The Cost Of Doing Business

May 17, 2013

On Wednesday over at the Toronto Standard, writer Jeff Halperin interviewed Josh Hjartarson, 2BillionQuestionvice president of policy and government relations at the Ontario Chamber of Commerce, talking about the organization’s report this week, The $2 Billion Question. Business’s perspective on, you guessed it, funding Metrolinx’s The Big Move. Both are interesting reads and lead to some wider questions.

The first is kind of tangential to the matter of transit itself but one that jumped out at me immediately. In the OCC report [pages 1 & 3, if you’re following along], it was pointed out that for ‘every $100 million invested in public infrastructure, 1670 jobs are created’. The total number of jobs created between 2012-2031 with The Big Move would be in the neighbourhood of 800-900 K. 800,000-900,000 new jobs over the next 19 years.

Remember, these numbers are cited by the Chamber of Commerce, folks. Not a group you normally associate with promoting public sector spending. Numbers that would’ve come in handy during the transit funding debate last week at city council. I’ll give your grossly inflated $1000/year/household in new taxes, Mr. Mayor, and see you some one million jobs created. They shouldn’t be the only ones allowed to round up in their favour.

When talking up the merits of a casino or runway expansion, it’s all about the jobs. Jobs, jobs, jobs. justsaynototaxesTen thousand of them, apparently, if the casino were to be taken off life-support.

But the jobs created investing in public infrastructure? Not it if means any sort of tax increase. Any whatsoever. No New Taxes trumps Jobs, Jobs, Jobs every time.

Another question is what role businesses as a whole have in contributing financially to the public infrastructure that helps them operate. From the public education that provides a functioning pool of workers to the roads and rails that bring both employees and goods to their doorstep, what should the cost be of doing business? Does the business community pay its share for carrying the freight, so to speak, of the public sphere that it relies on to exist?

The quality of local infrastructure is key to attracting international investment and talent. Effective transit and transportation grows the potential pool of workers which businesses can draw from and the customers that businesses can sell to. Efficient transit reduces the number of cars on the roads, which enables goods to flow faster and more reliably.

Better transit makes for a better business environment, according to these words from the Chamber of Commerce report. If that’s the case, as a group they should be more than willing to do their part and pony up. Yet, that’s not the vibe I’m getting from the report.

Of the 11 revenue tools put forth by Metrolinx and considered by the OCC, only three directly impact businesses – commercial parking levy, land value capture and development charges – and most of the costs of those could and probably would be passed on to consumers. taxationistheftRight out of the gate, an employer payroll tax was deemed a ‘Non-starter’. “The tool would be a drag on competitiveness and job creation…”, the report states, “… the tax would be a disincentive to invest in the GTHA… concerned that there is no direct connection between the input (revenue) and the output (improved transportation).”

There’s a disconnect here between the emphasis on the importance of infrastructure in ‘attracting investment and talent’ and the concern that a payroll tax would ‘be a drag on competitiveness and job creation’. We need solid infrastructure like transit as long as someone else pays for it. Sound familiar?

How is there ‘no direct connection’ between an employer payroll tax and ‘improved transportation’? The ease with which employees get to and from work would surely be related to their overall productivity. Why should it be the employees alone, through transit fares or road tolls, paying for something that will also benefit their employers?

Like the revenue tools debate at city council, there’s too much stress put on the disincentive side of taxation for transit funding. It will chase businesses out of the GTHA.crumblinginfrastructure It’s a job killer.

Where are the voices touting this is a long overdue investment? Certainly the Toronto Board of Trade needs to be commended for its tireless work in keeping this conversation going while all levels of government dither. But there needs to be a buy in from the wider business community like those taking part in the Chamber of Commerce report that revenue tools shouldn’t be seen as a burden but a necessary course of action for our future well-being and economic competitiveness.

For decades, governments of all stripes have under-invested in the GTHA’s transportation infrastructure, the OCC report states. That much is undeniable. The question is why?

Jurisdictional disputes, starting with a near absence of the federal government on the transit file. The cities alone incapable of raising the amount of money needed and a province either not inclined to spend money building transit or overly concerned with being seen focussing on just one locality. Fear of the Toronto Premier knock.crumblinginfrastructure1

But we also can’t ignore the fact that the senior levels of government have been creating huge holes in their respective revenue streams, accepting the common sense ‘wisdom’ that lower taxes translates into a better economy. Personal income taxes cut. Sales tax reduction. Corporate taxes cut.

We can hardly be considered antagonistic to business interests in this country, according to a Pricewaterhouse Coopers study last year. Maybe the timing’s just a coincidence that as governments willingly forgo revenue, investment in the public domain has also gone underfunded. You can try blaming inefficiencies and spending scandals for the lack of money to spend but all told, it’s a drop in the bucket compared to income lost by tax cuts.

That’s not to suggest business pick up the entire tab for The Big Move. crumblinginfrastructure2But I’m not sure why they should get a pass either. Corporate taxes were never put on the table for consideration by Metrolinx or the Board of Trade. The Ontario Chamber of Commerce worries about ‘economic competitiveness’ as much as it does fairness in its consideration of the various revenue tools.

What could be more fair than everyone chipping in, including businesses? Everyone has a reason why they shouldn’t have to pay. Now is the time for someone to step up and say, here’s my x%. Let’s get this thing done.

curiously submitted by Cityslikr


Brick By Brick

May 10, 2013

Well, you have to hand it to him.strongmayor

No ifs ands or buts about it, Mayor Ford had his best day at city council yesterday in a long, long time. Not since the honeymoon period of his administration, when he was able to obliterate anything he didn’t like, has the mayor’s limited and dim view of government so thoroughly triumphed. Small wonder he proclaimed it the greatest day in the history of Toronto or some similar variation on the usual Fordian hyperbole.

He stood firm by his principles of not burdening the voters with taxation, and the majority of city council went along with him, outright rejecting almost all of the ‘revenue tools’ city staff had recommended as a way of funding Metrolinx’s Big Move. The mayor threatened all who dared to defy him with certain electoral defeat in next year’s campaign. cowerSome 30 long months into that heavy-handed schtick and with little evidence he’s ever carried that kind of clout, enough of his council colleagues tucked their tails between their legs and rolled over for him.

None more so than Councillor Glenn De Baeremaeker who put his political self-interest right out there front and centre. On Wednesday, the councillor boldly stated on council floor that he would only support any revenue tools recommendations if, in return, the proposed Scarborough LRT extension was reverted to a subway. In effect, another demand, yet again, to alter the terms of the master agreement between the city and Metrolinx that’s in place for what is the first wave of the Big Move which includes the Eglinton crosstown LRT that is already under construction.

To bolster support in his Scarborough ward, Councillor De Baeremaeker argued that any other form of rapid transit aside from a subway was inferior, and that his residents and all of the residents of Scarborough were tired of living with inferior rapid transit (long a tactical political argument pushed by Mayor Ford). plottingFellow Scarborough councillor Michelle Berardinetti, bringing along some weird internecine provincial Liberal party baggage, helped prop up the argument with slides and talking points that must’ve brought tears to the eyes of the mayor. I’ve taught them so well. Fly, fly my children.

Of course, such cynical pandering was merely a prelude to the heaping helping of it that was to come. If there’s a more calculating member of city council, someone so utterly devoid of principle whose name isn’t Peter Milczyn, it has to be Josh Colle. His motion which was kinda-sorta an amendment to Councillor Milczyn’s, laid out the proposed revenue tools the city would not be supporting which was almost all of them. Let’s call it a negative motion because it put forward nothing, was big on nots with scant mention of anything positive.

When Councillor Matlow stood to ask Colle what exactly he was seeking to do with an amendment which sought to delete a segment of an earlier motion of Matlow’s supporting a proposed sales tax, fuel tax, parking levy and development charges, Councillor Colle said he was seeking to provide the province with an answer to their questions about revenue tools. faceplantNot answering would be impolite, I guess. But delivering an across the board no and a couple lukewarm shrugs of indifference represents the height of active engagement.

After more than a year of having her way on the transit file while stoking talk of a mayoral run along the way, TTC Chair Karen Stintz has taken her first serious stumble on this. By supporting a motion that essentially throws no support behind any revenue tools to build transit and by openly siding with misguided parochial pro-Scarborough subway councillors, Councillor Stintz positions herself with very little daylight showing between her views and those of Mayor Ford. The only difference, and it’s a very big difference, is that the mayor is upfront expressing his opinions. Councillor Stintz is simply pretending to express her opinions.

That’s a distinction voters pick up on and usual gravitate toward the one that feels more genuine.

One of the discouraging aspects of the outcome of all this is the pure abdication of responsibility shown by a majority of our city councillors. Not only did this overarching decision to avoid getting behind any of the transit building revenue tools simply dismiss the work done by the city manager and staff — that’s not an unusual occurrence — but it disregards the contribution made by thousands of residents who took time out to participate in the town halls and public sessions put on by the likes of Feelingcongested.ca and others. patontheheadSure, we appreciate your opinion, folks. *patpat* Now let us get on with the business of governing.

And by governing, of course, council displayed its preference to not govern. In deciding to sidestep the revenue tools discussion, they left the heavy lifting of persuading a public wary of new taxes that new taxes were necessary up to the provincial government. There is some merit to that since taxation is largely under the control of Queen’s Park. But to so thoroughly disavow any involvement in the funding discussion, to throw up your hands and say, hey, not me, all the while upping your ask for the transit you want built in your part of the city?

It just emphasizes the junior aspect in the junior level of government.

If you don’t want to make any of the difficult decisions in how something as important as transit gets built (all the while demanding your fair share of it), the next logical step is to cede control of the operations of it, isn’t it? busboyWhy should one level of government do all the politically risky work of getting the money together to fund public transit up and not make sure it is properly run and delivered? I don’t think it’s unreasonable for Metrolinx to do one of two things in the wake of Toronto city council’s decisions yesterday: walk away and say, have fun wallowing in your congestion or, thanks for all the help, guys. If you don’t mind stepping aside, we’ll take it from here.

And city council basically turns its attention to the more mundane matters of collecting our garbage, keeping our streets clean and our toilets properly flushed. Exactly the stuff Rob Ford tells us local politicians should be doing. By deciding to remain defiantly on the sidelines in the transit funding debate, city council embraced Rob Ford’s political philosophy of do little, tax little and always keep your cell phones on.

Which is fine if that’s all residents want from their councillors. But you can’t expect that and demand things like fully functioning public transit as well. There’s an additional cost that comes with it. One Mayor Ford and every councillor rejecting the idea of new transit taxes and fees refuses to acknowledge.

Near the end of the debate yesterday, the mayor touted his Subway Plan, and how council had previously rejected his Subway Plan. notnotlickingtoadsThe mayor has no subway plan. He rejected the revenue tools the Chong Report pushed that he cites as the backbone of his Subway Plan. He cannot point to the efficiencies he will find to fund his Subway Plan. The private sector has remained strangely silent on his Subway Plan.

There are no subways without the kinds of revenue tools Mayor Ford and city council refused to get behind. The mayor seems completely comfortable believing that’s not true. As long as we continue to throw our support behind politicians who believe that, we join in on that magical thinking and absolve ourselves of any responsibility for building a better city. We just want our garbage picked up, our street clean of debris and our toilets to flush without incident.

dispiritedly submitted by Cityslikr


You Didn’t Think They’d Sort This Out In A Day, Did You?

May 9, 2013

City council heads into day 3. Transit funding day 2.

And you’ve got to hand it to Mayor Ford. stinkbombHe may not have the slightest clue how to push forward an agenda but, man, can the guy fuck up a process. Even when he’s absent most of the time.

His refusal to join in on the transit funding conversation and just say no, no, no has succeeded in throwing a stink bomb into the debate. Many of the councillors don’t know which way is up on this. Sometimes they’re not even sure what it is they’re voting on. The King of Misrule has tapped into to coucil’s inner crazy and set it free. It’s like Mardi Gras but without the music or dancing or booze.

When it is all over, if it’s ever all over… I mean, this thing could go on until the next election campaign officially starts… mardigrasand some sort of decision is made, if some sort of decision is made, here’s what I think we should do.

Catalogue each and every councillor’s 5 minute speech they made on transit funding revenue tools over the last couple days. Edit the video into 45 neat little separate packages. Set up a You Tube video page. Copy them to flash drives, DVD discs, VHS and Betamax tapes. Send them out to their respective constituents. Implore them to watch sometime between now and next election day.

This is your local councillor. This is their view on transit building. This is their view on city building. This is their view on region building. Does this person represent your views?

twits

If the response is yes. Hey. Have at it. At least you’re willing to fully accept that responsibility. If no, it’s time to start looking around to find yourself some better representation down at City Hall.

just sayingly submitted by Cityslikr


Subway Or No Way

May 7, 2013

So if things fall into place, we’ll be witnessing another transit debate during this week’s council meeting. rockyandapolloThis time it’ll be over possible revenue tools to help fund the region’s Big Move. The conversation Mayor Ford tried to bury at Executive Committee last month. The one that’ll stay buried if 30 councillors don’t vote to add it to the meeting’s agenda.

In all likelihood, 30 votes would’ve been an easy-peasy, no-brainer. The mayor barely managed to keep his own Executive Committee from ignoring him. But a bunch of Scarborough councillors led by Michelle Berardinetti, and given some heft by Michael Thompson, want to put a stipulation on their support for talking about new revenue tools: re-opening the can of worms that is the Scarborough subway. Extend the Bloor-Danforth line with a subway instead of the long ago agreed upon LRT or the revenue tools get it.

**sigh**notthisshitagain

Now look.

For the umpteenth fucking time, I am not intrinsically opposed to a Scarborough subway. If there’s a good reason for one, and the case is based on sound principles, have at it I say. We’re trying to build an awesome transit system here not spackle a crack in the stuccoed plaster. Let’s get it right.

But… but… and watch me adopt my best Jeff Foxworthy persona right now.

You Might Be a Transit Redneck if you think all public transit should be built underground. Actually, that’s just flat out idiocy that moves far beyond being a redneck. It’s pure car-ccentricity and really has no place whatsoever in this debate. The Russian judge will give you a negative score for that kind of reasoning.

You Might Be a Transit Redneck if you think Scarborough deserves a subway simply because there are other places in the city that have subways. Could you be any more of a child? They have one. I want one too. What kind of adult thinks like that?

Our one subway that should never have been built up along the Sheppard stub is still woefully under-performing, adding stress to the Yonge line more than anything else. tempertantrum2Sure, new development has sprung up along the route but not nearly enough to pay the bills or, ultimately, to warrant the subway in the first place. It was a simple case of politics over proper transit planning.

Ditto the University line extension up to Vaughan. Politics trumping solid transit building. It is not something councillors should be seeking to emulate in their neck of the woods.

To re-iterate.

If Scarborough is to get a subway extension, it should happen because it warrants one not deserves or wants one.

You Might Be a Transit Redneck if you think subways are better than LRTs because they go faster. There are many components that factor into the element of speed with transit, the capacity to do so only one of them. Yes, a subway travelling underground does so unimpeded by other forms of traffic but to maintain high speeds, subways also have to have fewer stops, spaced farther apart. This lowers the number of people who can easily access it by foot, putting additional strain on the service by requiring feeder routes to it, bumping up operating costs.

Things like frequency also affect speed and vice versa. You can only run so many trains travelling at 400 km/h down one tunnel. strutsandfretsEase of passenger flow on and off trains also matters.

Speed is not just speed when it comes to public transit. If you think it is, you’re thinking purely as a car driver. You’re thinking like a Transit Redneck.

And You Might Be a Transit Redneck if you’re demanding a subway in Scarborough in order to avoid having to make a transfer at Kennedy station. Yes, the current SRT is a rickety, noisy, less than welcoming bit of unpleasant business. But it doesn’t mean all transfers and connections are inherently bad or that a smooth, uninterrupted ride from point A to point F is all that’s needed to induce commuters to hop aboard public transit.

Connections can be made in a seamless manner, across a platform, up an escalator, down a set a stairs. Wait times are what largely determines whether or not a connection works. So frequency matters at least as much as having to change trains.

It’s not all about the technology, folks. Subways, subways, subways won’t solve our current transit woes. sosCertainly putting one where it’s not warranted simply because of crass political pandering can hardly be seen to contribute in a positive way to the overall system.

You want more subways in Scarborough? Stop being a transit redneck and lay out the reasons why without resorting to simple-minded transit views, whiny regional resentment or cheap sloganeering. It’s getting old, overly obstructionist and once more threatens to overwhelm the larger transit discussion we’ve ignored having for a generation now.

daringly submitted by Cityslikr


A Taxing Problem

May 3, 2013

What if we took the most recent Fraser Institute tax attack report, taxmanThe Canadian Consumer Tax Index, and its claim of a 1787% tax increase since 1961 at face value and simply shrugged? Not for the reasons Matt Elliott did yesterday when he challenged the robustness of the report’s methodology but from an angle of nonchalance. Yeah, so? Big deal. I’m with Oliver Wendell Holmes. I like paying taxes. With them I buy civilization.

Or in other words, would I rather be living now in 2013 than back in 1961?

Infant mortality rate in 1961 was 27.1/1000. In 2011? 4.9/1000. Canadians lived 10 years less on average in 1961 than they do now. GDP per capita… well this.

chartupupup

Of course taxes aren’t the sole reason for those positive changes but neither did taxation roll us back to the dark ages. We are hardly taxed to death, as some like to say. In fact, the stats point to just the opposite.

So let’s stop operating from the premise that taxation is inherently bad. Politicians like Councillor Doug Ford should be derided and dismissed outright when they state something as glaringly asinine as “All taxes are evil as far as I’m concerned.” taxesareevilThe subtext of such a sentiment is that the person expressing it is not to be taken at all seriously. It is a mind-numbingly idiotic thing to say that only a certified crank would believe.

The negative economic effects of taxation have long been exaggerated while the benefits have been methodically downplayed. Every time you go to see your doctor and don’t have to open your cheque book is your tax dollars at work. You drive to work today? Your tax dollars paved the road you used. Whatever you kid learned in school comes from a portion of your property taxes.

Without taxes, there is no public sphere or common wealth. Everything’s for sale and anything deemed of worth usually goes to the highest bidder. Taxation is one way we seek to mitigate the damages inflicted by the laissez-faire, everybody-for-themselves workings of our free market system.

And now comes the great debate about paying for a long overdue public transit expansion throughout the GTHA region. How to fund The Big Move. No taxes, no way, no how says our mayor and his ardent supporters. Government’s already got its boots on the neck of the taxpayers and emptied our pockets. That well’s been tapped dry. emptypockets2Read the Fraser Institute report if you don’t believe Mayor Ford.

OK. So, well. How do you propose to build and run the transit network we really needed about a decade ago, oh haters of taxes and respecters of taxpayers? You got $50 billion or so kicking around, easily accessible?

*crickets, crickets*

With no credible plan to pay for any new transit (and with three years to come up with one), the mayor and his allies have switched tacks and now seek to undermine the trustworthiness of the governing Liberals, citing scandal after scandal as proof that they shouldn’t be allowed further access to the taxpayer money tree. ORNGE! EHEALTH!! GAS PLANTS!!! GAS PLANTS, FOLKS!!!!

Now I don’t want to sound as if I could care less about accountability. The mismanagement and dedication to evading responsibility for it is deplorable. I’d be more than happy to turf this government from power and start with a clean slate if I saw I viable alternative, at least on this particular issue of transit.

So far, I don’t. It’s all populist pandering from both left and right with nothing much more on offer than change for change’s sake. distractionThe Liberals are tired and fresh out of ideas. Vote for us, for a different kind of tired and lack of new ideas.

And in terms of transit building, I’ll go even one step further. Add these scandals up, right up, generously to the top. Call it $3 billion of ill-spent money and let’s pretend it was a single year outlay. What was the total spending in yesterday’s provincial budget? $127.6 billion? That represents a little over 2% of the total 2013 expenditure. Statistically, a rounding error.

Before you go all off and start labelling me a Liberal apologist, my point is, all that money, the entire $3 billion would make but a dent in the Big Move. It would pay for just over a year of the proposed 25 year timeline. Where’s the rest going to come from?

We can bitch and moan, mumble and grumble, huff and puff and threaten to blow the shaky credibility house down but we’ve still got a shitload of transit to build. Until someone comes up with a better plan* to pay for it, our taxes are going to have to do the trick. Just like they have always done when it comes to paying for the public good.

well

impatiently submitted by Cityslikr

 

* There won’t be a better plan. If there was a better plan, we would’ve heard about it by now.


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