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Dollars Down the Drain

Author: Richard Truscott 1999/06/21
This week we take yet another look at some of the waste, mismanagement and questionable spending by our politicians and bureaucrats, that has resulted in millions of your tax dollars going straight down the drain.

High Flying MPs - Last year our federal politicians spent a total of $18.4 million on airline expenses flying back and forth to their ridings. Under the House of Common's travel rules, each MP receives up to 64 "free" return airplane trips each year. Western MPs had the highest travel costs due to the longer flying distances to Ottawa. All MPs can, however, significantly reduce costs by flying in coach and booking flights in advance whenever possible. Cheers to Cypress Hills Reform MP Lee Morrison who only spent $37,562, but jeers to Regina NDP MP John Solomon who spent $109,068 and Prince Albert Reform MP Derrek Konrad who spent $117,192.

Costly Election Delay - Premier Roy Romanow's decision to postpone a spring election has saddled taxpayers with a bill for more than $300,000 to conduct three by-elections. No matter who is elected, they will almost certainly never sit a day in the provincial legislature before having to seek re-election in the general election slated for this fall.

Talk About Top Heavy! - It was reported last week that the Canada Information Office, a federal agency created after the 1995 Quebec referendum to hand out Canadian flags and advise federal politicians on issues of national unity, has an astonishing ratio of managers to staff. Of the $20 million Agency's 41 permanent employees, 12 are executives who collect the top salaries offered in the public service. That's more than one manager for every 3 staff; the normal ratio in other government departments is one executive for every 10 to 20 full-time employees.

The Corporate Welfare Saga Continues - The federal government has just announced that it is giving a $154 million "conditionally repayable contribution" to Montreal-based- Pratt & Whitney under the controversial Technology Partnerships program (this program been ruled an illegal subsidy by the World Trade Organization). The money for the aerospace giant is supposed to fund the development of new turbo-fan airplane engines. Research released by the Canadian Taxpayers Federation last year showed that these types of loans are rarely repaid. In fact, of the $3.2 billion that Industry Canada has lent out over the past 17 years, only 15% has been paid back.

The CBC Invades Banff - Recent reports out of Ottawa have confirmed that 50 employees of the cash-strapped CBC are attending this month's Banff Television Festival. At least 26 members of the CBC contingent are staying at the posh Banff Springs Hotel, where guests pay between $300 to $500 per night. The conference is a television industry event where producers and network executives get a chance to mingle. In contrast, CTV is sending 11 people and Global TV only three. The president of Global was quoted as saying CBC's decision to send 50 people "stuns me" and that his network's contingent of three people "was one more than I thought it should be."

A Sign of the Times - And finally, the New York Times officially announced last week that it is closing its Canadian news bureau at the end of the month ending more than a half a century in Canada. The Times blames Canada's high taxes. Hmmm-I wonder why

A Note for our Readers:

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Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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