Canadian Governments Goals: More Wealth for the Wealthy and Austerity for Everyone Else

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jerrym
Canadian Governments Goals: More Wealth for the Wealthy and Austerity for Everyone Else

I originally posted this yesterday under Newfoundland and Labrador Political Pot Pourri but I then realized it has implications for all the governments in Canada, especially in the age of Covid when virtually every government is carrying a large debt load. Many have argued that Covid has shown that debt doesn't matter when a great crisis like Covid hits, much as was the case during WWII when the elites themselves were under threat from the Nazis and the Japanese militarists. People expect the government to act without worrying about the debt when literally thousands are dying every day. Many who went along with the conventional argument of it being necessary to keep the debt low or even wipe it out have seen that at least sometimes, such as during the Covid crisis, that that is highly problematic. However, at some point we will be out of the Covid crisis, even if it sticks around from year to year like the influenza. Free market parties will want to re-establish the necessity of keeping the debt low and re-establishing austerity. 

What happened in Newfoundland looks like what Naomi Klein called a dose of the Shock Doctrine for Newfoundlanders. "Klein argues that neoliberal free market policies (as advocated by the economist Milton Friedman) have risen to prominence in some developed countries because of a deliberate strategy of "shock therapy". This centers on the exploitation of national crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are too distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively." (https://en.wikipedia.org/wiki/The_Shock_Doctrine) Newfoundland could be a model for other governments in Canada to follow. 

What has happened in Newfoundland during and since its election this year shows that a government can do this even during the Covid crisis by initially misleading the people on what it intends to do. It. Liberal Premier Andrew Furey turns out to be Liberal Premier Dwight Ball redux on steroids.  Less than two months after the election where Liberal Premier Furey painted a things are okay going forward and denying that there was a hidden agenda the Big Reset was published. It was supposed to be released on February 27th, after the original February 13th election date, but on the eve of its supposed release the Liberals said that it wasn't finished and would be released after the election. Nothing to worry about. How convenient the original release date was fine until it was no longer convenient for election purposes. And of course we now get a report from Canadian business woman Moya Greene, who was the onetime CEO of Canada Post and later CEO of Royal Mail where she oversaw its privatization.

Of course how could Premier Furey have ever forseen that Greene would report things need to be reset in the Newfoundland economy, reset in a BIG RESET way? After all, "Greene was named as Financial Times Person of the Year in 2014. Judge Luke Johnson said "She did a fantastic job managing the unions, politicians and media and floating the business last year. It was an almost impossible task to reconcile demands from all the competing stakeholders – and sell a declining business such as post and parcel delivery to the stock market – but she pulled it off." And she did very well by herself although she when a minor slip "In August 2013 she repaid £250,000 in expenses she had claimed to fund buying a house, after Business Secretary Vince Cable objected to the payment". Who would have guessed the report would recommend "sweeping cuts" and a "radical reform of the public sector". (https://en.wikipedia.org/wiki/Moya_Greene)

However, not to worry, business people like Greene and their political allies like Furey, always do well personally in these situations.

Schools with no students. Ferry runs with no passengers. A 22-year freeze on university tuition. A population that is lower than it was 50 years ago. A bloated public service. Soaring deficits and debt loads. A devastated fishery. Tourism on its knees because of COVID. Declining oil and forestry sectors. 

There’s nothing much positive to say about the economic situation in Newfoundland and Labrador. All that was made clear last week with the publication of The Big Reset, the comprehensive report of the economic recovery team tasked by the provincial government to set a future path for the province.

Chaired by Moya Greene, the onetime CEO of Canada Post and later CEO of Royal Mail in the U.K., the task force report pulled no punches, pointing out that the province already is hanging over the precipice, teetering on the brink of a crisis that could lead to it running out of cash if interest rates rise and the province can no longer borrow to keep the lights on. 

Greene noted that the province has Canada’s oldest population, highest jobless rate, highest per-capita health spending along with the weakest health outcomes in the country.

And with a constantly rising level of debt, the generational inequities which are evident throughout Canada after deficit spending to fight the pandemic, are even more evident in Newfoundland, where the elderly are leaving a massive bill to a shrinking population of young people.

Reacting to the report Thursday in a special televised statement to the province, Premier Andrew Furey admitted that the province was spending “more than we have,” noting that the province was borrowing $1-billion a year simply to pay interest on its debt. “Our credit card debt is out of control.”  

The task force proposed a series of sweeping measures, including big cuts in spending on health and post-secondary education, a series of increases in taxes and fees, a radical reform of public sector pensions and consolidation and privatization of provincially-owned businesses. 

The report calls for the abolition of Nalcor, the provincial energy firm responsible for the disastrous Muskrat Falls hydro-electric project in Labrador, an always iffy project whose construction costs were wildly over budget, leaving the province with a debt it can’t repay and residents with looming rises in electricity costs.

Furey pointed to the need to act urgently on several proposed measures, including higher taxes, deciding on the future of Nalcor, merging health authorities and making a new arrangement with heavily-subsidized Memorial University. ...

Though it’s tempting to make comparisons with another troubled island that’s beset with bad finances, poor political leadership and demographic decline, Puerto Rico, the situation isn’t comparable. Puerto Rico was even more of a basket case but its unique relationship with the U.S. Congress could make its financial reorganization, essentially a managed default, a one off affair.

If Newfoundland were allowed to default, it could prompt lenders to look at other weak jurisdictions in the Atlantic and wonder who’s next? And in any case, Ottawa is on the hook for billions of dollars of Muskrat Falls debt, having foolishly given the province a loan guarantee during the Harper years. 

https://ipolitics.ca/2021/05/13/newfoundland-on-the-brink-will-it-be-dif...

jerrym

And now here is the Furey agenda in all its full glory. Too bad he couldn't see it coming during the election and only realized how bad the situation was when the Greene "Big Reset" report that was delayed and delayed again when the election that Furey was in such a hurry to hold had its own Big Reset due to Covid so the people never got to vote on the hidden Furey Liberal agenda. Of course it was not planned out this way. That would prove the Shock Doctrine of Naomi Klein is true. It just happened in such a convenient way in terms of not having any detailed questions on what was coming during the election. It's strange how Furey couldn't see what was coming when, in his own words, ""This situation predates the pandemic and it has been compounded exponentially by Muskrat Falls."

And how convenient to propose all of this in a video and take no questions and give no specific details of how it will be done. A true master politician.

Newfoundland and Labrador Premier Andrew Furey says the province's financial circumstances are unsustainable and the total provincial debt of $47 billion is an unbearable load for residents.

In a video released Thursday evening, Furey offered his full thoughts for the first time about the recently released, and blunt, Moya Greene report, which outlines the province's dire fiscal situation.

"Our province is spending more than we have. We are borrowing just to pay interest on what we owe. Over a billion dollars a year with nothing to show for it. Our credit card debt is out of control," Furey said.

Furey touched on a number of highlights from the report, from his appointed economic recovery team, including the need for the provincial government to quickly rein spending in to match revenue, and the fear of losing control of the province's future if nothing is done.

The premier said "urgent actions" include:

  • Raising taxes on people "who can afford it."
  • Reviewing public sector salaries and eliminating bonuses.
  • Evaluating the future of Nalcor and the province's future position in oil equity.
  • Investing in technology innovation and the green economy.
  • Amalgamating health authorities.
  • Reaching a new deal with Memorial University.
  • Examining "the purpose of a school district that continues to keep empty schools open."

The premier provided no specifics about how the provincial government would implement the actions he mentioned. Furey also didn't take questions from the media Thursday evening, but has scheduled an availability for Friday morning.   ...

Memorial University political science professor Russell Williams called Furey's statement "surprisingly vague," adding that it's not clear what Furey is specifically planning to do with the report's recommendations. "Some of those vague areas were made worse, obviously, by the fact that there was no opportunity to ask him questions about it afterwards," said Williams.

Williams also said it's not clear what Furey meant by "a new deal with Memorial University. I have no idea. There's some recommendations about that in the Greene report, but the premier hasn't really said what he means by that," said Williams.

"I think if I was to boil to one simple point, this was a huge missed opportunity for the premier to actually tell us either what he thinks about the substantive recommendations in the Greene report, or to tell us what his plan is for a process going forward as to how he's going to choose what to implement." 

https://www.cbc.ca/news/canada/newfoundland-labrador/andrew-furey-pert-r...

jerrym

While the Newfoundland Furey Liberal government appears set to go ahead with massive cuts to public sector services and salaries, healthcare and education from elementary to university, including eliminating school districts, there is no mention of cutting back on oil production or shifting resources towards offshore wind energy, using the ocean's strong winds as a driving mechanism, as Britain, another island, has done.  By putting resources into this energy source "By 2018 Great Britain was building 50% of all offshore wind energy capacity in Europe." (https://blueocean.net/great-britain-leads-in-offshore-wind-energy/)

Instead Newfoundland Furey Liberals, with the assistance of the Trudeau Liberals, has poured ever more resources into its failing oil industry, even as the industry is abandoning the province. The Trudeau Liberals gave $325 million in subsidies to Furey last fall to keep the oil industry afloat and then added another $41.5 million giveaway for half the cost of building an oil refinery that Husky Oil was about to close. When they got the money the company said they would consider finishing the refinery, without making any commitment to do so. In other words, both the provincial and federal Liberals are pouring big subsidies into a failing industry at the same time the Furey Liberals proclaim they don't have the resources to maintain major current education, healthcare and other services. Its a classic case of applying austerity through the Shock Doctrine, while still subsidizing the world's most profitable industry to the hilt. 

We may well see similar austerity programs in the future, distinguished by the particular circumstances in a province or at the federal level, with the justification being that the debt load for the government has just become too too great, while saying that corporate sector needs government to build the economy.

Federal Natural Resources Minister Seamus O'Regan called a strategic investment in the oil industry. When a company cancels a 60% complete project you know its in very bad shape. A strategic plan would actually be to stop throwing good money down the drain trying to keep alive an industry in a slow death spiral. The $41.5 million investment came a few days after Cenovus bought Husky for $4 billion. Cenovus quickly said that all options were on the table and a quick shutdown of the project was possible. Cenovus even admitted that it might walk away from the project as soon as the merger is complete. 

On the other hand provincial NDP leader Coffin, facing reality, said " 'We're putting money into an industry that I don't think is sustainable at all. We're hearing time and time again that the oil industry is in decline.' — Coffin commenting on the $41.5 million in federal funds handed to Husky Energy on Dec. 3, 2020.(https://www.kamloopsthisweek.com/alison-coffin-newfoundland-and-labrador...)

The West White Rose project was about 60 per cent complete when construction was halted. (Husky Energy)

Husky Energy is getting $41.5 million from the Newfoundland and Labrador government to keep the idled West White Rose offshore oil project going, particularly to "protect the option of restarting" in the next year — although there is no guarantee that will happen. ...

O'Regan called the announcement "one heck of a Christmas surprise for Newfoundlanders and Labradorians and their families." He said the announcement was not merely a government handout but instead called it a "strategic investment" in the offshore oil industry, which was thrown into turmoil this spring when the COVID-19 pandemic caused oil prices to plummet. ...

That Oil and Gas Industry Recovery Fund was announced Sept. 25, with the federal government allocating $320 million for the N.L. government to support direct and indirect employment. 

The announcement is the latest development in a saga that started in April, when Husky announced it was stopping construction on the project, as the global pandemic battered oil markets. Hundreds of workers were laid off. At the time, the project was nearly 60 per cent complete. ...

That news came just days after Cenovus Energy announced it would buy Husky Energy in a deal worth nearly $4 billion. In a statement, Cenovus said regarding Husky's operations in the province "the WWR [West White Rose] project is key to extending the life of the White Rose field. As we have said before, all options are on the table and accelerating abandonment remains a possibility." 

https://www.cbc.ca/news/canada/newfoundland-labrador/west-white-rose-1.5...

jerrym

The following article discusses how Premier Furey set in motion his austerity plan. The article notes "If such a deep austerity plan can be implemented in Newfoundland and Labrador, it will be attempted in other provinces in the years to come."

The pandemic has thrown the budgets of governments across Canada into the red as they increased spending to protect their populations from COVID-19 and expand the social safety net, while the economy slowed and revenues declined. But not every province was in the same situation heading into the pandemic, and for Newfoundland and Labrador, despite successfully managing the spread of COVID-19 for much of the past year, it appears the time of reckoning has arrived.

Last October, just two months after taking over the leadership of the governing Liberal Party, Andrew Furey appointed the Premier’s Economic Recovery Team (PERT), chaired by Moya Greene, and tasked it with crafting a plan to “respond to the Province’s immediate fiscal challenges and plot a new course forward.” 

On May 6, the PERT delivered its report, and recommended a harsh austerity plan that includes deep cuts to provincial spending and the handing of more power to the private sector. If implemented, Greene’s plan will forever alter life in the province. It draws from long-discredited ideas about public spending and the role of government that make it feel like it belongs in the ’80s or ’90s. There is no positive future if Furey chooses to go down this path. ...

In 2014, oil prices collapsed, leaving a massive hole in the provincial budget right as construction was starting at Muskrat Falls. In the following years, the project that was once hailed as key to the province’s economic future brought it to the edge of bankruptcy after the cost soared from an estimated $6.2 billion in 2010 to more than $13 billion in 2021. 

A public inquiry’s report released in 2020 found that while elected officials made bad decisions, executives at Nalcor, the provincial energy company created to oversee the project, had held back details about cost increases and was plagued by bad management, among a range of other issues.

On Mar. 20, 2020, as the country was in lockdown, Furey’s predecessor, Dwight Ball, sent a letter to Prime Minister Justin Trudeau laying out the state of the province’s finances. Ball wrote, “We have no other recourse to raise the necessary funds to maintain the operations of government, including our health-care system, especially at this critical time.” 

It was in that context that Furey tasked Moya Greene, and a panel dominated by local businesspeople, to develop a technocratic plan for the province’s future.

https://readpassage.com/the-big-reset-proposes-deep-austerity-for-newfou...

jerrym

The history of Moya Greene, the person Premier Furey appointed to head the task force to examine the province and government's economic situation, predicted the kind of report she would write and of course Furey knew this: a deep austerity program based on orthodox neoliberal economics. Her career path from PC PM Mulroney assistant deputy minister at Transport Canada to helping drive PM Chretien's neoliberal agenda in the department, including deregulation of the airline industry, to mangaging director at TD securities, to Bombardier, to CEO of Canada Post where she “modernized” the postal service by "by cutting costs, bolstering automation and attacking labour", to overseer of the privatization of the British Royal Mail, made it clear where her report would go. In my next post I will give a detailed examination of her "Big Reset" austerity report for Furey. Greene is always referred to by as Dame Greene by Furey, reflecting no doubt the fact that she is a member of the aristocracy at the intersection of neocons and neoliberals. 

Moya Greene, or Dame Moya Greene, as the provincial government insists on calling her, will likely be unknown to most Canadians, and is even a mystery to many Newfoundlanders and Labradorians. Yet, she has been at the centre of implementing neoliberal policy in Canada and the United Kingdom for decades.

Greene is from St. John’s and grew up in the province before moving to Toronto for law school in the ’70s. In 1991, Greene became assistant deputy minister at Transport Canada and was part of the team that fundamentally altered Canada’s transport networks during Liberal Prime Minister Jean Chrétien’s neoliberal transformation. In that role, Greene was involved in the deregulation of the airline industry, the commercialization of Canadian ports and the privatization of CN Rail, which involved mass layoffs and abandoning rail lines to prepare it for sale.

After leaving Transport Canada in 1996, Greene joined TD Securities as a managing director focusing on infrastructure finance and public-private partnerships. P3s, as they’re known in Canada, were gaining popularity at the time as a means to save governments money in the short-term by availing of private finance, but it has become clear that many of those projects ended up costing far more over time as private financiers extracted ongoing revenue from public assets.

After a stint at Bombardier, Greene became CEO of Canada Post in 2005 and set out to “modernize” the postal service. While she pushed for privatization, not even Conservative Prime Minister Stephen Harper would endorse it. 

Instead, Greene increased the company’s profits by cutting costs, bolstering automation and attacking labour. In her last year in the job, the head of the Canadian Union of Postal Workers said, “If you compare the four years before Greene with the four years under Greene’s management the numbers show that injuries have gone up 15.4 per cent and grievances have gone up 59.3 per cent.”

Having taken on Canada Post, she was hired by the Conservative-led British government in 2010 to oversee the privatization of the Royal Mail, which was floated on the stock market in 2013. Greene laid off workers, cut costs and increased automation ahead of the sale, while taking a massive pay package that amounted to £1.9 million in 2017 alone.

She was at the centre of a scandal where postmasters were charged and even jailed for allegedly stealing money, but it was later found to be the result of a faulty IT system. Even after company directors were told the computer system could be to blame, Greene continued prosecuting them. The postmasters’ names were finally cleared this April.

Meanwhile, more jobs have been lost since privatization, delivery centres have been closed, prices have increased and rural mail delivery has gotten worse. The company has also been selling off its valuable land for shareholder benefit, even as 69 per cent of the public want it to be renationalized. The outcomes of these policies should be considered before Newfoundland and Labrador rushes into any kind of similar plan.

https://readpassage.com/the-big-reset-proposes-deep-austerity-for-newfou...

jerrym

ETA: Here is just a sample of the recommendations in Moya Greene's 338 page Big Reset austerity report to Premier Furey, giving him exactly what he was looking for. 

The Provincial Government should:

  •   Bundle and sell all or a majority interest or create a long term concession in its motor vehicle and registry of deeds system;

  •   Revise legislation to require that all unregistered land be registered within eight years. After this period, all unregistered land would revert to the Crown;

  •   Sell all or a majority interest in the Newfoundland Labrador Liquor Corporation, and review how the Provincial Government taxes alcohol; and

  •   Sell Marble Mountain ski resort and related assets.

The Provincial Government should:

  •   Reduce its core expenditures by five per cent, with no expenditure growth for six- years;

  •   Reduce its operating grants to Memorial University and the College of the North Atlantic by five per cent per year over six years, for a total reduction of 30 per cent;

  •   Reduce its operating grants to the Regional Health Authorities by 4.15 per cent per year over six years, for a total reduction of 25 per cent;

  •   Reduce administrative costs for the K-12 system and allocate these additional funds to classrooms, to support the teaching of math, technology, science, computer science, and the promotion of entrepreneurship;

  •   Reduce operating grants to Newfoundland and Labrador Housing and Legal Aid bytwo per cent; 

  •   Reduce operating grants to other government agencies by 20 per cent.

The Provincial Government, working with public sector unions, should develop a new compensation package. Key elements should include:

  •   Pensions to be converted to a collective defined contribution plan in three years3;

  •   Measures to reduce the payroll base, such as a four-day work week for certain

    positions and creating seasonal positions targeted at peak demand periods;

  •   Wage freeze;

  •   Alternative service delivery models; and

  •   Development and promotion of work-from-home policies.

    In the event that a negotiated settlement is not possible, the Provincial Government should use legislation that will be effective. ...

The Provincial Government should redefine its role in the economy, the services it offers and how these services are delivered, with a focus on accelerating new technology adoption. The private and not-for-profit sectors should deliver services where appropriate. ...

Government must look critically at its current approach to determine which services it should continue to provide, which services it can discontinue, and which services, existing or future, could be offered by the private or not-for profit sectors. Many services offered by government can be delivered in a different way; some may be more responsive if customized for local needs. ...

Many Provincial Government services could be offered by private and not-for-profit sector enterprises more effectively and at lower cost. Moving some services to the private and not-for-profit sectors could create new businesses. ...

This expertise can then be exported to other parts of Canada and the world and help build a larger market base for local businesses. ...

  • Raise capital through the following measures:

o Offer transmission and distribution assets to the private sector to either own or operate;
o Offer the sale of island generation assets to the private sector;
o Sell the Provincial Government’s oil and gas equity interests when oil prices increase; and
o Sell the Bull Arm Fabrication Site, currently owned by the Oil and Gas Corporation; ...

  • Apply any monies raised from electrical and oil and gas assets to rate mitigation, the provincial debt, and the Future Fund; ...

The Provincial Government should:

  •   Review its petroleum royalty and local benefits structures in 2021-22 to ensure they encourage exploration and development of new activity in the offshore, with net-zero targets wherever possible;

  •   Request the Federal Government reinstate the Atlantic Investment Tax Credit for offshore petroleum projects and for green mining projects; ...

The slow and laborious government processes faced by businesses are often referredto as “red tape.” No one is suggesting that governments should make decisions that are unsafe for people or the environment, but governments need to make quick decisions.The Provincial Government’s decision making is not competitive with other parts of theworld that develop oil and gas assets. The Province must remove the red tape associated with development in all sectors.  ...

The regulatory framework for oil and gas has slowed progress, and the Province has not always been a good partner. ...

To ensure that Canada and Newfoundland and Labrador have a regulatory approach competitive with the rest of the world, the Provincial Government should work with the Federal Government to:

  •   Streamline regulatory processes to improve timelines and adjust regulatory approaches that make Newfoundland and Labrador uncompetitive; and

  •   Give direction to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) that the development of the offshore area is a priority function and offshore management must be consistent with the principles underpinning the Atlantic Accord.

To ensure that Canada and Newfoundland and Labrador have a regulatory approach competitive with the rest of the world, the Provincial Government should work with the Federal Government to:

  •   Streamline regulatory processes to improve timelines and adjust regulatory approaches that make Newfoundland and Labrador uncompetitive; and

  •   Give direction to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) that the development of the offshore area is a priority function and offshore management must be consistent with the principles underpinning the Atlantic Accord.

The Provincial Government should encourage mining exploration through:

  •   Expansion of airborne geoscience surveys in priority areas of Newfoundland and Labrador;

  •   Increased funding for the Junior Exploration Assistance Program;

  •   Commencement of work related to geotechnical information with Québec, as provided for in the 2018 bilateral agreement with Québec; and

  •   Implementation of a five per cent provincial flow through shares mechanism to attract new investment.

The Provincial Government should: streamline the regulatory decision-making processes for aquaculture licences and site approvals; ...

  1. The Provincial Government should:

    •   Promote investment opportunities globally and with local entrepreneurs to increase lumber production, value-added manufacturing, and alternative heating technologies, such as biofuels, wood chips, and wood pellets;

    •   Review the forest royalty and fee regime to maximize access to forestry resources; ...

  1. The Provincial Government should:

    •   Streamline the administrative structure by eliminating the two school districts with a goal to spend less on administration and reinvest that money directly at the school level;

    •   Place program administration within the Department of Education and adopt a shared services model for HR, IT, payroll, maintenance, etc.;

    •   Ensure principals, vice principals, and other supervisory staff are not members of the Newfoundland and Labrador Teachers Association (NLTA);

    •   Dissolve volunteer school boards and replace with one volunteer Provincial School Advisory Council. This Provincial Council will be connected to existing School Advisory Councils to link parents, families, and communities more strongly to the school system to enhance collaboration and greater accountability;

  •   Change school opening and closing hours to an eight hour day for teachers so that they can use some non-teaching time during the work day for professional upgrading and collaboration; ...

The province provides a high level of subsidy to Memorial University and CNA andkeeps tuition rates low. Given the province’s fiscal situation, the cost of the post- secondary education (PSE) system must be addressed. ... 

Newfoundland and Labrador’s current level of investment in its PSE institutions is not sustainable. As an example, immediate efficiencies could begained by consolidating the province’s three nursing schools into one. The Provincial Government should create one nursing school for the province.

Being known as the “cheapest” university in Canada carries the implication of it beingthe lowest quality. Nothing could be further from the truth. Memorial University could deliver the same or better outcomes if PSE funding came from other sources. ...

The Provincial Government should institute a moratorium on building new long-term Care facilities; ...

The Provincial Government should: review the current structure and consolidate the four Regional Health Authorities into one; ...

The Provincial Government should: modify programs to eliminate disincentives for individuals to take-up employment opportunities when they become available; and revise funding programs based upon analysis, with a focus on partnering with community-based organizations to ensure responsive program and service delivery that is efficiently and effectively customized for real and changing needs and has measurable outcomes. ...

The Provincial Government should:

  •   Increase all personal income tax rates by one percentage point and introduce tax credits for the lowest income group to offset the increase;

  •   Increase the corporate income tax rate by two percentage points;

  •   Increase the HST by one percentage point and consider expanding the base;

  •   Increase the gasoline tax by 1.5 cents per litre;

  •   Increase the payroll tax by 0.5 of a percentage point;

  •   Increase the tobacco tax by 5.5 cents per cigarette; and

  •   Increase fees and fines by 15 per cent;

https://thebigresetnl.ca/wp-content/uploads/2021/05/PERT-FullReport.pdf

jerrym

Insanity is doing the same thing over and expecting a different result. But that is exactly what Liberal and Conservative governments have been doing in Newfoundland during the last decade. Now Liberal Premier Furey, using the Big Rest report by Moya Greene that is outlined in the last post, plans to do austerity and Newfoundlanders to a much greater extent. Professor Lori Lee Oates from Memorial University in Newfoundland describes the history of previous Newfoundland austerity programs, why they will fail again and what is needed instead in the article below.

Don't be surprised to see Furey's model copied elsewhere in Canada by first grooming citizens with a dose of the Shock Doctrine, with a we have to get the debt piled up by Covid under control strategy. This centers on "the exploitation of national crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are too distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively." (https://en.wikipedia.org/wiki/The_Shock_Doctrine)

Austerity can be defined as a series of policy initiatives that seek to reduce deficits through tax increases and spending cuts.

Certainly since 2015, much political economy analysis has come to the conclusion that austerity does not work. It generally hurts the working class the most, even though it is the elite political class that creates our financial problems.

It is a neoliberal idea. Even the International Monetary Fund has said for some time it does not work.

Austerity takes away the spending power of people who need to go out and buy if there is going to be an economic recovery. It imposes fees and consumption taxes on those who can least afford to pay them.

In times of economic distress, governments need to put disposable income into the hands of working-and-middle-class people. Note that our provincial government has cut welfare payments to those receiving CERB, the Canada Emergency Response Benefit. ...

Because Newfoundland and Labrador has not developed into the global service economy, most of the jobs in this province are in government sectors, be it provincial, federal, municipal, health care, or education.

In 2013, the Dunderdale government cut 1,200 public service jobs. In 2015, the Davis government delivered what was called "one of the most austere budgets in recent times." It included $1.1 billion in deficit spending, a plan to shrink 1,400 government jobs, and tax increases for those in the highest brackets.

Everyone remembers the provincial budget of 2016 with its fee increases and consumption taxes. It was one of the least popular budgets in the province's history. Some of its impacts have been reversed but it was followed by job cuts, mostly at the management level of the public service. ...

The Ball government has also realigned government departments. The province used to have separate departments of Business; Tourism, Culture, and Recreation; Innovation, Trade and Rural Development. Those are now the single Department of Tourism, Culture, Industry, and Innovation. Who needs rural development in a mostly rural province? There used to be the Department of Municipal Affairs, and the Department of Environment and Conservation. They are now the Department of Municipal Affairs and Environment. Who needs a conservation branch when there is a global climate crisis coming over the next 10 years? It is hardly a wonder that our leaders have been so bad at preparing for it.

If you think public service jobs are bad for the economy, wait until you see what natural disasters, record levels of climate refugees, and a crashing oil industry does to the province. There are very real costs to cutting investment in public policy. There are few things that are more costly than years of bad planning.

We must acknowledge that with so few options to achieve professional level employment in this province, people who are cut from the public service almost inevitably leave the province for other jurisdictions.

Cuts to public services lead to lower quality of life, which is another motivation for leaving. This in turn leads to cuts in federal transfer money that are based on population.

Austerity is a very dangerous downward spiral. We have been caught in that spiral for some time.

The province has long failed to invest in technology, cultural industries, renewable energy and development of our tourism product. Instead, we have continued to rely largely on natural resource sectors, while service sectors have been the dominant sectors for growth globally.

As we move closer to a climate crisis, it is becoming increasingly clear that natural resources sectors will have to change and even disappear. ...

Our province has not developed sectors to replace royalty revenue. Depending on natural resources for economic development has had mixed results at best. We have known about the "resource curse" since at least the 1990s.

What our province needs most, as we manoeuvre through this financial crisis, is leadership that understands the need to put money into the hands of the working and middle classes. ...

Economists have argued that the COVID-19 recovery, in particular, will require funded daycarebecause women have been very hard hit by this crisis.

Our economic recovery must be grounded in the well-being of citizens and our natural environment. We need to look to the Wellbeing Economy Alliance for guidance on how to pursue more sustainable public policies.

https://www.cbc.ca/news/canada/newfoundland-labrador/austerity-nl-oates-...

jerrym

ETA: Here's more on Furey's austerity program as outlined in the Big Reset report by Moya Greene he comissioned: classic austerity with a touch of green added to it.

Greene, who is best known for privatizing the British postal service, has proposed an austerity program that combines political and social reforms with a far-reaching economic restructuring plan premised on slashing state expenditures, across-the-board fee and tax increases, privatizing public assets, and breaking public sector unions.

“The Big Reset,” according to the report, proposes “a transformational plan for Newfoundland and Labrador that attempts to tie all aspects of the economy and society together to meet some of the biggest challenges and opportunities ever faced by the province.” ...

The six-year plan is anchored in a proposed shift to a green economy based on offshore oil, hydropower, mining, technology, and hydrogen within 20 years. It also proposes restructuring the education system to encourage jobs in the science, technology, engineering and mathematics (STEM) sectors, modernizing governance of both Memorial University (MUN) and College of the North Atlantic (CNA) while reducing operating grants, and amalgamating all four Regional Health Authorities into a single entity and reducing their operating grants by 25 percent. ...

“Spending is out of control,” Greene writes. “The Government of Newfoundland and Labrador is facing an unsustainable fiscal situation that requires immediate action.” Her refrains are familiar: “[T]he fiscal challenges are entirely of the province’s own doing,” the report says, and “expectations placed on government have to be more realistic.” ...

Including both the gross debt of the Province itself alongside its Crown corporations—Nalcor Energy, the Newfoundland Labrador Liquor Corporation, and Atlantic Lottery Corporation—the Greene Report pegs provincial gross debt at roughly $44.5 billion. (This does not include the nearly $3 billion in new borrowing for 2020-21.) ...

Reflecting on the experience of the 2016 Budget—when protests across the province erupted following the introduction of an austerity budget—the Greene Report notes that “the election cycle hampers mapping long-term visions and the decision-making to support them.” 

A number of remedies are proposed for this. One major recommendation is mandatory balanced budget legislation for all departments, public institutions, agencies, boards, and commissions—with a percentage of ministers’, deputy ministers’, and assistant deputy ministers’ compensation withheld to ensure that departments and other entities meet established targets. This would also include “an external advisory group of experts established to review annual budgets.”

Significantly, the Greene Report proposes that the provincial government must renegotiate compensation packages with public sector unions. The “key elements” it demands are converting pensions “to a collective defined contribution plan in three years” on the model of the United Kingdom; “measures to reduce the payroll base, such as a four-day work week for certain positions… a wage freeze; alternative service delivery models; and development and promotion of work-from-home policies.” 

Greene writes that “in the event that a negotiated settlement is not possible, the Provincial Government should use legislation that will be effective.” ...

The report itself acknowledges that “The Big Reset” will rest on the shoulders of the upcoming generation. 

“It is unreasonable to expect the next generation to fund the current system,” Greene writes. “Newfoundland and Labrador’s systems must change in order to address the poor outcomes and high spending across so many areas.”

In a plan to provide more ‘efficient’ healthcare, the report recommends merging the four regional health authorities and expanding the use of telehealth and distance medicine. It also recommends reducing operating grants to health authorities by roughly 4 percent per year as part of the six-year plan. 

The proposed operating grant reductions to MUN and CNA would include the provincial government creating a single nursing school for the province, and having CNA develop technology upgrade programs. Included is the suggestion that the post-secondary institutions establish a joint “Centre of Excellence in Green Technology,” which would be financed in part by the province’s Future Fund.

These grant reductions should total $103.9 million over the next six years, with MUN shouldering most of the cuts, the report says. The projected loss to MUN would be $82.3 million by 2027. “A reduction in funding will likely result in higher tuition,” Greene writes. ...

According to the report, immigration retention is one of the key factors in the province’s plan to lean towards STEM employment (and industry), and future immigration programs could be tailored to target high-skilled individuals in this area. 

“The Provincial Government needs to act and demonstrate that it is focused on its finances,” Greene writes. “With a thoughtful, balanced, and well-developed implementation plan this province should be successful in the global competition that is underway for the billions of private sector dollars of capital redirected to green projects, technologies, and creating a forum of expertise.”

The report proposes a 2:1 ratio of expenditure reduction to revenue increases. Despite proposing to sell public assets, slash expenditures, and raise taxes and fees across the board, Greene was emphatic that “this is not an austerity program.”

Some of the “modest” tax raises recommended are increases to the tobacco, gasoline, and payroll tax, as well as an increase to the HST of one percentage point. All personal income tax rates would be increased one percentage point, with an introduction of tax credits for the lowest income group to “offset the increase.” Fees and fines would be increased by 15 percent. The corporate income tax rate would increase by two percentage points. 

Wealth taxes are also proposed, with an annual tax of one percent on “wealth exceeding $10 million or an agreed upon threshold.” The report also recommends implementing a minimum property tax on all residences outside of incorporated municipalities, and a separate tax on second residences (outside of the primary residence) valued at $100,000 or more. A tax on luxury vehicles was proposed too, with exemptions for electric vehicles. ...

It proposes reducing operating grants to MUN and CNA by 30 percent over six years; reducing operating grants to the Regional Health Authorities by 25 percent over six years; “[reducing] administrative costs for the K-12 system and [allocating] these additional funds to classrooms to support the teaching of math, technology, science, computer science, and the promotion of entrepreneurship;” reducing operating grants to Newfoundland and Labrador Housing and Legal Aid by two percent; and reducing operating grants to other government agencies by 20 percent.

“The Big Reset” also recommends the province privatize a number of its other assets in whole or in part. It suggests bundling, and either selling or creating, other long-term concessions in its motor vehicle and registry of deeds systems; selling all or a majority interest in the Newfoundland Labrador Liquor Corporation (as well as reviewing how the province taxes alcohol); and selling the Marble Mountain ski resort and all related assets.

https://theindependent.ca/news/politics/pert-pushes-big-reset-for-nl/

eastnoireast

thanks for this jerrym.   

huge implications; a society-wide rewrite and pillaging of newfoundland and labrador (first).  which they'll probably get away with, more or less. 

back to normal, in other words.  new and improved.

on the other hand, if the changes they seek come to pass, as covid continues on in some manner, and certainly the economic and social fallout from covid will continue; overstep? 

that's a lot of upheaval and people with nothin left to loose.  not hard to shut down transport, say, if enough folks are hungry.

either way, the next 5 years are sure going to be nasty if you're under ~$60k/yr, let alone if you're under $30k.  or if one gives a damn about society. 

Aristotleded24

eastnoireast wrote:
thanks for this jerrym.   

huge implications; a society-wide rewrite and pillaging of newfoundland and labrador (first).  which they'll probably get away with, more or less. 

back to normal, in other words.  new and improved.

on the other hand, if the changes they seek come to pass, as covid continues on in some manner, and certainly the economic and social fallout from covid will continue; overstep? 

that's a lot of upheaval and people with nothin left to loose.  not hard to shut down transport, say, if enough folks are hungry.

either way, the next 5 years are sure going to be nasty if you're under ~$60k/yr, let alone if you're under $30k.  or if one gives a damn about society.

With the federal and provincial treasuries absolutely gutted in the last year, why wouldn't governments unleash brutal austerity on the people?

Aristotleded24

jerrym wrote:
What has happened in Newfoundland during and since its election this year shows that a government can do this even during the Covid crisis by initially misleading the people on what it intends to do. It. Liberal Premier Andrew Furey turns out to be Liberal Premier Dwight Ball redux on steroids.  Less than two months after the election where Liberal Premier Furey painted a things are okay going forward and denying that there was a hidden agenda the Big Reset was published. It was supposed to be released on February 27th, after the original February 13th election date, but on the eve of its supposed release the Liberals said that it wasn't finished and would be released after the election. Nothing to worry about. How convenient the original release date was fine until it was no longer convenient for election purposes. And of course we now get a report from Canadian business woman Moya Greene, who was the onetime CEO of Canada Post and later CEO of Royal Mail where she oversaw its privatization.

That's pretty audacuios to not only openly advocate the hypercapitalist public policy transformation advocated by the World Economic Forum, but to use essentially the same description and language.

Aristotleded24

Aristotleded24 wrote:

jerrym wrote:
What has happened in Newfoundland during and since its election this year shows that a government can do this even during the Covid crisis by initially misleading the people on what it intends to do. It. Liberal Premier Andrew Furey turns out to be Liberal Premier Dwight Ball redux on steroids.  Less than two months after the election where Liberal Premier Furey painted a things are okay going forward and denying that there was a hidden agenda the Big Reset was published. It was supposed to be released on February 27th, after the original February 13th election date, but on the eve of its supposed release the Liberals said that it wasn't finished and would be released after the election. Nothing to worry about. How convenient the original release date was fine until it was no longer convenient for election purposes. And of course we now get a report from Canadian business woman Moya Greene, who was the onetime CEO of Canada Post and later CEO of Royal Mail where she oversaw its privatization.

That's pretty audacuios to not only openly advocate the hypercapitalist public policy transformation advocated by the World Economic Forum, but to use essentially the same description and language.

To make things even more cringeworthy, Trudeau actually used the word "reset" in a recent speech on covid.

Watching recent clips of Trudeau on video, I get a very disturbing vibe from him. It absolutely reminds me of Harper's open contempt for democratic norms and his desire to use authoritarian power whenever he was allowed. With Trudeau, it is exactly the same. Remember that under Trudeau, the Liberals voted for C-51, so that should tell you all you need to know about Trudeau's authoritarian, power-hungry instincts. Unfortunately the "opposition" parties in Parliament are just controlled opposition at this point.

jerrym

ETA: Premier Furey's Liberal government brought down its 2021 budget in the wake of the Big Reset report described above that proposed austerity, extensive privatization of government services, and the threat of government imposed contracts on unionized workers in the public sector. In the other words, the full austerity program driven home with the Shock Doctrine, which is "exploitation of national (or provincial) crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are too distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively." (https://en.wikipedia.org/wiki/The_Shock_Doctrine)

The good news first: in an analysis by the Independent, a reader financed blog, "a better than expected price of oil has generated more revenue and that has decreased the size of the deficit." However, even this projected more than $1 billion increase in government revenue from oil resources leaves the province tied to this highly volatile commidty price, in a world starting to move away from fossil fuels (more about that in later posts). It would have been hard to go full austerity after this unexpected revenue windfall, but the promise of achieving a balanced budget within five years helps lay the groundwork for more austerity in order to achieve this goal. 

The bad news: there are already major austerity measures in this first budget of the new elected Liberal government with more to come. This reminds me of the Chretien Liberal government which started out with relatively mild austerity measures in its first budget, then spent a year grooming the public for ever worse austerity measures, thereby getting many voters to aceept them. 

The Newfoundland and Labrador budget delivered Monday, May 31, reads like a first gentle step on a hike that will gradually get harder as the journey moves forward over fiscal craters, hoping for fair economic growth weather along the way, and gradually dropping the weight of yearly deficits to end with a longed-for view of a revenue surplus expected in 2026-27. The budget documents indicate the province’s net debt is anticipated to reach $17.2 billion in 2021-22. ...

But the Premier’s Economic Recovery Team (PERT), led by Dame Moya Greene, calculated the province’s net debt as gross debt minus financial assets to be $47.3 billion. Greene said the net debt also does not include all of the other financial exposures of the provincial government, nor its entities, including Nalcor Energy, the liquor corporation, and Atlantic Lottery Corporation. ...

Some good news in the budget is that a better than expected price of oil has generated more revenue and that has decreased the size of the deficit. “Revenue projections for 2021-22 are $8.5 billion, an increase of $1.4 billion over 2020-21,” the budget states. “This increase in revenue is primarily attributed to increased oil royalties and additional federal government-related revenues.” Projected borrowing for 2021-22 is $1.7 billion. ...

Finance Minister Siobhan Coady said the budget sets the course to achieve fiscal stability by ensuring the government spends within its means. To enforce that, the province will introduce balanced-budget legislation to ensure current and future governments are held to that requirement. “It reins in and tightens control of the public purse,” she said in her budget speech. ...

Coady said the first intention of the budget is to streamline government services and curb spending before additional tax measures such as increases to the HST would be considered. But she’s not expectinging layoffs. ...

Coady said government is embarking on a process to maintain and improve service delivery through joint solutions, in partnership with business, social enterprises or other organizations.

One item listed is the provincial ferry system. “Ferries in the province are heavily subsidized, some as much as 95 per cent, and costing the people of the province more than $80 million annually,” Coady said. “Clearly improvements are required. Therefore, we will invite joint solutions for a more effective way to maintain and improve the delivery of ferry service, taking into consideration the perspectives of the people who use it.”

Coady said provincial investments in real estate, offshore oil and gas projects, Marble Mountain, and in the Newfoundland and Labrador Liquor Corporation will be reviewed. “These assets are for the benefit of us all,” Coady said. “Considering our financial challenges, we will now start a process to review these assets. The analysis will guide our decisions as to how best to proceed.”

https://www.saltwire.com/atlantic-canada/news/newfoundland-and-labrador-...

jerrym

As I noted in the last post, what is happening in Newfoundland with their grooming the population for more severe austerity measures reminds me of the Chretien and Martin Liberal governments. Part of how they could implement austerity measures far more severe than those of the Mulroney Progressive Conservatives was in part of the public that if the Liberals, as opposed to the Conservatives, are doing this the situation must be really bad. 

 A Newfoundland and Labrador Furey Liberal government implementing austerity must be mean the situation is horrendous. After all, these guys are Liberals, just like Chretien and Martin. The Trudeau Liberals wouldn't do this after the next election, even with the record deficits thanks to Covid. They couldn't possibly be going to do it again, could they, just like Chretien and Martin led a whole Red Book of promises and then implemented austerity.  

This 2015 article tells us how the Liberals under Chretien and Martin implemented austerity. 

How exceptional is Prime Minister Stephen Harper and his crop of Canadian conservatives? For not just large- and small-l liberals, but also some leftists, the last decade has been an aberration — particularly compared to the alleged synthesis between responsible government and economic expansion that occurred during the 1990s. Yet while both public and elite consensus has shifted even further to the right since the ’90s, too often Harper and the current Conservatives are portrayed as an anomaly rather than a continuation.

The ultimate irony of the last two decades of austerity may be that Harper’s Conservatives have been able to rest comfortably on their laurels because of previous attacks on working-class power and livelihoods, even temporarily increasing public spending to save a system in crisis.

While the 1980s had laid some of the groundwork in Canada, the Right’s counterrevolution was not as successful as it had been under Ronald Reagan in the US or Margaret Thatcher in the UK. It was up to Canada’s Liberal Party, the centrist, “natural governing party,” to cement it.

In his 1994 budget speech, Paul Martin — then the finance minister, later the prime minister — encapsulated the Liberal message:

It is now time for government to get its fiscal house in order. For years, governments have been promising more than they can deliver, and delivering more than they can afford. That has to end. We are ending it . . . Over the next three years, for every one dollar raised in new revenues we will cut five dollars in government expenditures.

The subsequent austerity drive was one of the most severe in the Global North, and remains the foundation for the Right’s strategy of death by a thousand cuts. ...

As the 1993 election approached, Canada was just starting to exit its longest recession since the Great Depression, and elites faced the prospect of both populist right-wing upstarts in the West and separatists in Quebec gaining popularity. The mass media stepped in and set a centrist tone, asserting the need for a new “responsible” government. As the Wall Street Journalwarned Canada would soon become a “banana republic,” more than a million Canadians watched a panicky episode of the investigative news program “W5” about New Zealand’s debt.

With the disintegration of the ruling Progressive Conservatives, the Liberals, led by Jean Chrétien, won a resounding electoral victory.

The economic environment the Liberals inherited was a product of the tight monetary policy carried out in the late ’80s. Modeled after Federal Reserve Chairman Paul Volcker’s high-interest approach during the early Reagan years, it was intended not only to dramatically cut inflation, but to restore power to capital. Unemployment jumped from 7 percent to 11 percent. What’s more, the public debt accumulated during the elevated-interest-rate era, as well as during the 1990–92 recession, provided a pretext to reshape Canada’s public sector.

On issues of the economy, much in the Liberals’ 1993 campaign platform was developed with the help of private-sector experts. Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien and former Progressive Conservative Prime Minister Brian Mulroney, was a mentor to Martin and left his imprint on economic policy of the time as well.

A consensus developed that economic and employment growth on their own would not be enough to get Canada out of the recession. On the other hand, the Liberal experts were not in favor of the restrictive zero-inflation experiments that briefly held influence in the Conservative Party. Thus, monetary policy could be loosened, but the screws would have to be put to fiscal policy in order to make Canada more “competitive” — in other words, to make labor more pliant.

The monetary loosening that followed the early ’90s recession pushed interest rates downward and spurred lagging investment and profits. Low rates also meant the Canadian dollar depreciated against its US counterpart, jumpstarting a lagging export sector. Both profits and investment rose as a percentage of GDP through the late ’90s and 2000s, all the way up to the 2008–9 crisis.

Similarly, starting in 1993 and ending only in 2008, Canada consistently exported more than it imported, accumulating a current account surplus, primarily with the US. Canada was thus further integrated into the US-led global surplus recycling mechanism that Greek Finance Minister Yanis Varoufakis has called the “Global Minotaur.”

This economic pattern paralleled the integration of Canadian elites with their US counterparts. NAFTA, signed in 1992 by Mulroney and implemented in 1994 under Chrétien, was not a case of the US imposing its will on Canada, but rather of large sections of capitalist elites across the continent securing their common interests over the working class in both countries.

Free trade reconfigured coalitions within elites as well as between them and the Canadian state. Of course, some sectors were negatively impacted, but in general the agreement was a win-win for continental capital: rationalized supply chains not only cut costs but put more workers in competition with each other.

This was the context in which the Liberals began their cutbacks, initially quick and deep. A greater share of government expenditures redirected towards debt repayment created additional false scarcity of funds for direct spending. Spending on federal government programs and transfers to provinces, cities, and individuals fell by over 5 percent of GDP from 1993 to the turn of the millennium. Spending growth did not just slow: absolute expenditures decreased.

Reduced fiscal transfers to provinces put the squeeze on local governments. Since the 1990s, Canada has seen provincial governments — not just governed by Liberals and Conservatives, but also by New Democrats — impose austerity further down the line. Since provinces are responsible for many basics like health, education, and welfare benefits, shrinking transfers have further eroded the working class’s social wage. Privatizations, workfare schemes, tuition increases — all were applied (unevenly) across the country.

Overall, the sharp turn to austerity created a more punitive welfare state. While Canada’s economic growth in the mid to late ’90s fed off that in the US, the character of its reforms was also in line with the Clintonite agenda. There was a similar push to create conditions for business expansion even less encumbered by working-class demands. A major strategy was an attack on the social wage. ...

One major social program that is the responsibility of Canada’s federal government — and provides a good example of the transformations wrought by austerity — is unemployment insurance. The Liberals ate into the real value of benefits and made eligibility requirements more restrictive. While just over 80 percent of Canada’s unemployed received jobless benefits during the early 1990s, this percentage fell to about 45 percent by the early 2000s. Most unemployed workers no longer received any benefits. ...

The OECD’s measure of real unit labor costs grew at an average rate of just 0.5% per year between 1993 and 1999 and 2.1% in the first decade of the 2000s, both down from an average of 6.6% over the previous two decades.

Decreased labor costs were reflected in stagnant real wages for most workers throughout the ’90s and 2000s. The depreciating Canadian dollar further cut into wages with higher prices for imported consumption goods. Finally, the social wage provided by public programs and transfers fell under Martin’s austerity budgets.

How was austerity mitigated once the ’90s boom ran out of steam? In short, debt and housing wealth. The fall in government borrowing as a result of Liberal deficit-fighting was offset by a rise in household borrowing, reducing the public debt but increasing private debts. (Rolling back the welfare state means more people borrow to stay afloat and spend more on basic services.)

As in many parts of the world, including the US and the UK, Canada’s housing sector took off after the 2000 bust. This divided the working class. For those who owned homes, housing became a crutch, a valuable asset to borrow against or downsize, making up for the lower social wage and stagnant incomes left after the ’90s expansion. For those who did not own a home, rising prices and rents became a further source of daily struggle. ...

The 1990s in Canada are often held up as an example of “expansionary austerity” — austerity that is not only accompanied by but causes growth. If this sounds a bit nuts, it is. In fact, even economists from the International Monetary Fund have thoroughly debunked the idea: the growth that occurred during most of bouts of “expansionary austerity,” including Canada during the Liberal-led ’90s, would have happened anyway.

Indeed, crediting austerity for sparking Canada’s 1990s growth ignores several factors: first, Canada benefited from strong US expansion, especially given the strength of export growth; greater integration through NAFTA only solidified how closely Canada followed the US boom of the mid- to late ’90s. Second, fiscal austerity was accompanied by an aggressive monetary loosening that resulted in low interest rates and a depreciation of the exchange rate; alongside more flexible labor policies, these improved profits, investment, and growth. Resource booms also played a role in driving wage growth and reducing unemployment in some regions. ...

The austerity implemented by the Liberals, starting with the 1994 budget, helped shift the political consensus sharply to the right. The Conservatives, riding a wave of public resentment against the Liberals due to corruption scandals, were first elected to a minority government in 2006. After five years of governing with the tacit support of the Liberals, the Conservative Party finally gained a majority in 2011.

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

jerrym

Below is a 2020 article that further updates the picture on austerity by also discussing the Covid pandemic. By making cuts in transfer payments to the provinces as their main austerity vehicle, Chretien and Martin were able to transfer much of the ire of the public over the cuts to the provinces.  Could the Trudeau Liberals do this again?

The following article also discusses how the Chretien and Martin cuts made the Covid pandemic worse by leaving our health care system underfunded, and how social housing cuts fueled our housing crisis as well as how federal health care cuts heavily impacted provincial education spending.

The history of the Liberal government of Jean Chrétien and his finance minister Paul Martin is often framed as one of rescuing the Canadian economy from a growing government debt load. It consciously forgets the reduction in unemployment insurance, the elimination of rail subsidies, and the cuts to the CBC. The deficit has remained a political and media obsession ever since Chrétien’s time in power, but that focus ignores the social costs of his and Martin’s agenda and how cutting federal spending created an escalating crisis on the provincial and municipal levels—not to mention fuelling growing levels of household debt.

The COVID-19 pandemic has forced Canadians to reckon with the growing social problems in our society, which are, in part, the product of an underfunded welfare state. From the lack of hospital beds and public housing units to the lack of access to unemployment insurance and other social supports, these problems are not new; they have simply been easy to ignore while the going was good for many Canadians. These programs were not adequate even before the Chrétien years and cuts had already begun under Brian Mulroney’s Progressive Conservatives, but the Chrétien-Martin austerity budgets of the mid-1990s were a significant turning point for the Canadian welfare state. ...

The Conservatives might try to claim the mantle of small government, but it was under Chrétien that, according to William Watson, federal spending was cut, “not just in real terms, after inflation is accounted for, which is rare enough, but also in nominal terms, something that had not been seen since before the Second World War.” That was achieved through significant rollbacks in social spending by the federal government, particularly through the unilateral reorganization of health and social transfers to provinces, which administer much of the Canadian welfare state. ...

Before Chrétien, the federal government would share the cost of social assistance programs administered by provincial governments, along with providing funding for provincial health care systems. However, the Liberals replaced that with a series of block grants called the Canada Health and Social Transfer. In the words of Michael J. Prince, a contributor to The Chrétien Legacy, this “delivered … sudden and deep absolute cuts in transfer payments to the provinces,” where “1993 levels of federal spending on health care were achieved again only in 2004, following Chrétien’s retirement.” In the same book, historian Gerard W. Boychuk explains that this change in how the federal government funded social programs meant that the “shortfall in cash transfers … by the time Chrétien left office was over $26 billion in 2003 dollars.” That’s money that was taken out of provincial budgets for health care and social spending to reduce the federal deficit—and it’s had real consequences for Canadians. ...

As the threat of COVID-19 became apparent, governments realized a shortage of hospital beds and ventilators could mean the difference between life or death for people infected with the virus. Since the Chrétien years, however, both the total number of hospital beds and the number of acute beds per 1,000 inhabitants has steadily fallen. It has reached the point that Canada ranks near the bottom of OECD hospital-bed rankings. Boychuk writes the cuts to health spending created “the illusion of health care as a rapidly growing fiscal burden relative to the ability of governments, as a whole, to bear this burden.” ...

Through the 1960s and 1970s, the federal government expanded the Canadian welfare state, including providing support to provincial governments for public, cooperative, and non-profit housing. However, in the 1980s Mulroney scrapped the support for cooperative housing, and Chrétien followed by withdrawing the federal government from social housing entirely in 1993, making it the responsibility of provincial and municipal governments. But given the additional financial pressures placed on the provinces by the federal government, many responded by cutting their own support for social housing, including in Ontario and Alberta. ...

In The Chrétien Legacy, University of Ottawa professor Caroline Andrew writes that the cuts to social programs by the Chrétien government, “particularly the elimination of social housing as a federal activity, has been one factor in the increased polarization within Canadian cities and the deterioration of conditions for vulnerable and marginalized groups.” For a long time, the increase in homelessness has been accepted, but as the pandemic hit Canada, it became clear to many more Canadians that having so many people living on the streets is a collective failure.

Across the country, governments have been housing more of the homeless people in their cities—but that only became a problem because they were neglected for so long. The federal government introduced the Canada Emergency Response Benefit (CERB), in part because the limits placed on Employment Insurance since the Chrétien years have made it too difficult to access for many Canadians (and low payouts would be unlikely to cover their bills). But even the CERB required Canadians to have had previous income and a job, locking out those experiencing long-term unemployment. ...

Nearly three decades after Chrétien and Martin gutted federal support for the Canadian welfare state, the pandemic has made it clearer than ever that was a mistake. A federal role in health and social programs is necessary not only to make sure they are adequately funded, but also to be certain that the quality of programs and services is maintained across the country. And while provincial and especially municipal governments face ever more revenue constraints, the federal government does not have the same limitations, as its response to the crisis has shown.

Instead of continuing to abandon the welfare state and the vulnerable Canadians who most rely on it, this must be a moment for the federal government to step back up the plate and reassert itself. To build a more equitable society, the federal government should finally expand public health coverage to include pharmacare, something Chrétien promised to do all the way back in 1997, along with dental, vision, long-term care, and other health care services. With the pressures placed on provinces, much of the funding for that expansion should come from the federal government.

https://canadiandimension.com/articles/view/jean-chretiens-austerity-mad...

jerrym

Another Liberal party that often failed to get a full critical analysis of its real agenda and its implementation of austerity is the Ontario Liberal party. While the Liberals did implement some social issue reforms, there was a continuity in many ways with the Ontario Progressive Conservative regime on the fiscal side of the ledger. 

Hmm. There, looking at this series of Liberal governments, seems to be a pattern forming here. 

There is an emerging orthodoxy, rooted more in fiction that fact, that the 15-year regime of the Ontario Liberals somehow swung the ideological and policy spectrum sharply to the left. But this is a gross misinterpretation of actual history. While the Liberals did indeed implement a hodgepodge of policies that might selectively register as 'progressive', their time in power was never about a wholesale repudiation of the Common Sense Revolution but rather about deepening and extending it in ways that were more palatable to a public increasingly fed up with the uncompromising and aggressive style of their Conservative predecessors. In other words, it was continuity, not change, that defined the Liberals time in power.

Those at the centre of this historical reimagining are increasingly recasting the Liberals time in government as an extreme left interregnum inconsistent with the 'progressive' conservative values of Ontario. They point to all day kindergarten, the expansion of prescription-drug and dental benefits, the subsidization of tuition fees for some postsecondary students, proposed pension reform, modest increases to high-income earners' taxes, changes to labour legislation, and some investments in new infrastructure and social programs as key illustrations.

But these new investments barely made up for inflation and population growth, let alone a reversal of the fiscal legacy of the Harris Conservatives....

Through their first term (2003-07), modest savings were made through the privatization of services formerly covered by OHIP like chiropractic therapy, physical rehabilitation and optometry exams. The McGuinty government also spearheaded the expansion of private health care clinics, introducing a graduated health care premium that ranged from $60 to $900 per year depending on income level. But this was the calm before the storm.

The "crowing irony" for the Liberals was that after a decade in power they had succeeded in cutting the size of government down to when they had taken over from their Conservative predecessors.

As the tailwinds of the 2008 recession swept across Ontario, the Liberal government responded with a plan outlining a decade of austerity. The major policy plank of this program was the Open Ontario Plan (OOP), which called for, among other things, tax relief, the privatization of public assets and services, and wage concessions from public sector workers. To give a few examples, the general corporate income tax (CIT) rate was cut 28 per cent, the preferential small business CIT rate was cut 36 per cent, and the tax rate on the first $37,106 of personal taxable income was reduced by more than 16 per cent, while those earning up to $80,000 per year saw a tax cut of 10 per cent. Altogether, tax cuts during this time eroded some $500 million in annual revenue generation making Ontario's tax regime among the lowest across the OECD.

The omnibus Open for Business Act introduced over 100 amendments to legislation across ten ministries whose stated objective was to create a more competitive business climate. The Liberals solicited CIBC World Markets and Goldman Sachs to come up with a plan to monetize the province's $60 billion worth of public assets. The idea behind "SuperCorp" was to combine Ontario's Crown assets, including nuclear power plants, power generation facilities, 29,000 kilometres of electrical transmission and distribution lines, six-hundred plus liquor stores and gaming operations.

The Liberals also established the Commission on the Reform of Ontario's Public Servicesheaded by former TD Bank chief economist Don Drummond. The Commission recommended cuts deeper than those of the 1990s followed by the sale of public assets and privatized service delivery. In following through on some 80 per cent of the Drummond Commission's recommendations, the Liberals eroded an additional $300 million in public revenue by 2015-16. The "crowing irony" for the Liberals was that after a decade in power they had succeeded in cutting the size of government down to when they had taken over from their Conservative predecessors. ...

Kathleen Wynne emerged as new party leader and Premier of Ontario, positioning herself as the "social justice" and "activist" premier against the old guard. In practice, however, much of the Harris-McGuinty legacy continued. Public-private-partnerships proliferated, even though the Auditor General found that Ontario could have saved up to $8 billion through traditional public procurement. Premier Wynne launched a blue-ribbon panel headed by president and former CEO of TD Bank, Ed Clark, to advise the government how to privatize public assets such as the OLG and LCBO, which together bring in more than $4.5 billion annually.

Catching her own party off guard, Kathleen Wynne kickstarted the asset sell-off with Hydro One, which was estimated to bring in close to $750 million in annual public revenue. Under Wynne's plan, the Liberal's sold-off 60 per cent ownership stake bringing in roughly $4 billion in one-off monies while maintaining a 40 per cent public ownership. The FAO found that the sale of Hydro one was roughly equivalent to five years of continued public ownership. ...

Far from progressive public policy, it has been tax cuts and austerity that has prevailed in Ontario over the last decade. Little wonder then that Ford and Co. have stoked the fires of deficit hysteria given the reluctance of the Liberals to deal with the revenue side of government expenditures. The reality is that when it comes to the provinces context matters, perhaps more than anywhere else in the world.

2018's election saw Wynne herself boasting that Ontario was now "the leanest government in Canada" when it came to per capita program spending. What wasn't mentioned though was that among the provinces, Ontario was dead last when it came to per capita public revenue, second smallest when it came to the per capita size of Ontario's public sector as measured by employees, and second-lowest in North America (after Alabama) when it came to corporate tax rates.

https://www.huffingtonpost.ca/carlo-fanelli/progressive-liberalism-ontar...

bekayne

jerrym wrote:

On issues of the economy, much in the Liberals’ 1993 campaign platform was developed with the help of private-sector experts. Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

"On good terms"? They were in-laws!

jerrym wrote:

The austerity implemented by the Liberals, starting with the 1994 budget, helped shift the political consensus sharply to the right. 

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

I think that's backwards. The 1995 budget was a response to a shift to the right.

Aristotleded24

bekayne wrote:

jerrym wrote:

On issues of the economy, much in the Liberals’ 1993 campaign platform was developed with the help of private-sector experts. Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

"On good terms"? They were in-laws!

jerrym wrote:

The austerity implemented by the Liberals, starting with the 1994 budget, helped shift the political consensus sharply to the right. 

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

I think that's backwards. The 1995 budget was a response to a shift to the right.

And at the time Stephen Harper, of all people, praised this change in direction for public policy.

jerrym

bekayne wrote:

jerrym wrote:

On issues of the economy, much in the Liberals’ 1993 campaign platform was developed with the help of private-sector experts. Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

"On good terms"? They were in-laws!

jerrym wrote:

The austerity implemented by the Liberals, starting with the 1994 budget, helped shift the political consensus sharply to the right. 

https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...

I think that's backwards. The 1995 budget was a response to a shift to the right.

The full first quote is  "Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien and former Progressive Conservative Prime Minister Brian Mulroney, was a mentor to Martin and left his imprint on economic policy of the time as well." What it shows is the incestuous relationship of  political and business elites at the time. 

Whether Chretien initiated a major shift further to the right or followed the zeitgeist there is debatable. What is not debatable is that he, Martin and the Liberals went far further than the Mulroney Conservative government did moving from spending restraint to strong austerity: " Billionaire Paul Desmarais Sr, on good terms with large segments of the political class, including both Chrétien and former Progressive Conservative Prime Minister Brian Mulroney, was a mentor to Martin and left his imprint on economic policy of the time as well." Martin himself said "It is now time for government to get its fiscal house in order. For years, governments have been promising more than they can deliver, and delivering more than they can afford." (https://www.jacobinmag.com/2015/04/canada-austerity-stephen-harper-conse...)

What is also not debatable is the severity of the cuts and the damage they did to the social fabric: "The subsequent austerity drive was one of the most severe in the Global North ... A greater share of government expenditures redirected towards debt repayment created additional false scarcity of funds for direct spending.Spending on federal government programs and transfers to provinces, cities, and individuals fell by over 5 percent of GDP from 1993 to the turn of the millennium. Spending growth did not just slow: absolute expenditures decreased. ...While just over 80 percent of Canada’s unemployed received jobless benefits during the early 1990s, this percentage fell to about 45 percent by the early 2000s. Most unemployed workers no longer received any benefits. ...Since provinces are responsible for many basics like health, education, and welfare benefits, shrinking transfers have further eroded the working class’s social wage. Privatizations, workfare schemes, tuition increases — all were applied (unevenly) across the country." (https://rabble.ca/babble/canadian-politics/austerity-shock-doctrine-newf...) Social spending as a percentage of GDP fell from 20.35 percent in 1993, to 18.35 percent in 1995, eventually falling to 16.94 percent in 1997 and 15.76 percent in 2000. ...The government began a program of deep cuts to provincial transfers and other areas of government finance. The cuts resulted in fewer government services, most noticeably in the health care sector, as major reductions in federal funding to the provinces meant significant cuts in service delivery. Moreover, the across-the-board cuts affected the operations and achievement of the mandate of most federal departments." (https://en.wikipedia.org/wiki/Jean_Chrétien)

The Ontario Liberals during their 15 years in office from 2003 to 2008 were involved "the privatization of services formerly covered by OHIP like chiropractic therapy, physical rehabilitation and optometry exams. The McGuinty government also spearheaded the expansion of private health care clinics, introducing a graduated health care premium that ranged from $60 to $900 per year depending on income level." They then implement a decade of austerity involving "tax relief, the privatization of public assets and services, and wage concessions from public sector workers. They implemented ...tax relief, the privatization of public assets and services, and wage concessions from public sector workers ... [that] succeeded in cutting the size of government down to when they had taken over from their Conservative predecessors. [All of this meant] Ontario was dead last when it came to per capita public revenue, second smallest when it came to the per capita size of Ontario's public sector as measured by employees, and second-lowest in North America (after Alabama) when it came to corporate tax rates. (https://rabble.ca/babble/canadian-politics/austerity-shock-doctrine-newf...)

And now they Furey Liberal Newfoundland government is heading down a similar path. The question also arises as we hopefully near the end of the Covid-19 crisis whether we will see other Liberal governments do the same thing after they get elected, claiming they have to do it to deal with the debt generated in the fight against Covid. 

jerrym

The fightback against the austerity-ridden Big Reset report and the 2021 Furey Liberal government budget has begun. 

Thousands swarm Confederation Building for anti-budget protest in Newfoundland

The long-awaited report of the Provincial Economic Recovery Team (PERT) was publicly released on May 6, just weeks before Newfoundland and Labrador’s Liberal government revealed its budget for 2021. The PERT, chaired by Dame Moya Greene, was widely expected to make strong demands on the provincial government to make deep public spending cuts. Greene’s previous work includes privatizing and “rationalizing” large public entities in Canada and the UK in the last few decades. ...

Ostensibly this plan is to be anchored on a reorientation of the province towards a green economy in addition to creating a “solid fiscal plan.” What we can expect is made very clear by Dame Greene’s introductory words, which effectively label the provincial government and public sector as bloated, unresponsive and wasteful. She notes that people need to “expect less” from government for job creation and proposes a new social compact that prepares the youth of the province to contribute more than any previous generation.

The rationalizations and restructuring proposed by the “Big Reset” are many. Some particularly noteworthy recommendations are: balanced budget legislation that makes such budgets mandatory for all departments and public institutions; a “future fund” derived from oil and gas revenue; public education campaigns to make people aware of service costs; renegotiate public sector union contracts to move all pensions to collective defined contribution plans and reduce payroll through wage freezes and four-day work weeks. The report also calls for the province to eliminate Nalcor (the provincial energy corporation), merge its components into NL Hydro and then privatize it; implement a green transition plan that would rely on the hydro potential in Labrador and on “low-emission” oil and gas activity as well as “low-carbon” mining; promote electric vehicles through private investment and tax rebates; provide tax incentives for technology companies; and promote fisheries investment and rural area secondary processing. Greene further proposes eliminating the two school districts, ensuring school administrators are not members of the teacher’s union, enforcing an eight-hour day for teachers and merging all health authorities into one entity.

Some of the report’s comments about improving transparency and accountability and reducing bureaucracy might be considered positive at first read. However, the obvious end goal is to place limits on the ability of the public sector to play a leading role and, instead, to promote private investment, public-private partnerships and privatization.

The report naturally includes recommendations about actual funding. To avoid the “austerity” label, the PERT recommends a 1 percent increase to all personal income tax brackets, a 2 percent increase to corporate tax, a 1 percent HST increase among a number of taxed items and a wealth of tax of 1 percent over $10 million. Some items, such as the HST, are clearly regressive taxes. The corporate tax, even increased by 2 percent, is still laughably low. As for income tax, it needs to be reformed to put the burden on those best able to pay. Many of the recommended reductions are also shocking, most notably cutting operating grants to health by 25 percent and to Memorial University and College of the North Atlantic by 30 percent. The report also proposes reducing grants to NL Housing by 2 percent, despite a continued lack of affordable housing in the province.

Naturally, the report has been met with disgust from public sector unions, students and environmental and social activists. They are promoting a “People’s Recovery” report which proposes alternatives to the PERT’s large cuts. ...

Given the high stakes of the PERT report and the need to at least put on a show of public consultation, the Liberals’ May 31 budget did not entirely throw the government into fully implementing the “Big Reset.”

The budget appears to be setting the tone for further work towards the PERT recommendations: it commits to balanced budget legislation and a promises a “future fund.” The province’s longstanding tuition freeze is also being eliminated over the next five years as the government moves to make MUN in particular more “autonomous.” Some of the centralization recommendations are also being implemented, such as eliminating the English School District and merging it into the department of education. Regardless of any commitment to a “green” economy, the government is continuing to look to oil and mining to drive economic growth with additional funding being set aside to support projects in those sectors.

The “People’s Recovery” initiative shows that the people of this province are not automatically going to roll over on command. Public sector workers and their unions will also resist efforts to diminish the quality of their work and the vital services they provide daily. The debate over the PERT report creates an opportunity to build a serious public resistance to neoliberal austerity and privatization. Ultimately resistance must extend beyond simply the government de jure and towards capitalism, a system built for the exploitation of the environment and people’s labour in the name of profit. History has demonstrated that austerity does not work; the only “reset” here will be of the cyclical disaster of capitalism.

Capitalism is in decay and we know a better future, a better way is possible and necessary!

http://peoplesvoice.ca/2021/06/10/the-big-reset-newfoundland-and-labrado...

jerrym

The Unifor union has called Furey's Liberal Newfoundland government budget based on the Big Reset neoliberal agenda what it is, a set of Thatcher-like measures and laid out its own program for building a better future. 

 Newfoundland and Labrador’s ‘Change Starts Here’ budget regresses to failed old-school austerity measures, as newly-elected Premier Andrew Furey missed the opportunity to launch a progressive plan to move the province and its workers forward.  

“The change that Premier Furey is starting lays the groundwork for Thatcher-like measures outlined in the recent report by the Premier’s Economic Recovery Team,” said Linda MacNeil, Unifor Atlantic Regional Director. “While jurisdictions across North America are innovating to build back better from the pandemic, Newfoundland and Labrador will be moving backwards with a fire-sale of assets, slashed services, and privatization of key services under the guise of debt reduction.”

The merging of Crown corporations, review of assets, and the exploration of “joint solutions” with private sector companies for the delivery of services outlined in the provincial budget raise concern about the implementation of recommendations contained in the recently released ‘Big Reset’ report by the Premier’s Economic Recovery Team (PERT) prior to promised public consultation. Unifor maintains the Big Reset recommendations would hurt workers and impeded economic recovery if carried out.

The move towards balanced budget legislation will tie the government’s hands by taking away the ability to respond to crisis, such as a resurgence of the pandemic or an economic downturn.

“Focusing on a balanced budget forces the government to enact short term measures rather than creating a vision for the future and then developing a path to get there,” said MacNeil.

While the budget does offer some investment in oil and gas, it falls short on support for hard-hit workers. Unifor is also concerned about the substantial cut to the Atlantic Fisheries Fund.

The union welcomes tax increases for the highest income earners and government investment in infrastructure, cellular and broadband connectivity, tourism, and television and film production. However, the budget failed to help workers by raising the minimum wage or legislating employer-paid sick leave, as Unifor called for during the last provincial election campaign.

Unifor’s comprehensive recommendations to #BuildBackBetter are available in the union’s ‘Road Map for a Fair, Inclusive and Resilient Economic Recovery’.

https://www.unifor.org/en/whats-new/press-room/newfoundland-and-labrador...

jerrym

While the Newfoundland Furey Liberal government are set to go ahead with massive cuts to public sector services and salaries, healthcare and education from elementary to university, including eliminating school districts, there is no mention of cutting back on oil production. While the Big Reset report commissioned by Furey and headed by Moya Greene, the former CEO who privatized U.K.'s Royla Mail, to provide a rationalization for Newfoundland's cuts and privatization of government services, included a fig leaf of talk about green renewable energy, the Furey Liberals, like Trudeau, are heading in the opposite direction. 

Both are providing  more money to subsidize the expansion of fossil fuels and to pay for the expansion of exploratory wells to discover new oilfields off Newfoundland. The Trudeau Liberals gave $325 million in subsidies to Furey last fall to keep the oil industry afloat and then added another $41.5 million giveaway for half the cost of building an oil refinery that Husky Oil was about to close. In other words, 360+ million for the Newfoundland fossil fuel industry but zilch from Trudeau for the Newfoundland's government services.

Husky Energy is getting $41.5 million from the Newfoundland and Labrador government to keep the idled West White Rose offshore oil project going, particularly to "protect the option of restarting" in the next year — although there is no guarantee that will happen. ...

That Oil and Gas Industry Recovery Fund was announced Sept. 25, with the federal government allocating $320 million for the N.L. government to support direct and indirect employment. 

https://www.cbc.ca/news/canada/newfoundland-labrador/west-white-rose-1.5...

jerrym

While Canadians are focused on COVID-19, the Trudeau Liberal government and its Liberal allies in Newfoundland are accelerating the process of developing Newfoundlands offshore oil by carrying out a public consultation to eliminate the required environmental assessments for Newfounland offshore drilling. This involves rougly 100 drilling holes according to the following article from Le Devoir. I used Google Translate to convert the article to English. 

The goal: to produce 650,000 more barrels of oil a day by 2030 from the Newfoundland offshore. So much for Trudeau's greenhouse emission reduction targets.

Proposed exploratory oil well drilling off Newfoundland

As Canada is hit by a health crisis that is hogging media attention, the Trudeau government continues to take steps to accelerate oil 

drilling in the marine environment, Le Devoir noted.

It is currently conducting a public consultation to eliminate the environmental assessments required for exploratory drilling in eastern Newfoundland. At least 100 of these holes are planned by 2030. The ongoing process goes completely unnoticed as Canadians face the coronavirus crisis, but it is nonetheless crucial to foster the development of the petroleum industry in eastern Canada over the next few years. ...

Minister Wilkinson released draft regulations on March 4. It provides that all exploration wells drilled in the 735,000 km2 area will be exempt from the review of the Impact Assessment Act. It should be noted that this rule even applies to drilling projects carried out in "marine refuges" set up by the federal government to protect the marine environment

https://www.ledevoir.com/societe/environnement/575559/le-gouvernement-tr...

jerrym

Once again the Trudeau federal and the Furey provincial governments are speaking out of both sides of their mouths as they change offshore drilling rules in Newfoundland in order to make it easier for the fossil fuel industry to meet them and then proclaiming that the industry must live up to those standards while environmental organizations complain about the changes.  The Liberal government has also excluded new drilling from environmental assessment there. This has become even more important with the announcement of the discovery of oil in two new places in the Newfoundland offshore. 

Canada’s environment minister defended government regulations Wednesday related to the impacts of oil drilling off the coast of Newfoundland and Labrador.

Environment and Climate Change Minister Jonathan Wilkinson told the House of Commons environment committee that “all drilling projects must respect high environmental standards” after a Bloc Québécois MP raised questions about a government rule change meant to help industry.

Monique Pauzé asked Wilkinson about the Liberal government’s announcement in June that it was excluding individual exploratory offshore drilling projects from having to undergo a federal impact assessment. 

That change was touted by the government at the time as lending a helping hand to Newfoundland and Labrador's offshore oil industry, which has been battered by the pandemic’s economic toll as well as low global oil prices. Natural Resources Minister Seamus O'Regan said it was the “number 1” request that “business and investors” had been asking for.

[In November 2020] energy company Equinor said it had discovered oil in two locations east of St. John’sfollowing an exploration drilling campaign. Newfoundland and Labrador's oil and gas industry group called the discoveries, which Equinor made with partner BP Canada, an “encouraging” sign for business “at a time when encouraging news is needed.”

Environmental groups have raised concerns about the government’s exploratory drilling exemption. WWF-Canada, Sierra Club Canada Foundation and Ecology Action Centre have said a larger regional assessment of the impacts of exploratory oil drilling off the province’s coast was “flawed” and so cannot be used as a basis for allowing individual exemptions.

One of Canada’s marine refuges, the Northeast Newfoundland Slope is also east of St. John’s. The 55,000-square-kilometre section of the ocean is important for biodiversity since it contains fragile corals and sponges that help out other marine life by acting as spawning grounds or nurseries, according to the Department of Fisheries and Oceans.

https://www.nationalobserver.com/2020/11/05/news/environment-minister-de...

jerrym

Austerity is not just hitting home in Newfoundland. In April the Ford government neoliberal funding and cutbacks, a continuing pattern from the Liberal regime, is resulting in massive program closures, faculty layoffs and causing 800 students to lose the program of their choice at Laurentian University. 

Students at Laurentian University in Sudbury, Ont., continue to react to news the school is cutting dozens of programs and laying off about 100 professors. Laurentian made the announcement Monday after declaring itself financially insolvent earlier this year. The school filed for creditor protection on Feb. 1, a first for a university in the province. In total, 69 programs were cut, including 28 in French.

Second-year student and university newspaper editor Lexey Burns says students have told her they are ashamed to be associated with the school. "I had one girl text me yesterday wondering if a Laurentian degree would be respectable anymore," she said. Others, she said, are wondering whether wearing clothes with Laurentian logos would be an embarrassment. Burns says she's heard the argument that the cutbacks will enable the university to become leaner, but she doesn't agree. "They say it's going to be a Laurentian 2.0 and I think they got the numbers mixed up. It's definitely more of a 0.2," Burns said. "They've gotten rid of almost every single humanities program at Laurentian."

Laurentian University's financial challenges have existed for years. A court-appointed monitor's report says ongoing deficits were made worse by Ontario's tuition reduction and freeze, declining domestic enrolment, capital expenditures, the closure of its Barrie campus, and expenses related to the pandemic.

Like Burns, the future for midwifery student Annette Cloutier is also up in the air. Cloutier says cutting the midwifery program will impact students, as well as people in the region.  "A woman who wants midwifery care, woman-centered care, that is culturally appropriate, this is important to northern Ontario," she said. "This should be available and accessible to northern Ontario women."

Recent Laurentian graduate Monseguela Thes says what's happening at the school will affect students and professors for years to come. Thes graduated from the school last year with a business administration degree. He's originally from the Ivory Coast and says the cuts could affect where international students choose to go. "I don't think people would feel free to come to Laurentian. It would be very difficult," he said. "I'm sure that it will be very tough for people to come back."

Nickel Belt NDP MPP France Gélinas and Sudbury NDP MPP Jamie West said in question period Tuesday that Premier Doug Ford needs to fund Laurentian and stop the layoffs. "Premier Doug Ford and Minister of Colleges and Universities Ross Romano believe students, staff and the community around Laurentian aren't worth investment," said West.

Gélinas said Laurentian's more than 8,000 full- and part-time students are worried and deserve answers. "Instead of being focused on their final projects and studying for their year-end exams, Laurentian students have been worried about their futures," said Gélinas. She notes that Laurentian University is designated under Ontario's French Language Services Act, which means its French programs are protected.

Meanwhile, at the federal level, NDP MP Charlie Angus, who represents Timmins-James Bay, says the cutbacks are an act of national vandalism. "You cannot treat a public institution, like a university or a hospital or any other public institution, as though it were just some mine that went bankrupt and you're going to sell off the assets," he said. ...

For students like Kristiina Raisanen, the instability caused by Monday's announcement is fuelling a sense of anxiety. The second-year student is pursuing a double major in political science and philosophy. Her program is also being terminated. "I spent most of my day [Monday] crying and trying to work through the rest of my semester's work at the same time. This announcement is coming at the literal worst time possible. We're in one of our last weeks of school right now, and I have two papers and two exams to do by the end of this week," she said. "It feels like the rug has been pulled from underneath my feet and I'm just perpetually falling."

https://www.cbc.ca/news/canada/sudbury/laurentian-university-reaction-ap...

jerrym

Here's more on the severe neoliberal cutbacks at Laurentian University that closed 69 programs, laid off 150 or more faculty and cost about 800 students their program of studies by "using legal mechanism of the Companies’ Creditors Arrangement Act (CCAA) to impose an unprecedented breadth of deep cuts" as an excuse to open collective bargaining agreements to make salary cuts and to end programs. 

Laurentian and the Ontario government are scurrying to place blame for the crisis on COVID-19, a small tuition fee reduction two years ago, financial mismanagement by a few and declining enrolment due to demographic challenges in northern Ontario. The real problem, though, lies in decades of neoliberal policies. ...

In addition to being important for the community of Sudbury, the struggle at Laurentian has great importance for the whole region and even across Canada. It represents a four-pronged attack – against labour rights and the rights of public sector workers, on the quality and democratic nature of post-secondary education, against French and Indigenous language and education rights, and on the people of Northern Ontario.

For decades, universities across Canada have been undergoing neoliberal restructuring. One of the unique aspects of what is going on at Laurentian is that the university, in coordination with the Ontario government of Doug Ford, is using legal mechanism of the Companies’ Creditors Arrangement Act (CCAA) to impose an unprecedented breadth of deep cuts. ...

The CCAA, which is federal legislation, has been used against labour in the private sector to steal the unpaid wages and pensions of workers and ensure banks and corporate creditors are paid back first. This is the case with US Steel in Hamilton, Ontario and many other examples. But this is the first time that a public institution has used the CCAA.

Many have noted that this should be impossible since universities are not private businesses but public institutions that ought to be supported by public funding and oversight. Collective agreements at Laurentian have been opened up, salaries substantially reduced and workloads increased.

The breadth of the cuts announced on April 12 is shocking. Of the 69 program cuts that were announced many of them included programs that are widely considered foundational to any university – Philosophy, Mathematics, Anthropology, Political Science and Physics, among them. Many universities across the country have begun to cut these programs, in particular in the Arts, Social Sciences and Humanities.

The Communist Party states that this has to do with how capitalism values – or undervalues – education: “This reflects a fundamental difference in terms of how capitalists and working people view the importance of education. Education should not be a ‘personal investment’ or a commodity. Education is a democratic right and a social good. It is part of the common creative drive to seek out and expand knowledge which is valuable for individuals and society as a whole. While the capitalist attempts to limit education to equipping future employees with exploitable skills, we see education as a prerequisite to having a democratic society which needs a highly educated population where working people attend an accessible education system built for the public interest, not private interests." ...

The Franco-Ontarian community is not new to fighting to protect and expand French language education. In 2018, the Ford government tried to stop the creation of Ontario’s first French language university, Université de l’Ontario français (UOF). A massive mobilization of the Franco-Ontarian community thwarted the government’s plan – one of the first items that the newly elected Ford government was forced to backtrack on – and the UOF accepted its first students in September 2019. However, there is still a long way to go to get to adequate provision of French language education in the province to meet the needs of over 600,000 Franco-Ontarians. ...

Laurentian has also touted its “tri-cultural” mandate to reflect the university’s connection to the Indigenous communities of the North. Indigenous language use was encouraged on campus with Anishinaabemowin signage in addition to English and French. This also included an important Indigenous Studies program which is now facing defunding. ...

The dismantling taking place at Laurentian is seen by many in Northern Ontario as yet another massive economic blow to the region. Bay Street sees Northern Ontario as a hinterland whose natural resources belong to mining companies to be exploited. But this approach tramples on the inherent and treaty rights of First Nations and condemns residents of the North to impoverishment. ...

The underlying structural cause of the crisis at Laurentian is decades of underfunding and privatization. This same problem exists across Canada. In Ontario, government funding dropped from about 80 percent of operating revenues in 1980 to about 50 percent in 2004 and to just over one-third in 2017. The picture is similar across the country. ...

Federal funding for post-secondary education has dropped significantly since the 1970s.

http://peoplesvoice.ca/2021/05/10/labour-and-student-unity-needed-to-sto...

jerrym

The Ontario Federation of Labour has kept track of the Ford government of Ontario's cuts and actions since taking power, listing them on a month-by-month basis to show how extensive they are. While the Ford government, unlike Furey's Liberal Newfoundland government, did not announce a formal plan, called the Big Reset in Newfoundland's case, of cuts and other actions they have been very busy in implementing an austerity program also. I have posted April to June 18th 2021 Ford government actions as listed below to illustrate this. Remember these are only the last two and a half months of such actions, which includes the Laurentian University cuts in April described in the last two posts. If you go to the url below you will see a similar list for every back to the Ford government taking power in June 2018. By clicking on any of the bullets at the website you can get more information on that particular topic. 

https://ofl.ca/power-of-many-ford-tracker-pc-cuts-and-privatization-to-d...

June 2021

May 2021

April 2021

jerrym

Below is an article that traces the sad history of Newfounland's give aways to the private sector that has led to today's austerity program under Liberal Premier Andrew Furey and could also lead to similar outcomes across the country.

On May 6, the Newfoundland and Labrador Premier’s Economic Recovery Team (PERT) released a report and statement outlining an economic “Big Reset” for the province. The PERT report makes numerous recommendations to Liberal premier Andrew Furey. These recommendations are painted as a strategic plan to reduce the provincial debt—which has ballooned to $39 billion, the servicing of which will become unmanageable for the province in the near future—and to reduce expenditures to match revenue. It should be stated clearly that while the 342-page report is full of language about creating a progressive green economy and revitalizing the province, the content is nothing but pure austerity and a direct attack on the working class of Newfoundland and Labrador (N.L.). ...

N.L. has a long history of turning to outside investors to exploit local resources, consistently to the investors’ advantage and at the workers’ expense. This pattern has resulted in an ever deepening crisis for the province. ...

The transformation of natural abundance into corporate profit and government debt was already evident in N.L.’s days as a self-governing colony in the late 19th century. In an attempt to open up the interior of the territory for timber and mineral extraction, the government signed land over to railway companies for development. ...

It’s clear that the economic problems the PERT report seeks to address are a real danger to N.L. Decades of economic downturn following the collapse of core industries due to capitalist exploitation and market chaos, culminating in the 2008 financial crisis, threatened to cause social upheaval and decimate the labour force in the province. To “fix” this, the government started a campaign of social spending to keep the economy afloat. However, after accruing debt for years, including by covering much of the costs of the large corporations operating in the province, the government can no longer afford to have these social services and also service their debt, the latter of which makes up a staggering 12 per cent of the province’s expenditure. 

While the crisis was averted for a time, the politicians must now cut spending to restore economic equilibrium. But instead of making the corporations that put the province in this situation accountable, the Liberal government is poised to lash out at the working class. ...

While the language used to define these “Big Resets” is quite vague, the real content of the report is in the recommendations made to Premier Furey. The general recommendation is a five per cent cut to provincial funding for core government spending and a minimum 20 per cent reduction in grants to government agencies. While already devastating for a province struggling to get by with what it has, these recommendations actually hide many other severe and more specific attacks. A list of some of the most significant attacks follows. ...

The “Future Fund” laid out in the PERT report proposes to take 50 per cent of the money generated from privatization and volatile oil and mineral royalties and use it to pay down debt, as well as fund the transition to the green economy.

However, the devil is in the details, as according to the PERT, funding the transition to the green economy means “being proactive in seeking well-capitalized energy corporations, mining corporations and manufacturers that are trying to reduce their carbon footprint. The province’s approach must encourage large-scale private sector investment, and de-risk investments through tax and other incentives.” In other words, the so-called Future Fund will be used to bankroll the bosses in whatever endeavor they can argue is environmentally friendly. ...

The PERT report is recommending a 30 per cent reduction in operating grants to N.L.’s two post-secondary education institutions, Memorial University (MUN) and the College of the North Atlantic (CNA). This is combined with the recommendation that provincial policy be reworked such that the current tuition freeze at MUN and CNA be lifted, allowing the administration to raise tuition rates. This is a tactic being employed elsewhere in Canada, where the cost of an educated workforce is being increasingly put on the students themselves as opposed to the bosses who take home the profit from a skilled labour pool. ...

The PERT report advocates slashing social services currently in place in N.L. This includes a 25 per cent cut to provincial health-care operating grants over six years. The experience of the pandemic, however, has shown us that taking resources away from public health only leads to disaster. Take Jason Kenney’s attack on public health earlier in the pandemic, for example, which directly led to massive spikes in infection and many preventable deaths.

The report further proposes modifying social programs to “strengthen the social safety net” by eliminating “disincentives for individuals to take-up employment opportunities when they become available.” This is despite the fact that many currently aided by income assistance of any form are “worse off financially if they find employment or increase their employment earnings.” In essence, the report admits that the problem itself is not the presence of income assistance, but the fact that many employers do not pay their employees enough to live. Despite this, the report advises rolling back these programs for the sake of the budget.

The PERT report is also a canary in the coal mine; for years, the N.L. government has put much more than it had into public spending to put off the current crisis. The rest of Canada and Quebec face asimilar situation, although they did not start out in economic straits quite so dire as N.L.’s. All of the capitalist economies have been put on life support—in the form of quantitative easing and massive corporate bailouts—due to their inability to address the pandemic. N.L. is simply one of the first to start to fail. And when the cycle of printing money and handing it to the bosses does begin to failelsewhere, the working class in these places will see attacks similar to those laid out in the PERT report.

https://www.marxist.ca/article/crisis-in-newfoundland-and-labrador-from-...

jerrym

ETA: The Unifor union has begun a "Don't Sell Newfoundland" campaign against Liberal Premier Furey's austerity program. 

Unifor has launched a new ‘Don’t Sell NL’ campaign in opposition to austerity measures proposed in The Big Reset report by Premier Andrew Furey’s Economic Recovery Team.

“The Big Reset recommendations focus on cutting jobs, slashing health care and other services, selling off and privatizing public assets, and other punishing austerity measures,” said Unifor Atlantic Regional Director Linda MacNeil.

“If allowed to happen, these measures will stifle economic growth, put control of public assets and services in the hands of corporations, and force young people and working families to relocate out of province.”

The new campaign calls on members to stop the Furey government from implementing recommendations that would sell away valuable assets owned by the citizens, sell off vital public services to be run at a profit by private corporations, and sell out the people of Newfoundland and Labrador.

Read Unifor’s release on The Big Reset report here.

Unifor has joined a coalition of unions that represent members in Newfoundland and Labrador to unite workers across the province in the fight to prevent the proposed austerity measures from becoming policy. Political lobbying and additional actions are currently in the planning process with information forthcoming.

“The COVID-19 pandemic has taken a devastating toll on the economy, workers and families.

Newfoundland and Labrador needs increased investment in programs and growth sectors to stimulate recovery, not cuts that will move us backwards,” said MacNeil.

https://www.unifor.org/en/whats-new/news/dont-sell-nl-campaign-launched-...

jerrym

Another government moving toward austerity is Premier Iain Rankin's Nova Scotia Liberal government. Of course, it is isn't going to happen this year because, heh man, there's an election going on and we will throw out the goodies now. But this year's budget in April revealed that the Rankin Liberals plan on cutting spending by $209 million and balancing the budget in four years, which is faster than almost anyone else is promising in Canada. 

Nova Scotia's opposition leaders say Premier Iain Rankin's four-year plan to balance the books amounts to nothing more than a pre-election fantasy straight from the Land of Oz.

"That's Judy-Garland-somewhere-over-the-rainbow economics," NDP Leader Gary Burrill told reporters at Province House on Thursday.

At issue for Burrill and Tory Leader Tim Houston is the fact this budget, which sees some major spending increases heading into a likely provincial election, is to be followed by an estimated $209-million decrease in departmental spending in 2022-23. ...

Burrill said it "defies credibility" for Rankin to suggest he can remove $209 million in departmental spending (to say nothing of the effects of what is now fast rising inflation) in a single year without it "inflicting dramatic damage on the fabric of the province," and he challenged the premier to provide better accounting of the plan.

Burrill pointed to previous budgets following the Liberals' election win in 2013 that saw reduced funding for a number of organizations, including long-term care homes, mental health organizations and the Canadian National Institute for the Blind.

He said the full focus of the government should be on economic recovery, not balancing the books as soon as possible.

"Even very conservative jurisdictions are talking about the elimination of operational annual deficits over periods of eight, 10, a dozen years — not four," he said. 

https://www.cbc.ca/news/canada/nova-scotia/iain-rankin-opposition-balanc...

jerrym

Alberta is yet another province engaging in austerity. 

In the Canadian province of Alberta, the United Conservative Party has enlisted accountancy firms to promote its agenda of economic liberalization, cloaking its partisan policies in the bloodless language of efficient management and accounting practices. ...

Among these proposed reforms were a cut in the corporate tax rate, making it one of the lowest in North America, a reduction in the regulatory requirements for oil and gas extraction, “bringing balance back to labor legislation,” and instituting aggressive cuts and wage rollbacks across the public sector. Kenney told his audience at the Manhattan Institute that Alberta’s public sector had grown bloated on the back of the hard-working private sector. ...

While an occasional private members’ bill will crop up espousing more conservative cultural values, the overwhelming thrust of the UCP’s legislative agenda is strict adherence to a regime of austerity — cuts to public services, the muzzling of organized labor, privatization, and tax cuts for corporations. All of this is justified by invoking the need for “cost-saving measures” for an out-of-control public debt. ...

Like governments of similar ideological bent the world over, the UCP likes to use a neoliberal Jedi mind trick, appointing consultancy firm after consultancy firm, panel after panel, to give the illusion that its brutal cuts to public services rest upon a well-researched and considered technocratic rationale.

These panels and consultants serve the same function as organizations like the Manhattan Institute in the United States or examples elsewhere in Canada, like the Canadian Taxpayers Federation (of which Kenney was president) and the Fraser Institute.

These think tanks, reports, panels, commissions, and white papers manufacture the consent necessary to decimate the public sector, and to pave the way for the well-worn playbook of austerity: starve the public service of necessary funding so that it does not function properly, then introduce a privatized “solution” with virtually no public outcry or pushback.

The UCP gave $3.7 million to McKinsey & Company to undertake a review of Alberta’s post-secondary sector modeled on the slash-and-burn mandate set out by Janice MacKinnon in the Blue Ribbon Panel report. As thanks to her hard work — and to keep a wolf in the henhouse — MacKinnon was appointed to the board of directors at the province’s flagship university, the University of Alberta. ...

As the “beating heart of free-enterprise values in the Canadian political culture,” Alberta is currently the only Canadian province that allows for the charter school model.

As a part of their “market-oriented reform,” the UCP removed the cap for charter schools. They did this right after cutting funding for public education to the tune of $136 million and pushing through the largest mass layoff in Alberta history in the education sector, during which over twenty thousand “non-essential” education workers were let go. In essence, they starved the district of funding and handed over the fractured system to private hands at public expense.

The UCP also scrapped an extensive curriculum review, only to appoint yet another “expert” panel to advise on future directions for Alberta’s public education — with zero representation for active teachers. The panel featured Ashley Berner, a researcher whose work is funded in part by the Charles Koch Foundation, and who supports public funding for charter and private schools. ...

Most recently, Alberta Health Services (AHS), the provincial public health care system, has been seriously damaged by another of these “expert” reviews. Ernst & Young (EY), a consultancy firm which sunnily advertises its tax and assurance services as a commitment to “building a better working world,” was awarded a $2 million dollar contract and tasked with a review of Alberta Health Services.

EY were asked to identify “efficiencies” and cost-savings, with zero input solicited on how these measures would affect patients or working conditions for health care professionals. The report, released in February 2020, called for increased marketization of senior care, the consolidation of maternity care in rural areas, and the privatization of laboratory, housekeeping, food, and laundry services in Alberta hospitals. ...

Despite the ongoing pandemic and public health crises, Alberta health minister Tyler Shandro announced on October 13, 2020 that up to 11,000 staff will be laid off from Alberta Health Services, in line with the recommendations of the EY report.

Additionally, they are proceeding with plans for the potential consolidation of services at smaller AHS facilities; the introduction of a co-pay for home care; increased accommodation fees for seniors in continuing care; and increased charges for supplies not covered by AHS. ...

But workers in Alberta have had enough. On October 26, a province-wide wildcat strike saw health care workers walk off the job in protest of the UCP’s anti-worker agenda. Anger had been boiling for months, but the last straw, according to AUPE president Guy Smith, was the EY-recommended cuts to AHS staff.

These consultancy firms and panels leech off public money. They work within the bounds set out by the UCP — or whatever austerity-minded government employs their services — on the premise that “spending is out of control” and therefore, the only solution is massive cuts to public services. Millions of dollars have been awarded over the last year and a half in contracts to provide an ideological smokescreen for the UCP’s brutal austerity regime. It is time for labor to fight back. The recent wildcat strikes are a sign that the fight has begun.

https://www.jacobinmag.com/2020/11/jason-kenney-austerity-united-conserv...

jerrym

As part of the Alberta austerity program the government is aiming to cut nurses wages by 4% followed by three years of 0% increases and nurses are looking at going on strike in response. 

The Alberta Union of Provincial Employees says Alberta Health Services has presented General Support Services (GSS) workers with a four per cent wage cut.

AHS brought forward the cut to the AUPE AHS GSS bargaining team on Thursday as negotiations started again, after being put on hold earlier in the COVID-19 pandemic, according to the AUPE.

The four per cent cut would be applied immediately after ratifying the new agreement, followed by three years of zero per cent increases, the AUPE said in a news release Thursday night.

“It is indecent and obscene,” AUPE vice-president Susan Slade said. “How dare they attack front-line health-care workers who are already stressed and beaten down because of the pandemic.” ...

AHS deferred comment on the issue to Finance Minister Travis Toews’ office. In a statement, Toews said: “At a time when Alberta has $93 billion in debt, the focus has to be on the long-term fiscal health of the province, as well as the health of Albertans. We must control our spending — and that includes public sector compensation,” Toews said.

https://globalnews.ca/news/8033237/alberta-health-care-support-staff-pro...

jerrym

Many nurses are thinking about leaving the profession after facing wave after Covid wave followed by the threat of wage cuts that including all government proposed changes could amount to a 5% wage cut. Kenney is apply the shock doctrine, which "centers on the exploitation of national crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are too distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively." (https://en.wikipedia.org/wiki/The_Shock_Doctrine)

After working the front lines through three gruelling waves of the pandemic, and now facing the prospect of pay cuts, some Alberta nurses say they're exhausted, demoralized and looking to get out — prompting concerns about the future of health care in the province.

"It was terrifying. … other people were told to stay home and we were told to go to work," said Edmonton emergency room registered nurse Jessica McGrath, who described facing heartbreaking scenes of patients needing to be intubated, struggling for their lives and dying alone.

"We are the ones that are seeing COVID at its worst."

But as the province emerged from its most recent COVID-19 surge — and negotiations between the United Nurses of Alberta (UNA), Alberta Health Services and Covenant Health resumed — nurses were presented with a three per cent wage rollback proposal. Including other changes, UNA argues it amounts to a five per cent cut.

https://www.cbc.ca/news/canada/calgary/alberta-nurses-1.6114721

jerrym

At the same time the Furey Liberal government implements a drastic austerity program, it gladly accepts $5.2 billion in "investment" from the Trudeau government in the "financial disaster" that is Muskrat Falls, that is a "bailout of a bailout of a bailout" by successive Conservative and Liberal governments at both the federal and provincial level. No such bailout is too large if it profits large corporations and banks financing the project, especially if it helps wins electoral seats in the short run. 

Prime Minister Justin Trudeau flew to Newfoundland and Labrador this week on his “Election? What Election” campaign tour, and when he landed he bailed out the province’s disastrous Muskrat Falls hydroelectric project. ...

Okay, but from here the announcement looks like the latest bailout of a project that only exists because of previous federal bailouts, and which was the subject of a deliberate disinformation campaign about its true costs. This bailout of a bailout of a bailout is rich in logical inconsistencies, and sets a troubling precedent. ...

Muskrat Falls is a financial disaster. A commission of inquiry report released in March, 2020, found that Nalcor, the provincial Crown corporation that (mis)managed the project, deliberately underestimated costs for political reasons, did no research into the typical cost overruns of megaprojects, failed to explore less expensive alternatives, and withheld information from investigators, including the province’s Public Utilities Board. Nalcor said in 2012 the capital cost of the project would be $6.2-billion, with $1.2-billion in additional financing costs. The capital costs rose to $7-billion in 2014, $7.7-billion in 2015, $9.4-billion in 2016 and $10.1-billion in 2017, which was still the estimated cost when the report was released in 2020. Financing costs had also jumped, to $2.6-billion. Since then, the pandemic has added another $435-million to the tally, which means the bill for Muskrat Falls has now topped $13-billion. ...

Ottawa was right there from the start, blank cheque in hand. The Harper government got the ill-conceived project off the ground in 2012 with a $5-billion loan guarantee. In 2017, the Trudeau government upped the guarantee by $2.9-billion, then in 2020 it renegotiated the terms to give the province more financial leeway. And now Mr. Trudeau is throwing in another $5.2-billion. ...

It also should be noted that a $5.2-billion handout to a province with a population of 520,000 is massive on a per capita basis. In Ontario, its equivalent would be $148-billion; in Alberta, $44-billion.

None of this makes any sense, except as an election handout designed to secure Newfoundland’s seven seats in the House of Commons, six currently held by Liberals. Other than that, it’s madness.

https://www.theglobeandmail.com/opinion/editorials/article-muskrat-falls...

jerrym

The Liberals in Nova Scotia are outdueling the PCs as deficit hawks promising to balance budget in four years despite the enormous spending on Covid during the last year and a half. NDP leader Gary Burrill notes that this is a far shorter period than the 6 to 8 years most Canadian governments are promising to take to reach a balanced budget. During the election debate, when PC leader Houston said a PC government would build an additional 2,500 long-term-care beds, Liberal Premier Rankin replied  " the Tory leader wants to "overbuild" in the long-term care sector by promising 2,500 new beds." In response to Rankin's statement, Burrill nailed him and the failure of the Liberals to build LTC beds  "Did you just use the word, 'overbuild?' Do you not acknowledge that in eight years, the grand total was 57 beds you built?", showing how wedded Rankin is to austerity. Rankin's response reinforces his devotion to austerity: "What we don't need is a competition on who can throw the most money at an issue." (https://www.halifaxtoday.ca/local-news/ns-liberal-leader-faces-barrage-o...)

This is more than getting caught off-guard in a quick debate response as Liberal leader Rankin " pitched himself as a deficit slayer" as he, PC leader Houston and NDP leader Burrill answered questions before the Halifax Chamber of Commerce as the election continues.  Burrill warned that achieving a balanced budget in four short year would cost hundreds of millions in program cuts. 

Nova Scotia's Liberal leader pitched himself as a deficit slayer before a business audience on Wednesday, contrasting his budget balance goals with the spending plans of his Progressive Conservative opponent.

The differing spending strategies were on display as the two party leaders, along with the head of the province's NDP, responded to questions posed by members of the Halifax Chamber of Commerce and debated each other.

"We need to make sure that we are living within our means," Liberal Leader Iain Rankin told the business crowd. "The spending that is proposed by both opposition parties is in the billions -- adding structural deficits that we cannot incur right now."

Tory Leader Tim Houston has presented a costed platform that projects $553 million in new spending in Year 1 if he's elected, with about 80 per cent of that dedicated to health care.

Houston and NDP Leader Gary Burrill told the chamber they planned to run deficits to address needs in health care, housing and long-term care.

In contrast, Rankin spoke of targeted spending to ensure the province can get back to balanced budgets over the next four years. ...

Burrill said the NDP -- which held only five seats at the legislature's dissolution -- said deficit spending is required during a time when the economy is trying to recover from one of its biggest contractions in recent history.

Burrill also said a $70-million tax break given to the province's larger corporations that took effect just prior to the pandemic effectively prevented the government from helping small businesses in a meaningful way during the lockdowns.

He warned that if the Liberals win the Aug. 17 election, they will likely cut hundreds of millions of dollars in government spending in order to achieve balanced budgets. The Liberals, Burrill added, balanced budgets during their prior mandate by cutting a film tax credit and rural economic development programs.

The NDP leader also pointed out that most jurisdictions in Canada are not planning to return to balanced budgets for the next six to eight years.

https://atlantic.ctvnews.ca/nova-scotia-election-party-leaders-spar-over...

jerrym

It looks like part of Liberal Premier Rankin's solution to Nova Scotia's provincial debt and his proposal to balance the budget within four years after the massive costs and loss of revenue associated with the Covid crisis is a fire sale of government assets. The revelation that there was no public consultation or even knowledge of a pending sale of  705 acres of crown land to a US developer in a fire sale to build several golf courses when the land was delisted as a protected area in 2019. This suggests a way in which the Liberals could sell off numerous assets to generate revenue to balance the budget, something the BC Liberals did when in power. This would also set a precedent for the sale of other provincial lands and government assets. NDP leader has been criticizing this potential sale. Rankin's weasel word response is that "we are early in the process and there will be public consultation, but he will always err on the side of protecting the environment." This has become a major issue in the provincial election. 

A boisterous crowd of nearly 200 people gathered in downtown Halifax to call on the province of Nova Scotia to halt the sale of more than 705 acres of crown land known as Owls Head to a U.S. developer who wants to build several golf courses along the Atlantic shoreline. ...

Environmental lawyer Jamie Simpson and a group of concerned citizens called the Eastern Shore Forest Watch Association filed a judicial review in Nova Scotia Supreme Court, arguing the conditional sale of Owls Head, approved by then lands and forestry minister Iain Rankin to the Lighthouse Links Development Group, was done without public consultation and that failed to meet standards laid out by the province to protect public lands and goes against the public’s interest.

“If Owls Head had been formally designated as a provincial park, as was represented to the public, any change to its status as protected land would have required an order in counsel and would therefore would have been public knowledge,” said Simpson. For decades, the province managed and treated Owls Head as a provincial park, said Simpson, with documents, published articles and maps listing it as a provincial park. But as it turns out, Owls Head was not legally designated as such but was a list to be protected. “Ultimately, the government’s own misrepresentation of the status of the lands shielded its actions from scrutiny and allowed purportedly public lands to be sold out of the public’s eye,” said Simpson. “And those are damning facts, for sure.”

Court citations show in March 2019, the government’s Treasury and Policy Board delisted Owls Head in a confidential minute letter,  removed Owls Heads from the provinces Parks and Protected Areas Plan, after Lighthouse Links approached the province to inquire about purchasing the land. ... Still, Justice Christa Brothers dismissed the application for judicial review, saying the government may have left constituents feeling betrayed and incensed by the deal, but they still acted in the lawful authority they held. ...

NDP leader Gary Burrill spoke at the rally and called the government’s handling of the sale undemocratic, “As I understand the judges’ decision, it is possible for things to be done by governments which are in fact wrong but still may be technically legal,” said Burrill. “And that in that kind of situation the remedy to the wrongness is in fact to vote the government out and proceed with a new government. That’s our democratic system.” ...

The Nova Scotia Green Party also spoke at the rally and, like the NDP, if elected they would quash the sale of Owls Head. 

https://globalnews.ca/news/8095099/owls-head-nova-scotia-election/

jerrym

Furey's large spending cut austerity program, called The Big Reset, would cost Newfoundland 9,000 jobs, which is 4% of its workforce, according to a review of this program, called A Fair Reset, from the Newfoundland and Labrador Federation of Labour. 

The 'Big Reset' spending cut recommendations in the Premier's Economic Recovery Team (PERT) report would result in the loss of nearly 9,000 jobs in Newfoundland and Labrador if implemented, finds new research.

"We're talking about a 4% drop in the number of jobs available to the province's workers, with almost three-quarters of the job loss in health care," said Mary Shortall, President of the Newfoundland and Labrador Federation of Labour. "Shockingly, the final PERT report fails to calculate the actual number of jobs that would be eliminated or factor in how access to vital services, including health care, would be reduced." 

The devastating projected job loss figure is contained in the first of a new series of blog reports titled 'A Fair Reset', published today by the Newfoundland and Labrador Federation of Labour.

In the series, 10 leading economists, political scientists, geographers, writers and professors analyze the financial and socio-economic impacts of the PERT report and provide alternative, progressive recommendations to build a stronger, fairer and more inclusive economy. 

"The 'Big Reset' is meant to stimulate the economy, create jobs and attract young people to the province. If the government thinks that the PERT plan will accomplish this goal it is sorely mistaken and workers will pay the price," says Unifor Economist and 'A Fair Reset' blog author Kaylie Tiessen. "Newfoundland and Labrador's economy could certainly use a reset, but not the one that PERT is calling for."

Instead of eliminating jobs, Tiessen advocates for policies to grow the economy from the ground up by investing in programs and services that Newfoundlanders and Labradorians rely on and ensuring the jobs created and maintained pay enough for people to get by, provide for fair scheduling and deliver high quality services. 

"Premier Andrew Furey needs to create good paying jobs, not take them away," said Shortall. "I'm asking the government to scrap the Big Reset and join with workers and unions to build a post-pandemic economy that will increase family sustaining jobs, inject cash into our local communities and keep workers from leaving the province." 

'A Fair Reset' blog will be released weekly starting August 10, 2021 until the week before the scheduled resumption of the Newfoundland and Labrador House of Assembly on October 18. Future research blogs topics will include provincial debt, technology in health care, just transition and the dangers of austerity measures.

https://www.newswire.ca/news-releases/-big-reset-would-result-in-loss-of...

jerrym

Here's a detailed look from  the Newfoundland and Labrador Federation of Labour's report, A Fair Reset, at the costs of Newfoundland Liberal Premier Furey's Big Reset austerity program costs in terms of job losses amounting to a 4% reduction in the Newfoundland workforce and social and health care program cuts and how a progressive program that promotes fairness and equity would help the province. The report was prepared by ten leading economists, political scientists, geographers, writers and professors.

The spending cuts alone will shrink the number of jobs available in the Newfoundland and Labrador economy by an astounding 4%. While on the surface, this number may seem small, in reality this will result in massive job loss and unemployment for nearly 9,000 people.

Other elements of the plan including contracting out, cutting wages and benefits, and privatization will reduce the quality of employment for thousands more (not to mention the reduction in the quality of services that the people of the province depend on every day).

It is incredibly frustrating to see a plan like this put forward because it does the exact opposite of what the report’s authors say they are trying to do, namely create jobs and opportunity to attract people to the province.

Statistics Canada estimates the multiplier effect of government spending in Newfoundland and Labrador to be 11 jobs per million dollars spent on government health care, 10 jobs for every million dollars spent on education and seven jobs for every million dollars spent on other government services.

All told, the Big Reset recommends government cut nearly $900 million a year from the budget by 2026 – $590 million in health care, $100 million in education and $200 million in other services.

Using the multipliers above, it is possible to estimate the number of jobs that will be lost due to these cuts – 7,000 jobs in the public service and another 2,000 in the private sector that supply government with goods and services.

Statistics Canada data show there were 227,000 people employed in Newfoundland in Labrador in 2019 and 214,000 employed in the province in 2021.

Overall, that 9,000 person job cut is a 4% drop in the number of jobs available in the province and a far cry from the job creation scheme the PERT purports to have put forward.

Nearly three-quarters of the job loss would be in the health care sector, much of them in rural areas where employment opportunities are already lacking and where healthcare workers are already stretched thin. There has been a litany of stories in the media in recent weeks about the multitude of issues in our healthcare system, particularly as they relate to wait times, exhausted and understaffed healthcare workers, and backlogs for appointments and procedures. If you are having trouble accessing appropriate health care services now, just wait until there are 6,500 fewer workers in the system.

The spending cuts will result in 800 fewer jobs at Memorial University of Newfoundland and 200 fewer jobs at the College of the North Atlantic.

The PERT does not actually conduct these calculations nor does it provide evidence that cutting spending in this manner will result in more jobs, better service delivery,  or economic growth. This is a huge oversight of the report.

A far better, and evidence based, way to stimulate the economy and create jobs in the province would be to invest in the programs and services that Newfoundlanders and Labradorians rely on every day and ensure the jobs created and maintained pay enough for people to get by, provide for fair scheduling and ensure high quality services for patients and residents.

Government could actually embark on a job creation program killing two birds with one stone – providing the services that are needed and creating the family sustaining jobs that some people in the province have and many more are hoping to land.

Policies that promote fairness and equity in the labour market can grow the economy from the bottom up and ensure the benefits of economic growth actually flow to the people of the province.

To that end, Premier Furey must implement a $15 minimum wage that is then benchmarked to 60% of the median wage for full-time workers; develop fair scheduling regulations to ensure that more full-time jobs are available in sectors that currently deprive people of the hours they want; and a Just Transition for workers whether they be displaced by new technology, a shift to a greener economy or economic restructuring due to COVID-19.

Newfoundland and Labrador’s economy could certainly use a reset, but not the one that PERT is calling for. The premier should instead focus on resetting the rules to create a fair and inclusive economic recovery for all.

https://nlfl.nf.ca/2021/08/the-big-reset-will-mean-big-job-losses/

jerrym

The defeat of the Liberal Rankin's Nova Scotia government was in part a reaction against the austere conditions applied to Nova Scotia's healthcare system and the failure to deal with rapid exponential growth in housing costs, as well as the planned $209 spending cuts in 2022, with no plan to do anything about them, which is perfectly in line with neoliberal orthodoxy. When a Liberal government is outflanked on the left, not just by the NDP, but by a Progressive Conservative party, you know they are quite right-wing, as the following summary of parts of the TV three party debate illustrates. 

The Liberals in Nova Scotia are outdueling the PCs as deficit hawks promising to balance budget in four years despite the enormous spending on Covid during the last year and a half. NDP leader Gary Burrill notes that this is a far shorter period than the 6 to 8 years most Canadian governments are promising to take to reach a balanced budget. During the election debate, when PC leader Houston said a PC government would build an additional 2,500 long-term-care beds, Liberal Premier Rankin replied  " the Tory leader wants to "overbuild" in the long-term care sector by promising 2,500 new beds." In response to Rankin's statement, Burrill nailed him and the failure of the Liberals to build LTC beds  "Did you just use the word, 'overbuild?' Do you not acknowledge that in eight years, the grand total was 57 beds you built?", showing how wedded Rankin is to austerity. Rankin's response reinforces his devotion to austerity: "What we don't need is a competition on who can throw the most money at an issue." (https://www.halifaxtoday.ca/local-news/ns-liberal-leader-faces-barrage-o...)

This is more than getting caught off-guard in a quick debate response as Liberal leader Rankin " pitched himself as a deficit slayer" as he, PC leader Houston and NDP leader Burrill answered questions before the Halifax Chamber of Commerce as the election continues.  Burrill warned that achieving a balanced budget in four short year would cost hundreds of millions in program cuts. 

Nova Scotia's opposition leaders say Premier Iain Rankin's four-year plan to balance the books amounts to nothing more than a pre-election fantasy straight from the Land of Oz.

"That's Judy-Garland-somewhere-over-the-rainbow economics," NDP Leader Gary Burrill told reporters at Province House on Thursday.

At issue for Burrill and Tory Leader Tim Houston is the fact this budget, which sees some major spending increases heading into a likely provincial election, is to be followed by an estimated $209-million decrease in departmental spending in 2022-23.

https://www.cbc.ca/news/canada/nova-scotia/iain-rankin-opposition-balanc...

jerrym

O'Toole's Conservatives are planning a neo-liberal return of austerity if they win, which seems a distinct possibility compared to even three weeks ago, according to the polls. Of course, the other neo-Liberal party is likely heading down a similar but possibly milder (although that is far from assured) austerity road, but, as usual, not saying anything about it until after the election, if they should win. 

During the COVID-19 pandemic, most of the sacred and long-standing precepts of neoliberal macroeconomics were thrown out the window, and for good reason. Dramatic interventions in both fiscal and monetary policy in Canada and other countries helped economies get through the pandemic and resulting recession. Erin O'Toole's Conservatives, however, are now signaling they will quickly reverse course and resuscitate those neoliberal principles if they form the next government. ...

The federal deficit exceeded $350 billion for 2020-21, or around 15 per cent of national GDP -- the biggest (in relative terms) since World War II, and unimaginable in conventional economic discourse.

Canada's deficit was among the largest of OECD countries, indicating a relatively ambitious response to the pandemic. But most industrial countries also incurred very large deficits: across the whole OECD, they averaged around 12 per cent of GDP.

Meanwhile, provincial governments also incurred record-breaking deficits due to reduced revenues and increased health and other program costs. Every province except New Brunswick (whose COVID-insulated economy traversed the pandemic better than any other) incurred large deficits; Alberta's (at close to 7 per cent of GDP) was by far the biggest.

In monetary policy, too, the conventional obsession with inflation control and monetary rectitude -- already shaken by the global financial crisis (GFC) 12 years earlier -- was abandoned in most countries, in favour of extraordinary interventions to support spending.

Until COVID-19, the Bank of Canada had refused to join other leading central banks in a practice called "quantitative easing" (QE): using the Bank's money-creation powers to buy assets (largely but not solely government bonds) in hopes of boosting money supply, bank lending, and spending. ...

Beginning in March 2020, the Bank purchased some $335 billion in federal bonds -- and about $20 billion of provincial bonds, to boot. Those purchases (some made directly in new bond auctions, some bought second-hand in commercial markets) kept interest rates super-low, despite the financial uncertainty associated with the pandemic. They also made it easier for the federal and provincial governments to finance their unprecedented deficits.

The combination of these two dramatic shifts in macroeconomic policy exposed the lie of austerity upon which neoliberal economic and social policies have been based for decades. Harsh government cutbacks were always explained on grounds that government just "can't afford" to spend more. This lie was critical to the formulation and legitimation of austerity.

The pandemic proved something progressives argued for years: there is virtually no financial constraint to the ability of governments (especially national governments, which possess independent currencies and financial regulatory powers) to mobilize resources in the interests of social and environmental well-being -- if they choose to do so. ...

Canadian governments raised hundreds of billions of dollars to support extensive income supports (through measures not dissimilar from the "basic income" vision advanced by many progressives), subsidize wages and protect employment (in the face of macroeconomic chaos), and invest in expanded physical and social infrastructure -- even stretching to the introduction of whole new programs (like national child care).

The ultimate limit on the capacity to deliver these reforms and supports is the real productive capacity of the economy, not the government's budget. As long as the economy languishes far below that capacity limit, government can and should use its capacity to raise money (including creating it, through a publicly regulated and partly publicly owned banking system), and spend it to stimulate more work, output, and income -- preferably in socially useful undertakings.

The dawning reality that government can do amazing things when it chooses to, poses an existential threat to the narrative that underpins neoliberal fiscal and monetary policy. Even mainstream economists have been generally supportive of the extraordinary measures taken during the pandemic. Most recognized that adherence to traditional strict doctrines (of deficit-reduction and inflation control) would have turned the COVID recession into an outright depression. Neoliberal purists were always uncomfortable, however, with the idea that large fiscal and monetary interventions to support public health, public services, employment, and infrastructure could be seen as anything more than short-term emergency measures. Conservative politicians went along with these interventions, to an extent (and in many countries, it was conservatives who oversaw them) -- but always with an eye to cramming the genie back into the botte as soon as possible.

The current federal election campaign has confirmed the Conservative Party of Canada's desire to quickly restore traditional neoliberal goals; smaller government, balanced budgets, and an overarching commitment to inflation control (which is always the most important priority for owners of financial wealth, given the impact of higher inflation on their accumulated holdings). ...

For months during the pandemic, Pierre Poilievre -- then the party's finance critic, still a prominent spokesperson, and likely front-runner for party leader in the event O'Toole falters -- was the most outspoken critic of fiscal and monetary supports. He lambasted both the government's large deficits and the Bank of Canada's money creation. In the Bank's case, Poilievre's attacks were extraordinary and aggressive: accusing the Bank of becoming an ideological tool, serving as "an ATM" for the Trudeau government's rampant spending. ...

O'Toole has walked a more nuanced line in attacking the Trudeau government's deficits -- knowing that the lifesaving policies that caused those deficits. ...

Nevertheless, O'Toole has attacked the federal deficit (without saying what programs he would have eliminated to reduce it), blamed Trudeau for the increase in inflation that has accompanied the re-opening of the economy, and pledged to balance the budget within a decade if elected. That pledge would require years of deep austerity in federal spending, and would almost certainly throw ice water on the economy's rebound from the COVID recession. The experience of Europe after the GFC is painful evidence of the self-inflicted harm caused by fiscal restraint during periods of macroeconomic crisis. ...

The modest increase in inflation in recent months (the year-over-year rate hit 3.7 per cent in July) has provided fuel for loud Conservative warnings about the menace of fiscal and monetary laxity. Those arguments are not credible. The uptick in inflation has been driven mostly by gasoline prices (excluding gasoline, the rate was 2.8 per cent) and a few other volatile commodities. The "core" inflation rate (with volatile items stripped out) was just 1.7 per cent -- still below the Bank of Canada's target. ...

The fact that their commitment to balancing the budget and controlling inflation is completely at odds with their long list of potentially expensive spending promises (including an expansion of EI benefits, business subsidies, and even taxpayer-supported restaurant meals three days a week) should not fool Canadians. When push comes to shove, if they hold the reins of fiscal and monetary policy, Canada will undoubtedly be heading back to an unforgiving and austere brand of neoliberalism -- and fast.

https://rabble.ca/columnists/2021/08/erin-otooles-conservatives-prepare-...

jerrym

The Furey Liberal Big Reset program will hit students and faculty members at Memorial University severely by doubling fees, which is expected to decrease enrolment and faculty numbers by 20%, and could be a precedent for other provinces wanting to use Covd austerity as an excuse to lower deficits through hitting some with low incomes in Canada and low voter turnout on average, students. International students will be hit with $20,000 per year tuition, meaning only the offspring of internationally wealthy need apply. 

The Memorial University of Newfoundland Faculty Association (MUNFA) is joining with campus unions and student groups to demand that the provincial government reverse cuts to education and keep the province’s tuition freeze, which had been instituted in 1999. 

Memorial’s administration announced July 9 that it will double domestic tuition fees by 2022, and that international tuition fees will reach $20,000 in the same timespan. This is a result of the Newfoundland and Labrador government’s planned $68.4-million cut to the university grant over the next five years.

MUN expects the tuition increase will lead to a 20% drop in enrolment

“The impact is enormous,” said MUN associate professor Robin Whitaker and a member of CAUT’s executive committee. “It’s counterproductive in relation to other goals that the government has set out, in terms of retaining and attracting young people. This erodes the accessibility of higher education in this province, which will especially affect people in already marginalized situations.”

Travis Perry, membership coordinator with the Memorial University of Newfoundland’s Faculty Association, echoes Whitaker, saying the cuts will lead to an increased workload for academic staff, which in turn will leave them with less time to mentor students.

“We already have reduced faculty in some departments. A 20% drop in enrolment will have a direct impact on our members,” he said. Perry added that the coalition is opposed to these austerity measures, and it wants the government to invest in young people and diversify the economy, rather than pursuing a strategy that has been proven not to work. “That’s why the coalition is key. We need to shift the public discourse.” 

Whitaker is also concerned the decision to de-prioritize post-secondary education funding in the province will funnel young people, especially those from marginalized communities, into vocational studies, and therefore reduce the pool of eligible candidates for professional programs such as law, medicine and public policy. 

https://www.caut.ca/bulletin/2021/09/news-munfa-fighting-doubling-tuitio...

jerrym

There are two sides to austerity programs of course: more for the rich and less for everyone else in real economic terms. Once again the result can be seen in the ever growing number of people attending food banks, one third of whom now are full-time workers. 

Food banks and other programs serving vulnerable Canadians are expected to serve 60 per cent more people per month in 2023 than last year, according to a report by a national food rescue organization. (https://www.cbc.ca/news/canada/toronto/60-rise-use-of-food-banks-program....)

It's even worse in where the largest food bank is calling on the Ford government to address food bank crisis as Toronto food banks hit the breaking point after the number of people using the largest food bank in the city has quadrupled in three short years from 65,000 to 270,000, including one third being fulltime workers. (https://toronto.ctvnews.ca/toronto-food-bank-demands-emergency-funding-f...) While unemployment spiked to 13.7% in May 2020 in Canada during Covid, a record it has now fallen to 5.0%. By comparison, unemployment in the 1980s hit a high of 13.1% in Decemember 1982 but stayed well above 10% for many years. Yet there are far more people attending food banks today.  The average two bedroom apartment rent in Toronto is $2,492 (www.apartments.com/toronto-on/)

 At the same time the CEO of Loblaws got a 56% increase  in the last year because "consultants" said he was grossly underpaid by industry standards. "His total compensation reached $11.7 million" (https://www.ctvnews.ca/business/loblaw-ceo-galen-weston-s-compensation-j...).

It is time to set a maximum compensation rate for senior executives based on the number of time more an executive can make than the lowest paid employee as exists in some countries. In Canada the average CEO to lowest worker rate is 149 to 1, while Israel has a 56 to 1 maximum by law. (https://www.statista.com/statistics/424159/pay-gap-between-ceos-and-aver...). In the 1970s they were 30 to 1 in Canada when economic growth rates were much higher than today. 

The city, the province and the country need to all address the problem.

Clearly our economic system is totally out of whack. When people cannot get food or find a home, guess what happens to the crime rate in Toronto or Vancouver or elsewhere.

Toronto’s largest food bank says it is at “breaking point” and cannot keep up with the increasing demand for food. During a news conference Tuesday morning, Neil Hetherington, CEO of the Daily Bread Food Bank, said that the solution to addressing the city’s food insecurity and affordability crisis is to reduce the number of people who rely on food banks.

He’s demanding that the Ontario government immediately step up and provide every person on social assistance with an emergency funding top up, like it did during the COVID-19 pandemic. “It's the government's duty to ensure that every person in this city is in a position that they can realize their right to food. So today, we are raising the alarm bells and we'll continue to do so. We will not stand silently while our neighbours go hungry,” he said, “It's not about food raising or fundraising at this press conference. It's about raising our collective voices to change the fundamental systems that have driven us to this point.”

Pointing to record high rates of inflation, rising rents, and stagnant incomes that are causing Torontonians to struggle more than ever before to put food on their table, he said the Daily Bread is doing what it can, but the need in the city is “continuing at an unsustainable rate of exponential growth.”

Last month, the Daily Bread saw an unprecedented 270,000 client visits, the highest-ever number recorded in its 40-year history. In early 2020, the south-Etobicoke-based charity served roughly 65,000 clients a month. When the pandemic hit, they saw 120,000. That initial number has now quadrupled.

The amount of people experiencing food insecurity is also growing at a worrying rate as about 12,500 new clients are coming to Daily Bread’s food banks each month, a figure that is six times more than before the start of the pandemic.

“(These are people who) have never been to a food bank before and now they are relying on food charity to be able to feed their families,” Hetherington said, adding more than a third of their clients work full time. “It used to be that if you went to school, got an education got a job, you would be just fine. That isn't the case anymore... Let me be very clear, we are in a crisis.”

https://toronto.ctvnews.ca/toronto-food-bank-demands-emergency-funding-f...

jerrym

A 2018 Canadian Revenue Agency (CRA) report estimated that "Canadians have hidden up to $240.5 billion in foreign accounts and are dodging up to $3 billion a year in federal tax on those funds" after the Panama and Paradise Papers revealed many of Canada's superwealthy have hidden money offshore. In fact, "there's another $429 billion held abroad that law-abiding Canadians have declared, largely in the form of property, stocks and bonds". The CRA's estimate of just $3 billion lost tax revenue which is a 1.2% tax rate is a joke compared to the taxes the average Canadian pays. Even the $20 billion estimate of lost revenue (8%) "the Canadian treasury loses as a result of those hidden accounts have ranged up to $20 billion annually" (https://www.cbc.ca/news/business/cra-tax-gap-foreign-holdings-1.4726983#....) is nothing compared to the tax rate paid by middle income Canadaians. It reflects both how almost non-existent Liberal and Conservative governments, as well as the CRA, have been in taxing the wealthy.

It is also part of the reason that the current Liberal budget offers almost nothing in the way of a housing strategy as the number of homeless grows exponentially and housing prices rocket ever upward, leaving Canada in the midst of a housing crisis that has grown increasingly worse since Trudeau and Chretien ended social housing programs. In fact "Canadian housing affordability has long stood as the worst in the G7" with "an average Vancouver home represented 95.8 per cent of the city’s average income." (https://nationalpost.com/opinion/the-federal-budget-utterly-ignores-the-...) This is further complicated by the fact that Canada grew by more than a million people last year for the first time in its history and will double in population in 26 years at this rate after having failed to double in the last 55 years. However, we are now building less housing in the 1970s. The ever growing number of immigrants is not the problem as they are needed to keep the workforce large enough as we age and have fewer children. The problem is we are not building the housing or collecting enough taxes from the wealthy to have a large enough housing construction program with sufficient government funding of social housing. This is an open invitation to creating a racial backlash to a largely racialized immigrant population as the number of homeless and housing prices grow exponentially. Obviously, this not the immigrants fault. The Trudeau Liberals are failing all Canadians in not addressing the housing crisis. 

With the tabling of the 2023 budget, the Liberals have abandoned any pretense that they intend to address — or even acknowledge — the extent of the country’s housing affordability crisis. The budget contains no new policies to increase the supply of Canadian housing, even as record-high immigration places unprecedented stresses on home and rental prices. Of the handful of housing programs even mentioned in the document, most are poised to make the problem worse. …

The 2023 budget also came as a shock to provincial governments who were at the very least expecting some more cash for subsidized housing. “I am disappointed there doesn’t seem to be funding for the housing that we have been asking for,” said B.C. Finance Minister Katrine Conroy in her official reaction to the federal budget. Just six pages of the 269-page budget were devoted to housing, under the heading “an affordable place to call home.”...

Canadian housing affordability has long stood as the worst in the G7, and has continued to get worse as housing costs become ever more detached from average incomes. In December, for instance, estimates from RBC showed that the mortgage payments on an average Vancouver home represented 95.8 per cent of the city’s average income. The main reason for this is an acute shortage of Canadian homes. According to the Canadian Mortgage and Housing Corporation, to have any chance of restoring affordability Canada will need to build an extra 3.5 million homes over the next seven years.That would be in addition to the 2.3 million homes that are already expected to be built during that time given current projections.

Complicating things is the Trudeau government has actively boosted immigration to the highest levels in Canadian history. In 2022, Canada added more than a million new residents; the equivalent of adding an extra Nova Scotia to Canada in just 12 months. …

On Tuesday, a budget analysis by Scotiabank pronounced that Ottawa was pursuing a “confusing” approach to housing that was almost certainly going to spike prices even further. The Trudeau government has “thrown open the immigration doors into a market with no supply,” it read, while throwing ever more “tax subsidies” into an already overheated market. …

While the Bank of Canada has been able to cool housing prices in recent months by raising interest rates, the Scotiabank report concluded that federal policy was set to steamroll the bank’s accomplishments. “Housing is going to rip after a temporary retrenchment and there goes the BOC’s efforts,” it read.

https://babble.rabble.ca/babble/canadian-politics/austerity-shock-doctri...

NDPP

One in Three Canadians in 'Bad' or 'Terrible' Financial Shape...

https://www.ctvnews.ca/business/one-in-three-canadians-in-bad-or-terribl...

"One in three Canadians say they are struggling financially due to the high cost of living, a level not seen since the start of the COVID-19 pandemic, a recent survey from the Angus Reid Institute finds.

For about 18 months now, around half of Canadians have also said that feeding their households has been difficult..."

But billions for US proxy war in Ukraine.

jerrym

On CBC News Network's Power and Politics today economist Jim Stanford, founder of the Progressive Economics Forum and former Unifor economist, noted that grocery chain profits in Canada are double what they were pre-Covid, thereby, along with other industries, creating price-driven inflation, instead of the wage driven inflation of the 1970s. 

Its time to tax the windfall profits of the supermarkets and other corporations. Greece, even under a right-wing government, has done that and still had the fastest growth rate in Europe, giving lie to the old canard that it will be economically disadvantageous to do so. 

While Singh has pushed for such windfall taxes, Trudeau has been totally against it. 

jerrym

Nothing says more about the Ontario Ford PC government's plan to privatizate everything that it can than its plan to sell off "underutilized" public schools at the same time it hands over very valuable government lands and spending hundreds of millions on an  underground parking garage a 65,000-square-metre private entertainment, water recreation and wellness spa on the West Island of Ontario Place and a rebuilt Budweiser Stage concert venue to be operated by Live Nation. (https://www.thestar.com/politics/provincial/2023/04/17/ford-government-s...). 

The title of the new bill, called the Better Schools and Student Outcomes Act, to sell off the schools gives away the governments attitude to public education: get rid of it. "Currently, school boards that declare a property as surplus are required to offer it up to other public-sector bodies". This bill means those schools will be going to the private sector.

The Ford government tabled new legislation that will give itself the power to convert underutilized schools in Ontario into affordable housing or sell off the properties on the open market, in a major overhaul of education policies.

The new bill, called the Better Schools and Student Outcomes Act, includes sweeping new measures aimed at standardizing the education system to align with "provincial priorities" — which will be set by education minister Stephen Lecce — and to give parents greater say over their children's education. ...

In what could prove to be a controversial decision, however, the new legislation would give the Ford government the ability to repurpose unused school board lands to build affordable housing, as the province grapples with a self-imposed goal of building 1.5 million homes by 2031. Currently, school boards that declare a property as surplus are required to offer it up to other public-sector bodies such as other school boards, colleges and universities, municipalities and the Ontario government.

The law would place the province at the front of the line, giving itself the first right of refusal, along with the power to determine the final outcome, while limiting its usage. If the property is not needed by another school board, the government said, it would be taken over by the Ministry of Infrastructure and could be used for either long-term care or affordable housing. If the province declines its option on the land, the government said, it would be sold in the open market at "fair market value." …

The Ontario NDP said the bill was "smoke and mirrors" and failed to address the pressing needs of students.Ontario NDP education critic Chandra Pasma said the Ford government was "trying to shift blame" to school boards, schools and teachers. She said she believed the Ford government was working to privatize parts of the education system. "Underfund, underfund, underfund, and when the system reaches a moment of crisis, suddenly the solution is privation," she said.

The government's bill touches on huge portions of the schools, teaching and governance. … The education minister said existing powers could be used to compel school boards to comply and that the Ford government would use them "if we must." Trustees, directly elected to run school boards at the same time as local councillors, will also face new expectations. Standardized training will be set out if the bill passes, while an integrity commissioner will also be introduced. The province repeatedly highlighted changes for trustees were about bringing more standardized governance and discipline approaches. Lecce was education minister when the province stepped in to take control of the Peel District School Board after allegations of anti-Black racism and discrimination. After stepping in, trustees in Peel were sidelined from their roles until recently, with a provincial supervisor taking control.

https://www.msn.com/en-ca/news/other/underused-ontario-schools-could-be-...

jerrym

Brace yourself for user fees, co-pays, privatization and sly de-listing: Alberta Premier Danielle Smith's plan for healthcare: " This model for health care, she explained, is how the government now runs education in Alberta – with charter schools, private schools, and home schooling not just tolerated, but actively encouraged by the UCP.  “There should be similar options” for health care.

Answers to the major problems confronting Alberta’s health care system, Daniele Smith said in a paper published under her name last year, are found in user fees, co-pays, privatization, and slyly delisting services covered by health insurance by redefining them. The paper – entitled Alberta’s Key Challenges and Opportunities – was published by the University of Calgary’s right-leaning School of Public Policy in June 2021. At the time the paper was published, Alberta’s new premier was still president of the Alberta Enterprise Group, a pro-business advocacy organization with extensive ties to the province’s conservative parties, past and present. Apparently unreported by media, the paper was spotted recently by economics blogger Bob Ascah, a retired senior Alberta Treasury Department civil servant and former director of the Institute for Public Economics at the University of Alberta.  ...

Ms. Smith sees government as the root of all economic problems, complaining that the challenges faced by Alberta Health Services came about because “we had a bureaucracy who followed the crowd and lazily took the path of least resistance, locking down the entire economy and blaming Albertans for not doing enough to avoid getting sick.” ...

This drivel soon leads to the real point of the exercise, however: advocating health care policy prescriptions like the privatization schemes and minuscule health spending accounts that were mentioned in her United Conservative Party leadership campaign. ...

The paper rightly diagnoses the core problem with Alberta’s finances: that we’re stuck on the proverbial royalty price roller coaster.  However, Ms. Smith immediately goes on to claim: “We want gold plated services and we don’t want to pay any more taxes for them.” ...

So what’s the path forward, according to Ms. Smith, as expressed in her paper? Well, to start with, “reinventing government” to be more like a for-profit corporation. She calls for Alberta immediately to “permanently wean Albertans off their energy royalty dependence,” claiming that a combination of spending cuts and investment revenue generated by the money saved would clear away Alberta’s deficits. ...

Her proposed spending cuts won’t see the light of day, at least unless the UCP manages to eke out reelection.  “The next step in closing the gap” in health care funding, she continues after several pages of numbers that show signs of being processed with the assistance of a professional number-cruncher of the sort she would have worked with as a Fraser Institute apparatchik, “is to generate $4 billion from new user feesWe can no longer afford universal social programs that are 100 per cent paid by taxpayers,”she argues. “The only option is to allow people to use more of their own money to pay their own way. ...

The next paragraph explains what Ms. Smith means when she talks about a “patient-centred” health care system ... “What the government needs to do is create matching Health Spending Accounts for all Albertans,” she explains. “The Government should pledge to match up to $375 per person and challenge individuals and employers to do the same.”

“By taking responsibility for their health and giving people the means to do so,” she burbles, “it should translate into less pressure on the hospital system and better chronic care management which will bring costs down.”  Better, she continues, “once people get used to the concept of paying out of pocket for more things themselves then we can change the conversation on health care.  “Instead of asking what services will the government delist … we would instead be asking what services are paid for directly by government, and what services are paid out of your Health Spending Account. (Which only amounts to $375 a year, remember.) “My view is that the entire budget for general practitioners should be paid from Health Spending Accounts,” she continued. “If the government funded the account to $375 a year, that’s the equivalent of 10 trips to a GP, so there can be no argument that this would compromise access on the basis of ability to pay.” ...

“But we could take it one step further,” Ms. Smith confidently continues. “I think is (sic) time to redefine universality. … If we establish the principle of Health Spending Accounts, then we can also establish co-payments.” ...

This model for health care, she explained, is how the government now runs education in Alberta – with charter schools, private schools, and home schooling not just tolerated, but actively encouraged by the UCP.  “There should be similar options” for health care, she asserts, outlining her idea for charter hospitals, private hospitals and “home-based health care.” 

https://albertapolitics.ca/2022/11/alberta-premier-danielle-smiths-plans...

jerrym

A new Quebec study concluded that private clinics cost 1.5 to 3 times as much as the same ones done in public hospital services and tend to increase in price over time while public hospital services tend to decrease in cost as medical practitioners become more efficicient. The url below continues a video giving more money on this. Quebec has shifted and the Ontario Ford government is planning to shift more such operations to the private sector despite the evidence that it is more costly, less efficient and robs the public system of personnel.

CBC 

Mon, April 24, 2023, 6:54 PM PDT

Recently available data from Quebec shows that the cost for surgery in a private, for-profit clinic costs the government up to two-and-a-half times that of the same treatment in public facilities.

https://ca.news.yahoo.com/private-surgeries-cost-twice-much-015437708.html

jerrym

After allowing their Rogers and Shaw cellphone and cable donors, who already had the highest prices in the world  to merge their business oligopolies, to merge, the Trudeau Liberals have colluded with the pharmaceutical industry to ensure that Canada retains its place as the third highest priced country globally for pharmeuticals. The only higher priced countries are the US and Switzerland, where the vast majority of the large multinational pharmaceutical companies are located and where they by legislative approval at will. For six years the Liberals have pretended that the the Patented Medicine Prices Review Board that they created would lower prices for Canadians. However, they blocked every recommendation of the Board to reduce until just one was left. Liberal Health Minister Jean-Yves Duclos said last week at a parliamentary panel that he never interfered in the Board's work. However, this week former members of the Board said they resigned in protest over the years until only two members now remain on the Board and that Duclos never replied to attempts to have meetings about the situation or their recommendations for lowering prices. In other words, Canada's oligopolies are not only alive, but doing extremely, extremely well under the Trudeau government, while Canadians get gouged and many cannot afford the medicine they need to stay alive. So its austerity for ordinary Canadians and richesse supreme for the oligopolies. 

Two former officials with Canada’s drug pricing regulator say multiple attempts to brief Health Minister Jean-Yves Duclos on guidelines to lower pharmaceutical costs went ignored last fall, charges the minister’s office adamantly rejected Tuesday.

Douglas Clark, who resigned as executive director of the Patented Medicine Prices Review Board (PMPRB) in February, and Matthew Herder, a former board member who left his post one day before Clark, spoke publicly for the first time about some of the tensions roiling the regulator before the House of Commons health committee.

“I personally made multiple overtures to the minister’s chief of staff and senior policy adviser via texts, emails and phone calls. The chief of staff told me he would get back to me on my offer of a briefing, which he never did. And the senior policy adviser refused to take or return my calls,” Clark told MPs.

The committee has been looking into allegations that the Liberal government bowed to industry lobbyists who are against changes to drug pricing reforms, as Ottawa faces criticism for continuing to delay long-promised changes that could lower drug prices in Canada.

The probe followed the resignation of three PMPRB members; aside from Clark and Herder, former vice-chair and acting chairperson Mélanie Bourassa Forcier stepped down in December. The exits came after Duclos penned a letter to the board, asking that it consider pausing its consultations on drug pricing reforms that have been estimated to save Canadians billions of dollars in pharmaceutical costs. 

The PMPRB is an independent body tasked with ensuring patented drug costs aren’t excessive in Canada, which is home to some of the highest prescription drug costs in the world. Ottawa has pledged for several years to usher in three reforms: expanding the number of countries Canada compares its drug prices to, introducing an assessment to determine if drugs are actually worth what they cost, and establishing new rules that would compel companies to reveal the prices at which they sell drugs. The latter two changes were struck down by Quebec’s top court as unconstitutional.

The board had been conducting consultations about the first reform, but was asked by Duclos in November to “consider” suspending its work on crafting the new guidelines, citing concerns from stakeholders. Pharmaceutical companies have opposed changes around setting drug prices, while Innovative Medicines Canada, which lobbied Ottawa on behalf of the industry, argued the guidelines could impact the country’s biomanufacturing strategy and impede access to new medicines.

Duclos’ request was blasted by Herder, who wrote in his resignation letter that the minister’s suggestion to consider pausing consultations was “largely indistinguishable in form and substance from industry talking points” and that it “undermined the Board’s credibility” by unduly interfering with the process. 

The board is intended to operate entirely arms-length from the government, but under the Patent Act, must consult with the minister, his provincial counterparts and industry representatives before new guidelines are implemented.

Herder told MPs Tuesday that despite sections of the law that allow Duclos to convene meetings or take part in final consultations, he still believes the minister interfered.

He said Duclos’ letter was written in a “context where no such requests had ever been made to my knowledge by a former minister of health or the present one.”

“In addition, it was happening in a context where … there were multiple attempts to reach his office and the answer back was silence. So that’s why it came across as more of a demand than a request, and it was incredibly, incredibly divisive inside the board,” said Herder, who is the director of Dalhousie University’s Health Law Institute.

Clark said he only tried to reach Duclos’ office after Bourassa Forcier — who told MPs last week she resigned due to internal divisions and not because of the minister’s letter — became “increasingly concerned” that no briefing with the minister had yet occurred. 

But three government sources inside the health minister’s office told the Star on the condition they not be named to freely discuss internal matters that there were no credible attempts from the board to seek a meeting with Duclos.

“This kind of stuff doesn’t happen over text messages. This needs to come from a formal invitation and we never received a formal invitation before the minister sent this letter,” one source said.

The sources said the senior policy adviser Clark referred to had received no outreach from the board, and that the minister’s chief of staff Jamie Kippen had only received one text requesting a phone call, not a clear invitation for a briefing.

It was also raised in Tuesday’s meeting whether it was unusual that Duclos asked the board to think about pausing its consultations, rather than extending them, if he wanted to see more collaboration with industry stakeholders.

“That is a question that baffles me to this day,” Clark said. 

One government source pushed back against that characterization, stating that it was always up to the board to continue, suspend or extend the consultations, and suggesting that internal discord was behind the decision to hit pause.

https://www.thestar.com/politics/federal/2023/05/02/federal-health-minis....

jerrym

Auditor General Bonnie Lysyk’s Special Report on the Greenbelt that examined the opening up of the sale of Greenbelt land to developers for housing that resulted in a minimum of a $8.3 billion increase, and almost certainly much more according to the auditor general, in land value for the developers concluded “ ‘favoured certain developers’, lacked transparency and failed to consider environmental, agricultural and financial impacts.

The Ontario government’s decision to open up parts of the Greenbelt for housing “favoured certain developers,” lacked transparency and failed to consider environmental, agricultural and financial impacts, a scathing report by the province’s auditor general has suggested.

Of the 7,400 acres of land removed from the Greenbelt, the report found that 92 per cent could be tied to three developers with direct access to the housing ministry.

The findings were released in a “Special Report on Changes to the Greenbelt” by Auditor General Bonnie Lysyk on Wednesday. The report also found that 14 of the 15 sites were proposed directly by Housing Minister Steve Clark’s Chief of Staff. The remaining site was proposed by a six-person team of public servants tasked with assessing land sites for possible removal.

Clark’s Chief of Staff altered criteria for land removal when the majority of the sites would not be approved within those parameters and implemented a three-week timeline on the assessment. The team, the report found, had to operate under strict confidentiality terms that prevented them from contacting partnering ministries as well as municipalities and conservation authorities. Ninety-three confidentiality agreements across multiple ministries were signed over the course of the project, the report found. 

The investigation into the Doug Ford government’s decision to remove 7,400 acres of land from the Greenbelt for development began in January after a joint request from all three of the province’s opposition leaders. The decision was first announced in November 2022, years after Premier Doug Ford promised not to touch the protected land. The argument at the time was that it was necessary as part of its pledge to build 1.5 million homes in 10 years. The goal was to build at least 50,000 homes on the Greenbelt land with construction beginning no later than 2025. However, it was soon revealed that several large developers have purchased Greenbelt land since the Ford government was first elected in 2018 before the announcement had been made. At least one investment was made in September 2022, a month before the government revealed the land was among 15 sites being opened up for development.

Opposition leaders and advocacy groups have claimed that developers were tipped off and given advance notice of the government’s plans.

Premier Doug Ford has repeatedly said that he did not know which sites would be opened until shortly before the announcement. The auditor general’s report appears to confirm this fact; however it also lays out a decision-making process that lacks transparency, communication and proper consultation. “While the people of Ontario deserve prompt action to solve societal problems like those generated by a need for housing, this does not mean that government and non-elected political staff should sideline or abandon protocols and processes that promote objective and transparent decision-making based on sufficient, accurate and timely information,” the report reads. Their office recommends the government re-evaluate its decision to change the Greenbelt boundaries, as both the premier and housing minister have communicated they were “unaware that the pre-selection of Greenbelt lands for removal was seriously flawed.”

 

PREFERENTIAL TREATMENT FOR DEVELOPERS AND LOBBYISTS

The report first notes that there is no evidence that removing land from the Greenbelt was needed to meet the government’s housing goals. This conclusion was made both by the province’s own housing affordability task force and city planners in the regions of Durham, Hamilton and York–the three areas impacted by the changes.

The auditor general notes that 92 per cent of the land removed from the Greenbelt was requested to be removed by developers the Chief of Staff dined with at a Sept. 14 Building and Land Development Association’s Chair’s dinner. “At this event, the Housing Minister’s Chief of Staff and Deputy Chief of Staff were seated at the same table as prominent housing developers and a registered lobbyist,” the report reads. “The Chief of Staff told us two developers provided him with packages at this event containing information about two sites from the Greenbelt: the (Duffins Rouge Agricultural Preserve) lands in Durham Region and the Bathurst-King site in York Region.” The proposals were handed to the chief of staff in the form of “packages.” The chief of staff told the auditor general that he did not immediately open them, and that instead he added them to a stack of packages on his desk from other developers and their representatives for review.

Lysyk notes these developers “stood to significantly benefit financially by having received preferential treatment through the use of a biased process that was non-transparent to the public.” The owners of the 15 land sites chosen through this process could see more than an $8.3 billion increase to the values of their properties, the report found. The cost of removing the sites themselves is still unknown, although the auditor general estimates it could be in the billions.

The report also notes that throughout the process of conducting the audit, several examples of appeared preferential treatment to lobbyists were noted.“This included providing information about the ownership and purchasing of lands, setting up investment-opportunity meetings with Minister’s Office staff, and the consideration of draft legislative and regulatory changes.”  The auditor general’s office also noted instances in which lobbyists working for developers emailed political staff with legislation amendment suggestions, which were then copy-pasted and forwarded to deputy ministers for inclusion. “Senior non-political public servants, who were directed by political staff to carry the proposal forward, appeared unaware that the proposed amendments had originated from a lobbyist.”

 

HOW WERE THESE SITES SELECTED?

The report notes that hundreds of site removal requests have been submitted to the ministry of housing since the Greenbelt was established in 2005, but only 22 of those sites were considered during the 2022 selection. Of those, 21 were provided directly by the chief of staff. The report notes that the team was provided with further information about select sites by the chief of staff through USB keys. Nine of the 21 sites were brought to the chief of staff’s attention by developers or representatives, the report found, while five others were identified by other political staff members within the housing ministry’s office. The chief of staff could not recall how the additional seven sites were put on his radar. The Greenbelt Project Time was tasked with reviewing the sites using a series of criteria, which initially included whether the site was near an urban area, on the edge of the greenbelt, and near municipal services.The land also could not be part of the natural heritage system or specialty crop designations. The team found that 20 of the sites either did not meet all of the criteria or it could not be determined within the three-week timeframe.

“What followed cannot be described as a standard or defensible process,” Lysyk told reporters at a news conference Wednesday. After this analysis, criteria regarding environmental or agricultural issues were removed. The report also found that some of the sites were also expanded or altered so that they could be considered on the edge of the Greenbelt. “About 83 per cent of the land area removed is of the highest quality and capability for agriculture,” Lysyk said. “Further 11 of the 15 areas removed from the Greenbelt contained lands within the natural heritage system, which captures areas with the most sensitive or significant natural features and functions in Ontario.”

https://www.cp24.com/news/ontario-s-decision-to-open-up-greenbelt-favour...

jerrym

The Ontario Auditor General's report today further illustrates the Ford government's "transfer of wealth to the wealth" operating system. 

During the time the Mike Harris Conservatives were in power from 1995 to 2003, a record amount of public wealth was transferred to the wealthy. Just what is public wealth? Public wealth is our education system, our healthcare system, our water system and was once our hydro-electric system. It is our provincial parks, forests, lakes, rivers and the green belt.it is also the collective total of all our tax dollars in the provincial treasury. There is much more to public wealth when you add in things like long term care, community centers, hockey and curling arenas. The sum total of our public wealth is quite massive and the wealthy want it.  

Harris privatized Hwy 407 for a paltry sum. In a far worse deal Harris privatized the Bruce nuclear plant, where again the profits were privatized but the debt and risks remained public.  

Harris cut taxes massively for the wealthy and their corporations. In order to pay for those tax cuts, Harris slashed healthcare spending to the point where Ontario lost more than 10,000 nurses. Education was slashed by the education funding formula which to this day is still shortchanging the education system causing a crisis there. 

Harris changed the entire Hydro System from a non-profit at-cost system to a for profit corporate system packaging it up to be sold. Unbelievably after going fishing with Enron Chairman Kenneth Lay, Harris installed an Enron designed electricity market which also is still plaguing us to this day. The list is much longer and includes a long list of a removal of laws and regulations that were designed to protect the public, including the removal of a law requiring a binding public referendum anytime a public asset was to be sold.

It seems like every day and every week; Ford is hell bent on breaking Harris’s record transfer of wealth to the wealthy. Long term care was privatized where thousands died during the pandemic, many from neglect. Given the horrific record of private long-term care, Ford gave these owners 30-year licenses and is allowing the building of more private long term care homes. 

On top of shortfalls caused by the funding formula, Ford is cutting education funding more. It certainly looks like he’s creating a crisis again so that education can be privatized by charter schools or online education services. 

Ford’s government since first elected has cut and underfunded healthcare creating that crisis and is presenting privatization as the solution. After all, the private sector is just so much more efficient and caring right? 

Everyone knows about the well-publicized grab and transfer of the greenbelt lands to private developers Ford’s close friends. This particular transfer of wealth is often facilitated by Ford’s use of Ministerial Zoning Orders. This dictatorial use of MZO’s often sweeps aside local municipal democratically made decisions giving lands to rich developers.

On top of all that Ford is spending $8.2 billion each and every year on tax cuts. According to the Financial Accountability Office (FAO) since being elected Ford is spending each and every year $6.9 billion a year subsidizing high hydro rates that are caused by the deregulated Enron designed electricity market. The FAO reported in 2022 that Ford is going to spend $118 billion subsiding these artificially inflated rates into the future. That’s a total of more than $15 billion a year of public wealth being given to the wealthy and protecting their money-making machine in the electricity market. 

According to the FAO, which Ford now is in denial saying their figures are wrong, he is holding back $22 billion in the provincial treasury while at the same time appealing Bill 124 which denies nurses, healthcare workers, ambulance drivers’ paramedics and all other public sector workers a raise. This is again causing nurses and healthcare workers to leave in droves.

Ford’s protection of both the education funding formula and hydro deregulation legislation of Mike Harris is just a continuation of the transfer of wealth to the wealthy. 

https://rabble.ca/economy/fords-record-transfer-of-wealth-to-the-wealthy/

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