UPDATED: A Private Sector Addiction

 

I often wonder how many Ontarians realize that we are led by a premier addicted ideologically to the private sector. A man hobbled by a limited education and intellectual breadth, Doug Ford's paltry vision is one that extols all things private at the literal expense of the public. The signs are many.

One need only look at the Greenbelt Scandal, that, before it was stopped, was designed to rob citizens of necessary and valuable green space, wetlands and nature in general so that Doug Ford's developer friends could benefit to the tune of many billions of dollars. There is also the 'redevelopment' of Ontario Place handed over to a German company, Therme, to build a spa for the minority of people who will be able to visit it. And nothing is too good for the private sector; in the case of Therme, they have been given not only a 95-year-lease (whose terms are being kept secret from the public), but also a wholly taxpayer-funded underground parking facility that will cost over $650 million, as well as other untold costs that will no doubt be uncovered in future Auditor-General reports,

I could go on, but the most recent proof of Ford's follies are reflected in his obsession with privatizing more alcohol sales, despite the billions in revenue the LCBO puts into public coffers. And now, as a result of his monomania, we have a strike at the LCBO, one I suspect will go on for some time. It is going all according to plan.

The longer the strike goes on, the more opportunities thirsty Ontarians will have to discover new, private sector sources to slake their collective thirst. And as resentment grows over the LCBO's monopoly on liquor, fewer people will be concerned about the concerns that led to the strike - the protection of union jobs paying between $17 and $30 per hour, although apparently only 30% of those jobs are permanent and have benefits. Yet even that modest remuneration seems too much for Doug, because it is not going to the private sector.

Robert Kahnert of Markham, Ontario, offers his thoughts on the damage Ford's approach to policy is doing to this province:

What happened to our once civil society? We now live in an Ontario no one recognizes. Everywhere you look there is a crisis — homelessness, affordability, health care, education, building and infrastructure decay.

How did things that were once so good get so bad.? The answer is right in front of us. Most of the public wealth was transferred to the wealthy.  We have been fed a steady diet of tax cuts, deregulation,  and the need for privatization to get the “innovation and private sector efficiencies” with promises like “all boats will be lifted by the rising economy.” As we have clearly seen, false promises. Not only has our civil society been severely damaged but so had trust in democracy .

In the last provincial election, only 17 per cent of the population voted for Premier Doug Ford.  After slashing government funding to public services  starving them into crisis just to pay for tax cuts to the wealthy and their corporations, they then present privatization as the solution to a problem they created. The only thing deregulation and privatization does is create more profit-making opportunities.

The gap between the haves and have-nots is huge and widening at an ever-increasing rate.

 Small tax cuts to the general population have been used as a cover for massive tax cuts to the wealthy and their corporations.

 Reversing tax cuts is not raising taxes, it is restoring revenue to rebuild our once civil society. Beware any politician promising tax cuts. We do not have a wealth creation problem. We do have a very serious distribution of wealth problem.

Where is the leadership? We have the power. Don’t leave, speak up and vote to stop this insanity.

Paul Kahnert, Markham

Worshipping at the altar of unrestricted free enterprise comes with great costs. It is time that more of us realize the extensive damage such fealty does to the things we hold in common, and act to stop any further erosion of our services, values and culture that seem so foreign only to those who 'serve' us.

UPDATE: If you're still with me, Brittlestar has an entertaining but accurate video about the importance of the LCBO to Ontario's development:

The Shape Of Things To Come?

Over the past several years, I have become a bit of an aficionado of bourbon. Given that most of my life I have never cared for the taste of straight liquor, how I came to fancy it is something of a mystery, but it is now my hobby that whenever I see a new listing in the LCBO (Liquor Control Board of Ontario), if it is within my price point, I will buy it. The other frequent purchase is red wine.

My imbibing habits are really not the subject of this post; rather, it is a disturbing trend I have noticed upon visits for the past several weeks. Product prices are rising, not by ten or twenty cents, but by dollars. For example, a bottle of Barefoot Merlot, a California wine, was retailing about six weeks ago at $9.95. It then went up to $10.05, and quickly jumped thereafter to $10.95. A bottle of Eagle Rare bourbon, (a rare purchase for me, given its price) jumped from about $49 to $54.65. I could give numerous other examples, but I think you get the picture.

Given the relative stability, even upward trend of the Canadian dollar, these increases on American products cannot be attributed to currency fluctuations nor simply a cash grab by the province. I believe there is something more insidious at work.

I believe that the Ontario Liberal government, should it win re-election in 2018. is planning to privatize the LCBO, surely one of our crown jewels, given the huge profits that go into the provincial treasure each year. Indeed, in fiscal 2013-2014, it made a record profit of $1.74 billion, more than our formerly wholly-publicly-owned Hydro One.

What is my evidence, other than the rising prices that would make the LCBO's sale even more attractive to private investors? Consider the pattern:

Before privatizing Hydro One, the government engaged in a series of price increases for electricity, culminating in the current peak rate (weekdays 11 a.m.-5 p.m.) of 18 cents per kilowatt hour. One of the reasons cited is that Ontarians' conservation efforts reduced Hydro One's revenues. Left unsaid is the fact that lower profits would have also resulted in a lower IPO when the first 15% of Hydro One was sold off.

But wait. There's more.

Ontario Premier Kathleen Wynne has made a big play to offer a wider distribution of beer, which will ultimately be available, but only in six-packs, in 400 grocery stores. Prior to that, she had expressed public outrage over the virtual monopoly enjoyed by the privately-owned Beer Store, whose proprietors are multinationals: Molson-Coors, Labatt (owned by Anheuser-Busch InBev) and Sleeman (owned by Japan’s Sapporo). At the time, she suggested a licensing fee would be imposed on that monopoly. Needless to say, that never happened, but the fact that beer is now allowed, albeit in limited distribution and quantity in grocery stores, suggests an effort to change the public perception about the virtues of privatization.

Next, there is the recently-announced LCBO delivery service. Finance Minister Charles Sousa said,

the creation of LCBO.com shows the government-owned liquor agency's commitment to evolve and modernize, and will provide greater convenience for consumers.

"The virtual shelf space now available to small wineries and breweries is fantastic," said Sousa.

The online sales site will be a huge boost to Ontario wineries, breweries and cider producers, predicted LCBO president and CEO George Soleas.

As well as a boost to their already fat bottom line, no doubt, thereby enhancing its attractiveness to future private investors.

Consider as well the recent hiring of Bonnie Brooks as the LCBO's new Chair. Known as a turnaround-queen, she joined Hudson Bay in 2008, becoming

its first female president and CEO. Brooks is known for engineering a turnaround for the retailer, dropping its moribund apparel brands and bringing in mid-to-high end fashion products.

Brooks was set to retire from her role as vice-chairman before agreeing to take on LCBO role. She said this new opportunity would allow her to help “build on the great work that has already been done, and to take this exciting retail powerhouse to the next level,” with its expansion online and its new role as wholesaler to grocers.

Cynics like me would suggest that she has really been hired to complete the transformation of the LCBO prior to the start of privatization.

Expect no mention of these plans before the next election. Just as the privatization of the very profitable Hydro One came out of the blue, a cowardly and costly way to avoid tax increases while bringing in her balanced budget in time for the next election, my prediction is that Kathleen Wynne will once more betray the people of Ontario should she win another majority mandate

It is a sad thing when a citizen comes to look upon his government with suspicion and loathing. Yet it is an odium that the premier and her tired regime have justly earned.