Budget

Saturday March 25, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday March 25, 2023

When the Rain Cloud of Affordability Strikes

March 23, 2023

The cost of living is a complex issue that affects people from all walks of life. It’s not just about the price of goods and services, but also about the availability of affordable housing, healthcare, and education, among other things. Unfortunately, for many families, the cost of living has become a dark cloud that hangs over their heads, threatening to rain down financial ruin.

To illustrate this point, let’s imagine a satirical scenario where a family is out for a leisurely walk on a sunny day, only to be suddenly caught in a downpour. As the rain pours down around them, they realize that they’re completely soaked through and shivering. Looking up, they see a dark cloud hovering over their heads, representing the affordability crisis that has made their lives so difficult.

The family looks at each other in dismay. They know that they can’t afford to go home and change their clothes, let alone buy a new set of rain gear to protect themselves from future storms. They’re stuck, cold and wet, with no way out.

As they trudge through the rain, they notice other families in the same predicament. Some are huddled under awnings, trying to stay dry. Others are frantically trying to find a way to get home without getting even more soaked. But there’s no escape from the rain, and no relief from the financial pressure that is bearing down on them.

January 31, 2023

In this scenario, the rain represents the constant financial stress that families face in the face of rising costs and stagnant wages. The dark cloud symbolizes the looming sense of uncertainty that hangs over their heads, making it difficult to plan for the future or feel secure in their present circumstances.

As the family finally makes it home, they realize that they’ve been lucky to make it through the rain without any major mishaps. But they also know that they can’t keep living like this forever. They need real solutions to the affordability crisis, not just band-aid fixes that will only delay the inevitable.

LINK: Ontario unveils biggest-ever $204B budget, but one with little to ease daily affordability issues (CBC) 

It’s time for society as a whole to take a serious look at the cost of living and work together to find solutions that will benefit everyone. Whether it’s through policy changes, community initiatives, or individual actions, we can all play a role in helping families weather the storm of financial hardship and find a path towards a brighter, more secure future. (AI)

 

Thursday March 23, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 23, 2023

Greenbelt Paper 

Premier Doug Ford’s Progressive Conservatives will table a provincial budget Thursday that is expected to eclipse the $200-billion mark for first time in Ontario history.

April 29, 2022

Finance Minister Peter Bethlenfalvy, who will unveil his fiscal blueprint at 4 p.m. in the Ontario legislature, said it would be “a plan that will support families, support workers, support businesses today while laying a strong fiscal foundation for future generations.”

It is expected to include new investments in health care — thanks to the recent federal infusion of additional transfer payments — as well for training and education programs.

On Wednesday, Bethlenfalvy said the budget would include some $780 million in tax breaks for manufacturers over the next three years to encourage companies to invest in new buildings, machinery and equipment. (The Toronto Star)

Meanwhile, Doug Ford says an environmental study the federal government is reportedly planning on launching shouldn’t slow down work to develop housing on lands the province recently removed from the Greenbelt.

Federal Environment Minister Steven Guilbeault has previously voiced concerns about Ford removing about 7,400 acres from 15 different areas in the protected Greenbelt lands, while adding more parcels elsewhere, in order to build 50,000 homes.

February 16, 2023

The Toronto Star reports today that Guilbeault is set to announce he is launching a study to assess the biodiversity, ecological connectivity and other natural features in Rouge National Urban Park, which is next to part of the Greenbelt lands earmarked for housing.

Ford says he was not given a head’s up on the announcement by Guilbeault’s office, but he is “not too concerned about it” because the park is adjacent to land set to be developed, not part of it.

Ontario’s auditor general is conducting a value-for-money audit of the financial and environmental implications of the Greenbelt development plans, which are part of the government’s efforts to get 1.5 million homes built in 10 years.

The province’s integrity commissioner is also investigating a complaint from the incoming NDP leader into what she calls the “curious timing of recent purchases of Greenbelt land by powerful landowners with donor and political ties to the Ontario PC Party.” (CTV)

Wednesday February 15, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday February 15, 2023

John Tory, amid scandal, will lead Toronto’s budget debate

2007

Toronto is about to have one tense budget meeting Wednesday.

John Tory, who announced last Friday night he’s stepping down as mayor following an extramarital affair with a staffer who used to work in his office, will preside over the meeting.

Tory’s presence in the chamber will be controversial. If he does, in fact, tender his resignation after passing the city’s $16-billion operating budget, he creates a situation where he will set the city on a specific course but won’t be there to deal with any potential fallout.

August 17, 2022

One can also argue Tory should be present for the debate because, thanks to the “strong mayor” powers he asked Ontario’s government to grant him, he is responsible for designing this budget. He is its champion.

Nobody really knows how this debate will go. This will be the first budget passed with the new strong mayor powers in place, which changes the dynamic because Tory can now veto any amendments, something that would then trigger a whole new chain of events.

There’s growing speculation about a political push for Tory to stay or run again in the very byelection his resignation could trigger. On Monday night, many Torontonians reported getting a robocall that included the question: “Would you support John Tory running in a mayoral byelection in 2023?”

Tory’s office said it is not connected with that polling.

Tory is proposing a property tax hike higher than Torontonians have been used to under his term (a 5.5 per cent increase) and will use that money, in part, to spend $48 million more on police. “The budget makes key investments in housing, transit, and community safety,” his office said.

October 26, 2022

Critics have focused on what’s not in it, including funding for 24/7 warming shelters, enough cash to keep transit fares from rising while the TTC struggles to get riders back on the system.

There may even be questions about police spending, after CBC Toronto published this story about the service’s $337,000 podcast.

With his “strong mayor” powers he only needs the support of one-third of council. At this point, he almost certainly still enjoys the support of eight councillors. 

Practically, Toronto’s budget is all about livability.

The decisions council makes affect everything from the state of the roads (pretty rough at the moment) to public library hours to whether or not there’s a bathroom open at the park during winter months — and yes, the latter did spark a major debate at city hall.

Hair: Toronto Mayor John Tory

There’s also the huge question of whether or not the city will do enough and spend enough to start tackling the housing affordability crisis.

This budget also features what Tory’s been calling a “COVID hangover” that’s created a financial crunch that the city needs the provincial and federal governments to help deal with. Tory and city council have recently launched yet another review of potential “revenue tools” — aka taxes, aka levies — that might bring in most cash in future years. (CBC) 

 

Friday January 13, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday January 13, 2023

Sunwing has received 7,000 complaints about holiday travel disruptions

Sunwing Airlines has received 7,000 complaints so far from customers unhappy with the airline’s performance during a turbulent holiday travel season that saw many customers stranded abroad.

July 17, 2019

Sunwing executives told MPs on the House of Commons standing committee on transport, infrastructure and communities Thursday that the airline cancelled 67 flights between December 15 and 31, in part because of staff shortages. Sunwing president Len Corrado said the airline struggled after the federal government declined its request to hire 63 pilots as temporary foreign workers.

Members of Parliament are questioning airline executives and airport authorities on Thursday about the travel chaos that erupted during the holidays.

Hundreds of air passengers were stranded over the holiday season after airlines cancelled or delayed flights, largely due to a major storm that hit much of Canada around Christmas.

Even though the House of Commons isn’t sitting right now, MPs on the transport committee met Monday and unanimously supported calling witnesses to discuss the travel debacle.

Executives from WestJet and Air Canada also testified.

Sunwing, a smaller airline that offers flights to warm southern destinations, faced the brunt of MPs’ questions Thursday. (CBC) 

January 8, 2016

Then there was this under-reported tale from last month under the headline, “Swoop flight to New Brunswick flies back to Hamilton without stopping at destination”

People who were on a Swoop Airlines plane are telling CHCH News of a flight to New Brunswick that ended up back where it started, leaving a lot of angry passengers.

First passengers got messages from the airline saying the flight was delayed. Then after taking off three hours later than scheduled, they flew to Moncton but didn’t land, the plane turned around and flew back to Hamilton.

Swoop sent out a series of notifications, first blaming “operational delays,” then saying it was “due to weather,” then “delayed due to customs and immigration,” even though Hamilton and Moncton are both in Canada.

A passenger on the Swoop flight Justin Forshaw says, “they then said there was going to be people at Hamilton to receive you, give you travel vouchers, transport to a hotel. There was nobody there.”

May 25, 2022

The passengers say when they got back to Hamilton airport they were abandoned. There was nobody from Swoop to help them.

Passengers say the flight attendants said there would be a new flight to Moncton within 24 hours but they still haven’t heard anything. Passengers CHCH News spoke with are doubtful about receiving refunds from Swoop.

CHCH News requested an on-camera interview with Swoop, and they responded with a statement saying the airline blames the cancellation on the weather. It doesn’t explain why passengers were given those other reasons for the delays and cancellations, or why there was no one to meet them at the airport. As for refunds, it says it’s “working through reimbursements.” (CHCH) 

Thursday November 3, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 3, 2022

Freeland to release mini-budget today as economists warn a recession is coming

Finance Minister Chrystia Freeland will table her fall economic statement today — a roadmap of what’s to come from the federal government as the economy stands on the brink of a recession.

July 9, 2020

Prime Minister Justin Trudeau faced some heat when he told reporters during the 2021 election campaign that he doesn’t pay much attention to monetary policy and the Bank of Canada’s mandate to keep inflation at manageable levels.

“You’ll forgive me if I don’t think about monetary policy. You’ll understand, I think about families,” Trudeau said at a Vancouver campaign stop.

But now, with inflation at levels not seen in decades, monetary policy is something virtually everyone in government is seized with as the central bank hikes rates to push down sky-high prices.

Under Canada’s system, monetary policy (interest rates) is set by the Bank of Canada, while fiscal policy (spending) is up to the elected government.

Ontario Liberal MP Marcus Powlowski said that with interest rates so high, “times are changing.”

“I think there’s more of an opportunity to be frugal,” he said. “Any debt we incur is going to grow.”

MP Rachel Bendayan, the associate minister of finance, said the government has been “extremely fiscally responsible” and is “planning on continuing on that track.”

May 13, 2022

Conservative Leader Pierre Poilievre has made it clear what he wants: no new spending unless there are cuts elsewhere.

Anything else would be “pouring inflationary fuel on the fire,” Poiliere said in question period Wednesday.

NDP Leader Jagmeet Singh said he wants Freeland to address what he calls corporate greed and reform the employment insurance (EI) program.

Freeland has signalled already the government is expecting tough times ahead.

The era of cheap cash is over — rising rates will make it more difficult for businesses to borrow money, which could lead to downsizing and job losses.

The sizeable jump in the Bank of Canada’s policy interest rate — it’s gone from just 0.25 per cent in January to 3.75 per cent today — has also forced the government to rethink how much it will spend.

The cost to service the federal debt is relatively low right now, but it’s poised to increase in the short and medium term.

April 8, 2022

There are early signals suggesting that Ottawa’s fiscal health in the short term could be much better than predicted, thanks to higher oil prices and the growth in personal and corporate taxes in this era of high inflation.

According to figures released last week through the Public Accounts of Canada, the government’s fiscal ledger, the budget deficit for the 2021-22 fiscal year came in at $90.2 billion — substantially less than the $113.8-billion deficit Freeland projected in her April budget.

In an economic and fiscal outlook published last month, the PBO forecast a budget deficit of $25.8 billion — about 0.9 per cent of GDP — for the 2022-23 fiscal year if the government pursues “status quo policy” — meaning no major new spending on programs. That is significantly smaller than the April budget’s forecast of $52.8 billion. (CBC)