• CTF Responds to Health Executives Survey and Property Tax Levy Concept
  
• CTF Blames Harris and McGuinty for Current Capital Funding Crisis
  
• CTF Notes City Council Has No Mandate to Decide this Issue
  
• CTF Calls on Council to Use New Local Referendum Legislation to Decide

OTTAWA: The Canadian Taxpayers Federation (CTF) today responded to survey results (conducted by Decima research) released by the Academy of Health Executives indicating that 83% of Ottawa residents "strongly support" or "support" local municipal government participation in providing funding for major capital projects for local hospitals.


"While it is warming to see that Ottawans value the essential work done by our local hospitals; it is sad that their legitimate capital funding needs have been abandoned by our provincial politicians," stated CTF federal director Walter Robinson. ""The Health Services Restructuring Commission (HSRC) vastly underestimated amalgamation and capital costs here in Ottawa and across the province. Infrastructure funding, including hospitals' capital costs, is a public good and should be funded out of general provincial revenues. But Premier Harris and Liberal Leader Dalton McGuinty (MPP for Ottawa South) have avoided this critical issue like the plague. This sorry example of political cowardice leaves local communities holding the bag."

The Academy of Health Executives Study also raises the possibility of a local dedicated property tax levy for ten years to assist in the collective capital funding requirements of local hospitals.
"The property tax levy idea is one that may have to be considered above and beyond private charitable contributions. But we all must be aware that in so doing, we open Pandora's box for future demands to fund social services on the property tax base. And property taxes are still the most regressive form of tax as they do not reflect one's consumption of local services," cautioned Robinson. "Neither the Mayor nor City Council has a mandate to make such a long-term and substantive decision. No one even campaigned on such a platform last November."

Instead, Mr. Robinson suggested that the City utilize the provisions in Ontario's Direct Democracy Through Municipal Referendums Act, 2000 which received Royal Assent last June and facilitate a city-wide referendum on this issue.

"A referendum would compel the hospitals to bring all their capital plans forward for public scrutiny and debate. And given the release of today's survey results, we see no reason why the hospitals would object," added Robinson. "The ball now rests with local politicians. It's time for Mayor Chiarelli and Council to let the people decide. After all it is our money."