Time of Use Billing

Bill shockUntil I sold my business, a few years ago, and started working from home again, I didn’t realize how much of an aggressive assault on many Ontarians – especially seniors and stay-at-home parents – our hydro time-of-use  (TOU) billing is. I had a naïve belief that it was fair. A user-pay balance. A tool to encourage us to conserve and use our appliances more wisely. And I’ve always been a big believer in conservation.

But time-of-use is not what we hoped. It targets the people generally least able to afford it. Hydro rates have risen rapidly under the current government: we in Ontario already pay more than what similar users in most provinces pay for electricity, sometimes more than double! Ontario hydro rates are higher than anywhere else in Canada! Regardless of anyone’s efforts to conserve and with the province trying to sell Hydro One, they will go through the roof. Time of use won’t change that, just punish us more.

The flogging will continue until moral improves. That’s the provincial government’s attitude towards our hydro and its costs. Fleece residents until they submit.

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Ontario’s Sex Education

Idiot protestersAs Frank Zappa sang in his 1968 song, What’s The Ugliest Part Of Your Body?:

What’s the ugliest
Part of your body?
What’s the ugliest
Part of your body?
Some say your nose
Some say your toes
I think it’s your mind, your mind,
I think it’s YOUR MIND, woo woo

I’m not a fan of the Wynne government, but I respect their current willingness to wade into the public muck that clings to any attempt to implement or even update a sex education curriculum in public schools. The old curriculum was last updated in 1998 – years before sexting became headlines, before the internet became awash with pornography or Millie Cyrus twerked onstage. Before young women committed suicide over cyberbullying and rape videos. Before we became this hyper-sexualized culture.

Whether you agree with the curriculum, you have to admit it takes a brave government to tackle something that has always been a flashpoint for public dissension, and all too often a rallying point for the uber- and religious right (always a vocal minority). Governments should be willing to tackle the tough issues, not simply pander to the vote or themselves.

The protesters may have some valid points about the age at which some of the content may be presented, and those should be considered. However, the protests have become trolling dragnets; capturing all sorts of ideological and theological flotsam and jetsam. Frankly, much of what floats to the media surface from these protests is idiotic, chaotic and archaic.

Governments should not kowtow to the fringe, no matter how vocal it gets.

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Ontario’s Assault on Health Care

HomeopathyEarlier this month, the Ontario government took a shot at real medicine when it became the first province in Canada to regulate homeopathy. What the government should have done, if it had any real concern about our collective health or our health care system, is ban it.

Instead, although it at first seemed an April Fool’s joke, on April 1 the Wynne government announced legislation that will do nothing but legitimize and help spread this dangerous pseudoscience.

Clearly this was a political move,  since it is not motivated by scientific, medical or health-related concerns (nor, apparently information informed by actual science or medicine). But it’s playing to the gullible and the deluded fringe.

No amount of regulation will make homeopathy any more credible, or make it work. It is sheer and unadulterated bunk, and creating a ‘college’ for it makes as much sense as creating one for psychics or astrologers. Which I suspect will come hot on the heels of this move.

Worse, homeopaths will be self-regulating, like doctors and nurses. Talk about the inmates running the asylum. No actual medical or scientific oversight will be in place to dampen their already outrageous and potentially dangerous claims for their quackery. No common sense – let alone science or medicine – will interfere with their preparation of magic water.

Writing in Forbes Magazine, David Kroll commented,

One could be forgiven for thinking that homeopathic drugs are an April Fools’ joke.

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What’s Wrong with Municipal Bonusing?

OntarioUntil the early 1970s, municipalities in Ontario were involved in a free-for-all competition to attract business and industry. They offered tax breaks, free land, free infrastructure, utilities or services, housing — whatever it took to get a plant or office to open within their boundaries. A lot of small Ontario communities were able to attract businesses that way, and many got major industries.

Of course, the local taxpayers paid for these benefits, but the towns subscribed to the theory that eventually the extra jobs and tax revenues coming into the municipality would pay for the up-front largesse through increased revenue across the community. The plants would bring jobs, which would translate into new homes and property taxes, and the increased population would create a demand for other businesses such as retail stores, restaurants, and the service industry, themselves creating new jobs.

For a while, that system worked, mostly to the advantage of municipalities which could both afford the largesse, and had the land and services readily available. Not everyone considered such competition the best way to run a province, however, and there were arguments that through bonusing, municipal taxpayers were increasing the profits of private enterprises.

Then, in 1974, the provincial government stepped in and said the practice wasn’t fair. All municipalities, the province decided, should compete on a level playing ground: bonusing of this sort was made illegal in Section 106 of the Municipal Act. The Act even makes loans illegal:*

Assistance prohibited
106. (1) Despite any Act, a municipality shall not assist directly or indirectly any manufacturing business or other industrial or commercial enterprise through the granting of bonuses for that purpose. 2001, c. 25, s. 106 (1).
(2) Without limiting subsection (1), the municipality shall not grant assistance by,
(a) giving or lending any property of the municipality, including money;
(b) guaranteeing borrowing;
(c) leasing or selling any property of the municipality at below fair market value; or
(d) giving a total or partial exemption from any levy, charge or fee. 2001, c. 25, s. 106 (2).

David Sunday, a lawyer writing on the Sorbara Law website, noted in late 2014:

Section 106 of the Ontario Municipal Act, 2001 is a much worried about “anti-bonusing” provision of broad application. It is worrisome because its limits and applications are far from clear. By its terms, the provision purports to create an unqualified prohibition on municipalities directly or indirectly assisting any manufacturing, industrial, or commercial enterprise through “bonusing”. The scope of prohibited “bonusing” extends to the giving or lending of any municipal property, including money, guaranteeing borrowing, leasing or selling any municipal property, or giving a total or partial exemption from any levy, charge, or fee.

The change was made more than a generation ago. Since then, the Auto Pact has become defunct, the Canadian dollar has risen too high to offer the economic benefit that once attracted U.S. firms and its recent slide came too late to turn things around. Many factories closed in North America and reopened in Asia, creating massive unemployment everywhere. Consumer buying trends have shifted from quality products to the least expensive on the big-box store shelf. Wages, especially in unionized plants, have escalated to uncompetitive levels compared with Asian workers. It’s a different, more challenging world today.

[youtube=https://www.youtube.com/watch?v=KVybNCPzG7M]

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Ontario’s liquor sales conundrum

The C.D. Howe Institute released its report on beer and wine sales in Ontario, today, advocating for a more liberal approach and allowing beer and wine to be sold in other outlets, such as supermarkets and convenience stores. You can read the report here.

I have a grudging respect for the C.D. Howe Institute, but not always an agreement with their conclusions, because I feel they are seldom as free of right-leaning ideologies as I would hope. But the report is a good read, nonetheless. It has a local significance in that we have seen three craft breweries open in Collingwood this term and their well-being is important to our local economy.

Coincidentally, the Beer Store was an exhibitor at the recent AMO convention*, and made presentations (as well as handing out reports) that proved a counterpoint to the C.D. Howe study. It’s a battle of conflicting figures and facts being tossed about.

Of course, The Beer Store (TBS) has a vested interest in keeping its near-monopoly on beer sales. Contrary to what some folks think, the Beer Store – we knew it as Brewer’s Retail when I was growing up – is not a government outlet like the LCBO. It’s privately owned; although it’s technically designated “not for profit” some reports say it managed to garner $700 million in “incremental profits” every year for the past few years.

This figure is challenged by Jeff Newton, President, Canada’s National Brewers, who writes:

The Beer Store does not make $700 million a year in profit; it actually makes no profit, a fact that can be confirmed by reviewing the corporation’s publicly available financial statements.

The so-called 2013 study that produced this erroneous claim was funded by the convenience store lobby association and has since been proven false by two former assistant deputy ministers of finance in the Ontario government.

What the convenience store lobbyists claimed to be a $700-million profit was actually shown to be higher Ontario beer taxes. The report debunking this claim can be found at ontariobeerfacts.ca/files/studies/earnscliffe_comparison.pdf.

Well, if The Beer Store itself isn’t making those profits, the brewers who own it are, according to the CD Howe report:

The Beer Store enjoys significant economies of scale. These factors combined allow brewers to earn what we estimate to be $450 to $630 million in additional profits compared to what would have occurred in a competitive retail market similar to that in Quebec.

Nothing against profits, mind you: they keep the brewers in business. But maybe we could shave off a couple of points to allow some of the smaller, Ontario brewers to get a bit more of the action. Encourage local, home-grown craft breweries.

Over the past few years, TBS has been the subject of considerable political controversy over its practices and policies that, some companies say, are prejudicial against small, craft breweries. The ownership of The Beer Store is also controversial because it is now an international conglomerate, not even Canadian:

…when you buy beer at The Beer Store, you’re actually supporting massive corporations based at least in part in the States, in Brazil, in Belgium, or in Japan — regardless of the brand of beer you actually buy.

The Beer Store, as you probably already know, is actually owned by Labatts, Molson-Coors, and Sleeman, and however Canadian these household brands may sound, they’re not. Molson isn’t really just Molson anymore. It’s Molson-Coors, a company with equal ownership in Canada and the United States. Labatt Brewing Company is owned by Anheuser-Busch InBev, a Belgian-Brazilian multinational company headquartered in Leuven, and, since 2006, Sleeman has been owned by Japanese brewer Sapporo.

As the owners of The Beer Store, these three brewers are not only taking in an astounding 79.2% of the market share of all beer sold in Ontario, but they also gets to make up standards and fees to which any other brewer must adhere if he or she wants the store to stock his or her products.

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