Media release

Events of the last few days, in particular, President Bush’s comical attempt to stem the American real estate crisis, have me quite concerned for the next few months. Falling consumer confidence, slagging car sales, vaporizing manufacturing jobs, volatile energy prices and 1.4 million American homeonwers taking a walk is not good news. Not when layered upon the burden of the Iraq war on Washington, rising American debt and or own government’s highly imprudent economic and budgetary actions.

It is in this context that Parliament is expected to resume in a couple of weeks, and that my current little trip West is taking place. As a bckgrounder, I am sending ths release below tonight to regional media in the four provinces I will be visiting. Canadians need to know. — Garth

foreclosure1.jpg

Housing market crash, US recession
could soon ripple here, says MP and author

Canada’s booming housing market could feel a chill by the end of the year, thanks to a real estate crash and mortgage crisis south of the border. As up to a million and a half US homeowners walk away from their houses and mortgages, the result has been a credit crunch, a construction bust, sagging car sales and an expected American recession.

According to financial author and Member of Parliament Garth Turner, Canadian families should expect to see an impact in this country, including a real estate softening and economic slowdown.

“Many people think that somehow Canada is immune to all of this,” Turner says, “but the likelihood is they’re wrong. The US is clearly struggling right now to contain a financial crisis and a meltdown in consumer confidence, and a recession in the States is going to have a significant impact on all of us.”

Turner says this is already happening. Recent layoffs at General Motors in Ontario have been attributed directly to the American mortgage and real estate collapse, while sales of higher-priced homes in many markets, including suburban Toronto, have taken a dive.

“This danger is approaching at a time when Canadian families have more mortgage debt than ever before, and as housing prices have hit a record high. Even in areas of the country which are booming right now, such as Alberta, folks need to remember real estate is an illiquid commodity – it’s only worth what someone’s willing to pay. That inevitably falls in tougher economic times.”

Turner says Canadians have never had as much of their net worth in real estate – more than 80%, on average – which makes them undiversified and prone to the kind of misery that’s hit American homeowners. Turner also is critical of Ottawa for increasing federal spending to a level that’s contributed to inflation, higher income taxes and higher mortgage rates, increasing the danger for families.

Garth Turner is currently on a speaking tour of Western Canada. He has been invited by local groups to give open, public Town Hall meetings in more than a dozen cities on the current financial, real estate and political situation. Meetings will take place in Winnipeg, Regina, Victoria, Vancouver, Surrey, Abbotsford, Kelowna, Duncan, Edmonton, Red Deer, Calgary and Lethbridge.

For more information or to speak with MP Turner, contact Esther Shaye at (905) 693-0166, or esther@garth.ca. Mr. Turner may be reached directly at (905) 399-5114.

- 30 -

92 comments ↓

#1 Bill-Muskoka on 09.03.07 at 3:43 pm

And some here want to integrate even ore with the U.S.? Are they INSANE?

#2 Bill-Muskoka on 09.03.07 at 4:48 pm

Oh, how we need the talents of great political cartoonists like Steve Bell and Martin Rowson of our Motherland, the U.K.

On Youth Gun Crime

Bush and Brown Meet

Dissent In The Tory Ranks

#3 James - Chatham on 09.03.07 at 5:26 pm

And some here want to integrate even ore with the U.S.? Are they INSANE?

By Bill-Muskoka on 09.03.07 3:43 pm

All we need is two doctors and a family member!

#4 James - Chatham on 09.03.07 at 5:27 pm

Whooops…The CBC’s Test the Nation would get me for that…

“All we need are….”

#5 Rolf on 09.03.07 at 5:29 pm

yes

#6 Katie Kephalos on 09.03.07 at 7:10 pm

Garth,
Brent Fullard of CAITI has just recently pointed to another issue of democratic concern: the apparent lack of an independent and objective press and media in Canada. It is an open secret that the reporters and editors of the Globe & Mail, National Post and the CanWest media chain, and Torstar slant their news reports or state opinions which are favourable to their owners. This is not good for democracy. It has been a time-honoured principle that Parliament will not meddle with the press. But the concentration of ownership of the press and media in Canada causes concern.

Two obvious examples of news distortion may be found in recent issues of the Globe and Mail: one article by Derek DeCloet, and the other by Gordon Pitt. The Pitt article is particularly illustrative of Journalism 101 “The Leading Question.”

Is there the political will in Canada to bust up the concentration of ownership? The financial side of the restructure would be relatively simple. I suggest: (a) 10% limit on any one owner, (b) and majority ownership by residents of the province in which the newspaper or media outlet is and (c) income trust to widely distribute the earnings of the media entity.

#7 C. B. Innes on 09.03.07 at 7:23 pm

Garth,

This is off topic but since there is no where else to post it I will include it here but not be offended if it is not posted. The comment relates to communication.

I listened to the interview with Peter MacKay on CTV’s Question Period. Today I found media headlines to the effect that: “Canada Tells NATO Combat Mission will End in ’09: MacKay” and “We’re Out by Feb. ’09 MacKay.” Newsnet was saying the same thing yesterday.

Peter MacKay is in the position he is because of his skill as a communicator: he can talk and talk and really never say anything. He is also one of the few people I have met who can stare you straight in the eye and tell a whopper.

Later in the evening (7:50) the CTV website was updated to indicate that when MacKay was asked whether NATO had been told of Canada’s intentions to withdraw by Feb. ’09 that: “MacKay didn’t directly address the question.”

The medias response to the interview, in my opinion, resulted in more being read into his comments than he actually said. While MacKay uses a more glib presentation Chretien achieved the same effect through a crafted use of inept language. Both manipulate the media into making inaccurate assumptions and drawing flawed conclusions. Harper does not have that skill and has to script his message carefully to achieve the same effect.

In a world where communication has become the art of deception most MPs would fall on their butts if they held town hall meetings or engaged in the type of exchanges you engage in here. You have the communication ability and the confidence to even admit that you may be mistaken at times, something most politicians never would dare admit.

In your opinion, what percentage of MPs (of all parties) could function in a town hall environment or even on a web forum?

#8 jwlnler on 09.03.07 at 7:30 pm

Hey Garth, good to hear you’re making the trip out West: too bad you weren’t able to plan a stop in Fort MacMurray. After all, that’s where many rural (and urban) NLers are going to work these days, among many other places.

From what my cousin working out there in a hotel tell me, about 40-50% of the population of FortMac is Expatriate NLers! And ya, they even have traditional NL restaurants, music, sayings,etc… in FortMac. Also, people often refer to FortMac as “Little Rock”, given these realities.

With any luck, perhaps some Expatriate NLers will stop by one of your Town Hall Meetings in Alberta, should they have a break from their shift when they occur!

#9 Captain George on 09.03.07 at 7:35 pm

“Canadian families should expect to see an impact in this country”

And when it is all said and done, someone will have to clean up the CRAP.
I am going to save my Canadian Tire Coupons, change to a small cup Timmy’s and quit going to the NASCAR track until the Government tells me it is ok to start spending with all my savings.
Can someone tell me how to change my VISA credit to a CARBON credit?

#10 David Bakody on 09.03.07 at 7:50 pm

Garth:

Word from the US is to expect a new recession to last longer than 10 months, as the Predsident can only do so much and it is now to late for many mortgage lenders who have gone south. From what I hear mid September must see an interest rate deduction near one full point to hold the market just for now.

Will Canada follow?

For all who still believe in PMSH & Co even when he ignored the signs of a highly overheated market and subprime leading fallouts and went Christmas shopping trying to buy a majority will you still sing the same tune when it’s your job or home that falls into the sea? hmmm me thinks not.

#11 Old Enough to Remember on 09.03.07 at 7:50 pm

Hey Garth, looks like your friend, blogger here, and invitee as a speaker to some of your town halls, Brent Fullard of CAITI, got some press this weekend in the ROB Magazine:

In the aftermath, Flaherty was subject to some of the meanest and most vile attacks in recent political memory. So palpable was the anger that, for a time, he took on extra protection from the RCMP to guard his safety. One particularly petulant critic called Flaherty “one of the most incompetent and intellectually corrupt individuals to hold office in this nation” and compared him to Stan Koebel, the public-works manager whose ineptitude led to the poisoning of the water in Walkerton, Ontario, in 2000. Taking things over the top American-style, a Louisiana stockbroker is even alleged to have threatened Flaherty’s life; he is now facing charges.

http://www.reportonbusiness.com/servlet/story/RTGAM.20070829.rmflaherty0829/BNStory/specialROBmagazine/home/?pageRequested=all

If you read the complete story, including the comments of former Liberal Deputy PM John Manley, amongst business executives, the Flaherty IT decision doesn’t seem to carry much political weight.

Still going to flog it on this tour?

#12 Bill R on 09.03.07 at 7:53 pm

Doom and gloom Garth.

Oshawa is losing those car sales because the Americans are finally realizing that gas guzzlers are a waste of money. The housing problem won’t come north and as he’ll see in the west, everyone out here is happy and fruitful.

#13 Kevin M on 09.03.07 at 7:58 pm

I just hope that Canadian finance ministers and critics make it very clear that Canada will not bail out an over-inflated housing market.

Not everyone made the _choice_ to be fast and loose with the credit, and any assistance [ as was done in the us ] to the CDN markets will simply penalize those of us who made responsible choices and didn’t take the easy route to home ownership.

Housing prices must be allowed to correct themselves, no doubt a painful process, but without it many young people don’t have a hope of home affordability.

Simply put this nation cannot live off of pensioners and for every boomer mortgaged to the nines, those looking to start a family will, finally, get a break.

#14 pjw on 09.03.07 at 8:05 pm

By Bill R on 09.03.07 7:53 pm

You keep believing that Bill!

#15 Glen on 09.03.07 at 8:09 pm

Hilarious Bill R.

The housing market EVERYWHERE in Canada is overheated. I just wonder how anyone with a university education could assume that elephant is not just around the corner. The largest and most angry elephant lives in Alberta.

Read a few economic books. Look at some historical data. Look at the current data. Then tell me the housing market is not in for a HUGE correction.

#16 Old Enough to Remember on 09.03.07 at 8:18 pm

By Katie Kephalos on 09.03.07 7:10 pm

Brent Fullard of CAITI has just recently pointed to another issue of democratic concern: the apparent lack of an independent and objective press and media in Canada.

I wondered if Brent had anyone left in Canada who was gullible enough to think he had any credibility. Obviously, there must be some reason why so, so many think he is just a blowhard looking to forward his own personal interests.

That’s quite the range of political spectrum in the MSM that he denounces, as you indicate above.

Is it at all conceivable, Katie, in your mind, that his opinion is wrong and completely self serving?

Doubtful.

#17 Katie Kephalos on 09.03.07 at 8:25 pm

Well Garth,
Speak of another opinion: Old Enough to Remember gives us the URL for the slanted story by Derek DeCloet. How nice.

Mr. DeCloet tells us: “If tax leakage were the whole story, Flaherty could be charged with incompetence, foolishness and possibly misleading the public on the income trust file. But he has wisely altered his emphasis, focusing on more solid reasons for the move—that trusts enjoyed an unfair tax advantage over corporations (true), and that they damaged the economy by encouraging businesses to reinvest as little as possible (debatable, but probably somewhat true).”

Notice the tacit admission that Flaherty has been misleading about the income trust file (but I say outright lied, and deceived a wimpish Parliament.) The slanted news is that trusts enjoyed an unfair tax advantage over corporations. Nonsense! Horse-feathers! Trusts enjoyed the free equity market advantage that many thousands of individual Canadians wanted to be invested in trusts. That’s the thing that knowledgeable investors will never forget about Flaherty. He made a massive intervention in a free market using the bogus calling card of “Tax leakage”.

As for “trusts damaged the Canadian economy”, what’s the alternative? Letting la crème de la crème of Canadian equity issuers be lopped off the top of the TSX, and causing a IPO dead-zone at the bottom of the TSX. Is that the “wise” alternative. Saints preserve us! God keep this land glorious and free.

#18 Charles Oxley on 09.03.07 at 9:18 pm

Based on what is happening in financial circles, although the report is centred in the UK, this gives a good account of how some business people use every means possible to increase their companies’ profit levels, at the expense of average couples.

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=479444&in_page_id=1770

#19 John Frain on 09.03.07 at 9:40 pm

Should I hold onto Nortel?

Yes. Between your knees. — Garth

#20 Zorpheous on 09.03.07 at 9:54 pm

Oh, boy Garth, looks like you are in trouble now! Boy Detective, Steve Janke is upset with your use of my “Artistic Rendering” ~giggle~

Hope you had a good long weekend, now get your furry face back to Ottawa and back to work, I need more material to Render ~smirk~

What’s this ‘snake-oil salesman’ crap? — Garth

#21 John Frain on 09.03.07 at 10:21 pm

Ahh, quote from the movie Five Easy Pieces…
Clever Garth, very clever.

#22 Bill-Muskoka on 09.03.07 at 10:31 pm

He is also one of the few people I have met who can stare you straight in the eye and tell a whopper.

By C. B. Innes on 09.03.07 7:23 pm

That makes him the Booger King I think? His leader’s motto ‘Have it MY way!’

#23 Bill-Muskoka on 09.03.07 at 10:36 pm

By Glen on 09.03.07 8:09 pm

BINGO!

#24 Bill-Muskoka on 09.03.07 at 10:37 pm

By John Frain on 09.03.07 9:40 pm

Along with those Corel shares. ;-)

#25 SJ on 09.03.07 at 10:43 pm

Oh, boy Garth, looks like you are in trouble now! Boy Detective, Steve Janke is upset with your use of my “Artistic Rendering” ~giggle~

Hope you had a good long weekend, now get your furry face back to Ottawa and back to work, I need more material to Render ~smirk~

What’s this ’snake-oil salesman’ crap? — Garth

By Zorpheous on 09.03.07 9:54 pm

lol I bet your glad he took that cause up for you eh Zorph? LOL

Some people always gotta gripe about somethin. Yeesh.

#26 Bill-Muskoka on 09.03.07 at 10:46 pm

By Captain George on 09.03.07 7:35 pm

Yes, science comes to your rescue mon ami. Take a high quality Bernz-O-Matic Mapp gas torch. Light it, apply the flame to the Visa card, and wait for the carbon to form. It is guaranteed to work.

You can also have mucho fun with your Master Card (somethings are priceless, like freedom).

Buy a shredder, and use it to return our precious cellulose for every credit card application mailer you get.

Let’s get serious about recycling, eh?

We got a flyer the other day for some Condos down on Lake Ontario starting at a mere $500,000.

Yeah, WOW, sure, we just can;t wait until we win the Lotto to buy one of those Super Deals.

S-H-R-E-D-D-E-R F-O-D-D-E-R

I feel GOOD! Like I knew I would!

#27 got rope? on 09.03.07 at 10:48 pm

Canada is sustained by raw resources along with the construction and home sales boom giving consumers enough equity to keep on borrowing. Although it`d weakened considerably since last year so far so good, except our whole economy is running on the expectations and results of the global demand.
The problem with the rest of the economy is productivity. During the 90`s tech boom American companies reinvested creating the fastest productivity growth since the first assembly line went into production.
From economics 101. Investment creates productivity nurturing growth and jobs. cdn companies did not invest and we`ve lost several hundred thousand jobs since. To exacerbate the problem international investment in Cdn companies needing increased productivity dried up over 2 years ago.
Even with the many trillions of dollars sitting in cash accounts don`t expect any of it to land up in this country as I`ve previously explained in detail.
Cdn consumers might not yet be feeling the bite of the `credit crunch` but it`s pretty much guaranteed that without international invest we are at the whim of globally priced raw resources.

A little food for thought.
Without investment opportunity where do you think the trillions in cash will go?

Global transportation system or into munition factories around the world?

#28 Marzolini on 09.03.07 at 10:57 pm

Doom and Gloom. Harper this. Flaherty that.

Where’s the beef ?

#29 MJB on 09.03.07 at 11:11 pm

Once again, I hate to hear your doom and gloom talk, lest it become a self-profecy.

I mentioned a couple of weeks ago, that this whole liquidity problem reminded me of the old-time run-on-banks. I then noticed that a journalist (not sure who) made the exact same call a few days later. In other words, fear helps bring the whole system down.

Bottom line, tell everyone that the sky is falling and maybe enough of them will believe you to make it happen.

But if market prices are driven down, there are bargains to be had–both in real estate and the market. And I would just wonder who’s waiting for that!

I’ll stick with the positive crowd.

The sky is not falling, but there are storm clouds gathering. Only a fool would head out on a picnic. — Garth

#30 Zorpheous on 09.03.07 at 11:44 pm

Oh Garth,

You are a Snake Oil Salesman, LOL, but I like your brand of oil ;-)

Come on Garth, you’re a politician,… at least your not a lawyer ;-)

#31 Charles Oxley on 09.03.07 at 11:53 pm

An extremely interesting article, which shows a map of the proposed “Superhighway” from Mexico to Canada.

http://wnd.com/news/article.asp?ARTICLE_ID=57444

#32 Canuck on 09.04.07 at 12:30 am

Europe is light years ahead of North America. Many of theirs run on diesel with improved technology that gets incredible mileage. Great-mileage EU Diesel Cars Aren’t Making it to Our Shores

—–

Lookie, lookie at what Steve has in store for Canada!

What is Canada’s role? Are we to become on the world’s dump (repository) for waste fuel?

Why are we contemplating joining something that MIT has described as a goofy idea

——

Secretive, secretive, secretive as opposed to townhall meetings and discussion in the House of Commons.

#33 David Bakody on 09.04.07 at 6:03 am

Katie Kephalos, nothing new here girl, years ago only school books were selected that projected goverment ambitions only. And so it seems nothing changes nothing changes. Although to-day we have many who wiill step the plate and speak up, this only causes goverments or people in postion in goverment to act in unfriendly manners. There are far too many examples to even start to list. So what we must teach our children to do is stop, learn and listen to all the facts from both sides and gather information put it into their minds and try and live each day is as simple and productive manner they can. Garth Turner may not have all the answers for everyone, he is an elected politician who has knowledge in the areas he is about to speak on, that is good for those who have an open mind, sit an listen or present questions they honestly believe are of interest to those present. Should a bias person or persons of the Media choose to do otherwise they do neithier themselves nore the public any favours, but in this country every person is allowed to make a fool of themselves within the laws of the land. Even ode retired persons such as myself, albeit I do believe I have many good years ahead of me. But stop for moment and think, where would be without Newspaper and our Media, we have many fine journalist in this country and the world who can put pen to paper, many have been killed trying to get the news out even some have held hostage. The truth is out there Kate, we just all have to search for it, and reading is the key, and what a wonderful gift that is. Please Kate keep searching. I am off to Tim’s once again to chat with some WW II vets, with strong political minds and years of experience. see y’a for now.

#34 Economist on 09.04.07 at 6:35 am

What drives housing prices is demand.

The difference between Canada and the US is that Canada has the highest immigration rate in the world and the highest population growth rate in the G8, much higher than the USA.

So as long as Canada adds 250,000 new immigrants looking for housing every year the market won’t collapse in Canada anytime soon; demand is simply too high.

We had similar immigration levels in 1989-1993, and the residential market tumbled. You have no idea what you are talking about. — Garth

#35 kpn on 09.04.07 at 7:03 am

S-H-R-E-D-D-E-R F-O-D-D-E-R

I feel GOOD! Like I knew I would!

By Bill-Muskoka on 09.03.07 10:46 pm

Why waste the electricity. Now I just return their application and stuff in as much other junk as I can – newspaper ads, whatever, and return it to them in their prepaid envelope. Sure they’ll have to pay extra postage.

#36 C. B. Innes on 09.04.07 at 7:50 am

Re: comment by By Economist on 09.04.07 6:35 am

If you are an economist I would say that is part of the reason we may be heading the wrong way with regard to the economy. I suspect that we will soon start seeing a decline in immigration because there will be no advantage for people to come here as “good” jobs migrate elsewhere. In fact, I don’t believe we are filling immigrant quotas now.

It has always seemed to me that to combine support for corporate globalization with immigration to keep incomes down was trying to have one’s cake and eat it too. There will be a correction eventually. Governments seem to be taking actions which will make the crunch even worse when it finally comes.

#37 Bill-Muskoka on 09.04.07 at 8:40 am

By kpn on 09.04.07 7:03 am

ROFLMAO! I like that idea a LOT! Thanks for sharing it.

#38 Michael on 09.04.07 at 8:44 am

I haven’t a clue where the economy is heading. However, the Chicken Little crowd are coming out of their hen houses in ever increasing numbers. On the other hand, US incomes are up 3.9% year over year and businesses have money to spend. India’s economy was up 9.5% last quarter and China is still going gangbuster as is most of the rest of the world. The Feds will probably cut interes rates this month and as, as for housing, people got to live somewhere…there’s no place like home. A recession sooner or later….it is ever thus but, in this case, probably later.

#39 Bill-Muskoka on 09.04.07 at 8:59 am

Speaking of media releases?

Seems some people do know how to ‘Get it done’?

China shuts 400 polluter factories

Maybe we should offer to hold the next Olympics in Fort McMurray or Nantikoke, eh?

and another, all too typical, megaego running around out of control.

Why Magna doesn’t need Stronach

and another knowlegable author speaks truth about globalization’s failure

Naomi Klein’s new book a lightning rod

Meanwhile, watch out for another Flaherty UP YOUR’S on pension plans from the CRA

Join against pension ruling, victims urged

Seems they are really all the same?

It’s time for city dwellers to fight back

Gee, what a happy morning of news this is?

Have a good day. See you later.

#40 Pecked to death by ducks on 09.04.07 at 9:00 am

Taxpayers – Lenders of Last Resort

Bush’s plan last week ensures that speculator lenders of questionable loans will be paid. The forfeiture burden is shifted to the FHA – the taxpayer will now take on the burden of risk. Seems fair, right?

Who insures the insurers? The taxpayer.

Bush is also asking for a change to let homeowners avoid paying taxes on forgiven debt in loans that are being restructured by financial institutions.
A measure that has huge payoffs for higher income brackets.

Let’s not go that route in Canada.

#41 Pecked to death by ducks on 09.04.07 at 10:05 am

The Income Gap Widens – Who is getting bailed out?

The top 20 fund managers made 22,255 times the annual pay of an average American worker, meanwhile the minimum wage goes down in real terms.

from Forbes

#42 Captain George on 09.04.07 at 10:21 am

He can stare you in the eye and tell you a whopper.

More like “sell” you a whopper. All in all, it’s just another CRAP on the wall.

Remember folks…

“If you don’t eat your meat, you can’t have any pudding, how can you have any pudding if you don’t eat your meat!”

#43 Reid on 09.04.07 at 10:23 am

We had similar immigration levels in 1989-1993, and the residential market tumbled. You have no idea what you are talking about. — Garth

Garth. Just because you think it happened in Toronto doesn’t mean it was a nation wide trend. I know that’s hard for people in the centre of the universe to understand.

During that same time frame the housing prices in BC were increasing. In Vancouver they increased in value by 50%.

And as far as a “housing market boom” nation wide… you don’t know what you’re talking about. In the last 3 years Toronto, Montreal, and Ottawa have remained relatively constant with normal growth. It’s the West that’s seen the “boom” in market prices.

Also, according to StatsCan the period from 1981 – 1990 the immigration to Canada was 1,041,500. As of 1990 our population was 26.5 million. So as a percentage of our population, 3.9% were new immigrants from that decade. Now, the period from 1991 – 2001 we had 1,830,680 immigrants to Canada. As of 2001 our population was 30 million. So as a percent of our population for that decade we had 6.1% immigrants. And these numbers are for NEW immigrants for the time period, not cummulative from before. That’s an increase in immigration levels relative to the population of 64%.

The StatsCan info is easy enough to find so I won’t bother linking it.

http://www.canadian-housing-price-charts.235.ca/images/JUL07-6City.gif

#44 Captain George on 09.04.07 at 10:33 am

Can’t be that bad if Crappy Tire going into the mortgage market can it?

I’ll wait for the creation of Timmy’s Bank for a hot deal.

http://www.globeinvestor.com/servlet/story/RTGAM.20070904.wcanadiantire0904/GIStory/

#45 Michael on 09.04.07 at 10:39 am

The Americans gave everybody regardless of race, gender,age and in many cases income, a chance at home ownership….a noble and laudable endeavour. The fact that this phenomena took root at the beginning of this century was bound to cause the demand/supply situation, particularly in a strong economy, to tilt toward demand and cause inflation in housing prices was a given. That the money to finance real estate assets came mainly from investors and not from the risk adverse banking system was a harbinger of trouble. As things stand now, investors are getting burned, late comers to the real estate market are getting burned, people with shakey lines of real estate backed credit are getting burned and the vultures(smart money) are waiting to profit from the situation. The market will sort it out…..eventually.
The Canadian system has spared us the worse effects of this situation. That is not to say that we don’t have problems. The question is? Do we have a government that knows how to manage an economy in good times and bad in the best interests of all Canadians…..I, for one, think not.

#46 Myron on 09.04.07 at 11:28 am

Small reminder, Garth … Albertans are not in any economic crunch as you are fearmongering for Ontario and Eastern Canada.

Please guage the separatist element in Alberta should central Canada impose any carbon tax, direct or indirect, on Alberta oil and gas resources.

Albertans would be only too pleased to leave a dictatorial Canada controlled by Ontario and Quebec, and join the USA … and there is nothing that could stop them.

#47 kpn on 09.04.07 at 11:36 am

OT but just got around to reading Sundays paper.

Battling bully Bush

“The Bush team even has its own suppression of speech masterpiece, the Presidential Advance Manual, recently made public through an American Civil Liberties Union lawsuit.”

“These bully tactics are a blot on democracy, but they’re also a mark of weak and shallow leadership.

People aren’t fooled by sanitized show meetings, smothered critics are only driven to more extreme tactics, and a leader who hides from criticism will pay a price for his isolation.”

Remind you of anyone? So much for so called democracy.

For the full editorial, see

http://www.thechronicleherald.ca/Search/856852.html

#48 James - Chatham on 09.04.07 at 11:42 am

Meanwhile, watch out for another Flaherty UP YOUR’S on pension plans from the CRA

Join against pension ruling, victims urged – Bill Muskoka

I don’t think this is Flaherty’s doing, probably because he wouldn’t understand.

This is a case of the CRA, as they do, interpreting rules which have been around for a long time. The question is, are they interpreting them correctly? The only way to find out is to challenge their decision in tax court! So far the courts agree with CRA.

To fully understand the issue, because it seems to me there is more to this than is reported in the story, what did these people do with the money from their government sponsored pension? Did they transfer the whole lot to another registered plan, or did they take some out to start a new business?

Is this another of those crackpot schemes where people try to get money out of pension plans, which have deferred taxes in them, without paying taxes and the CRA are setting examples?

As a former Minister of Revenue, CRA (or whatever it was called) would have been under your portfolio, Garth.
Could you provide more background info?

#49 Bill-Muskoka on 09.04.07 at 12:38 pm

By James – Chatham on 09.04.07 11:42 am

This jist of the story seems to reflect the requirement that seniors, who start a business, must show an income produced, not merely use it as a tax write-off. That part is fair, but then who wrote the rules that would lead advisers to suggest such a tactit?

I agree, Flaherty would not understand it. LOL However, the Captain of the ship has full responsibility. Old Law of the Sea, and long overdue for politicians.

#50 Bill-Muskoka on 09.04.07 at 12:44 pm

By Michael on 09.04.07 10:39 am

Actually, the very first sub-division in the States was Levitt Town on Long Island New York. They built homes for the returning WWII Vets in 1945, 1946. Before then it was pretty hard to have a home unless it was passed down by family, or Homesteaded.

Canada used to have a Homestead Act as well, but I believe it is now defunct?

#51 Sean P. Hogan on 09.04.07 at 1:01 pm

The StatsCan info is easy enough to find so I won’t bother linking it.

http://www.canadian-housing-price-charts.235.ca/images/JUL07-6City.gif

By Reid on 09.04.07 10:23 am

Good job on the research Reid.

#52 Canuck on 09.04.07 at 1:03 pm

James

Good eye. Yes if they took the money out and didn’t transfer it to another registered plan, CRA and the court’s ruling would be correct. Garth, I too am interested in your observations about this issue. People do try to squirm out of paying the taxman.

#53 got rope? on 09.04.07 at 1:16 pm

Albertans would be only too pleased to leave a dictatorial Canada controlled by Ontario and Quebec, and join the USA … and there is nothing that could stop them.
By Myron on 09.04.07 11:28 am

Not sure where you`re from Myron but I don`t hear any talk about Alberta joining the USA. Matter of fact just the opposite and it`s not just Alberta. Recent polls suggest the majority of BC folks have had their fill of our dysfunctional elected federal government. Bottom line, what we`ve had for decades isn`t working
You`re right about nothing stopping us, the feds have already broken confederation by collecting tax illegally so the Premiers only need send a letter of intent to Ottawa and we`re gone.

#54 Captain George on 09.04.07 at 1:25 pm

Too late to lighten up. How do you TRUST a person that doesn’t trust their own people skills?

http://www.theglobeandmail.com/servlet/story/RTGAM.20070831.wcosimpson01/BNStory/Front/?query=

#55 James - Chatham on 09.04.07 at 1:44 pm

That part is fair, but then who wrote the rules that would lead advisers to suggest such a tactit?

By Bill-Muskoka on 09.04.07 12:38 pm

Ah, Bill, all you have to do is look around at the schemes people use to try and find tax loopholes. People really do hate paying taxes to the point, where some half baked financial snake oil executive in an ivory tower, dreams up some scheme to save the poor old taxpayer.

Little do they know that the CRA will look at it, and if they don’t like, will rule against. Then the taxpayer has to fight. Its a case of the CRA is right until proven wrong.

Some of these schemes are actually legal, but in the haste to save a few tax dollars totally screws the poor old taxpayer in other ways.

#56 Bill-Muskoka on 09.04.07 at 2:05 pm

Well, if it is as some here think, then I expect a very intersting time when the GG orders the CF troops to stop the people attempting to destroy Canada.

It will be very interesting indeed.

#57 Greg W., Oakville on 09.04.07 at 2:08 pm

Hi Canuck,on.,

It’s a choise, burn the remaining oil and gas, keep burning coal, and overheat the planet!
We won’t have oil and gas to grow enough food for everone, if it can grow at all in the heat and drought.
people will be dropping like flies in the heat also. (No energy left for a/c)

OR switch to clean, safe, Nuclear power like the cnadian designed CANDU
see
http://www.aecl.ca

CANDI’s only take about 4 years to build
(except in Ontario due to government reguations requiring excess lead time)
The last few CANDU’s build were on time and under budget!

The electricity can be used to recharge
plug-in-cars with the new battieries.
example see, http://phoenixmotorcars.com/index.html

Electricity can be used to make hydrogen gas by splitting water. Then use the hydrogen in cars or fuel cell electric cars.

You can keep the lights on and stop burning coal, oil and gas now by switching the nuclear power, thus reduce the green house gases being releast into the atmosphere.

You can reprocess the spent fuel to get more energy out. Theres still lots of useable energy left in the used fuel.

I for one want more energy we use to be made from Canadian nuclear power CANDU’s.

Yes we also need more renewable and energy efficence improvements.
Book worth ready,
KICKING THE CARBON HABIT, Global Warming and the Case for Renewable and Nuclear Energy. by William Sweet.
http://www.columbia.edu/cu/cup/catalog/data/023113/0231137109.HTM

The WEATHER MAKERS, by Tim Flannery
(He was a Greenpeacer and now also thinks we need to go nuclear power or else….!)
http://www.theweathermakers.com/

Nuclear weapons proliferation,
Why would you ever think of building these weapons of mass distrution unless you were facing a military agression from some foreign imperial power with a large modern standing arm with other WMD of there own?

We ALL need to (including our so-called leaders) start treating everone as we should as human beings, not just a number and use them.

Yes we need to have all the facts and descuse in the open, like in Parlement,
using reason.
We have Glabal HEATING happening NOW and
peak-oil.

Maybe there are just to many people on the planet using up everythink quicker than ever in an unsustainable way?
Or maybe we can find a better way?

#58 Pecked to death by ducks on 09.04.07 at 2:40 pm

Pension Plans & lipsticked pigs in a poke & Vegas, oh my
Banks Sell ‘Toxic Waste’ CDOs to Calpers, Texas Teachers Fund Bloomberg

#59 Bill-Muskoka on 09.04.07 at 2:45 pm

By James – Chatham on 09.04.07 1:44 pm

Funny thing about paying taxes. I ENJOY paying my Canadian taxes because they actually do something for me, my family, my neighbors, community, and country.

Things we could never afford to do individually, but collectively we can and do accomplish.

That was NOT the case as a U.S. Citizen when I knew that 50% of every Federal tax dollar I paid went to the bloody (literally) military/industrial complex to make more weapons of war, fight unwinnable, and unnecessary wars, and funbd meaningles projects like bridges in the middle of nowhere.

I am PROUD to pay my Canadian taxes, and have no use for those who want all the benefits we have, but do not want to pay for them. Thank God I AM Canadian!

I do expect those tax dollars to spent with purpose for the people, and in a manner condice with good sense and economic realities.

No, I am not for funding extragavant meals and accomodations, limos, personal jets, or photo-ops. Want to spend money on private flights? Apply it to Emerg Medical Airlifts.

Anyway, back to earning a living here.

#60 Canuck on 09.04.07 at 3:29 pm

Greg W,

I don’t know enough nuclear power generation to offer an opinion. Ontario does need energy, but could you please comment on toxic waste because despite claims that I’ve heard, it appears CANDU reactors do produce it. Why else would there be agencies set up if all that’s produce is ‘clean energy’? What’s needed is information that governments are reluctant to share.

Is this article nonsense and fear mongering? My eyes glaze over when I read information from Green Peace so I normally don’t.

#61 Canuck on 09.04.07 at 3:44 pm

Scientist turns up heat on Australia’s climate of folly

Yet Dr Flannery believes strongly that although Australia should sell uranium, it should not go nuclear itself. Because of its reserves of gas, geo-thermal power, sun and wind, he doesn’t think it needs to.

—–

Almost anything has to be better than burning coal, but does Canada have no other options than nuclear technology? While on holiday this summer, we sailed passed the Bruce nuclear station. I know for a fact that several reactors have been shut down and that plant seems to need refurbishing on a constant basis

#62 irene on 09.04.07 at 5:01 pm

Now Myron, are you such an important person that you can speak for the entire population of Canada or are you of small mind blinded by a dictator who does not have ALL CANADIANS welfare in mind? Tell me Myron, does it make you feel good living the life of a bully? Are you so blind sighted, tunnel visioned that you can’t see the forest for the trees?

Just a small Reminder Myron; Western Canada consists of Man., Sask, Alta, BC & Territories, not just Alberta. Canada consists of 31,612,897 people of which COMBINES 10 Provinces & 2 Territories. If you think one province, Alberta, population 3,306,359 (2006 Census) will dictate what is to become of Canada, you are sadly mistaken. I would hope the entire population of Alberta would have something to say in the matter. If you think Alberta won’t have carbon taxes directly or indirectly imposed considering the Tar Sands are the biggest polluters, you are not living in the real world.

As for nothing that could stop them by joining the USA, It still takes 51% of Albertans to stop you dipsticks if this ever becomes an issue. Remember Harper & his building a firewall around Alberta? Yep, words that will come around to haunt him. I’m sure when the time is right, Stephen Harper & his merry men will be reminded.
Feafmongering? Now that’s a laugh, Guess who is the guilty party & you buddy are part of that team.

Try real hard to have a nice day.

#63 irene on 09.04.07 at 5:05 pm

Oops, comment pertained to Myron’s post at 09.04.07 11:28 am

#64 C. B. Innes on 09.04.07 at 5:48 pm

Albertans would be only too pleased to leave a dictatorial Canada controlled by Ontario and Quebec, and join the USA … and there is nothing that could stop them.

By Myron on 09.04.07 11:28 am

You`re right about nothing stopping us, the feds have already broken confederation by collecting tax illegally so the Premiers only need send a letter of intent to Ottawa and we`re gone.

By got rope? on 09.04.07 1:16 pm

Harper has said that he doesn’t care whether Canada separates into a bunch of independent provinces as long as the private sector interests controls them. He is using Alberta money to cater to Quebec separatists. He has make the people of Saskatchewan, Nova Scotia, and Newfoundland his enemies. If he has alienated B.C. as well it looks like he has done an even better job than the Liberals of dividing the country.

Remember when Harper said: “Whether Canada ends up as one national government or two national governments or several national governments, or some other kind of arrangement is, quite frankly, secondary.” With this agenda in mind he has already given Quebec the status of a national government.

He went on to underline the point again when he said: “whether Canada ends up with one national government or two governments or ten governments, the Canadian people will require less government no matter what the constitutional status or arrangement of any future country may be.”

Alberta, for example, will need less government because it will be run by “free enterprise,” a buzzword for the executives of its major oil companies.

Harper and his enablers above have been extraordinarily effective in moving towards their objective with a minority government. One has to wonder how quickly they would move once they had a majority.

#65 got rope? on 09.04.07 at 7:02 pm

One has to wonder how quickly they would move once they had a majority.
By C. B. Innes on 09.04.07 5:48 pm

With a majority he won`t do anything however with another minority the west will get loud and with a Liberal government the west is outta here without any help from Harper.
Keep pounding on the `Cons` and you`ll fulfill the dream of ever westerner, I`m rooting for you and at least a Lib minority in the next election.
omg I`m getting excited just thinking about dumping our dysfunctional elected federal governance system.

#66 got rope? on 09.04.07 at 9:37 pm

Doom and gloom Garth.
The housing problem won’t come north and as he’ll see in the west, everyone out here is happy and fruitful.
By Bill R on 09.03.07 7:53 pm

I have to warn all you `hope springs eternal;` crowd. The headline sounds like good news but in fact the market went up on bad news. More after you inspect the article.

http://biz.yahoo.com/ap/070904/wall_street.html?.v=41

Stocks Rise After Manufacturing Data
Tuesday September 4, 8:45 pm ET

NEW YORK (AP) — Wall Street extended its rebound from the big summer slump Tuesday after dips in manufacturing growth and construction spending raised investors’ hopes for an interest rate cut.
****************

As you can see investors are gambling the economy will deteriorate to the point where the fed will step in a lower interest rates.

I believe the concept is to make more, cheaper money available. Isn`t that how this mess started, more, cheaper money? I suspect even more, cheaper money won`t help much as the credit crunch really means the number of people with enough equity to borrow to spend is at a critically low level. I will admit the information on consumer asset values is sketchy but so far it looks like bankrupt might be a close enough term. Owing much more than a dollar for ever dollar in assets leaves little to the imagination.

#67 Old Enough to Remember on 09.05.07 at 12:54 am

By C. B. Innes on 09.04.07 5:48 pm

He is using Alberta money to cater to Quebec separatists.

Care to elaborate on this point for the rest of us? It puts the credibility of the rest of your rant into question.

#68 pjw on 09.05.07 at 5:22 am

omg I`m getting excited just thinking about dumping our dysfunctional elected federal governance system.

By got rope? on 09.04.07 7:02 pm

I am with you on dumping our present system but there is no way Alberta will separate, the long term view will prevail, the one that asks “what do we do when we run out of oil?”

#69 got rope? on 09.05.07 at 9:49 am

the long term view will prevail, the one that asks “what do we do when we run out of oil?”
By pjw on 09.05.07 5:22 am

lol, how about the short term synopsis.
Canada has a dysfunctional federal government. The country is morally bankrupt, the rule of law a tool for profit, democracy has been replaced by a handful of lawyers. The list goes on but if you easterners think western separation is over oil money you`ve seriously misjudged westerners, won`t you be surprised.

#70 Old Enough to Remember on 09.05.07 at 10:57 am

By got rope? on 09.05.07 9:49 am

The list goes on but if you easterners think western separation is over oil money you`ve seriously misjudged westerners, won`t you be surprised.

I’d say it’s probably the desire to be the big fish in a small pond syndrome.

#71 Greg W., Oakville on 09.05.07 at 12:09 pm

Hi Canuck,On.,

I’m running behind with daily life stuff, needing to be at work also.
Nuclear waste storage issue.
Some more info. I will piont you toward
http://CNA.ca
and again http://www.aecl.ca/

It’s a choise, safely store the spend fuel or put lost more green house gasses
into the atmoshere, along with the other smog and toxic stuff when you burn oil,gas,coal.
I don’t think you or the public will go for power outages on a regulare basis.
Yes we need better bulding standard and more energy efficency, but we we still need lots of power if we are to maintain this standard of living we enjoy, and hopefully keep the well paying jobs form level our area of the world.

If we don’t get the global heating thing under control FAST we will all be
F***ed!

Renewables, and more renewables make sence, some places more than others.
Remember everything you use comes from the mining of raw materials and the use of lots of energy to convert it to stuff we all use or need, and eat!
Were we get the energy, and we use lots!
Last year was the fist time man use
1 cubic mile of oil, the Drum is 1/2 empty and we are using fast every day.
Plus all the other energy inputs sources like gas, hydro, wind solar, geothermal, nuclear, ect..

Wind and solar isn’t often on, on the hottest days and coldest nights. It also takes up lots of space and resorces to produce lots of power.
I think more would be a good thing, but
I don’t think we should discard the CANDU option either, it works now to supply lots of green house gas free power to keep the lights on!

We realy need to replace all the oil,gas and coal burning with an energy source that doen’t make the Global Heating EMERGANCY worse, and FAST!

And there’s the Peak-oil thing coming sooner than you think, unless….

If you eat bananas every day you get some radiation, more than living near a CANDU reator! The CANDU safey contains and store the radioactive stuff.
No one is saying not to eat bananas, there are good health benafits.
The radiation does in mimicual from a banana.

There are lots of radiation all around us now, but low doses from natural source, do you worry about it? examples of sources are, sun shin (you proble are carefull about how much you get in the middle of the day.
Radon gas from the ground getting into basements, some more than others.
Radon in the show if you have well water, again depending were you live.
X-rays(dentist/doctors) and more radiation every time you fly, cosmic rays. Some from TV’s (very small amount,
cell phones, radio, ect.
Some type of radiation will pass thought
regular walls others type all it takes to stop it is a piece of paper.
radiation only travels in a straight line and will not go around corners.
So as long as the stuff is stored in containers it can’t reach you.

Burning coal for power releases green house gasses, sulfer that make acid rain, smog, mercury, nuclear particals that do flowt around corners.
Coal can have uranium in it from ground water transport to the coal beds from other rocks containing it.

Everyone know that you need to safey store spent nuclear fuel, and that is what they are doing with the CANDU stuff.
The USA, Russain ect. record of military use of nuclear for weaponds
production is an intirey differant story!!!!

Making weapons of any kind (to kill human beings) is such a waste if resorces. It’s Burt Force to take what you want. Take what you are addited to!
It’s just shows a like of critical thinking and bad planing!
(Maybe the planers/so-called leaders are sociopaths?)

#72 C. B. Innes on 09.05.07 at 1:31 pm

Care to elaborate on this point for the rest of us? It puts the credibility of the rest of your rant into question.

By Old Enough to Remember on 09.05.07 12:54 am

The theory under which Harper is operating is that Alberta can buy the separatist vote in Quebec and through that means control Quebec. In order to lure that vote he has made several concessions to separatism including recognizing Quebec as a “nation.” He has developed an equalization formula designed to favour Quebec. The main reason, in my opinion, that he flip-flopped on the Atlantic Accord was to placate Quebec separatists who appear threatened by development to the east of them. All of the value of the Atlantic Accord over its life time has already been committed to Quebec in a series of side deals.

The old argument that it is Alberta (and other economically stronger provinces) taxpayers that are subsidizing other provinces cannot be applied selectively as Alberta neo-cons try to do. They see the use of that money to buy the separatist vote as acceptable no matter what the long term implications may be. Other Albertans understand the hypocrisy in that position.

In the long term, the cost of buying the separatist vote will increase to the point that Alberta taxpayers, as they see more and more federal money poured into Quebec, would rebel just as they did under the the Mulroney PCs or the Liberals.

For Harper getting a majority in one election is all that he wants to enforce his version of crony corporatism.

#73 got rope? on 09.05.07 at 1:47 pm

I’d say it’s probably the desire to be the big fish in a small pond syndrome.
By Old Enough to Remember on 09.05.07 10:57 am

I`d say it`s to get out of the pond the east has polluted with corruption. We have higher standards the easterners.

#74 pjw on 09.05.07 at 2:08 pm

By got rope? on 09.05.07 9:49 am

I would agree with you on your assessment of the Feds, at least disfunctional, as to the west separating, I would hold the same position I did with the Quebec threat…let them go…if that’s what the majority of Albertans want…but on rest of Canada’s terms, meaning nothing goes with them.

#75 got rope? on 09.05.07 at 2:13 pm

“what do we do when we run out of oil?”
By pjw on 09.05.07 5:22 am

Might not have to wait till oil runs out before the economy takes #1 spot

http://ca.news.finance.yahoo.com/s/05092007/6/finance-talisman-cut-spending-gas-prices-stay-low.html
CALGARY, Alberta (Reuters) – Talisman Energy Inc could cut exploration and development spending in North America by 32 percent in 2008

#76 Old Enough to Remember on 09.05.07 at 2:53 pm

By C. B. Innes on 09.05.07 1:31 pm

Thanks. Interesting take on events. Allow me to take a differing view (and I’m no Harper supporter).

First off, in your original post, you stated: “He is using Alberta money to cater to Quebec separatists.” In response to a similar claim by Reid in the Turner blog “Alberta rebel”, I pointed out that any income the Fed gov’t receives goes into General Revenue and is blind as to where it originates from (Fed personal and corporate income taxes; and GST being the main sources from ALL provinces and territories.) see By Old Enough to Remember on 08.31.07 9:24 pm on the Alberta rebel blog.

So, I think it is disingenuous to suggest any equalization payments are “Alberta money”. I could make the same argument that Ontario money is being used to equip the navy with polar icebreakers , or BC money is being used for new tanks for Afghanistan.

Yes, it is true that a Conservative election pledge was to revisit the so-called “fiscal imbalance“, an issue the Bloc was pushing, but let’s not forget that Dalton McGuinty was also grumbling along the same lines back then, claiming a $23 billion or whatever deficit to Ontario.

I’m not sure where you sit on the Atlantic Accord, but as I recall, it resulted from Paul Martin entering into separate agreements with provinces, in a form of asymmetric federalism, Danny Williams being the squeeky wheel that was the first to get greased. I don’t agree with the process that Martin used , as it appeared to be completely ad hoc .

You suggest that Harper selected an equalization formula designed to favour Quebec. As I recall, the main difference was whether to include 0%, 100% or 50% of non-renewable resources in the equalization formula (it seems to me the 50% value came from the recommendations of a study group that included some Alberta academics or ex-politicians). It also seems to me the 50% value was the amount that the Harper gov’t went with, which caused the uproar in Nfld, N.S. and Sask. You suggest he did this to placate Quebec separatists. Many would argue, rather, this was to ensure that the amount of equalization payments would not rise above the point that exceeded Ontario’s own fiscal capacity to provide the same level of services, given that Ontario is the benchmark used in the calculation formula.

It is important to remember, however, that the equalization comes from Fed General Revenue, not an equalization pot per se, so it is not a zero sum game (ie a dollar taken from one province ends up in another province).

Being a province that does not have non-renewable resources, my initial thinking would be that Quebec would get the highest amount of equalization if 100% of non-renewable resources were used to determine the amounts. Do you have any numbers to suggest that the formula that was selected is the best result for Quebec?

From memory, I thought total annual spending by the Fed gov’t was in the order of $180 billion, the majority of the tax revenue coming from Ontario, just to put things into perspective.

#77 Old Enough to Remember on 09.05.07 at 3:15 pm

By Old Enough to Remember on 09.05.07 2:53 pm

I should correct that last statement. From memory, I think Ontario is the largest contributor by rank, not the majority contributor (ie >50%)

#78 Old Enough to Remember on 09.05.07 at 3:44 pm

By got rope? on 09.05.07 1:47 pm

We have higher standards the easterners.

I would suggest that in 2007, you wouldn’t have to swing that lassoo very far before you hit some “easterners”.

(In business terms, it’s called a creeping takeover)

#79 got rope? on 09.05.07 at 3:51 pm

but on rest of Canada’s terms, meaning nothing goes with them.
By pjw on 09.05.07 2:08 pm
lol you just don`1t get it, we`re not taking orders from the centre of corruption. I`m not in Alberta but we promise to leave Ontarios manufacturing center behind, lol

#80 kpn on 09.05.07 at 3:55 pm

Just because we vote one way provincially doesn’t mean we vote the same Federally. So once again the CPC strategists are out to lunch!

By James – Chatham on 09.05.07 12:23 pm

Oops – I accidentaly hit the wrong button before I finished my sentence.

You’re right James – I vote differently provincially than federally, depending on the issues that I think are better provincially than federally, i.e. Canada vision.

#81 pjw on 09.05.07 at 5:36 pm

lol you just don`1t get it, we`re not taking orders from the centre of corruption. I`m not in Alberta but we promise to leave Ontarios manufacturing center behind, lol

By got rope? on 09.05.07 3:51 pm

I wish you bon voyage, the sooner the better!

#82 C. B. Innes on 09.05.07 at 5:59 pm

“So, I think it is disingenuous to suggest any equalization payments are “Alberta money”. I could make the same argument that Ontario money is being used to equip the navy with polar icebreakers , or BC money is being used for new tanks for Afghanistan.”

I have made the same argument before but neo-cons have challenged that on the basis of who should be “entitled” to federal government money. They argued that the federal government was “robbing” them because of their higher incomes and hence higher contribution to the federal purse.

The Atlantic Accord concept actually goes back to the Mulroney Administration which agreed that the provinces involved should be the main beneficiaries of the resources off their shores. Paul Martin opposed the idea and went even further and capped equalization. That meant that the Atlantic region suffered more from the federal deficit cutting measures than the other regions of the county.

Before Danny Williams ever arrived on the scene John Hamm went on a cross country tour trying to get the support for an Atlantic Accord. I believe he did get some support from Ralph Klein but Martin refused to budge.

When Martin put the cap on equalization that ensured that Atlantic Canada would fall even further behind the fiscal capacity Ontario which it did. The per capita debt increased and spending decreased. Even if NS or NF during the life of the Accords (which was limited) exceeded the per capita fiscal capacity of Ontario that would give them some opportunity to make up for the loss of equalization during the period in which the cap was in place.

The only way Atlantic Canada can ever get a “fair” deal is during a minority government. We simply do not have the voting power or the economic clout otherwise.

What Harper has done is basically put Martin’s “cap” back on except this time he is using a one province standard rather than the five province standard. If the Ontario economy goes into recession we will be punished for it immediately. All of the financial progress that was made under the Hamm Administration would be reversed under that scenario.

Unlike former Conservative administrations Harper has determined that he can afford to lose seats in Atlantic Canada just as Chretien and Martin did in 1997 (the Liberals lost every seat in NS in that election and 3 of their 7 seats in NF). I suspect the same thing will happen to the Harper Conservatives in the next election and least in the provinces concerned.

The one thing that Atlantic Canadians have learned is that there is nothing to gain by voting for politicians that show them disrespect.

#83 Bill-Muskoka on 09.05.07 at 7:49 pm

The entire exchange today sounds like two teenagers screaming ‘Mine is bigger than yours!’

Then the Mohel arrives and does some proper sizing! ‘Today’s Special-Half Off!’

(Thank you Mel Brooks)

#84 Old Enough to Remember on 09.05.07 at 7:50 pm

By C. B. Innes on 09.05.07 5:59 pm

I have made the same argument before but neo-cons have challenged that on the basis of who should be “entitled” to federal government money. They argued that the federal government was “robbing” them because of their higher incomes and hence higher contribution to the federal purse.

Well, I am sorry to see they have dragged you down to their level.

I’ll be more than happy to take up the fight if I see them making similar claims in the future, if I’m still around.

Cheers

#85 kpn on 09.05.07 at 8:22 pm

One has to wonder how quickly they would move once they had a majority.
By C. B. Innes on 09.04.07 5:48 pm

With a majority he won`t do anything however with another minority the west will get loud and with a Liberal government the west is outta here without any help from Harper.
Keep pounding on the `Cons` and you`ll fulfill the dream of ever westerner, I`m rooting for you and at least a Lib minority in the next election.
omg I`m getting excited just thinking about dumping our dysfunctional elected federal governance system.

By got rope? on 09.04.07 7:02 pm

Got Rope – yep Alberta will be the 9th member of the G8 – getta a life. BTW – thought years ago that when my DH eventually retires & if I’m still around (hey was was given 18 mos and still around 3+ years) we’d drive from east to west to get to know my country and its citizens. But, from what I’ve read from neocon western trolls the last few years, on various blogs, I’d take a detour totally around Alberta. So sad, but to me many of them are not my ‘fellow’ Canadians. They are more like greedy, war mongering Americans. Maybe they should join the down the tube Bush neothanderals (sp?). How very sad.

#86 C. B. Innes on 09.05.07 at 10:20 pm

Re: comments by Old Enough to Remember on 09.05.07 7:50 pm

I don’t see how “they have dragged you down to their level.” One of the reasons I used it was that I may have mistakenly throught that you were one of the ones that continually used that argument against federal spending outside of the so-called “have” provinces.

The central question is whether the federal government should use its spending powers to divide the country on new geographical lines for partisan advantage?

I used to be intrigued by party politics and now I simply find the party system has become the problem.

#87 got rope? on 09.05.07 at 11:46 pm

They are more like greedy, war mongering Americans. Maybe they should join the down the tube Bush neothanderals (sp?). How very sad.

By kpn on 09.05.07 8:22 pm

#88 got rope? on 09.06.07 at 1:46 am

They are more like greedy, war mongering Americans. Maybe they should join the down the tube Bush neothanderals (sp?). How very sad.
By kpn on 09.05.07 8:22 pm

It case you havn`t noticed we have a dysfunctional federal government and have had for decades. We say enough is enough, either fix it or forget it. If it takes replacing the elected federal government with a nominated one, we`re in. If it takes western separation, the majority of westerners are in, check the private polls.
You can listen for a change or keep the west, it`s your choice but if you choose to wallow in the pit of corruption and weak kneed politicians, you`ve been warned. You`ll do it on your own.

#89 Georgine on 09.06.07 at 2:25 am

KPN,

Don’t be misled by the nasty “kick you while you are down” selfish type of CRAP-Con Albertans we have run into in here. They are the minority and this bunch is worse than most.

I’ve only been to Edmonton a couple of times and just with that I can say the people I met were fun and friendly and apologetic for the red-neck attitude out of Calgary and Red Deer.

I suppose it helped I was at the Fringe Festival a couple of times. Really I was there for work but had time to check out the festival. The granddaddy of them all. Edmonton has some great restaurants too. One thing that struck me as very odd was when driving thru the city, almost every daycare centre we passed, and we passed plenty, also had a pub attached to it with only a chain link fence separating the two. This was very strange to me.

So KPN, don’t give Alberta a pass. Try to time it for the Fringe Festival, then come on thru to Vancouver and let me know when. Maybe give Surrey, just outside of Vancouver a pass. Just drive right on thru on the Highway, #1, don’t stop. That’s where Sux Rope hangs out. Actually his Mayor is a wonderful woman. She is setting up resources for abused women as there has been far too much of it going on in Surrey lately, I’m sure he disapproves:) Sux does not like women.

A thought. I wonder how many of those NL and Sask boys and others from other provinces who don’t have this NEP axe to grind and who also don’t want to separate from Canada, are they going to let them have a vote on this momentous decision? They live in Alberta too now. Married, have kids, settled. Do they have a say?

Geo

#90 Bill-Muskoka on 09.06.07 at 8:22 am

They are more like greedy, war mongering Americans. Maybe they should join the down the tube Bush neothanderals (sp?). How very sad.

By kpn on 09.05.07 8:22 pm

How very true, yet having lived in Alberta, albeit a relatively short time, I found most Albertans are quite Canadian. There is a group there, like anywhere else, who have yet to develop their own personal bonding with Canada.

They are fed the rhetoric of the discontented and follow along to get along.

I think there is a vast difference in mentality between Calgary and the rest of Alberta. Calgary is so close to Montana, and the ties between Calgary and Texas oil people are strong.

I simply view the Province as Texas North. Just as Toronto is somewhat New York City North, heck we even have a York Region. LOL

People who are poor tend to have a lot of angst, and it is expressed in anger towards whatever is deemed to be the ‘source’, usually distant (which eliminates a solution), and for them Ottawa and the Eastern provinces get that job.

We see them same effect in the Maritimes. Yet, while there are some sound basises for their complaints, they too have failed to do what is needed.

It is always easier to see greener grass on your neighbors side, than the potential for it on your own.

As to them acting like Americans…Yep! I saw it imemdiately, and compared to the rest of Canada, which I have travelled and lived in to truly savour the reality, I was somewhat shocked at my findings. I thought ‘If only they really knew what America is like, they would be proud to be Canadians.’

But, with the way things are going, Canada is self-morphing into the 51st State. We lust after wealth over community. We envy power and might over civility and decency, and we have now, thanks to the American funded CRAP, got a government who is a puppet of the far right American Fundamentalist Movement.

Just remember, when you were so pissed off over the AdScam? Well, Canada, congradulations, you have managed to screw yourselves by being vengeful.

Paul Martin acted on the AdScam, went on national TV and apologized, and still people wanted blood. They have gotten it…their own. Anyone with a mental normalcy would have realized that the Gomery Commission would take time. It did, produced results, and is still ongoing. But in today’s Instant reward society, that wasn’t good enough for many.

Seems that has happened throughout history. I am reminded of a certain Jewish carpenter the crowd wanted as a scape goat. They got their wish too.

Two millenia later, we haven’t learned Jack Squat. Have a nice day, and remember, you are going to get another chance to punish a scapegoat, somewhere, someone, your own biases will guide you in your hate, and complete your journey to the Dark Side.

#91 Bill-Muskoka on 09.06.07 at 8:32 am

Do they have a say?

Geo

By Georgine on 09.06.07 2:25 am

Yep! It is called a VOTE! Oops, all those Liberals and NDP’s in Alberta? I bet the hard core neo-con types are going…’Hey, wait a minute! That wasn’t supposed to happen?’

#92 Canuck on 09.07.07 at 12:22 am

Greg W., Oakville

Thanks for your information about nuclear waste storage. I agree that new plants supplementary to Bruce and Pickering need to be built to supply the amount of hydro needed. More and more I’m seeing large windmill farms and incentives for people to incorporate a wide variety of strategies that reduce dependence on traditional sources. Scientists are making tremendous strides in nanotechnology producing smaller and smaller generators requiring decreased amounts of fuel suitable for homes. Perhaps one day, all homes will incorporate green technology and the plants now being built may be among the last. I saw a design just a couple of days ago for a roof-mounted wind turbine that looked promising.