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Thursday December 8, 2016

December 7, 2016 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday December 8, 2016

Families could pay up to $420 more for food in 2017, report finds

The average Canadian family may need to dish out as much as $420 more for food next year — and consumers could have president-elect Donald Trump to thank for part of the price bump, the lead author of a new report says.

December 11, 2015

Canada’s Food Price Report, published by researchers at Dalhousie University in Halifax, was released Monday evening.

The annual report, which looks ahead to 2017, cites weather disruptions caused by La Nina, energy-related costs — including the potential effect of carbon pricing on the agricultural sector — and a weak Canadian dollar as factors in the expected price hikes.

Economists forecast the loonie could fall as low as 70 cents US in 2017, and a weaker dollar would reduce the buying power of importers.

“Everything we actually import from everywhere will increase in price,” says Sylvain Charlebois, lead author of the report.

But Charlebois, who works with the faculties of management and agriculture at Dalhousie, suggests there’s one more major factor that could contribute to the increase in food prices: the incoming U.S. President.

“We are expecting Canadian shoppers to be Trumped at the grocery store,” said Sylvain Charlebois, lead author of the report.

April 6, 2016

The annual report, which has come from the University of Guelph in years past, says the “proverbial sweet spot for food inflation” is between one and two per cent each year. At that rate, the increases are manageable for restaurateurs, grocery stores and consumers, the authors say.

The latest report looks forward to 2017 and finds that food prices could increase between three per cent and five per cent — with meat, vegetables, fish and other seafood projected to jump by as much as four to six per cent. Regionally, Ontario and British Columbia are expected to see most of the increases. (Source: CBC)

Friday September 11, 2015

September 10, 2015 by Graeme MacKay

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Friday September 11, 2015

Hamilton looks to crack down on payday loan industry

Hamilton councillors unanimously approved a motion seeking from the province the ability to limit the locations of payday loan and cheque cashing outlets, while also strengthening the Payday Loans Act.

“This is predatory economic violence,” said Ward 3 councillor Matthew Green, who introduced the motion at council’s Sept. 9 meeting. “(They) are targeting our most vulnerable, indebted people. It’s legalized loan sharking.”
Green’s motion targeting the industry, which was revealed earlier this summer, includes forcing these businesses to post their rates on their walls, provide information about debt counselling, and having Hamilton staff identify all the payday loan businesses in the city.

Also contained in the motion was a request to the province to toughen the Payday Loans Act.

The act regulates the industry allowing outlets to charge $21 for every $100 people borrow. Green says desperate people use these businesses, and they end up having to go to another payday loans outlet to pay the loan of the first one.

“This is usury, this is criminal,” said Green. “I’d love to see (the places) outlawed.”

Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction, says municipalities need the power to regulate a business that is taking advantage of vulnerable people.

“We deem the industry as predatory in nature because its practices and slick marketing campaigns lure vulnerable consumers into transactions where there is nowhere else to turn in a financial crisis,” said Cooper.

Based on the payday industry’s own information, for every new customer loan, 15 are repeats, said Cooper.

Stan Keyes, president of the Canadian Payday Loan Association, headquartered in Hamilton, stated in an email letter sent to councillors Sept. 8 that “council should not pass bylaws to ban industries providing services that consumers demand.”

He said the province does enforce the existing regulations, including levying fines, and revoking licenses “which they have done with non-compliant lenders.”

Keyes, a former Liberal MP, stated the industry is already heavily regulated since 2009. In 2012 there were 42 outlets in Hamilton, now there are 34. (Source: Hamilton Spectator)

Saturday, December 6, 2014

December 5, 2014 by Graeme MacKay

Payday loan company is exchanging gift cards for cash at half their value

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday, December 6, 2014

Payday loan company Money Mart is preying on vulnerable people by exchanging gift cards for cash at half their face value, and the practice should be stopped, Ontario’s opposition parties said Thursday.

The New Democrats distributed copies of a sign posted in the window of a Money Mart in Hamilton, which promotes “a new way to get fast cash” by trading gift cards for 50 per cent of their cash value.

“Why does this government allow Grinches like Money Mart to steal Christmas from our most vulnerable people in Ontario?” asked NDP consumer critic Jagmeet Singh.

“Forcing individuals who are already under a great deal of stress during the holidays to pay this extraordinarily high rate for an exchange is simply disgusting.”

Money Mart officials and the Canadian Payday Loans Association did not respond to requests for comment, but an employee answering the phone at a central Hamilton Money Mart confirmed the 50 per cent fee.

“It’s been pretty successful,” the employee said. The practice is being tested at Money Marts in Hamilton and Niagara.

Singh said Money Mart’s “predatory” scheme takes advantage of the fact many charitable organizations give out gift cards to clients to help them buy gifts and food for the Christmas holidays.

Tom Cooper, executive director of the Hamilton Roundtable for Poverty Reduction, wrote in an email that providing gift cards is “often a much more dignified approach than requiring people to line up at food banks or for Christmas hamper programs.”

“Unfortunately, it seems that Money Mart is piloting a project locally that seems to take advantage of this very vulnerable group.”

Cooper noted that others may get a gift card from a family member and want to exchange it, but that those people “may be having greater challenges paying rent or utilities during the holidays,” and, he said, Money Mart is taking advantage of “desperation.”

He said the issue needs to be fixed with legislation. (Source: Hamilton Spectator)

Thursday May 13, 2010

May 13, 2010 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 13, 2010

Canadians’ household debt reaches record levels

Canadians’ debt-to-income ratio now ranks first among 20-advanced countries in the OECD and a new study suggests the recession did little to dampen the country’s enthusiasm for taking on household debt.

The level of household income soared to an average of more than $40,000, according to a report from the Certified General Accountants Association of Canada.

“We were a little bit surprised that throughout the recession we continued to take on debt,” Rock Lefebvre, a vice president for CGA Canada, told CTV News Channel.

Household debt reached an all-time high of $1.41 trillion, according to the report. If spread out evenly among Canadians, every man, woman and child would owe $41,740 — more than two-and-a-half times greater than 20 years ago.

Lefebvre said Canadians used to save up to 20 per cent of their disposable income as recently as the 1980s but that number is now less than one per cent.

“Consumerism has taken hold (in Canada) and people who have access to credit, are taking advantage of it,” he said.

Lefebvre said some debt is necessary to stimulate the economy and fill the government’s coffers.

However, he noted bankruptcies were up significantly during 2009 and governments’ debts are on the rise.

“The question becomes at what point has society taken on too much debt?” Lefebvre asked. (CTV)

Wednesday October 18, 2006

October 18, 2006 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday, October 18, 2006

Recognizing two solitudes of Lending Agencies

The 2006 Nobel Peace Prize has been awarded to Bangladeshi economist Muhammad Yunus and the Grameen Bank – the innovative micro-credit program he founded thirty years ago to help some of the world’s poorest people climb out of chronic poverty. The Nobel Peace Prize is the latest of many awards Yunus has won for bringing this powerful idea to fruition. (More: Christian Science Monitor)

August 9, 2005

Meanwhile, Stan Keyes has landed a new job, three months after the former federal cabinet minister and longtime Liberal MP was ousted as Boston Consul General by the Conservative government.

The 53-year-old will head up the Canadian Payday Loan Association, the lobby group for 22 firms that run more than 850 payday lending outlets across Canada.

The industry has had its share of controversy, with some critics saying payday lending victimizes the poor and plays an increasing part in bankruptcy cases. The federal Conservatives just introduced legislation to allow provinces to regulate the industry. Payday lending is worth about $1.7 billion each year, with more than 1,300 independent and chain stores.

Keyes, whose new job will see him lobby governments on regulations they create for the payday lending industry, said he accepted becoming CPLA president because he believes it will allow him to use all the skills he’s developed over the last 30 years in politics and the media. (Source: Hamilton Spectator)

COMMENTARY

Why can’t defeated politicians simply accept the fact that once they get turfed out of office then maybe it’s time to learn from the voter thrashing and go away into private life for good? Stan Keyes served an honorable and distinguished career by representing Hamilton West as MP from 1988-2004. More than enough time to make his mark on Ottawa. He climbed up the political ladder and for his loyalty to Paul Martin, was rewarded with a cabinet position for a short period of time before being swept out of office by David Christopherson.

Out of office, I chose to kick the poor guy when he was at his lowest, by reminding readers around the time of the Athens Olympics that, were it not for the federal election called a few months earlier, our man Stan would’ve been there in his capacity as Minister of Amateur Sport.

That should’ve been the last cartoon I ever drew of him, thinking he’d soon pick himself up and go into private life eventually finding a good paying job in the private sector and never be seen again.

But no, Paul Martin had to follow in the footsteps of all past Prime Ministers and throw something to Stan in the form of a Patronage Appointment. It was off to Boston for the Loyal Martinite as the new cocktail party hosting Canadian consul-general. It made for a nice combo cartoon with the Maple Leaf Processing Plant whose fate at the time of Keyes appointment was still up in the air.

A highpoint for him may have been observing the defeat of the Liberal government from his diplomatic perch in Massachusetts, but that wouldn’t last long. Stephen Harper would replace him within a few months giving Stan the chance to leave public life for good.

But then the latest job offer came and he took the hook and bait. While it is a private sector job his post as head of the Canadian Payday Loan Association will have consequences to those poor souls who’ve come to rely on loans with ridiculous interest rates. While he says he looks forward to assisting in the regulation of the lending agencies he’s not exactly there to look out for common folk trapped in the cycle of borrowing. He’s there to lobby the government on the lenders behalf. He not in the commoners house anymore, he’s there to defend lending agencies from gouging people with exhorbitant interest rates. Pretty shameful.