be picked up by the taxpayer.

This is yet another hidden cost of the Olympics. The finance minister said last year, when the whole notion of paid volunteers was first conjured up by the brain trust in Victoria, that the salaries of paid volunteers will not be included in the accounting of total Olympic costs.

Frankly, if we have that many bureaucrats hanging around in Victoria, it's time for more cuts.

It's also time for government to get out of big, so-called legacy projects. They are nothing more than a boondoggle for politicians, and a burden for taxpayers.

The climate changes - always has, always will

2009-08-05T18:47:00.001-06:00

The global warming orthodoxy is breaking down. As temperatures start on their downward trend, more people are noticing and more scientists are speaking out against the so-called consensus belief that man-made carbon dioxide (CO2) is causing catastrophic global warming. The globe has experienced no warming since 2002, while CO2 levels continue to rise.

The two data sets used by global warming alarmists, from NASA and the Hadley Centre, show no global warming has occurred since 2002. The British Meterological Office (the Met) is home to the Hadley Centre. The Met has so far predicted 2001, 2002, 2004, 2005 and 2007 would be the world's hottest or second-hottest year on record, but nine of the past 10 years its predictions were wrong.

That makes 1998 the hottest year on record since the Medieval Warm Period some 1,000 years ago (apparently they had lots of SUV's back then). Yes, temperatures were rising for much of the past century (except when they were falling between the late 1940's and the late 1970's), but since 2002, temperatures have started falling again. All the while, global carbon dioxide levels – the colourless odorless gas global warming alarmists blame for global warming –continue to rise. This is something global warming alarmists assured us would never happen on the road to global warming Armageddon.

As Dr. Richard S. Lindzen, Professor of Meteorology at MIT explains, "the public discourse on global warming has little in common with the standards of scientific discourse. Rather, it is part of political discourse where comments are made to secure the political base and frighten the opposition rather than to illuminate issues. In political discourse, information is to be “spun” to reinforce pre-existing beliefs, and to discourage opposition. The chief example of the latter is the perpetual claim of universal scientific agreement. This claim was part of the media treatment of global cooling (in the 1970’s) and has been part of the treatment of global warming since 1988 (well before most climate change institutes were created). The consensus preceded the research."

The global warming hysteria has reached a turning point. Government's in response to fear-driven demands created by global warming alarmists have already wasted billions of dollars to reduce CO2 levels, and all the while, CO2 levels continue to rise. Meanwhile, real pollution, such as contaminated water leading to boiled water advisories, gets less attention. Common sense is increasingly leading people to question the claims of global warming alarmists and the assault on our wallets and economy. The winter of 2008-09 may prove to be an important turning point in what has been to-date, a one-sided debate.

UK Holds It’s First Open Primary

2009-08-05T06:48:00.000-06:00

The birthplace of parliamentary democracy - Great Britain - has just held its first open primary in the selection of a Conservative candidate for a by-election. In what saw a massive turnout - larger than the turnout for most actual by-elections - everyone in the riding had a say in choosing who the candidate will be in the next election. This ensures that should the candidate be elected to Westminster, he or she will owe their primary allegance to their electors, not leaders.

Across the pond, Preston Manning has moved in to support this initiative, and it may well be time that we considered it as the next big push for democratic reform. As as always eloqount British MEP Daniel Hannan said on the development, “[the candidate] will be almost impossible to beat. Indeed, the only way that the LibDems could even dream of taking her on is by selecting their own candidate through a similar method.”

Who will open the floodgates here?

BC parties on taxpayer dime

2009-08-04T10:33:00.002-06:00

More than half a million dollars was spent on civil service parties in BC during the first three months of 2009 alone.The full article is posted on the Squamish Chief, but this excerpt is bad enough:

Squamish – The provincial government was living it up as the economy was crashing, spending more than half-a-million dollars on parties celebrating civil service excellence.

But the government has said those celebrations were necessary to maintain a “high performing workforce” – something that’s “even more important during these challenging times.”

And it has no plans to be a party pooper by discontinuing the annual premier’s innovation and excellence awards, which are meant to recognize the “positive impact the BC Public Service’s work is having across the province.”

According to records exclusively obtained by Public Eye via a freedom of information request, this year’s awards cost $562,741.52.

They included four regional parties and one provincial party, taking place between January 21 and March 26.

The biggest ticket item was the $137,414.29 spent on videos showcasing nominees and their accomplishments.

But catering and facility costs came in a close second at $125,511.70.

That money bought the ceremonies’ 1,864 attendees some yummy-sounding food.

In Vancouver, for example, civil servants dined on “wedge of romaine hearts with grape tomatoes” featuring “baked pancetta anchovy toasted brioche” and “Parmigiano-Reggiano buttermilk Caesar dressing.”

And that was just the first course.

Coyne on Real EI Reform

2009-08-04T10:30:00.002-06:00

Andrew Coyne hits the ball out of the park again in his Macleans column on Employment Insurance reform. It's a good read.

$40,000 from Ottawa to train 500 babysitters

2009-07-31T14:57:00.002-06:00

The Leader-Post reports,

Thanks to more than $40,000 in funding from the federal government, there may be up to 500 newly trained babysitters in Regina.

Ray Boughen, member of Parliament for Palliser, made the announcement at the Regina Red Cross office on Thursday.

The local branch of the Canadian Red Cross Society plans to use the funding to support its project called Skills, Leadership and Injury Prevention for Aboriginal Youth. The project is designed to help aboriginal youths develop leadership skills by providing First Aid and CPR courses as well as child-care and babysitting courses.

Does it take $800 to train a babysitter? Only if the government is involved.

Furor over Auto Makers' Non-Disclosure

2009-07-30T11:00:00.002-06:00

The recent CTF news release on board salaries and (non)disclosure inspired an online article on CTV. The comments section shows intense furor from a remarkable number of taxpayers.

Un-WED my tax dollars

2009-07-30T08:35:00.003-06:00

The federal government operates a department known as "Western Economic Diversification" (WED). Although politicians publicly tout WED as an important agent in spurring economic growth in Western Canada, it is nothing more than a giant political slush fund.

That's because WED is a true dog`s breakfast when it comes to the types of projects it funds. From grants for chopstick manufacturing plants, airport lighting, investment schemes and wall murals, the department will fund just about anything. In some cases WED bureaucrats review and fund the same projects that bureaucrats in other departments are reviewing and funding. Talk about overlap.

The politics behind the department's funding is evident when one looks at the handout timing. In fact, a report released by the Canadian Taxpayers Federation (CTF) in early 2009 showed a striking relationship between the department's funding levels and election calls over the past twenty years. WED handouts spiked just before the 1997, 2000, 2004 and 2006 federal elections.

Government hands out money from hard working taxpayers for political, not economic reasons and WED is a classic example. It should come as no surprise WED has no idea whether its spending is effective and why should it? Spending is used to buy votes, not for economic development. To provide true economic development, the government should eliminate WED and use the savings to deliver broad-based business tax relief. Doing so would leave more money in the hands of those who drive any successful economy – entrepreneurs.

Saskatoon CUC Director Opposes Regina Dome

2009-07-29T15:44:00.004-06:00

Ken Wood, executive director of Credit Union Centre in Saskatoon, is the latest to say that a domed stadium for Regina doesn't make sense.

"I'm a bit dubious on the concert market. To me, if you're going to spend that kind of money provincially, you would want to look at incrementally what you're bringing to the province," said Wood.

"I have a very tough time seeing for those kind of dollars what incremental benefits are being brought to the province," he added.

Wood said there are very few stadium concerts to start with and most are in the summer and can already be held at Mosaic Stadium. While a domed stadium would be able to hold a concert in winter, Saskatchewan would be a bit of an "island" far from other facilities able to accommodate such large touring acts.

While a dome wouldn't mean more events in Saskatchewan, it would almost certainly kindle some competition for Credit Union Centre in nabbing performers such as Elton John and the Eagles that have played 10,000- to 15,000-seat shows in Saskatoon as their stop in Saskatchewan, he said.

"There could be a fair number. Major arena concerts in western Canada, the only sure markets are Calgary, Edmonton, Vancouver. For Saskatoon and Winnipeg it's dependent on whether the artist wants to do those dates, if the routing works and other factors. But in Saskatchewan there would be one play. It wouldn't mean because there is another facility there would be two plays. For a major concert, a major arena concert, you need the full market (Saskatchewan) for it to work," said Wood, adding he believes his facility has some competitive advantages it could further hone.

Wood said he believes the best option for Regina would be an outdoor stadium similar to Winnipeg's planned $135-million facility, which has covered seating and whose field will be topped with an inflatable bubble during winter to allow for year-round sports and recreation activities.

Wood's comments are very similar to those of the VP of Regina's Evraz Place, Neil Donnelly.

B.C. announces review of TransLink

2009-07-29T12:52:00.004-06:00

TransLink review is good news for taxpayers. TransLink is a hungry predator hunting for more tax dollars - the current model is too expensive and doesn't solve most people's transportation problems.

For the Taxpayers Federation, the most significant part of the review process will be: compensation for the board of directors, operating costs and service delivery models.

During the first closed door meeting of TransLink's new board of directors, they gave themselves a 500 percent increase in meeting fees, a 150 percent increase in the retainer paid to the chair, and a new $25,000 retainer paid to each director. The cost to the taxpayer for TransLink's new board of directors was almost $575,000 for 2008, about five times the cost of the previous board.

TransLink spends $661 million on transportation operations (buses and skytrain), $37 million on maintenance of the major road network, and $38 million on administration. TransLink spends more on administration than to maintain the major road network. TransLink's priorities are in a serious need of review.

We need to start thinking about cost effective solutions to peoples' transportation problems that go way beyond throwing more money at a dysfunctional system.

One option is activity-based costing. Instead continuing to feed the beast, TransLink needs to find out the true cost of providing a single service: every labor hour, each piece of equipment, and all facility costs, materials and overhead dollars. Once that is determined, they need to show the results to their existing staff then allow them to submit their own bid to provide those services in competition with private operators.

Let's face it - without competition, Translink's appetite for tax dollars will never be satisfied and why should it? They don't have to compete with anyone so there is no incentive to rein-in spending. But if TransLink can't move people from point A to B at an affordable cost, it's time to try something new. Public transit expansion must stay within the ability of riders to pay for it, and be able to resist political meddling.

GM Board One of Highest Paid

2009-07-29T09:24:00.002-06:00

GM board members have some of the highest compensation out there. Here is a list of ten firms and the compensation of their non-employee board members. As committee membership, expenses, per diems and stock options contribute to total compensation I have taken a rough median number for total compensation. This information comes from proxy circulars for fiscal years 2007 and 2008. All numbers are in US dollars.

Board Compensation for Non-Employee Directors
Firm Base Bay Total Comp
IBM $250,000 $275,000
GE $250,000 $275,000
GM $200,000 Unknown
WalMart $160,000 $225,000
BCE $130,000 $150,000
Imperial Oil $100,000 $230,000
Ford $100,000 $150,000
Microsoft $100,000 $100,000
AT&T $85,000 $250,000
Pfizer $75,000 $175,000
Bear Stern $75,000 $150,000

More voices oppose stadium

2009-07-28T14:44:00.006-06:00

Johnstone and Conway have company. Columnists Murray Mandryk of the Regina Leader-Post and Les McPherson of the Saskatoon Star Phoenix have also issued cautionary statements about the proposed domed stadium in Regina.

Mandryk writes,

But before we take a plunge, let's insist that any feasibility study answers the following questions: What is the true bottom-line cost? That $350-million pricetag sounds low and surely doesn't include land costs. Let's get the real bottom-line figure that covers everything -- including the inevitable cost overruns.

What are the operational costs? And because it would likely be unaffordable for university and high school sports, do we also need new facilities to accommodate them? Who pays for it and how much do we pay? Who are the mysterious partners and how much will they kick in? How much will provincial taxpayers be stuck with? How about Regina taxpayers, who should pay more considering they will garner the greatest benefit? If the partners are Crown corporations and casinos, will that hurt their profits or their dividends paid to the province's general revenue fund for schools, roads and hospitals? How will it affect the government's plans to build an infrastructure for a potentially far more beneficial and lasting "knowledge-based economy? What is the true value-added impact? If Regina and Saskatchewan are to become a true destination place for big events, we need more hotel space. What Century West Development Ltd. (which is perhaps planning a hotel development on the old Superstore lot) and other hotel chains have in mind may be the dealbreaker here.

Are we big enough for a 35,000-seat indoor complex? Even if we get to 1.1 million people in 10 or 15 years, is that a big enough population base to sustain several big events to cover costs? Considering the direct airline flight issues we have now, can a province with two cities of 200,000 and 250,000 attract a critical mass for events when the next-biggest population centres of 500,000-plus are a six- or seven-hour drive away? How many convention-events meritorious of a 35,000-seat facility can Regina possibly host in a year? Can we get past our own petty internal rivalries? This is sadly flowing south from an incredibly small -- and I do stress small -- dog-in-the-manger crowd in The Bridge City that is now thinking we should shut down the University of Regina in order to compensate.

But pettiness notwithstanding, a 35,000-seat Regina facility would take business away from Saskatoon's Credit Union Centre.

This is a big deal that needs to be addressed. Might a $200-million new outdoor stadium plus added seating at Regina's Brandt Centre be a better option for attracting joint Regina-Saskatoon events (i.e. world junior hockey championships) or multiple concert dates? It's OK to dream big, but it's also OK to say that our dream home is the one that we can afford -- and that truly suits our needs.

MacPherson says the game was meant to be played outdoors, and that Montreal serves as an example of why a tiny outdoor stadium is superior to a dome any day. That makes Mosaic stadium

...a historic gem of a ballpark that cries out for preservation, not replacement. No venue in the country has more character.

It's not as if people are staying away from the venerable old ballpark. On the contrary, Saskatchewan Roughriders home games routinely are sold out, even after the addition this year of 2,100 new seats, bringing capacity up to 31,000. A domed stadium might hold a few thousand more. Is that worth $350 million?

Whether there is sustainable demand for thousands more tickets is another question, especially if admission prices go up, as they certainly would, and if the team should struggle, as teams from time to time always do. Entertaining and competitive as they have been, the Riders right now are at the peak of their popularity. There's a lot more room on the downside than the upside.

G.E. Donnelly, a Star-Phoenix reader, agreed with McPherson, and wrote,

The proposed domed stadium is the pet project for a relatively small and select group of fatcats and sports types who will be the major benefactors of this boondoggle. The cost, which shall balloon to the very exclusive neighbourhood of $600 million before they are through, will be borne by the usual suspects: the taxpayers of Saskatchewan and Canada, who, I suspect, will be priced out of the park when the new prices are announced (inevitable). Think plush box apartments high above the riffraff. Think new plush boxes for the other beneficiaries.

Regina citizens and political science profs at the University of Regina have also expressed their doubts.

Although the pro-dome PR campaign is well underway, and disclosure of information is not, it's still going to take a lot of convincing for thinking people to accept that a new domed stadium is what this province needs.

Maxime Bernier on Liberty and Socialism in Quebec

2009-07-28T08:26:00.002-06:00

I’ve tried from time to time to learn French but little has held my interest long enough for me to achieve much of a breakthrough, but Maxime Bernier’s website/blog, maximebernier.com looks promising. Libery-loving Canadians looking for some good French material would do well to watch his videos and read his posts. Vive liberte.

Johnstone, Conway oppose domed stadium

2009-07-27T11:37:00.004-06:00

Regina Leader-Post business editor Bruce Johnstone and longtime school trustee turned councillor candidate John Conway have both spoken out against the proposed Roughrider domed stadium. The Leader-Post reports,

Conway, a University of Regina professor with a PhD in political sociology, isn’t a fan of the domed stadium idea.

“Personally, I think it’s madness,” he said. While unlikely, the evidence could convince him otherwise; but for now, he thinks that such a luxury shouldn’t be contemplated considering great infrastructure and social deficits, he noted.

Johnstone dedicated an entire column to the stadium question. Here's an excerpt.

"Building an all-weather, multi-use stadium presents a 'generational opportunity' for Regina and Saskatchewan residents,'' the consultants conclude.

It could also be an anchor around the necks of Regina and Saskatchewan taxpayers for generations to come.

First of all, as the report points out, the $350-million price-tag doesn't include land, parking, practice field, overhead walkways and other services. Canadian Pacific will want a significant whack of cash for their property.

Nor does it include the cost of a retractable roof, which the consultants say could cost less than a fixed roof. Tell that to the taxpayers of Montreal and Toronto, who paid through the nose for retractable roofs at the Olympic Stadium (the Big Owe) and SkyDome (Rogers Centre).

Other much larger cities, like Edmonton, Calgary, Winnipeg, and Montreal, are planning modifications or replacing their open-air stadiums. Are they all masochists who like freezing in the fall and boiling in the summer?

I'm not saying a domed stadium is a terrible idea. I'm saying there may be other, more cost-effective, options that haven't been addressed.

For example, what about renovating Mosaic Stadium and expanding and/or replacing Brandt Centre? You could do both for significantly less than $350 million-plus and achieve many of the benefits of a domed stadium, such as attracting major concerts, conventions and events.

That option might not represent a "generational opportunity,'' but it probably won't be a "white elephant'' either.

Federal deficit $7.5 B in April, May

2009-07-27T11:17:00.002-06:00

Ottawa's finances are just as bad as we suspected--a 7.53 billion deficit for the first two months of the fiscal year. Revenues are down by $2.6 billion from a year ago, a 6.9 per cent drop. Program expenses rose by $4.4 billion, or 13.4 per cent. At this rate, the federal deficit will be $45.2 billion. Say it ain't so.

Federal Public Servants miss 16.2 days per year

2009-07-27T11:04:00.002-06:00

While the national average for all sectors is 10.2 days per year, it's 16.2 for federal public servants. One HR consultant suggests it's because of low morale. Click here to read it all in the National Post. Check out the Sask stats here.

Screwed by stimulus

2009-07-27T09:15:00.003-06:00

This picture was emailed to us by Richard Carder. Obviously, it also applies north of the border.

HST - A taxing surprise

2009-07-27T08:54:00.002-06:00

In a surprise move on Thursday, July 23, the B.C. government announced it would harmonize the provincial sales tax (PST) with the GST. The Canadian Taxpayers Federation had been told by the finance department about a year and a half ago there was no way the B.C. government would harmonize the sales tax because it would hurt some of the Liberal party's biggest support groups, such as restaurant owners.

As late as May 2009, the B.C. Liberals apparently stated they would not harmonize the sales tax. It seems this was yet another "from on high" snap decisions, like the carbon tax, made with no consultation.

Unlike the carbon tax, however, the harmonized sales tax, or HST is, in theory at least, a positive tax reform.

Harmonizing the sales tax system simplifies our overly complicated tax system, and any reform that does that is a good thing.

The HST eliminates the PST on business inputs, things like machinery, equipment, and supplies, and that will make B.C. a more competitive place to invest. That will attract new investment and help make existing businesses more competitive and productive. That will boost the provincial economy over time.

Lower business costs and more productive companies should eventually lower prices to consumers and mean more jobs and higher wages.

There are a couple of problems, however.

First, the HST in B.C. still has a number of exemptions, and exemptions defeat one of the main benefits of the HST - a simpler tax system.

The bigger problem, however, is it will raise prices to consumers, at least in the short term, as almost everything we paid only 5% GST on before will be hit with the entire 12% HST as of July 1, 2010. Things like restaurant meals, new homes costing over $400,000, newspapers, accountant's fees, and home renovations will be more expensive.

But, as business costs fall, those prices should fall as well.

Meanwhile, one way to help families bear the burden of higher prices would be to lower the PST. That's what the Atlantic provinces did when then introduced the HST. But a much better option would be to increase the basic personal exemption on our income tax. Right now, the basic personal exemption in B.C. is $9,373, but it is $16, 775 in Alberta and even $12,945 in Saskatchewan.

The premier has said the HST was necessary now to be competitive with Ontario, which is also implementing its HST on July 1, 2010. But why do we want to be competitive with a province that's fallen into 'have not' status anyway? Why not be competitive with the province right next door -- Alberta? It has no PST at all and a higher basic personal exemption.

Ultimately, taxes are paid by people, not businesses -- business taxes are hidden in the cost of products. This reform creates a more transparent tax system.

Governments get revenue from taxation, and reforms that help people better understand the link between the taxes we pay and the services we receive from government will put pressure on government to reduce wasteful spending and be more accountable to the people left to pick up the tab -- the taxpayer.

Sober second thought regarding Roughrider Stadium

2009-07-23T14:29:00.004-06:00

Many people are coming out of the woodwork to talk about the potential Roughrider stadium, including us.

Will Chabun of the Leader-Post poses some pointed and relevent questions about the stadium in a recent blog post. Will CP hand over its land for cheap, knowing the government is bent on putting a dome there? Unlikely. Tack land costs on top of the estimated $350 million for a new stadium.

The sports stadium blog, "Field of schemes" has given attention to the Rider dome in a post. Blog author Neil deMause has also penned a book, "Field of Schemes: How the Great Stadium Swindle Turns Public Dollars into Private Profit".

Some are sounding off on the Leader-Post website. Why not join them?

Why governments can bloat the bureaucracy

2009-07-23T08:34:00.004-06:00

A government is able to keep highly paid bureaucrats on the payroll long after they've outlived their usefulness because it pays no financial penalty for it -- the penalty is paid by thousands of taxpayers in the form of higher taxes.

BC Rail's CEO is able to continue making about half a million dollars per year to run a 40 kilometer long railway because government does not have to confront the financial discipline of the marketplace.

If a private sector company like General Motors, for example, allows its labour costs to get out of control, it can pass those costs along to its customers for a while, but high product prices attract competitors who enter the market with better and lower cost products. Eventually, the high cost competitor goes bankrupt -- sound familiar?

This doesn't happen in the public sector because a government is shielded from competition and won't go bankrupt -- if it needs more money it just raises taxes.

The Rest of the Recycling Story

2009-07-21T14:46:00.013-06:00

Our critique of the Saskatchewan Waste Electronic Equipment Program (SWEEP) in a recent commentary led to an appearance on John Gormley Live. We pointed out only some of the problems and SWEEP board chair Joan Meyer responded on air.

An entire commentary could be made on Meyer's responses themselves. For starters, Meyer says that it was the precedent in Europe that got governments looking at recycling programs, to which the industry responded. It's true that Europe was ahead of North America, but the electronics industry certainly did take a proactive role in Canada to seize the day before legislation was forced on them. As well, the European example actually shows the inferiority of provincial programs in Canada because it leaves electronics manufacturers off the hook for life-cycle costs, re-use, and manufacturing of less polluting products in the first place.

No, the electronics industry was indeed pushing this file and actually proposing the legislation. Consider this 2002 document made for the Information Technology Association of Canada (ITAC). In 2003, the Electronics Product Stewardship Canada was formed to help influence governments on what environmental legislation was coming. David Betts, formerly of ITAC became its CEO and president. Incredibly, he also became Chair of the Board of SWEEP itself while still holding the EPSC post.

Shortly after the SWEEP program was implemented, David Betts resigned from both SWEEP (see page 3 of the annual report) and the EPSC. On June 1, as soon as his resignations had taken effect, Betts joined the management team at eCycle Solutions where he is currently a vice-president.

Ever since the SWEEP program was first implemented in 2007, Alberta-based eCycle Solutions has been exclusively tasked with recycling the televisions and monitors collected at SARCAN and in B.C.'s similar program. For eCycle Solutions and EPSC companies, industry-led, government-mandated programs have proven lucrative. However, a system that de-emphasizes re-use and restricts private sector participation is second-rate for the environment, consumers slapped with eco-fees, and recyclers shut out of the system.

RESPONSES TO CTF ADVOCACY

eCycle Solutions must be aware of our last commentary, seeing that they changed their website already. In our commentary, we noted the comment on an eCycle Solutions webpage that read, "Because we are government subsidized our services represent a significant cost savings for you." Immediately after the CTF brought this to light, they removed this sentence from their webpage, as can be seen here. As proof, we have posted a screenshot of the former site online.

Meyer defended the no re-use policy of SWEEP (even though by now even other provincial programs have embraced it somewhat). Meyer claims that only 1% of computers and TVs donated to SARCAN can be reused. This low estimate is laughable to any private sector recycler, who often receive re-usable products because the donors know that SARCAN will simply destroy it. This refurbishment is a large part of the private sector recycler's business.

A few hours after today's CTF's radio appearance on John Gormley Live, Darcy Moen of Second Time Office Equipment (pictured here) emailed to say,

We've had a rush of folks coming in dropping off ewaste today. Close to 30 tons today. Folks are saying, we heard about you on the Radio...its terrible what SWEEP is doing to you...here is our ewaste, I hope you can make a buck or two with it....we don't want to support SARCAN.

One guy came in with 30 pieces in his truck. SARCAN told him they will only take 3 pieces, the rest have to be palletized and taken to the commercial drop off center on Albert Street. The guy said f___ it, and drove in here...

PRIVATE SECTOR STILL SHUT OUT

Meyer claims that company's like Moen's were always able to participate in the SWEEP program if they kept their recycling and refurbishing streams of operation separate. Not so. We posted a copy of the original .pdf application form where it plainly states,

This qualification process is strictly for recycling/dismantling processes and excludes applicants that utilize reuse or refurbishing processes. Applicants may apply for qualification as a reuse service provider or as a recycler/dismantler, but not both. Only one application per organization or company, including affiliates, will be accepted.

This has has since changed somewhat, as the new document posted here reveals. Yet, it still says, "Only materials supplied through SWEEP qualify for SWEEP compensation."

Unfortunately, the practical reality for private sector recyclers shut out from SWEEP has not changed. Three private sector recyclers, including Second Time Office Equipment, tried to get into the program recently and were declined. One reason was that they proposed using Potter's Industries Inc. in Moose Jaw for its glass recycling. They were told by Product Care (a B.C. non-profit that runs the SWEEP program) that they couldn't use Potter's because it did not meet the new standards for environmental specifications. The problem is, these are the very same glass recyclers that SARCAN uses for its computers! Product Care says, yes, but this was established under the old rules...

IF AT FIRST YOU DON'T SUCCEED, TRY TRY AGAIN--UNSUCCESSFULLY

Second Time Office Equipment was also part of a joint application from a number of private sector recyclers to establish their own version of SWEEP, something that provincial legislation would seem to allow. It even included the idea of having the participating companies place a transport container (for free) at every municipal landfill in order to prevent such waste from going there. However, the environment minister has nixed this option as well.

That's too bad. Consider this report authored by the Information Technology Association of Canada in 2002 which says,

SARCAN initiated an IT waste recovery program consisting of three drop-off sites in Saskatchewan in December, 2000. The program collected over 15,000 units in the first year of operation (2001). 57 tonnes of material was recycled, and 5,000 CRTs were landfilled due to lack of economical processing options locally. An analysis of the costs of the program is incomplete as of March 2001.

At six pounds of lead per monitor, that's 15 tons of lead in the landfill that could potentially leak into the water supply. This was prior to SWEEP, yet even under the new program, this could still happen anywhere. However, some municipalities, school boards, and government agencies that are consciencious in this area are in fact, using the private sector to deal with their eWaste because they prefer such services to those received at SARCAN.

The intention of SWEEP to expand this program to all electronics in Saskatchewan should have every consumer and private sector recycler concerned.

Rider stadium report public

2009-07-20T15:05:00.004-06:00

The long-awaited report on options for a new stadium for the Roughriders is finally in the public view. There's not much to see here, just more leanings towards a dome and some, pardon the pun, "ballpark figures". The clear preference, as has been stated by Premier Brad Wall and Mayor Pat Fiacco previously (now echoed by 'Riders board chair Rob Pletch) is a domed stadium just north of downtown Regina. That will cost $350 million, making assurances that no provincial tax dollars will go to the project...suspect.

Now there'll be a $1 million feasability study to look at the issue some more. Here's hoping they examine the work of economist Brad Humphries who has demonstrated time and again that sports stadiums do little to nothing for a local economy.

Why pay down the debt ?

2009-07-20T09:34:00.003-06:00

The return to deficit spending, by the federal just about every provincial government in Canada, means the debt will get bigger.

As shown on www.Debtclock.ca, a website launched by the Canadian Taxpayers Federation, the federal government is borrowing money at a rate of $1,585 every second, $95,129 every minute, $5.7 million per hour, or just under $137 million every day of every week of every month for the whole of this year.

The revenue the government uses to spend doesn't grow on a money tree in the office of the minister of finance. It comes from taxation. If we care about future generations and the tax burden this debt is creating for them, we can get spending under control.

I can think of three reasons why we might want to lower the debt. Please add any you can think of in the comments section.

1. So future governments can spend savings from lower interest payments to cut taxes.
2. Young people should not be saddled with a financial burden they didn't create.
3. Once the baby boom generation retires, we won't have enough people around to pay the taxes to support the health care system or pay for the debt we've created.

So, we can try to ride the gravy train until we die, or we can vote for politicians who will cut wasteful program spending, cut taxes, and reduce the debt. The choice is ours.

Spiraling bureaucrat salaries abuse taxpayers

2009-07-17T13:07:00.003-06:00

B.C. taxpayers are being saddled with a public sector wage burden far in excess of their ability to fund it. In B.C. average annual salaries are only $42,000, and average family incomes are about $85,000. Bureaucrat salaries are spiraling well above this, and there is no end in sight.

The most blatant example of taxpayer abuse is the half-a-million dollar salary for the CEO of BC Rail who has what must be the very difficult job of running a 40 kilometer long railway. The government took a strong stand recently and stopped paying his golf club membership but seemed to forget to ask why we are paying someone so much to do so little in the first place.

Municipal employees appear to be doing what they can to hit the pay jackpot as well. Employees making more than $100,000 per year in the District of West Vancouver offices rose from 134 in 2007 to 161 in 2008. Interestingly, in 2000, West Vancouver had only 41 employees paid more than $75,000. This trend can be found in municipalities all over the province.

Governments looking for spending cuts must first look at the bureaucracy. Bureaucrat salaries have spiraled far beyond the incomes of taxpayers. Public sector salaries must be brought in line with taxpayers’ ability to pay.

Plug ins for demography

2009-07-17T08:08:00.002-06:00

If the City of Vancouver forces developers to install electric outlets in new building parking lots, sure it will make housing even more unaffordable, but it could put Vancouver ahead of the curve, the demographic curve, that is.

In Victoria, many parkades have plug-ins, and jammed around them are electric scooters -- the ones with front baskets and cane holders, not trendy vespas.

Also, as more and more scientists come to the conclusion we are heading into a renewed period of global cooling, we'll have a place to plug in our car's block heater.

Actions have consequences and many of those are unintended. Vancouver's happy planet mayor could be more far-sighted than most people think.

Catalyst for a tax revolt

2009-07-15T20:44:00.005-06:00

The forestry sector in British Columbia is in big trouble because of market conditions. Now struggling to survive, forestry companies have taken a stand against gouging municipal governments -- we have the beginnings of a property tax revolt here in B.C.

Catalyst Paper, a pulp and paper company with four mills in B.C. towns told the municipal councils in those towns it would not borrow to pay its property tax bills. Catalyst pays about 40% of the property tax bill in each of those municipalities, but only consumes about 6% of their services. It has agreed to pay $6 million of its $23 million property tax bill.

Timber West Forest and Celgar Pulp have both said they wouldn't pay their full bill either. All three companies are now in court over the issue

One-mill towns have long gouged their biggest employer, but those days are over. In fact, B.C.'s finance minister has confirmed that a mill in BC that pays $5 million dollars per year in property taxes would only pay $500,000 per year in the US.

These industries heavily subsidize the services to residential property owners, and while property owners might be enjoying the free ride, if the biggest employer in town closes down, the free ride is over.

Indian Act 'will soon be history': FSIN chief

2009-07-15T06:38:00.003-06:00

The Chief of the Federation of Saskatchewan Indian Nations says that the Indian Act "will soon be history." One could only hope. However, when this occurs, the Indian tax exemptions contained in section 87, and not the treaties, will also vanish.

Thanks to a Supreme Court decision, the definition of "Status Indian" must be reworked by 2010 to be more fair. The daunting task of determining such definitions will prove challenging indeed. Many Canadians have aboriginal blood. And, given the history of settlement, most Canadians are a Heinz 57 of races. It is easier for individuals, not groups, chiefs, or courts to decide what parts of their lineage to identify with, or simply identify with all of it. The human family is just that. We are all distantly related.

Assimilation has been falsely cast as an evil intention of European cultural imperialists. Of course, the idea that indigenous peoples could assimilate with the settling races, if true, would actually be a compliment to the latter. Regardless, this assimilation has already occurred. Indigenous peoples already live in the milieu of a capitalist and democratic society, and have little choice but to embrace it. The alternative is for them to live on reserves in poverty, isolation, and without human or economic rights. Many have chosen to leave.

Hopefully one day such rights will come to the reserves as well. In the meantime, that Indian Act just keeps getting in the way...

Salaries increase at Regina city hall

2009-07-14T17:30:00.004-06:00

That's no surprise, and the story is here. But this posted comment caught my attention...

To Victoria July 14, 2009 - 5:17 PM I would suggest you gain knowledge of a subject before you comment on it. You paint all commentors of this article as "unemployed & barely educated", but obviously have not given any thought to comments by "it's a lie" or "on the inside". I too used to work for the City of Regina, and also agree that it's the most dysfunctional workplace I have worked in my 20+ years of professional employment. I personally witnessed some of the most qualified people within departments leave because of the unhealthy work envirionment created by overpaid and incomptetent directors & managers. I have also witnessed a near mass exodus of another department for the same reasons. Today's article and the comments associated with it confirm I made the right decision to leave that black plague known as city hall.

We were right about Corner Gas

2009-07-14T15:45:00.004-06:00

The day after our post on Corner Gas, it turns out the Saskatchewan government is indeed looking at making the former set a better tourist trap. But at what cost?

At least this makes much more sense than Sask Tourism's advertising campaigns. Some signs do nothing but advertise one Saskatchewan city within another Saskatchewan city. Why would anyone go to Yorkton just because of a sign that says "Experience Saskatchewan: Yorkton"? It's not like someone in Regina didn't know Yorkton was there!

18% pay hike for Saskatoon firefighters

2009-07-14T14:05:00.004-06:00

Saskatoon firefighters will be paid $78,000 annually when their current contract expires. This represents an 18% increase over two years. The reason? Regina firefighters are currently getting paid 12% more. The wage gap will be closed by the end of the contract.

This reasoning that civic employees of one city should always be paid the same as another ensures the taxpayer is always the loser. Consider last year when the Saskatoon police chief got a substantial raise because the city manager got a raise. And why did the city manager get a raise? Because a Regina city manager was getting paid more. The problem is at the end of all of this, the Saskatoon police chief got paid $40,000 more than the Regina one.

It's garbage.

Crown pay rising fast in Sask

2009-07-13T13:38:00.004-06:00

According to Leader-Post columnist Murray Mandryk, between 2004 and 2008 the average pay for full time employees rose dramatically in Saskatchewan crown corporations. At SaskPower, it was 25.7%; at SaskEnergy, 16.5%; SaskTel, 25.7%; and SGI, 43.6%.

The average wages for full-timers? SaskPower, $92,378; SaskEnergy $91,832; SaskTel $75,563; and SGI, $72,258. Wow.

Mandryk is right to say, "...there is a danger that this administration is already falling into the trap of former Conservative governments (both federal and provincial) that cut taxes but failed to curtail spending."

Check out the full Crown Payee Disclosure report here.

Via Rail advertises Ontario routes in Regina

2009-07-13T07:44:00.007-06:00

(screen shot captured July 13, 2009)

Via rail has taxpayer dollars to burn. What else could be the reason that it advertises a local Ontario route to readers in Regina, Saskatchewan where no Via train passes through?

Chalk it up as one more reason to sell off crown assets. According to CanWest, government documents in Ottawa indicate the federal government is preparing to do just that. It has identified the following crown corporations as "not self-sustaining":

Company name, commercial revenues, parliamentary subsidy, expenses
Atomic Energy of Canada Ltd., $614.2 million, $285.3 million, $1.3 billion
CBC, $565.5 million, $1.1 billion, $1.7 billion
Cape Breton Development Corp., $5.1 million, $60 million, $94.1 million
Federal Bridge Corp. Ltd., $14.6 million, $31.0 million, $42.9 million
National Arts Centre Corp., $26.0 million, $40.6 million, $65.7 million
Old Port of Montreal Corp., $16.7 million, $15.1 million, $32.0 million
Parc Downsview Park Inc., not available, not available, not available
VIA Rail Canada Inc., $293.9 million, $266.2 million, $505.5 million

Source: Department of Finance, Public Accounts of Canada
Note: Financial results are for 2007-08

Corner Gas All Pumped Out

2009-07-13T07:28:00.002-06:00

Despite getting millions in tax credits from Saskatchewan taxpayers, no one involved with Corner Gas seems interested in making the set a tourist site, nor even allowing it. This Star-Phoenix editorial sums up the problem well.

Virginia Thompson, president of Verité Films that produced the show, says the company has found the money to slap a coat of paint on the old set, but says, "We're not in the tourism business."

This despite what the mayor says were promises made before the show ended that the townspeople would be left with a "wonderful legacy." Ms. Thompson says renovating the site to make it safe and attractive for tourists would cost at least $250,000, and her company is worried about liability issues if a visitor gets injured...

At a time when gobs of public money has been invested in a sound stage in Regina and tax credits galore are being offered to build a film and TV industry in Saskatchewan, those who avail themselves of the advantages need to look past their noses to leave something behind. It could even translate into an ongoing revenue stream from a hit show long after it stops production.

Unfortunately, it's not hard to imagine that the next "solution" to this impasse will involve more provincial tax dollars.

First food for fuel, now food for power

2009-07-13T06:58:00.002-06:00

While it's now commonplace to hear of crops being used to produce ethanol and other biofuels, using farmland to create power is more of a novelty. However, it too is coming--and with government help--to the ire even of an environmentalist, anti-nuclear group.

A 200-acre farm just west of Ottawa, will get 300,000 solar panels at the cost of $100-million. Once it becomes operational, it will become Canada's largest photovoltaic plant and generate 20MW of electricity, enough for 7,000 homes. The venture is being done by EDF EN Canada, the Canadian arm of the French renewable-energy firm, EDF-Energies Nouvelles. Canwest explains,

The industry is getting a lot of government help. EDF is undertaking its photovoltaic project under the Ontario government's renewable-energy program, which the Liberals plan to fund to the tune of $5 billion over the next three years.

The plan has run into some trouble, however, with some farmers and residents east of Ottawa opposed to the use of fertile agricultural land for solar and wind power plants.

Critics say the bigger problem is that the government's well-intentioned plan to develop green energy has turned into a big scam, in which taxpayers are merely subsidizing private companies to produce inconsequential amounts of power.

Norman Rubin, a senior policy analyst at Energy Probe, says while solar energy will, in time, "revolutionize electricity as we know it," the government's current approach amounts to throwing good money after bad.

Cross-country tax comparisons

2009-07-10T15:34:00.004-06:00

How do your province's taxes compare with others? Click here for a recently updated chart.

Saskatchewan's first rate of taxation, 11%, is second-highest in Canada. This is one reason why the CTF-Sask office and Enterprise Saskatchewan are calling for a single 10% rate. The Fraser Institute recommended a single rate of 9%.

Should MP expenses be posted online?

2009-07-09T15:51:00.003-06:00

Yes, say Auditor General Sheila Fraser and Kevin Gaudet of Taxpayer.com. How else will Canadian taxpayers know if another U.K.-style MP expense scandal isn't already going on?

This is garbage alright.

2009-07-09T13:01:00.002-06:00

$850M and Sask taxpayers in the dark

2009-07-09T10:49:00.003-06:00

Saskatchewan taxpayers could foot the bill for a $350 million stadium and a $500 million nuclear reactor; yet, the details are sketchy. Both stories were front-page news in the Regina Leader-Post.

The premier has admitted that the reactor could be a money-loser for some time. Richard Florizone of the Uranium Development Partnership says that only 1/3 of the cost of a nuclear research reactor would be recovered by sales of medical isotopes. Florizone and NDP MLA Sandra Morin discussed the issue on John Gormley Live (click here to listen). The provincial and federal governments and likely the U of S would front money, but how much?

As for a potential $350 million new stadium for the Roughriders, the provincial government is keeping the $70,000 report it commissioned under wraps. The football club, the City of Regina, and the federal government are looking at it and taxpayers will see the report...sometime. The CTF has already requested a copy as well as the stadium proposal submitted by the Roughriders to the city early in 2008.

Click here for a panorama of the Riders' current facility, Mosaic Stadium.

No consensus - listen live on July 13-09

2009-07-09T09:25:00.003-06:00

Climatologist Dr. Tim Ball will be interviewed live on Talk 1410 (www.talk1410.com) radio on Monday July 13 at 12:45 to outline how the climate changes, always has and always will.

Dr. Ball was one of a group of concerned scientists who signed an open letter to Prime Minister Stephen Harper calling on him to examine the science behind the government's climate plans before wasting billions of tax dollars trying to stop the climate from changing.

The climate changes, always has and always will. There is no consensus.

U.S. bailout dwarfs all other spending

2009-07-08T12:03:00.002-06:00

Auto bailouts aside, Canada's deficit spending is a lower percentage of GDP than that of the U.S. However, the chart above shows that the U.S. bailout is so massive, it's not much of a compliment to the federal government in Ottawa. Click on the chart for its full size.

Cooling to Consensus

2009-07-07T09:51:00.003-06:00

A study in the peer-reviewed journal Risk Analysis found that as people learned more about global warming, they were less concerned about it. As more people realize, of course the climate changes, climate change legislation drops off the agenda and the so-called scientific consensus breaks down.

Australia and New Zealand have rescinded their climate change legislation.

Dr. Kimimori Itoh, a Japanese environmental chemist who participated in the UN climate reports now says the theory of man-made climate warming is "the worst scienfic scandal in history."

It's time for us to drop the climate excuse for higher taxes to fund social engineering schemes.

Cap and tax continued

2009-07-06T14:47:00.001-06:00

The US Republicans have defined cap and trade as 'cap economic growth and trade jobs to China.' If we look at the EU's experience with its attempts to reduce greenhouse gas emissions, we'll see the Republicans have a good point.

European governments have imposed a garden variety of GHG reduction measures since the early 1990's.

Nevertheless, GHGs went up in Europe by 5% between 1991 and 2005.

What did go down in that same period, though, were manufacturing jobs.

Norway, Sweden and the UK, for example, saw manufacturing jobs fall by 5.6%, 18.5% and 20% respectively.

The cap and trade system started in Europe in 2005. The additional tax on manufacturers will likely reinforce the effects of the previous tax increases.

Obama's climate change astrologer

2009-07-06T09:37:00.004-06:00

Cap-and-trade (read: cap-and-tax) is coming to Canada, thanks in part to pressure from the Obama administration south of the border. Incredibly, President Obama's Energy Secretary Steven Chu is predicting a certain climate catastrophe by 2019. He says we can be confident for the first time in history that such a prediction would be correct.

Japanese scientist Kanya Kusano, a Program Director and Group Leader for the Earth Simulator at the Japan Agency for Marine-Earth Science & Technology, has publicly declared that man-made climate fear promotion is now akin to “ancient astrology.”

No wonder. Even Nostradamus would blush at this nonsense.

demographics matter

2009-07-02T08:40:00.004-06:00

Deficits and debt mean government spending today will be paid for by future taxpayers, our children and grandchildren.

Mark Steyn makes a good point in his book America Alone. Among other things, he says fertility levels in the US, at 2.1 live births per woman, are at about population replacement levels. Canada's, at 1.5, and Europe's, at 1.3 are not, meaning the population is shrinking.

So, if you are expecting the government to pay you a generous pension based on future tax revenue, instead of funding your own retirement from your own investments, you might want to reconsider.

There may be few taxpayers in the future left to shaft.

Carbon tax coercion continues

2009-07-01T10:50:00.002-06:00

While people across Canada celebrate Canada Day, here in B.C. we get to celebrate by paying a higher carbon tax.

The carbon tax goes up by 50% today (58% with the GST included), as the government continues with its plan to force people out of their cars, sit around in the dark, and wear sweaters in their homes to stop what some people believe is a looming global warming Armageddon.

But as political parties have discovered to their dismay, voters are not willing to sacrifice their wellbeing today to prevent something that may or may not happen 100 years from now. It's time to get rid of the carbon tax and use the tax system for what it was intended -- financing essential government services -- not as a tool to distort the price of energy to engineer a colour-of-the-month social outcome.

People still have to drive and heat their homes and increasing the cost of energy will do little to force people to behave otherwise. It will create hardship and difficult choices as people decide whether to enroll their children in soccer programs because of the cost of driving. But as more people realize the climate changes, always has and always will, the carbon tax will fall out of favour as a tool of coercion.

Tax Cut on Wednesday, $50k Club Details Released

2009-06-30T09:39:00.003-06:00

Business Tax Cut on Wednesday

Many businesses in Manitoba will benefit from a reduction to the provincial business income tax rate tomorrow. The rate will be reduced from 13% to 12% and was reaffirmed in the March, 2009 budget.

Two thumbs up for not wavering from this commitment despite the economic slowdown.

Although Manitoba has the dubious distinction of being known as a high tax jurisdiction and needs to address many other areas of taxation (i.e. school taxes, payroll taxes, personal income taxes), it's important to give the government a good pat on the back for this reduction.

For further details, click here.

Who Makes Over $50k at the City of Winnipeg? - Report Released Today

As part of their annual reporting requirements, the City of Winnipeg released the "2008 Compensation Disclosure Report". The report includes the names of employees at the City of Winnipeg that received over $50,000 in salary and taxable benefits (i.e. car allowance) for the year 2008.

To give the report a read, click here.

Canada Should Emulate USA Disclosure Site

2009-06-30T07:01:00.003-06:00

The federal government in the United States has launched a disclosure site that allows taxpayers to examine and analyze federal spending and give feedback. http://it.usaspending.gov/ is a fantastic window into government spending that Ottawa should emulate.

10 per cent tax for Sask?

2009-06-26T16:16:00.003-06:00

Enterprise Saskatchewan has recommended that the "Land of Living Skies" phase in a 10% flat tax for personal and corporate income. This would be a fantastic idea. We have advocated a single rate of 11% for years with a higher basic personal exemption. The exemption was raised by $4,000 last year, and now a single rate tax could be on the way.

The report can be read here. The section on "Tax competitiveness" begins on page 9. This excerpt makes the case well:

Rather than increasing revenue to the Province, high taxation can drive revenue away. This is already evident when comparing the high end of personal income tax in Saskatchewan (15%) with that of Alberta (10%); the 5% discrepancy has motivated some high-income earners in the province to find ways to divert their income into our neighbouring province.

It also discourages top income earners in all disciplines from moving into Saskatchewan. Saskatchewan’s marginal personal tax rates on labour income and savings, especially for individuals with modest incomes, are high. There is sound evidence to show high marginal tax rates deter people from investing in education, discourage savings and negatively impact on an individual’s decision to become a self-employed entrepreneur. High taxes also act as a deterrent to reporting income.

Ironically, lowering personal income taxes (PIT) could in fact lead to increased overall tax revenue.

One department...one company...one hundred thousand dollars worth of promo items

2009-06-26T12:16:00.007-06:00

Last year the CTF documented how over $4 million was spent by Manitoba Crown Corporations and various other boards and agencies on promotional giveaway items - even though most enjoy monopolies.

This year we looked into how much one department - the Department of Competitiveness, Training and Trade - has been spending on promo items.

From January 1, 2006 to February 3, 2009, the Department purchased a little over $100,000 worth of promo items from just one company.

Here are some of the highlights:

18,000+ Pens and highlighters
14,000 Tatoos
240 Navy conference bags
525 Tote bags
25 Designer business card holders
1,000 Wristbands
251 Swivel flash drives
9 Techno lite reversible vests
9 Denim shirts
9 Microfibre fleeces
9 Mens mini Ottoman polos
2,500 Lip balms
86 Executive umbrellas
1 "Underarm portfolio black navigator supple leather"

The FOI response, inluding copies of all receipts can be viewed here:

Part 1
Part 2
Part 3
Part 4

Carbon offsets a bad gamble

2009-06-24T14:50:00.002-06:00

Don Braid of the Calgary Herald explains why Ottawa's cap-and-trade plan, like the federal gun registry, has trouble written all over it.

Smoking Is Cool Again

2009-06-23T14:07:00.003-06:00

Well no, I supose that's a lie, but US President Barrack Obama was pretty cool in his answer regarding his own habbits in light of a new nanny-state law south of the border. Considering Canadian politicians fall over themselves trying to be seen in the same room as the Commander-In-Chief, I wonder if anyone north of the border will give in to peer preasure and light up.

All the cool leaders are doin' it.

Global Warming Alarmists Slammed

2009-06-23T08:42:00.004-06:00

Yesterday, both Vancouver newspapers ran alarmist articles warning about the catastrophe that will befall us should the government not spend billions of our tax dollars to 'do something' about global warming.

My response, not included in today's Province letter to the editor section was: Dr. Andrew Weaver says no one listens to his cry of 'the rain is coming.' Perhaps that's because his cry would be more aptly described as 'the sky is falling.' A March 2009 Gallup Poll in the US showed that 41% of Americans say global warming is exaggerated in the mainstream media, the highest level in a decade of polling. In fact, it is the only issue where public concern has dropped considerably in the past year. The climate changes, always has, always will, and no amount of tax dollars wasted because of the cries of chicken littles will change that.

The two letters published in the Province show that people are not fooled by the alarmist agenda:

One entitled "Tiresome diatribe" started off with this: While few would dispute we all have a role to playing in reducing our carbon footprint, your article "Warmer Wilder Weather" is yet another example of the doomsday predictions concocted by our global-warming pundits.

The other, entitled "Justifying the carbon tax" started like this: Having just turned our furnace on after mid June for the first time in 30 years, a little warming will be appreciated.

Read the letters here

Double Standard for Doer's Scandal

2009-06-22T16:27:00.004-06:00

Gotta love double standards. Governments can be ruthless with taxpayers who don't pay their bills, but as we recently learned, a political party (Manitoba's NDP) is being let off the hook for repaying tax dollars it appears it received illegitimately. See here for details.

Basically, the NDP cooked their books during the 1999 election by counting volunteer time from unions as expenses. As political parties are reimburse by the government with fifty cents for every dollar they spend during an election, this scheme provided the NDP with $76,000 of taxpayer money it wasn't eligible to receive.

Although the NDP were forced to repay the taxpayer dollars they received illegitimately during the 1999 election, it appears they haven't repaid taxpayer money from previous elections. This despite an NDP cabinet minister and an official agent stating the scheme had gone on for years prior to that election.

If you're thinking it's too late to go after taxpayer money handed out during the 1995, 1990, 1988 or 1986 elections, consider section 6 of the Canada Revenue Agency's Information Circular IC75-7R3.

Basically, the feds have the ability to go in and reassess taxpayers at any time if they feel a taxpayer has made "misrepresentation attributable to neglect, carelessness or wilful default or has committed fraud under the Income Tax Act."

As you'll note, they can also assess interest and penalties.

Again, taxpayers can get raked over the coals for bills they don't pay, but it looks as though there's a separate set of rules for political parties.

Domed stadium panned by Star Phoenix

2009-06-22T13:09:00.002-06:00

An editorial in the Saskatoon Star Phoenix sides with the CTF stance on a proposed domed stadium in Regina.

Even at a time when stimulus-obsessed politicians are tossing around hundreds of millions of dollars as if the day of reckoning will never come, the idea of building a domed stadium in Regina is a dream that needs a quick reality check.

It can start with Saskatchewan residents demanding to see the findings of a $70,000 feasibility study on a 35,000-seat "indoor entertainment complex," especially when a Regina city councillor with close ties to the Wall government is speaking as if the dome might be a done deal.

The Canadian Taxpayers Federation's Saskatchewan director, Lee Harding, was right to express concern by noting Coun. Jocelyn Hutchinson's comment on a radio show that the indoor stadium "will be a great link between downtown and the entertainment district."

Given the projected cost of such a domed structure is in the range of some $350 million -- money that mostly will have to come courtesy of taxpayers via their municipal, provincial and federal governments, its proponents need to present a viable business case that covers not just the capital costs of the facility but its operating costs as well.

Wind power can't be counted on

2009-06-22T12:52:00.003-06:00

Wind power is like an employee you can't count on. When they're working, great, but you always have to have enough reliable workers as if that spare tire wasn't even there.

Hank Petranic, VP for natural gas and power transmission for TransCanada Corp inadvertently proved that after speaking to representatives of 11 U.S. States and 5 Canadian provinces. He told the Saskatoon Star-Phoenix,

"You sell wind power when it's blowing and hold the water behind the dams; and when it's not blowing you let the water go behind the dam. Those are the kind of synergies you could have if you were part of a bigger market"...

Either way, you need the hydro-electric plant! So what good is the wind?

Red Ball Confrontation

2009-06-22T10:33:00.004-06:00

Shortly after the Red Ball video above was posted, our You Tube channel was shut down permanently for copyright violations. Whether there is any indirect link to the timing of the complaints by the third party and our Red Ball video is not known.

Nevertheless, the video of Kevin Gaudet versus Kurt Perschke is back. Watch it and pass it on quick! Who knows what will happen next.

RCMP Investigating NDP

2009-06-19T14:48:00.003-06:00

According to the CBC, the RCMP is investigating the Saskatchewan NDP after allegations surfaced that party membership documents were forged.

As it was recently revealed that election documents were altered by NDP brass here in Manitoba so the party could receive $76,000 in taxpayer rebates, one has to wonder if Manitoba's NDP is next?

Maybe then taxpayers will find out the truth to the growing cheque swapping scandal. After all, taxpayers still deserve the following answers:

1) How many taxpayer dollars did the NDP receive through the illegitimate scheme?
2) Why did Elections Manitoba sweep the cheque swapping scandal under the rug, but prosecute another party's candidate for a relatively minor infraction?
3) What exactly is contained within Elections Manitoba's documentation from its investigation?

And more...

Hopefully Elections Manitoba will cooperate...but don't hold your breath.

Taxpayer-funded red ball in Toronto

2009-06-18T19:17:00.002-06:00

This year's annual Luminato festival in Toronto features an inflatable red ball. The festival has received $25 million from all three levels of government over the past three years. This left Kevin Gaudet asking Red Ball creator Kurt Purschke if the expense is justified RIGHT in front of the ball! Purschke is not impressed with the CTF's statement and takes down a sign that Gaudet posted.

Backdoor shenanigans to prevent gun registry vote

2009-06-18T09:37:00.005-06:00

MP Scott Reid explains how government efforts to scrap the long gun registry are being thwarted behind closed doors by opposition parties. The Bloc, NDP, and Liberals are using their power at the committee level so the issue could be declared "non-votable" in the House of Commons.

A Deep Forest of Bailouts

2009-06-17T11:50:00.002-06:00

Two for you, one for me, and if by chance we don’t agree, bailouts for everyone and more taxes and debt for me.

We naysayers who warned long ago that bailouts for one corporate welfare bum would inevitably lead to bailouts for every Tom, Dick, Harry… Moe, Curly and Larie, are right, again. It was therefore with little surprise that the federal government has caved in - again - and is now pledging a new $1 billion for the forestry sector.

But whats that? The union isn’t happy and is uterly ungrateful to the already fleeced Canadian taxpayer? We could never have guessed that after the union bosses of the CAW equally showed its appreciation.

The Conservatives need to realize that this is not only bad policy (they likely do), but that this is also bad politics. They have now bailed out every corporate welfare bum on Wellington Street, but they have seldom been this far down in the polls.

Taking a stand against this parade of special interests and reigning in spending would surely have been a better course to follow, for policy and polls.