January 19, 2011

NEW LEADER FOR REGION'S SEWAGE TREATMENT COMMITTEE
WHAT WOULD IT TAKE TO ELIMINATE THE DEFICIT?
GREEN BUDGET RECOMMENDATIONS FOR BUDGET 2011 
CITY HALL TO SEEK NEW REVENUE GENERATORS

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NEW LEADER FOR REGION'S SEWAGE TREATMENT COMMITTEE

CFAX 1070
Jan 17, 2011

THERE'S A NEW PERSON AT THE HELM OF THE CRD'S LIQUID WASTE MANAGEMENT COMMITTEE.

THAT'S THE COMMITTEE OF THE REGIONAL BOARD CHARGED WITH RESPONSIBILITY FOR PLANNING THE SEWAGE TREATMENT MEGA PROJECT.

BOARD CHAIR GEOFF YOUNG SAYS THE CHANGE IS NOT IN ANY WAY A REFLECTION OF POLITICAL DIFFERENCES...IT WAS SIMPLY A MATTER OF THE IMMENSE WORK LOAD, AND JUDY'S BROWNOFF'S RELUCTANCE TO CARRY ON...

"I did find that getting somebody who was prepared to do that job wasn't all that easy. And because it is...it is an enormous amount of effort, and, so, I did make a few phone calls..."

THE NEW CHAIR IS LANGFORD COUNCILLOR DENISE BLACKWELL. OTHER CRD STANDING COMMITTEE CHAIRS DO NOT CHANGE...CHRIS CAUSTON IS THE HEAD OF PARKS; ALICE FINNAL HAS ENVIRONMENT; GRAHAM HILL IS IN TRANSPORTATION AND PLANNING; AND JOHN RANNS CHAIRS FINANCE.


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WHAT WOULD IT TAKE TO ELIMINATE THE DEFICIT? HERE'S THE LIST

Don Cayo, 
Vancouver Sun
Times Colonist

In the time it takes you to read this sentence aloud, the federal government’s debt will rise by well over $7,000.

This adds up to $124 million a day — down from $152 million a day last year, yet still enough to wipe out the gains from $105 billion in debt that was repaid between 1997, when Paul Martin first bit hard on the spending bullet, and 2008, when Stephen Harper started spending like Pierre Trudeau.

That Trudeau comparison isn’t just a cheap shot to compare conservative Harper to the very liberal former PM who institutionalized big-time deficits. The Canadian Taxpayers Federation, which has just published its annual budget recommendations with a plan to eliminate that huge deficit in just two years, says program spending has risen 40 per cent over the last four fiscal years. That’s 3.9 times the rate of economic growth during the period, or 2.9 times inflation and population growth combined — a pace not seen since the Trudeau era.

It’s easy, of course, to rail against such spending. What’s hard is to spell out alternatives — to say what you would give up. And, to its credit, the CTF has done just that.

Not that everyone will endorse the CTF list, which would inevitably result in a lot of blood on the floor.

The CTF proposes 20 measures for saving about $14 billion a year by 2012-13:

• Trim the huge HRDC bureaucracy by 20 per cent and eliminate labour market grants to save $2.2 billion.

• End taxpayer support for CMHC and subject it to market forces to save $3 billion.

• Reduce equalization payments by 10 per cent annually, and convert the rest to provincial debt reduction for total savings of $5.7 billion over two years.

• Cut Industry Canada’s budget by 25 per cent, the National Research Council’s by 50 per cent, and end subsidies to businesses and organizations to save $2.7 billion.

• Cut Natural Resources Canada’s budget by 25 per cent, and end biofuel and other subsidies to save $2 billion.

• Reduce the agriculture department budget by 10 per cent, scrap the dairy and grain commissions, and end farm subsidies to save $1.9 billion.

• Reduce the heritage department’s budget by 25 per cent, the CBC’s by 10 per cent, and eliminate arts-related agencies and subsidies to save $1.7 billion.

• Reduce the transportation department budget by 10 per cent, eliminate transportation subsidies and privatize Via Rail and Canada Post to save $1 billion (plus proceeds of the sales).

• Eliminate regional development agencies to save $728 million.

• Reduce CIDA’s budget by 10 per cent and focus on removing trade barriers for developing countries to save $375 million.

• Reduce the environment department budget by 10 per cent and eliminate subsidies to save $166 million.

• Reduce other departments budgets (including health, but excluding major transfers) by 10 per cent to save $2.5 billion.

• Freeze health and social transfers till 2013-14, then begin phasing them out while transferring tax points to the provinces to save $5 billion.

• Reduce scheduled military growth by 50 per cent, and require all future capital acquisitions to go to tender to save $546 million.

• Freeze future budgets for other departments.

• Replace the public service defined benefit pension plan with an RRSP-style defined contribution plan (no specific savings identified).

• Limit EI’s scope to actual insurance and eliminate non-insurance benefits to save $2.9 billion.

• Eliminate per-vote subsidies to political parties to save $30 million a year.

• The CTF also wants new legislation passed — a Taxpayer Protection Act to require governments to get a mandate from voters to raise taxes, shift taxes or run a deficit, and a Debt Retirement Act to require minimum annual debt repayments.

dcayo@vancouversun.com

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GREEN BUDGET COALITION'S RECOMMENDATIONS FOR BUDGET 2011 (sewage and wastewater excerpts)


Excerpts: 

Priority areas for investment are:
1. Investing in wastewater infrastructure across Canada – Focus infrastructure funding on wastewater management systems to meet existing and proposed regulations. Direct $1 billion in existing infrastructure funding, plus $600 million per year in new funding, over 5 years. (page iii)

To achieve a sustainable economy and society, while  minimizing costs to Canadians, strategic investments will also be required – particularly in energy efficiency, renewable energy, intra- and  inter-city transit, water and wastewater infrastructure, and climate action in developing countries, as detailed in the following recommendations. (page iv)

Investment required:
For wastewater management:
$600 million per year, for 5 years, in new infrastructure funding Assign $1 billion of un-allocated funding from the Building Canada Fund and Green Infrastructure Fund. (page 9)

Benefits for canadians

• Upgraded wastewater infrastructure, to meet higher standards. (page 10)

a. Investing in Canada’s Water I
nfrastructure

1. Wastewater infrastructure across Canada

Degraded wastewater systems have an 
 enormous impact on public health, economic 
development and the physical environment. 
 Fecal coliform bacteria and other biological 
and chemical compounds pollute sources of 
 drinking water, close beaches and threaten 
ecosystems. This burdens society in terms 
 of health costs and lost productivity and also 
negatively impacts tourism. The Government 
 of Canada’s proposed new standards for 
wastewater effluent are a good start, but 
 
municipalities are struggling to reach existing 
 standards and a growing infrastructure deficit
may mean these new standards will not be 
achieved for decades.

To ensure that existing and new sewage e
ffluence standards are achieved, the federal 
 
government needs to invest in water treatment 
 infrastructure, to be matched by provincial 
and municipal governments under a shared  
 funding model. In the case of municipalities 
whose finances have been severely weakened 
 by the loss of tax generating industries, or 
that do not have sufficient tax bases to pay for 
 
upgrades to sewage and storm water treatment infrastructure, the federal and provincial governments must cooperate to assume a greater financial responsibility.

A Federation of Canadian Municipalities (FCM) – McGill University survey estimated Canada’s municipal infrastructure deficit related to meeting current standards for wastewater and stormwater systems to be approximately $19.9 billion.16 In addition, the Canadian Council of Ministers of the Environment (CCME) estimates that it will cost $10 billion to $13 billion for a Canada-wide  strategy to address the new sewage effluent standards.17 Thus, for the infrastructure deficit to be addressed over ten years and the new standards over thirty years, an investment of about $12 billion is required over the next five  years.18 The Green Budget Coalition suggests that these costs be shared equally between the federal, provincial and municipal governments, requiring a total investment from the federal government of $4 billion over the next 5 years, of which $1 billion could come from existing, uncommitted funding in the Building Canada Fund’s Major Infrastructure Component and the Green Infrastructure Fund.19
- page 10.

Alternative and Complementary 
 Policies

To complement these efforts, federal legislation 
including the Canadian Environmental Protection Act 
 (CEPA) must facilitate stronger implementation of 
the multi-barrier protection approach, which includes 
 
preventing contaminants from entering the wastewater 
 
stream, including by regulating chemicals in consumer 
 
goods whose manufacturing, use or disposal can have 
 
potential impacts on the environment and human 
 
health. As a long-term goal, municipal governments 
 
must be provided with the tools to ensure that water 
 
and wastewater services are fiscally sustainable
through measures such as conservation and cost 
 recovery programs. (page 12)

Investing in Sustainability

To achieve a sustainable economy and society, while  
 minimizing costs to Canadians, strategic investments 
will also be required – particularly in energy efficiency, 
 
renewable energy, intra- and inter-city transit, water 
 and wastewater infrastructure, and climate action in 
 developing countries (each of which is addressed by 
recommendations in this document). (page 17)

The need for building  
expensive new water and wastewater infrastructure can 
 
be reduced by raising water usage fees to better cover 
 the costs of the related infrastructure. (page 17)

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CITY HALL TO SEEK NEW REVENUE GENERATORS
CFAX 1070
Jan 18, 2011

VICTORIA RESIDENTS SHOULD BRACE THEMSELVES FOR SOME NEW OR HIGHER USER FEES, STARTING NEXT YEAR.

CITY COUNCIL BELIEVES IT HAS WRESTLED THIS YEAR'S OPERATING BUDGET DOWN TO A FOUR PER CENT TAX INCREASE...BUT 2012 IS ANOTHER STORY. COUNCIL HEARD A WARNING FROM THE FINANCE DEPARTMENT TODAY THAT THE FIVE YEAR PLAN DOES NOT CURRENTLY CONTAIN ANY PROVISION FOR SOME POTENTIALLY EXPENSIVE ITEMS, FROM SOLVING THE CREST RADIO SYSTEM ISSUES TO IMPLEMENTING A NEW COMMUNITY PLAN TO A 150th ANNIVERSARY CELEBRATION. AND THAT'S TO SAY NOTHING OF LOOMING CONTRACT TALKS WITH CITY EMPLOYEES.

WITH THAT BACKDROP IN MIND THE MAYOR HAS SIGNALLED THAT HE INTENDS TO SCHEDULE A SERIES OF COUNCIL WORKSHOPS FOR THE PURPOSES OF DISCUSSING THE REVENUE SIDE OF THE LEDGER. COUNCIL WILL BE LOOKING FOR WAYS TO BEEF UP INCOME, OTHER THAN INCREASING PROPERTY TAXES. THEY HOPE TO MAKE DECISIONS EARLY THIS YEAR SO CHANGES CAN BE IMPLEMENTED AT THE START OF NEXT YEAR.