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BC: Friday Five - Gas Tax Revolt, Big Owe, Unions and Core Services

Author: Jordan Bateman 2012/08/31

It’s the end of another week here in B.C., which means it’s time for our world famous Friday Five:

1. The Prince George Citizen delves into a City of Toronto core services review and puts a local lens on it, trying to predict what will be suggested in a similar exercise for their city. While it’s an interesting piece, it misses a far more relevant parallel: Penticton’s incredibly successful core services review. Since Penticton’s review, they have frozen property taxes in back-to-back years, and are on track for a third. And they’ve cut 16 positions off their list of staffers making $75,000 or more—from 75 in 2010 to 59 last year. I daresay Penticton has far more in common with Prince George than Toronto.

2. The Olympic Village boondoggle is Vancouver’s version of Montreal’s Big Owe. It feels like City taxpayers will never get out from under it. Now it looks like City of Vancouver taxpayers could lose as much as $225 million on the development. Another reason why the private sector should be developing, not government.

3. Esquimalt has announced they will release proposals from RCMP and Victoria police, and show taxpayers what’s in them. It’s about time—let the property taxpayers of Esquimalt judge council’s actions with all the evidence at their disposal.

4. The Independent Contractors and Businesses Association is waving a warning flag that the BC NDP will scrap a worker’s right to a secret vote on unionization. Keeping votes private is a fundamental right in democracy, but unions hate the secret ballot because they lose the element of peer pressure (or worse) in getting workers to see things their way. This is a troubling signal that the NDP hasn’t learned the lessons of the 1990s after all.

5. Kudos to Frank Bucholtz and the Peace Arch News for homing in on what’s really happening to gas tax revenues in the Lower Mainland:

Yet TransLink hasn’t got the money to start the new bus service.

In a classic case of overreach, it boosted the gas tax by two cents earlier this year – only to find the move helped take gas tax revenue down.

For some, it was the straw that broker the camel’s back. The tax boost came at a time of high gas prices, and gave people one more good reason not to buy gas within Metro Vancouver.

It’s a tax revolt, Canadian-style. There are no signs and no rallying point.

People just go where they know they can save money.

When coupled with more generous cross-border shopping exemptions from the federal government – and a high Canadian dollar – TransLink’s tax boost has driven many people to the U.S. for gas and a whole lot more. Cross-border trips in June were at levels that haven’t been seen since 1972. Anyone who goes near a border crossing, particularly on weekends, knows what the lineups are like.

This TransLink move ended up punishing local businesses, by taking away some of their customers. Undoubtedly, some employees at small businesses have lost their jobs as a result of lessened activity.

People looking for a better deal on gas don’t just go south. Many go east – because in Abbotsford, Mission and other areas of the Fraser Valley, gas is often 12 cents per litre cheaper. If they don’t make that trip regularly, they certainly are sure to fill up when heading back home after a trip outside the Lower Mainland.


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