Stephen Harpers Broken Promises

Hell will Freeze over before this Government tells the Truth

2009-10-28T16:38:00.002-03:00

About Income Trusts or just about anything else for that matter.

In 2006 Canada’s “new government” came to power having made numerous promises in their election platform to clean up Ottawa, and usher in a new era of accountability and transparency.

Up until October 31 it was doing fairly well, in that its numerous broken promises were passing under the radar screen of most people, its supporters still ran around uttering the phrase “promises made promises kept” at every opportunity. That ended on Halloween, about the only thing we can be thankful for.

The Government announced it was regretfully forced to break its own promise and introduce a punitive tax on Income Trusts, apparently things had changed drastically since it made the promise much to its amazement it now thought it was losing millions of dollars a year in tax revenue.

Fair enough things change, how very regretful, now would be the perfect opportunity for the “New Government” to live up to its promise on accountability and transparency, and quickly produce a mountain of evidence, surly Mr. Harper and Mr Flaherty would be eager to prove their case and get every little minion in the Department of Finance eagerly pushing out documents to support their new bosses.

Sadly this was not the case, when appearing before a parliamentary committee Mr. Flaherty was full of extravagant claims but failed to produce a single bit of evidence suitable for peer review, a freedom of information request finally produced 18 pages of blanked out information, since then parliament, freedom of information requests and law suits have produced nothing................. zilch.

A cynic could be excused for thinking this might just have something to do with the government not having any evidence that would stand up to serious scrutiny, if you have a bad hand of cards you better not show it.

This impression would be further confirmed when the cynic learns that private groups including some of the countries leading economist have produced serious reports suitable for peer review that indicate quite the opposite, the government was in fact profiting handsomely for the income trust structure when a full life cycle analyses was undertaken.

The government that can't count continues to be amazed and more than a little stunned when it comes to finance, and hell is in no danger of freezing over.

The Inconvenient Truth, refuses to go away

2009-04-21T07:23:00.003-03:00

No not that, although it to refuses to go away, but Income Trusts

From a recent article in the Hill Times also available here.

"Why the income trust issue REFUSES to go away... Canadians refuse to accept a policy whose premises are all false, whose passage is inherently undemocratic."

Unfortunately for our spectacularly incompetent government the "facts" that back up the authors arguments are available here in the form of reports from some of the countries leading economists, including HDR Economics, Price Waterhouse, RBC, BMO, Fortin Tait, Jack Mintz and others.
I know these are heavy boring economic reports but somebody in the government (yes they got copies) or the media (also got copies) really should have bothered to take the time to read them.

Right now the Billions in lost tax revenue that have resulted from this debacle would come in mighty handy.

"Come Clean with the Numbers" GOOD LUCK!

2008-12-15T19:24:00.002-04:00

Today Jim McCallum and Scott Brison met with Jim Flaherty and asked him to "come clean with the numbers" good luck guys, its just not in this governments DNA.

Now all Canadians find themselves in the same situation Income Trust Investors found themselves when the government presented blacked out documents to back up its numbers and income trust investors produced over a dozen full reports with all the numbers to back up their case.

Guess what? only the blacked out report that nobody could read counted in this governments opinion.

It reminds you of a third rate banana republics' government.

No doubt we will get the same story with the nations budgets, Stevie and Jims version of the numbers (minus details) versus countless economists.

With this government, ideology always wins out over inconvenient facts.

If the facts don't match change the facts to suit, the only problem is when you keep pulling this kind of nonsense and get away with it for a while, you start believing your own nonsense and pull a stunt like the fiscal update that just about hardly anybody believes, and then who looks stupid?

What Took So Long?

2008-11-28T19:18:00.004-04:00

Why did it take so long for the opposition parties to get together and figure out a way to hold the Harper Conservatives accountable?
The cynic in me might be inclined to think the loss of their financial support might just have a little bit to do with it.
What ever the factor was it was long overdue the 62% of Canadians that did not want this government is fed up of being left out.
Hopefully this government will be replaced with a coalition that more accurately reflects the wishes of Canadians, even if this government survives the tone of this parliament has permanently changed and not in a way that Mr Harper is going to appreciate, he might just have to listen to others if he wants to survive as PM.

How Big a Table do you Need?

2008-10-31T16:47:00.004-03:00

How big a table do you need to seat 38 people for a cabinet meeting?

If the table was 6 feet wide it would have to be 54 feet long to allow 3 feet per person and one at each end.

Maybe you could use the old table and have junior cabinet members stand behind the seats of senior members? They could also look after the drinks and snacks and actually do something useful.

If Stevie sits at the head, who sits at the other end?

How do you decide the pecking/seating order?

Or would a round table be better, it would have to be a minimum of 36 feet diameter?

If Stevie chooses a round table would that mean he is a weak leader? Maybe oval is better.

Where do you put this table so you can keep the media away?

Where are you going to get this table from? Do you

a) Order an expensive new hardwood table made from endangered trees to annoy Elizabeth May.

b) Have a new one built out of pine beetle killed lumber, its really quite pretty and would support all those folks in BC that voted for you after you sold them down the road on the softwood lumber deal.

c) Borrow some tables from the canteen, to show how your expanded cabinet is really cutting costs.

Could you just close the canteen and have the meeting there?

No body ever said being PM was easy.

Jims Halloween Horror Story

2008-10-31T08:03:00.002-03:00

Two years ago on Halloween deficit Jim announced the tax fairness plan, an attempt to stop an alleged tax revenue loss due to Income Trusts and introduce tax splitting for seniors as some sort of compensation.

How has the plan worked so far? Last years update

The income splitting for seniors that benefits the top 30% of Canadians seniors was introduced at an estimate cost of $5 billion a year.

Up until October 07 the number of income trusts and Bell Canada that were brought out by private equity has resulted in an annual loss of tax revenue of $1.7 billion.

Since then the majority of action in the sector has been to convert to corporations where they can employ different tactics to reduce or eliminate their tax bill.

The few Income Trusts that will remain no doubt plan to use tax pools to reduce or eliminate their tax bills, the net result will be that no significant new tax revenue will be collected whilst the loss in tax revenue will be from $3 to 7.5 billion plus the bill for income splitting.

The total cost of the Tax Fairness Plan will be around $8-12 Billion every year plus the one time cost to Investors of $35 billion and another billion or so to taxpayers in the form of capital gains tax lost. Right now the government desperately needs that kind of cash.

Total costs to all taxpayers in the form of reduced tax revenue will exceed the losses by Income Trust investors within 3-5 years and just keep piling up after that. Happy Halloween.

The not so “New Government” and definitely not accountable government has refused to release any evidence suitable for peer revue to back up its position, while the pile of credible reports that dispute it has continued to grow.

Not surprising, despite a mountain of criticism the government has not changed a single part of the plan.

Previous analysis has indicated that Income Trust investors could produce a swing in votes of at least 1%. Whilst the results of the recent election was not what many Income Trusts investors were hoping for their votes made a critical difference.

Harper lost his hope of a majority in Quebec, if he had played his cards right he could have built up a significant lead and been un-assailable, but as it was he left him self vulnerable in such a way that any number of special interest groups could have a significant effect and destroy his dreams of a majority.

Numerous ridings were decided with razor thin margins, you can bet that in each one of them a few hundred Income Trust investor votes were one of the critical factors.

Stevie is still nursing a few bruises from the election, Income Trusts are turning out to be an annoying little thorn in his side that just won’t go away, and unfortunately for Stevie, Income Trust investors are like elephants in that have very long memories.

Income Trust investors have had very little satisfaction so far, but now at least they get the perverse satisfaction of watching the Insurance and Pension industries that benefited from Flahertys’ horror brought to their knees, by a similar reduction in their stock portfolios that they experienced.

Recent market conditions have revealed that these “professional” investors that benefited from being excluding from the tax on trusts and in some cases lobbied for it, have been swimming without their trunks on, some for years.

They have failed to have sufficient reserves or adequate hedging to withstand previous or current market conditions.

Now these “professionals” are aggressively lobbying the government for taxpayers’ aid, the odds are that Jim will reluctantly relax the reserve requirements rules and hope they won’t be back, chances are that Jim will be reaching for his cheque book soon.

So much for free markets, less government regulation and leveling the playing field. Expect more statements similar to what the Bush regime makes on a daily basis, “its against our principles but what else can we do”.

That’s going to hurt.

The strange thing about this horror story is that both the monsters and the victims are wounded and running scared.

That is what you get when you play games you don't understand!

The really scary part of this story is that the same Jim who created this mess is going to be in charge of Canada's finances during some of the most challenging economic times in years.

Branding Harper

2008-10-28T19:37:00.003-03:00

The conservatives have been successful in branding Liberal leaders with derogatory labels, such as "Mr Dithers" and "Not a Leader"

The is no shortage of similar material on Harper, in fact the material does not need to be factually accurate as the above labels indicate.

This excellent article explains how the conservatives probably did it, we need to learn this lesson well and apply similar tactics on our opponents or at the very least be ready to counter the tactic.

Its time we found a label for Harper and then like a bunch of rabid dogs keep on repeating the label until it sinks into his national identity, this is exactly what the conservatives have done in the past.

The label needs to be-
Short
Believable even if not factually accurate
Derogatory
Understandable by some one with no interest in politics
Preferably humorous
The more graphical material to back it up the better

We have Anticipated some Economic Slowing

2008-10-25T19:59:00.005-03:00

"We have anticipated some economic slowing in Canada for months now"...... so said Jim Flaherty back in January and again recently in a speech.
So how did the "steady as she goes", Harper Conservatives prepare for this much anticipated slowing?

Blew the $12 billion dollar surplus.

Blew the $3 billion contingency fund.

Increased government spending to record levels.

Increased government spending at considerably more than the rate of inflation.

Announced $19 billion in pre-election spending.

Spent $300 million on an election.

Attacked Ontario as the worse place to invest.

Lost $2 Billion a year and rising with a bungled income trust policy.

It makes you wonder what they would have done if they were anticipating good times!

Jim, could you use another $2 Billion?

2008-10-23T13:57:00.004-03:00

Maybe the is a little justice in this world after all, right when Jim could use the money, the tax revenue from Income Trusts is falling off a cliff.

This money was lost due to his incompetence so it only seems fair that he is the one to live with the consequences, unfortunately for Jim the rising tide of a strong economy is no longer available to hide past mistakes, when the tide goes out there is going to be more that a few boats high and dry.

As these figures show, due to the buying spree by private equity and pension funds the tax revenue will now be $2 billion less, right now that kind of loose change could be very handy.

The sad thing is those figures are out of date, since then many more trusts have been brought out or converted to other entities so they can either use previous tax pools or accounting tricks commonly employed by corporations to reduce their tax burden.

There has not been much satisfaction for income trust investors in this sorry tale so far, but at least they now get the satisfaction of gloating whilst Flaherty gets to sort out the fiscal mess from this and other disasters.

They may as well gloat while the gloating is good, its probably the only satisfaction they will get.

Studies have shown that tax revenue from income trusts was typically 2-3 times greater than corporations, off course Flaherty disagreed but so far all the proof he offered has been blacked out pages.

Damage Control; Harpers Turn

2008-10-10T20:04:00.002-03:00

Never a dull moment now its Harpers turn for damage control

Audio expert says Cadman tape not altered: court record

"The prime minister claims Mr. Zytaruk doctored the tape of an interview he conducted with Mr. Harper after Mr. Cadman died"

So I guess the expert Harper hired got it all wrong, Stevie never believes experts.

The Real Harper Record

2008-09-28T10:56:00.005-03:00

The Canadian Center for Policy Alternatives is publishing a book on the Real Harper Record on the 6 October, free downloads of the book are now available or individual chapters are available here.

An interesting read not recommended for bedtime reading, unless you enjoy night mares.

Its Going to be a Tough 5 Weeks for Jim

2008-09-07T19:25:00.003-03:00

The sparks are going to fly in Jim Flahertys' riding of Whitby-Oshawa with the news that Brent Fullard will be running for the Liberal party.
Brent is known for his tireless work for income trust investors at CAITI and has been trying to get some answers from Jim about his claims that the government was losing millions of dollars of tax revenue due to income trusts although dozens of reports indicated the opposite.
Brent recently when so far as to challenge Jim to a debate with $50,000 dollars going to charity if Jim condescend to appear, Jim declined.
It looks like its going to be a bit harder to weasel out this time, Brent is known for his in your face tactics, the all candidates debate should be priceless.
Jim better get the textbooks out as Brent with his years of experience in economics and investments knows far more than the entire Harper cabinet will ever know.
I expect Brent will push hard on Jims’ record of turning a 12 billion dollar surplus into a deficit, record government spending at twice the rate of inflation and of course the Income Trust fiasco.
I will be all ears.

A Fitting End

2008-09-07T10:20:00.004-03:00

Stephen Harper ends his first and hopefully last term in office exactly as he started it, by breaking a promise. His first hours in office were marked by appointing an un-elected Michael Fortier to the Senate, something he riled against for years.
As we now all know his very last act was to break his own law (possibly a first in Canadian history) on a fixed election date.
Congratulation Steve you have added another possibly illegal act to your accomplishments. at the very least his actions are a major break of faith with the Canadian people.
Whats new?

100+ Reasons Not to Vote for Harper

2008-09-02T19:51:00.006-03:00

My apologies for such a long list it just wrote itself, I could have gone on for another hundred but if the reader doesn’t get the point after the first hundred they are not going to. The list is in no particular order other than the strange way my memory functions.
The list has its own Home on the Web with various downloads feel free to edit and have fun

edit 24 Sept. Here is another list of 100 Reasons with links for each point.

100+ Reasons Not to Vote for Harper

1. Calling an early election, breaking a legislated promise to have the next vote in 2009.

2. Writing ineffective laws, which do not apply to him.

3. Apparently Canadian laws do not apply to him either, ask Elections Canada, a number of other quasi-judicial bodies or Cadman’s biographer.

4. Turning a record budget surplus into a deficit in 3 years.

5.Running the biggest spending Canadian government ever and increasing spending at twice the rate of inflation and revenue

6. Losing 2 billion plus dollars of tax revenue due to an ill conceived income trust policy.

7. Cutting Canada’s Food Safety Inspectors just prior to a major food poisoning outbreak (Listeriosis) that has killed 15 people so far.

8. Adding a personal hair stylist and image consultant to the PMO staff and billing the taxpayer for her services

9. Fudging the costs of government jets used by Stephen Harper and his ministers after blasting Liberals for the same thing.

10. Kicking out Garth Turner for communicating with Canadians.

11. Firing Mp Bill Casey for doing his job and standing up for his constituents

12. Producing a 200 page "Manual of Dirty Tricks" to deliberately disrupt parliamentary committees and parliament.

13. Conservative committee chairman following that advice and walking out when ever a contentious issue is raise or they might lose a vote.

14. Parliamentary secretary Pierre Poilievre’s hand gestures in Parliament and F-word comments in committee.

15. Firing Conservative Senators Hugh Segal and Michael Meighan from committee work for independent thinking.

16. Muzzling Conservative MPs and banning them from unauthorized media interviews.

17. Spending more money in a single year than any other government in Canadian history, stoking inflation and threatening higher interest rates

.18. Broken promise on taxing income trusts.

19. Deporting hardworking, tax-paying resident Portuguese drywallers.

20. Conservative MP Colin Mayes writing a column saying journalists who disagree with Harper should be jailed.

21. Doing nothing about climate change or the environment for more than a year, and until forced to by the polls.

22. Making a former lobbyist for military arms dealers the minister of defence, in charge of $15 billion in spending.

23. Orchestrating a secret dirty tricks campaign against Bob Rae inside the Liberal leadership convention.

24. Preaching Senate reform, then appointing Michael Fortier to the Senate so he could be made an unelected cabinet minister.

25. Setting Jim Flaherty loose to attack Ontario’s economic policy (after he led them into deficit) and succeeding in driving away business and investment.

26. Failing to have any effective policy to help Ontario’s struggling manufacturing sector, other than tax cuts for the ones enjoying a profit.

27. Refusing to allow media coverage of the return home of our Afghan war dead, without consulting the families.

28. Broken promise on providing a health care waiting time guarantee.

29. Threatening Conservative MPs with loss of party status if they talked about funding cuts that affect their constituents.

30. Running the most secretive and least accountable government in Canadian history after running on a platform of accountability

31. Attempts to block access by the Parliamentary Press Gallery to the prime minister and cabinet. Secret timing of cabinet meetings to avoid press.

32. Trying to dismantle the Canada Wheat Board and sacking its president. Quote: "One Way or Another..."

33. Supporting Calgary Conservative MP Rob Anders’ bogus nomination process, later overturned by the courts.

34. Trying to buy the 2007 Quebec election with a 34% increase in transfer payments.

35. Refusal to even consider honouring the Kyoto Accord, or come up with a credible alternative, until forced to by Parliament.

36. Appointing Liberal MP Wajid Khan as a mid-east advisor to write a public report for Harper, then refusing to release it after he defected.

37. Claiming the Air India inquiry depended on anti-terrorism act amendments that opposition MPs opposed, when lawyers said it did not.

38. Blacking out pages which supposedly provide proof of tax leakage as justication for taxing income trusts when released under a Freedom Of Information request and stating that it was done in the “Interest of National Security.

39. Refusing to apologize for wiping out $25 billion in private savings with one tax measure, a great deal of it belonging to seniors.

40. Raising personal income tax rate for the lowest bracket to help pay for record government spending.

41. Vowing to dismantle gun registry after fatal shooting in Montreal with registered weapons.

42. Cabinet minister Peter Van Loan botching the electoral reform commission hearings.

43. Cutting the Energuide program for low-income homeowners and replacing it with a new one for higher-income homeowners.

44. Canceling the Kelowna Accord, cutting off talks with first nations’ leaders and refusing to deal with the Caledonia crisis.

45. Saying opposition MPs have “more passion for Taliban prisoners” than they do for Canadian soldiers.

46. Spending $150,000 per weapon to arm border guards.

47. Constant campaigning, rather than governing.

48. Not a single new child care space after promising 125,000 would be created in first Conservative mandate.

49. Finance Minister Jim Flaherty spending $400 on a pair of skates while bringing in budget for “working families.”

50. Promising a lean government, and then bloating the cabinet by six more people, with cars and drivers

51. Snubbing two of the world’s fastest-growing economies and most promising trading partners, China and India.

52. Firing acclaimed conservative candidate Mark Warner for daring to talk off issue about social issues concerning local residents.

53. Breaking a Conservative Blue book pledge to Prevent party leaders from appointing candidates without the democratic consent of local electoral district associations.

54. Spending millions attacking Stephane Dion as “Not a Leader”. Why? because he is the kind of open leader that Canadians respect and he fears.

55. Breaking promises to provinces, including Newfoundland and Labrador and Saskatchewan, over transfer payments, while showering Quebec.

56. Politicizing the police and the military.

57. Linking a vote on pension income-splitting for seniors to taxing income trusts.

58. Cutting funding to women’s programs only to restore it after staff was fired.

59. Accusing those concerned with human rights of being soft on crime, soft on terror and bashing police.

60. Heritage Minister Bev Oda spending $5,000 on Halifax limos to arrive in style at the Juno awards.

61. Allowing one of his “advisors” John Reynolds to be a registered lobbyist for the Rick Hanson Foundation (which I think he is on the board) and giving mega bucks for research for spinal cord injuries.

62. When everyone wants an end to school yard bullying and internet bullying he sets an example to kids that it is acceptable to bully.

63. Steals Liberal policies and renames them (and lies about it) just to get votes.

64. His budget (07) is costing Canadian taxpayers each $1,000. to buy Quebec votes.

65. Using taxpayers money to deliver and solicit responses via "10 percenter's" sent by out of riding Con MP's to distant ridings. Thinly disguised campaigning... yet another "bend the rules" Harper contrivance.

66. The Cadman Affair, questionable and possibly illegally attempting to influence the vote of a dying MP. More "rule bending".

67. Suing the opposition for doing its job.

68. Continually changing his story about the Cadman tape. Unanswered questions abound.

69. Normally leaving the House of Commons by the back door to avoid answering media questions.

70. Ignoring Canadian scientists who had won Nobel prizes when their science didn't match with his views of reality.

71. Massive spending on advertising prior to an election call.

72. Rona Ambrose, as environment minister, firing a government scientist for writing a book on global warming.

73. Stacking a stem cell research advisory committee with pro-life Conservatives.

74. Breaking the Atlantic Accord after promising not to.

75. Denying all veteran's widows extended benefits after promising to do so.

76. Snubbing Canadian United Nations High Commissioner for Human rights, Louise Arbour

77. Causing the loss of Bell Canada and dozens of Income Trusts to Private equity firms with an ill conceived Income Trust policy, resulting in reduced tax revenue

78. Stacking the judiciary with pro-Conservative judges after vowing open appointments.

79. Selling out to the Americans on softwood lumber and leaving a 1 billion dollar tip on the table.

80. Cutting funding to literacy programs, then sending Laureen Harper to a literacy event.

81 The Elections Canada raid on Conservative party headquarters, investigating the ‘in and out” election financing scheme.

82. David Emerson

83. Ignoring the advice of the Canadian Nuclear Agency on the Chalk River reactor

84. Firing Linda Keen the head of the Canadian Nuclear Agency a supposedly independent quasi judicial body hours before she was to testify a parliamentary committee

85. Hiding the Minister responsible for nuclear safety Gary Lunn, for weeks and billing taxpayer for an imagine consultants services before he would re-appear

86. Dropping his friend and valued advisor Brian Mulroney like a hot potato, when Schreiber’s allegations are made public.

87. Losing all the correspondence sent to the PMO by Schreiber over a year.

88. Resisting all calls for a public inquiry until his ex friend Brian Mulroney demanded one.

89. The Obama Leak, leaking confidential diplomatic comments to help right wing friends.

90. Vigorously attack the Liberal party plans on the economy, environment, and poverty while having no effective plan after 3 years.

91. Maxime Bernier Canada’s Foreign Affairs Minister leaves top secret documents at his girlfriends' house.

92. Not realising for weeks that he had done so (until pointed out to him), so much for taking homework home!

93. Ignoring one of John Manley’s key recommendations on Afghanistan to improve communication to Canadians on progress.

94. Dredging up anti-gay sentiments by forcing another vote in Parliament on same-sex marriage

95. Conservative MP Helena Guergis leaks details of Stephane Dion’s top secret tour to Afghanistan thus endangering his life and those of the troops protecting him.

96. Attacking Dion for pointing out that Pakistan’s support of terrorist training camps was a major problem in Afghanistan. Something that evidently had not occurred to him

97. Pushing recognition of “the Quebecois as a nation” through Parliament in order to win seats in that province.

98. Smearing MP Nav Bains’ father-in-law as being a potential terrorist, in the House of Commons

99. John Baird’s partisanship.

100. Security Minister Stockwell Day denying a former MP was bought off to secure Day a seat in Parliament.

101. Refusing to lower Canadian flags to honour our fallen military heroes.

102. Promising investors a break on capital gains taxes and then abandoning it after being elected.

103. Refusing to use the Canadian Press Gallery except on one occasion.

104. Refusing to accept questions from the press except a few carefully screened journalists.

105. Attempt to introduce a copyright act based on the Digital Millennium Act, a wish list produced by industry. Refusing to answer questions as usual.

106. Stopping public servants making statements without approval from the PMO

107. Stopping Conservative MPs making statements without approval from the PMO

108. Harper’s broken promise to rescind a 'temporary deficit reduction tax' on gas, in spite of the deficit having been eliminated..

109. Harper’s broken promise to reduce federal fuel taxes if gas goes over 85 cents/l, saying “get used to it” and “the reduction would be insignificant” after being elected.

110. Making this list too darn easy to write

Can I Cheat?

2008-05-05T21:01:00.002-03:00

Assuming I had the money (I don’t thanks to Stevie) how hard would it be for me to cheat and exceed the maximum donation to a political party limit?

All I need to donate to a political party is a name and address, at the end of the year I get a tax receipt.
Now I can come up with quite a few names, heck I’ve been called quite a few names some I wouldn’t repeat in polite company and some simple mispronunciations, so that’s no problem, I already have 3 mailing addresses and could come up with a few more.

If no one is checking I could come up with a few dozen phony addresses, you get the idea names and addresses are no problem, I might have to work a bit harder to make the money un-traceable it might require a trip to the bank to get some old fashion cash.

I’m sure I’m not the first genus to think of this idea so there must be some pretty rigorous security checks in place to prevent this kind of fraud.

On the other hand it wouldn’t be in anyone’s interest to take too close a look at the donors list. So what if some over zealous supporters get carried away it’s really in no one’s interest to check is it?

Who is checking?

Federal politics: Is there any daylight ahead?

2008-05-03T07:06:00.003-03:00

" They can’t help it. Like George W. Bush, Stephen Harper is so sure of his virtue that he assumes the rules don’t apply to him."

This quote is from an interesting article by Ralph Surette writing in the Halifax Herald, is one of the reasons he believes Stephen Dion will form the next (minority) government.
So far the conservatives have been their own worse enemies, they keep delivering one blow after another to themselves, it is getting increasingly difficult to get up.

Dion seems destined to be the next Prime Minister simply by being the opposite of Harper, the question is can he pull of a majority?
With a clear policy alternative and effective communications strategy it's possible , so far they have been lacking.
Contrary to what the critics say these things take time, rebuilding a party isn't easy, so far time has been on Dion's side, how long will this continue?

I Was Wrong

2008-04-22T18:19:00.001-03:00

When I said a few short months ago that Income Trusts would be the biggest scandal facing the conservatives at the next election.

Then along came the Cadman affair and now the In-Out scheme an affair that cuts at the very heart of our democratic system, cheating at elections.

Along with an assortment of other scandals that shows how little respect the conservatives have for our democratic system and how open an accountable this government is not.

So far Income Trusts still have the honour of being Canada’s most expensive scandal at $35 billion lost by investors and $1 billion lost tax revenue every year so far.

Some one better start checking all those other financial deals and multi billion dollar contracts these jokers have been signing, the odds are there are a few more unpleasant surprises for taxpayers.

I Get to Pay No Income Tax this Year

2008-04-06T19:58:00.002-03:00

Gee thanks Jim

Thanks to Jim I sold some of my income trusts this year, you know the ones that senior Tories where saying I shouldn’t sell as they wouldn’t dropped in value much, well they kept on dropping, so I sold them to offset my other income and the good news is I pay NO TAX this year.

It gets even better, I now get a shiny new GST refund cheque every quarter to remind me, and it doesn’t stop there, I now qualify for the Nova Scotia drug plan so Rodney Macdonald now gets to pay for my meds. I’m sure he will send Jim a thank you note.

Any more help from Jim and I’ll be collecting a welfare cheque too, Rodney would really have to thank him for that.

Multiply this by a couple of million investors who will be claiming real capital losses, and add to that another billion or so in income taxes investors will be unable to pay on income they are no longer receiving due to the buyouts of trusts by non tax paying entities, and it starts to add up to real money. A couple of billion dollars that Jim’s boss could have used for vote buying.

Income trust investors would have been much happier sending Jim bigger cheques this year, a few more of them might still be voting conservative.

Thanks to the rest of the Canadian taxpayers payers who never brought income trusts and will now be coming with an extra $120 this year to make up the shortfall.

Just don’t expect a thank you note from Jim.

The Critical Factor?

2008-03-31T19:23:00.002-03:00

The recent narrow election victory in Vancouver Quadra illustrates the potential of the income trust investors’ votes, did they save the Liberals bacon?

In the Hill Times today the Conservative candidate Deborah Meredith is quoted as saying
“That as she was going door-to-door, she heard complaints about the income trust decision and that it could affect her fortunes in the March 17 byelections” (she lost by 150 votes behind the winning Liberal candidate)

As I explained in a previous post the income trust investors votes could easily produce a swing of 2-5% from the Conservatives to the Liberals, in many cases such as this it will be absolutely critical and you can count on grumpy income trust investors showing up to vote.

Although income trusts won’t be “the issue” of the next election it is highly likely that it will make the difference between regaining power or a majority.

The conservatives still appear to be in La-la land on this issue, and are slightly puzzled that the issue hasn’t gone away as this comment by Dan Miles illustrates, "It's regrettable that they can't move on," .

The average investor lost over $17,000, and is hardly likely to “move on” and forget, a fact that the conservatives seem to have trouble comprehending. They will have plenty of time to figure it out in La-La land.

Working for Who?

2008-03-09T18:43:00.003-03:00

In an attempt to regain some level of sanity I have been taking a break from the negative influence of Stephen Harpers version of politics, todays guest commentary is from a fellow income trust investor who is suffering from too many painful CPC propaganda messages.

Having just driven past the rather large billboard of our local MP, Rick Casson, I noticed he was telling us “Working for You”’ My question is “who is YOU???

Certainly not the 2.5 million Canadian who were robbed of their investments in Mutual Funds and Income Trust savings by the Conservatives who flat out lied to Canadians and had Mr. Casson’s support of the broken promise, $25,000,000,000.00 lost to them. Certainly not young families who need a larger vehicle to take the kids to the rink or other recreation, he voted also to add an excise tax to these vehicles. Certainly not low income earners who won’t benefit from the GST cut, of course if you are buying a BMW the 2% does make a difference. Certainly not the 72 % of Canadians who don’t have a pension plan. Certainly not seniors who own Income Trusts in RRSP’s or RIF’s, we will have to pay taxes on our income twice. Certainly not Canadian taxpayers who will have to come up with an extra 7 Billion dollars to cover taxes not being paid by foreign equity or Canadian pension Funds who have got in on the firesale of Income Trusts. We all know who pays don’t we, Mr. Flaherty is doing to Canada what he did for Ontario, deficit coming.

So then, whom is he working for? Could it be big Corporations who couldn’t take the competition and transparency that Income trusts have to provide, Manulife, Encana, BCE were all lobbyists. Could it be Private equity and vulture funds from the US who will not pay any taxes to Canada and who have moved in on easy pickings since the slaughter of prices by our Finance Dept., could it be private pension funds in Canada, BC civil service, Ontario teachers pension plan. They will not have to pay the 32% tax on these holdings. Could it be TAQA, Abu Dhabi’s national owned energy company of the United Arab Emirates who are moving in? Could it be Rick Casson, his own pension can now be split with his spouse thanks to his Government.

Hopefully an Election will be soon and Mr. Casson will have to answer for his Governments deceit and lack of accountability and transparency.

Yes indeed whom is Rick working for?

These comments were originally published in the Lethbridge Herald

Running Canada isn't a Hockey Game

2008-02-20T20:18:00.001-04:00

I’m convinced Harper has spent too much time studying his favourite game, hockey might be a great game but it’s no way to run a country especially when the team is long on goons and short on talent.

Behaving like a goon, Flaherty decided to pick a fight with McGuinty over what is the best approach to helping Ontario, but what a dumb example of conservative ideology Flaherty choose to use.

How is dropping the corporate tax rate on profitable companies going to help struggling companies that aren't making a profit?

A typical example of Harpers right wing ideology lets help the strong help themselves and to heck with everyone else.

It might work in a hockey game, running Canada isn't a game

A New Low

2008-01-18T14:21:00.000-04:00

On Friday morning the Income Trust index fell below the level it plunged to after Jim Flaherty announced his income trust blunder, any hope the government had that investors would quickly forgive and forget as a rising market carry the index onto new highs have been shattered.

A rising economy has not masked the effect of this blunder and now Jim Flaherty will have to deal with the $2 billion in lost tax revenue resulting from the take over of income trusts by non tax paying entities this year, just at a time when he needs the money most, perhaps there is some justice in this world.

Income trust investors are as grumpy as ever and now Stevie has to face the prospect of 2 million investors with a grudge heading for the polls soon.

You can’t really blamed them, they are sharing a $35 billion loss or $17,500 each, it would take a lot less than that to make me as mad heck when heading for the polls.

It’s safe to say a significant number won’t be placing an X in the same place they did in the last election.

Will Income Trust Investors’ Votes Matter?

2008-01-16T13:51:00.000-04:00

The Short answer is yes

According to Elections Canada 15 million Canadians voted in the last election it would only take 75,000 of them to switch from voting Conservative to Liberal to cause a 1% swing in the polls. The income trust issue has the potential to create a far larger swing than that.

There are over 2 million income trust investors

How did they vote in the last election? We can get some idea from this survey of a group of income trust investor, this group is some of the angriest income trust investors so we can discount their future voting intentions, some information is however useful.

1) Most of them are over 45 a voter demographic that turns up to vote.

2) The 2 million income trust investors lost $35 billion as a result of this policy an average of $17,500, a significant number will be going to vote bearing a grudge.

3) In the past election 75% of them voted conservative (partially as a result of Liberal actions), many of them could be described as Harpers type of people, small C Conservatives who work hard, save for their retirement and play by the rules.

There are 1.5 million potential swing voters that are acutely sensitive to this issue, it’s very hard to predict how many will switch to the Liberals and it's the biggest unknown in this exercise, but as can be seen it wouldn’t taken many to make a significant difference, I will assume what I feel is a low figure of 10-25%.

This will result in 150,000 to 375,000 votes going from the Conservatives to the Liberals, and result in a lose in votes for the Conservatives of 1.0 to 2.5% and a gain to the Liberals of the same amount producing a change in the popular vote in favour of the Liberals of 2.0 to 5.0%

Will this matter? A lot depends on what the other issues are and the difference in support the various parties have, but if the next election is anything like the last it could be of vital importance.

Another factor that should not be ignored is the ability of Income Trust investors and the Liberals to use this issue to influence other swing voters, it is an example of a broken promise, lack of accountability and financial mismanagement that Harper does not want raised at election time.

Jim Flaherty; The Pirate

2008-01-12T20:36:00.000-04:00

“Today we call it more elegantly, not pillaging, but taxation.” Jim Flaherty

It will come as no surprise to many Canadians that Jim Flaherty is descended from a long line of pirates, in a speech on Friday to the Ireland Canada Chamber of Commence he spoke about his ancestors

“I am an Irish-Canadian with a somewhat chequered past,” he said, before launching into a l’il story about his ancestors.

"It was said that they were pirates. In fact, they were pirates, according to the history of it. And that from time to time, would go from the county to the city of Galway and pillage," he said.

Those of us that were wondering what possible qualifications he has to be Finance Minister now know the answer, his pirate ancestry

Unfortunately as Income Trust Investors found out he is a particularly inept pirate.

In typical pirate fashion he destroyed their nest egg to the tune of $35 billion and got nothing in return, instead creating a policy which has so far created a $1.4 billion hole in the boat.

Don't be surprised if the crew mutiny, just be thankful Jim that the traditional remedy involving a yardarm and a piece of rope is no longer in use.

Politicians Promises

2008-01-08T19:25:00.000-04:00

Who ever wins the next election Stephane Dion or Stephen Harper we can be sure of one thing, there will be more broken promises.

Some one in the heat of an election campaign will make a really dumb commitment, later no doubt they will look back on it and say, I said what?

Some one full of good intend will promise the moon without doing their homework and promise the impossible.

Some one just maybe, will say absolutely anything to get elected with no intention of following through.

As sure as the sun will rise tomorrow there will be more broken promises.

So what is the poor voter to do?

Look at the platform, these can generally be described as works of fiction but can give you an idea of the general ideology of the party.

If any one wins a clear majority it’s a safe bet to say that the election platform will take second place to that leaders core values and roots.

Stephen Harpers roots are in extreme right groups such as the National Citizens Coalition where he was a vocal global warning denier.

Stephane Dion has a long history as a defender of core Canadian values and an environmentalist.

You decide which one reflects your core values and hope for the best.

Accountability 75 Broken Promises?

2008-01-07T08:01:00.000-04:00

When I read stories like this one in the Globe and Mail stating that freedom to information requests are now taking over 4 times longer than 2 years ago and containing mainly blacked out pages, I'm highly tempted to take all 75 promises in the Tory Blue on Accountability and add them to the list.

This section of the Blue Book was the pillar of the last election campaign and although a few commitments have been delivered on the overall effect has been to go backwards, under the strong control of the Prime Ministers Office.

Has any body noticed government getting more open and accountable.?

Dumbest Comment of 2007

2008-01-02T19:22:00.000-04:00

"It's certainly the end of the bickering. The discussion on fiscal imbalance is now over.

Jim Flaherty claiming to have fixed the equalization formulae

This comment could only come from a man that has no understanding of Canada, families, politicians or finance.

Jims second dumbest comment (by a hair)

Flaherty said his initial estimate of $500 million a year in lost revenue (due to income trusts) was a conservative one that would climb if more companies were allowed to convert to trust status.

This comment months before studies which should have been done first proved the government was collecting over twice the tax revenue from income trusts compared to corporations that it was encouraging them to convert them to.

Flaherty’s solution to the alleged problem proceeded to produce a tax revenue loss of $2 billion in its first year.

Stephen Harper's New Year Resolution

2008-01-01T16:03:00.001-04:00

I will be accountable to all Canadians.

I will immediately enact all provisions of the accountability act.

Although the act is a hoax, failing to adopted key recommendations of the ethics commissioners report as promised, failing to live up to the Conservative Elections Platform and failing to bring accountability to the Prime Ministers Office and key Ministers, it was a small step in the right direction

Why the delay in enacting the entire act?

Knowing Harper it won’t all be enacted until days before the next election when he realizes he is going down, a parting gift for the Liberals along with the fiscal mess.

Instead of accountability the key election promise, we have gone backward with a long list of broken promises, the most secretive government in Canadian history where freedom of information request now take twice as long and contain half the information.
An accountability act that actually weakens ethics rules for Cabinet ministers, their staff, Cabinet appointees and senior government officials.

The cornerstone of the Conservatives 2006 Election platform has crumbled to dust and blown away in the wind along with Harpers dreams of a majority.

Income Trusts; How Many Broken Promises?

2007-12-27T21:20:00.000-04:00

Many people view Income Trusts as just one broken promise but the resulting lack of accountability and attempted cover up has resulted in at least 9 promises being broken (some not for the first time).

Stephen Harper is an expert at making a bad situation worse.

The following list of broken promises has been taken from the 2006 Conservative Election Platform (new html version)

A Conservative government will:

• Stop the Liberal attack on retirement savings and preserve income trusts by not imposing any new taxes on them.

• Require ministers and senior government officials to record their contacts with lobbyists.

• Create an independent Parliamentary Budget Authority to provide objective analysis directly to Parliament about the state of the nation’s finances and trends in the national economy.

• Require government departments and agencies to provide accurate, timely information to the Parliamentary Budget Authority to ensure it has the information it needs to provide accurate analyses to Parliament.

• Allow members of the public – not just politicians – to make complaints to the Ethics Commissioner.

On Access to information a Conservative government will.

• Oblige public officials to create the records necessary to document their actions and decisions.

• Provide a general public interest override for all exemptions, so that the public interest is put before the secrecy of the government.

• Ensure that all exemptions from the disclosure of government information are justified only on the basis of the harm or injury that would result from disclosure, not blanket exemption rules.

• Ensure that the disclosure requirements of the Access to Information Act cannot be circumvented by secrecy provisions in other federal acts, while respecting the confidentiality of national security and the privacy of personal information.

It’s hard to eat Crow

2007-12-21T08:05:00.000-04:00

It’s hard to eat crow but Jim took a very a small taste of the pie (he didn’t like it).

The government took advantage of the Christmas break to sneak a few rule changes into its Income Trust legislation, enough that REITs as originally intended may actually be able to continue to function.

The government still sticks to its ridiculous assertion that.

Tax Fairness Plan restored balance and fairness to the income tax system by reducing the tax differential between income trusts and corporations.

It’s a pity that it can’t prove the statement or that dozens of papers by leading financial experts disagree.

The only people benefiting are private equity funds and pension funds who are except from the rules, plus Harpers corporate buddies who won’t have to compete.

To further illustrate his confusion on the issue he states that

Existing SIFTs (Income Trusts) can convert to taxable Canadian corporations without any undue tax consequences to investors, or the SIFTs themselves, on the conversion.

Why would they need to convert to corporations if as he states he has created a level playing field, there would be no tax advantage?

Why change the rules to make it easy?

It doesn’t appear the governments stated and true objectives are the same thing.

It doesn’t matter what the true objectives are ordinary Canadians are now stuck with the multi Billion dollar bill this policy has already created which will be equivalent to a 1.5% increase in the GST if nothing is done.

If Jim doesn’t eat that crow pie, chances are he will be receiving it full in the face.

It won’t look too good at election time

It’s not Santas’ List

2007-12-19T10:42:00.000-04:00

It’s not nice either, it’s Stephen Harpers’ list of Broken Promises and it just got a little longer

During the 2006 election Stephen Harper pledged to clean up government polling, having repeatedly criticized the Liberals for spending $18 million on polls he pledged a Conservative government would not take its position based on public opinion polls.

After having spent $31.2 million in its first year on 546 polls or nearly double the amount the Liberals spent, the failure to clean up polling, in fact doing the opposite makes it to number 45 on the list of broken promises.

Business as Usual ?

2007-12-15T08:24:00.000-04:00

The Canadian Wheat Board and Income Trusts stories have many similarities, the bad and poorly thought out policy, the lies, the lack of accountability and the behind the scenes corporate lobbying.

Unfortunately this has been the general publics’ impression of the last Tory government, the Mulroney era, some things never change.

Is this a continuing pattern of incompetence or is the famous hidden agenda at work again?

The Canadian Wheat Board Story

No merry little German elf with bags of money for Harper's farmers.

Prime Minister Harper and his cronies in the private grain trade may be singing "all I want for Christmas is my two front teeth" after all the set backs in their scheme to ruin the farmer controlled Canadian Wheat Board (CWB).

Last year they tried to rig the farmer elections for the CWB Board of Directors by disqualifying 40% of farmers from voting. This backfired and the final result was stronger support for the CWB. Eight out of the ten farmer-elected directors support the CWB's current mandate.

Harper ignored the result and held a bogus plebiscite with questions that would make even the most fanatical Quebec separatist blush. Then, on June 11, 2007 the Harper government passed a Cabinet order removing barley from the CWB. Their announcement said prices would soar. However, prices immediately dropped. Continued

The Income Trust Story

The government claims it is losing $164 million a year in tax revenue due to income trusts.

Over the next months 10 reports by separate experts’ dispute that government is losing any tax revenue from income trusts, many show that trusts are net tax revenue positive.

When asked to show how he came up with these figures the government produces 18 pages of blacked out information.

An Angus Reid poll indicates that 92% of Canadians think the government should reveal the blacked out information and explain its analyst.

Private equity trusts and pension plans including those of government employees that “make up the rules” benefit.

continued

Did Mulroney Remember to Pay his Beloved GST?

2007-12-13T08:19:00.000-04:00

Did Brian Mulroney remit 7% GST on the $300,000 fees in cash he got a few years ago from arms dealer Karlheinz Schreiber?

According to Diane Franciis of the National Post this is a question the parliamentary committee should be asking Mulroney, GST should be paid on any consulting, lobbying, public relations or legal services

It would be delightfully ironic if he forgot to pay his own beloved tax.

Good question Diane

35 Billion Reasons to Break this Promise.

2007-12-12T14:37:00.000-04:00

In the conservative election platform one of their promises was;-

“To enact legislation to ensure that full, just and timely compensation will be paid to all persons who are deprived of personal or private property as a result of any federal government initiative, policy, process, regulation, or legislation.”

Millions of Canadian investors that have lost Billion of dollars due to Harpers Income Trust Debacle would love to hear the cheque is in the mail.

Its not going to happen.

Millions of Canadians who never invested in income trusts are going to be peeved at having to pay hundreds of dollars extra tax a year as a result.

There is still no law to protect us from government stupidity, although there are checks and balances that this government seems determined to circumvent, like those on a nuclear reactor!

The failure to enact just compensation legislation has the honour of making it to number 44 on the list of broken promises.

I run a very slight risk that the government makes good on this commitment, but it is about the same as the one remaining standby pump on that nuclear reactor failing at a critical time and causing a melt down.

A low probability event but the effects will be a lot less disastrous.

Power Trip

2007-12-04T21:22:00.000-04:00

Another piece of music that may be of use to those people hard at work on the Videos, from Baba Brinkman, who clearly is no fan of Stephen Harper.

From his website.....
"Following the throne speech and its subsequent passage in the house Stephen Harper delivered a speech in parliament filled with all the arrogance, bluster and misinformation that Canadians have wearily come to expect. Taking excerpts from Harper's speech and reworking them over a sinister instrumental, Baba Brinkman creates a lyrical dialogue with his head of state, a political duet that gives "strange bedfellows " a whole new meaning"

Music Download

The words

Power Trip

Yeah, Stephen Harper reminds me of some things too
So I made a list, just to help me think it through
He reminds me of a cheating student, when the professor
Doesn’t have enough evidence to completely prove it
A kid with a brain, but no idea what it means to use it
Complaining when his grades say that he needs improvement
He reminds me of the Titanic captain: “Full speed ahead!
No need to let Kyoto hold us back; that socialist
Scheme is dead! Of course I can sleep in bed
‘Cause even if we hit one of the last remaining ice floats
I know my pretty blond kids will get on the life boats”
It’s time to acknowledge the science before all is lost
If you deny climate change, you deny the future holocaust
There’s a hell of a storm brewing, and he’s choosing not to believe it
So his carbon policy kinda reminds me of Nazi appeasement

When Stephen Harper announces a balanced budget like he’s proud of himself
He reminds me of Paris Hilton, ‘cause he inherited such obvious wealth
There’s a reason the economy’s strong, and it’s not his skills
He lives in the house that Paul Martin built
So he reminds me of a cocky teenager
Who sucks up to his friends’ parents to disguise his mean nature
It’s ironic watching him pose on a pristine glacier
Like: “As soon as the ice melts we’ll build a marine base here
Who says CO-2 is atmosphere pollution?
We need an arctic passage and it’s a clear solution”
In fact, Harper reminds me of Vladamir Putin
Cause any independent voice in his caucus is a mere illusion
That’s his proven definition of what it is to lead
No disobedience and no room to disagree
So he reminds me of a mafia boss from Sicily
‘Cause his grip on power is still so slippery

Yes indeed, Stephen Harper is nobody’s fool
His authoritarianism is a notorious tool
To subjugate MPs like students in a boarding school
Just imagine what he’d do with majority rule
“So he’s a cruel right-wing ideologue, at least he’s honest…”
Whoever said that is not from an Eastern Province
And doesn’t have an income trust, or a grasp of economics
He needs Dion to teach him how to keep a promise
And not selectively, and teach him how to advertise more
Cost-effectively, and stop breaking election laws so recklessly
And teach him how to run his office less oppressively
Bob Marley shot the sheriff, but Harper abolished the deputy
He reminds me of a dictator in waiting, full of naked ambition
Unable to make a decision without the Bush Administration’s permission
This reminds me of a nightmare, a basic lesson
In patience, ‘cause to wake up, it takes an election

Flaherty Fixes the Income Trust Problem One year too late.

2007-11-30T14:44:00.000-04:00

With the recent reduction in corporate tax rates Flaherty has fixed the alleged tax leakage problem, even using his own badly flawed methodology. The attached comments by Bruce Dennis from HDR Economics show that the effect is to reduce the alleged leakage by $420 million leaving a tax leakage of $80 million basically insignificant when compared to the $7.5 Billion in tax revenue generated.

As these reports by independent experts’ show Flaherty’s logic isn’t even close, Income Trust were in fact resulting in the government receiving considerably more tax revenue than the corporate model.

Still it’s nice to know he has finally fixed his perceived problem with the very same policy the Liberals were adopting.

The is only one snag, some one destroyed the industry first by slapping a 31.5% tax on income trusts, resulting in many of them being taken over and resulting in a $2 billion loss in tax revenue so far, he can now never hope to recover the tax revenue.

Jim could have saved everybody a world of pain if he had got it right the first time.

......................................................................................

Trusts Redux: Tax Policy Suitable for Halloween

As an economist I welcome Minister Flaherty’s October 30 announced intention to boost Canadian productivity and prosperity by reducing the general federal corporate income tax rate to 15 per cent by 2012. The measure should be embraced by all: It will position Canada favorably in the global economy for decades to come. But while I laud the strategic direction on corporate taxes, I continue to question the government’s consistency on tax policy in general.

A year ago today the Minister announced in his Tax Fairness Plan his intention to “restore balance and fairness to the federal tax system by creating a level playing field between income trusts and corporations,” to eliminate tax leakage and to remove distortions in investment decisions. To paraphrase the Department of Finance’s analysis, the avoidance of corporate taxes from entities after conversion to an income trust is not totally offset by the taxes paid on income trust distributions from individual unit-holders; therefore tax leakage. The Minister estimated that annual tax leakage was in the order of $500 million and stated that something had to be done “to restore balance and fairness in the tax system”. The Minister’s solution to create “tax fairness” and eliminate tax leakage was to implement a 31.5% Distribution Tax on trusts in 2011 and to not allow any new conversions to the income trust form. The market response to the “Tax Fairness Plan” announcement was very negative.

Having worked for the income trust industry and with the Department of Finance on determining the appropriate methodologies for tax leakage, I presented evidence on the tax leakage issue to the Parliamentary Standing Committee studying the issue. To be precise, I raised several concerns with the Department of Finance approach – all of which went to a “sharp over-statement” of tax leakage. The major flaw in the Department of Finance analysis was that it did not take a lifecycle view of the tax leakage issue but rather focused on a 2006 “test year”. By failing to account for the reality that corporate tax rates were legislated to be reduced to 19 percent by 2011, the Department took a short-sighted and punitive approach to the issue. Despite the debate and a dissenting Committee Report “Taxing Income Trusts: Reconcilable or Irreconcilable Differences”, the income trust provisions of the Tax Fairness Plan remain in place.

It is regrettable that the October 30 announcement did not occur a year ago. It would have all but eliminated the perceived tax leakage issue without the punitive distribution tax on income trusts. In fact, the Department of Finance’s own Tax Leakage Model would have given an estimate of merely $80 million in tax leakage when accounting for yesterday’s corporate tax cuts instead of the $500 million stated by the Minister at the time. The Department’s own analysis would not have supported a tax on income trust distributions. If the October 30 announcement had been made last Halloween, the billions lost by investors would not have occurred and the playing field would have been leveled by 2011 – all this according to Department of Finance methods of analysis. These losses cannot be recovered and one has to question the path that led us to this point and Finance’s tax policy strategy.

I believe that even the $80 million estimate sharply overstates the leakage. This aside, yesterday’s corporate tax cuts would now allow the abolishment of the income trust distribution tax all together without incurring federal tax leakage – this, again, according to the Department of Finance’s own model.

Dennis Bruce is Vice President with HDR Decision Economics and has studied the income trust tax leakage issue since 2003. He twice testified before the House of Commons Finance Committee on the question Income Trust tax leakage.

Dennis Bruce

Vice President
HDR | HLB Decision Economics Inc.
1525 Carling Avenue, Suite 500
Ottawa, Ontario

HDR - ONE COMPANY | Many Solutions ™

Stephen Harper Blues

2007-11-24T18:56:00.000-04:00

I thought I would bring this song by Peter Bacsalmasi Canadian Aboriginal award winner for producer of the year 2006 to the attention of those people who are hard at work on the videos.

Not surprisingly the song is about the Income Trust broken promise although it has a a very catchy chorus that could be used for a wide variety of themes. The song is available as a free download from Peter Bacsalmasi website. It's well worth a listen even if your not working on the videos.

These are the words.

Promises made promises kept sure sounds good on a TV set, Mr Prime Minister we didn't expect, promise made NO promises kept. (Chorus)

Say Stevie why did you do such a terrible thing, he say I cut me a deal with the socialist wing I got a billion dollar hole in my guccie shoes and I have to get it back from the likes of you, I said the people must pay some 35 more did you really intend to make em all poor, I say don’t worry about that boy these people are old there memory fails come the next time they vote.

Promises made promises kept sure sounds good on a TV set, Mr Prime Minister we didn't expect, promise made NO promises kept.

I’m from your home town and it amazes me how little you know about this industry you ain't hit a vein you cut an artery and you can’t heat your home with the blood on the street

Well sinister minister you coming to get me you just couldn’t stand to live and just let be , the gov’ment gone mad it’s a total disgrace, it takes a big man to admit his mistake.

Promises made promises kept sure sounds good on a TV set, Mr Prime Minister we didn't expect, promise made NO promises kept. ( back ground :- now Stevie sounds a little like Marie Antoinette let them eat cake)

Last night I had a dream O Kenieth Lay you know the guy he was all the rage, it wasn’t my fault to the people he cried that his heart gave out from the weight of the lies, but there is a lesson here its worth all the fuss you never start messing with the peoples trust cause if you wipe them all out, all the money they save, your integrity dies in a political grave

Promises made promises kept sure sounds good on a TV set, Mr Prime Minister we didn't expect, promise made NO promises kept. ( back ground:- now mamma call him the devil with the blue eyes)

Promises made promises kept sure sounds good on a TV set, Mr Prime Minister we didn't expect, promise made NO promises kept. (back ground:- he’s that sinister minister, watch out)

He also has another catchy song "That's Clarity Thats Flaherty"

Vaporize the Messenger

2007-10-28T18:45:00.000-03:00

In a piece that would put the National Enquirer to shame, Terence Corcoran of the National Post attacked CAITI and income trust investors calling for its chairman Brent Fullard to be vaporized.

This is a typical response when you don’t have the facts to back up your position, shoot the messenger, or in Mr. Corcoran’s case vaporize him.

Fortunately Brent is fine, the only thing being vaporized is billions of dollars of tax revenue.

The conservative response to the income trust debacle takes the following predictable tactics

1) Keep repeating the lie

2) Blame the victims

3) Blame the trusts

4) Blame the liberals

Expect a lot more of the same in the next few weeks as the media shills get to work.

Unfortunately for them the truth has a habit of getting out.

CAITI response to the article.

Income Trusts the Real Scandal

2007-10-23T14:00:00.000-03:00

Even if you believe that Steven Harper got it right, (he didn’t) and that income trusts were a serious threat to tax revenue and the Canadian economy the real scandal is in the execution of a policy to fix the alleged problem.

The policy en-acted has created a giant loophole out of which $2 billion a year in tax revenue has already fallen, with another $5.5 billion likely to follow.
The trusts are now easy and cheap targets for other business structures like private equity and pension plans to purchase and restructure in such a way that they pay NO TAX, because unlike the proposal the Liberals studied and dropped, these other structures are except from the tax. This has already happen to the tune of $2 billion a year.
If the tax was abolished tomorrow the remaining tax revenue base of $5.5 billion would be saved.

The Tories complain about the years of alleged Liberal scandals, yet in their first year in power they have out done them and blown $2 billion in tax revenue, lost for every year in the future.
This is the real scandal and the reason the Liberals want the tax stopped now, to save future tax revenue.

Mr Flaherty has to go on record as the most incompetent finance minister ever, in trying to fix an alleged $164 million tax leakage problem he succeeded in creating a black hole which appears destined to suck in all of the tax revenue that income trusts used to generate for the government.

All the other pieces of a major scandal are there.

a) The broken promise from the prime minister

b) Over 2 million Canadian victims, and worse from the government point of view these are mainly seniors.

c) Incorrect and faulty analysis of the situation by the finance minister that he attempted to hide with blacked out documents.

d) Ten reports from independent experts that prove the government was wrong.

e) $26 billion in takeovers leading to the above mentioned tax revenue loss and worse from the government point of view many of these were to foreign entities.

f) A government that does not want to discuss the income trust issue and is trying to sweep the foreign takeover issue under the carpet with yet another government panel.

All the worse characteristics of the Harper administration are present in this scandal, the Liberals have qualified experts ready to go after the government, its time to let John McCallum, Ralph Goodale and Garth Turner lose, Stephane Dion can safely take a back seat, he didn’t lie.

This scandal is a gift from heaven for a struggling opposition, its time to let the liberal attack dogs out.

The Control Freak

2007-10-15T07:58:00.000-03:00

According to the Toronto Star

"Secret $2M project to build new briefing centre would supplant nearby National Press Theater"

Its no secret Stevie doesn't like the press or any one that questions him (ask Bill Casey) so borrowing another tactic from the Neo-Cons he plans to set up his own media center controlled by his officials.

The camera man gets to work with Stevie's hair stylist to make sure we only get the best shots.

Ask the wrong question and your out!

Fixing Broken Promises with Broken Promises

2007-10-10T21:29:00.001-03:00

In June, the Prime Minister promised all provinces that he would not treat some differently than others, and that they would all operate on a level playing field.
Today he flip-flopped on his promise that he would never sign side deals on the Atlantic Accord by signing one with Nova Scotia, Stevies idea of fixing a broken promise.

Break another promise! Life sure gets complicated when you lie and break promises.

No doubt Stevie and his friend McDonald do not like their ratings in the polls in the Nova Scotia, it’s looking like a complete wipe out for Stevie, will this help?

The debate has already started and the critics are saying this doesn’t honour the original accord, apparently this deal gives Nova Scotia less revenue until 2020 after that if the financial projections are right and nobody breaks anymore promises Nova Scotia could come out ahead.

The debate has started again and it will take a lot to convince a very cynical Nova Scotian public.

That’s another problem with breaking promises, no body believes you after a while.

This has the honour of position number 43 on the list of broken promises.

Failure to Perform or a Stab in the Back?

2007-10-05T21:03:00.000-03:00

How would you like your promises broken?

I took two highly biased lists of broken promises, my own list of Stephen Harper's and the conservatives list of Paul Martin's to see if there is a difference in their approach to this tricky subject.
The way promises are broken fell into two categories.

1) The failure to perform, or why did I make that dumb promise?
2) Doing something different than was promised maybe even the exact opposite of what you promised, the stab in the back.

Both parties are guilty of each approach, the Paul Martin government perhaps not surprisingly for a minority government were way ahead in the failure to perform category.

Stephen Harpers minority government no doubt wishing to show its new decisive nature is ahead in “the stab in the back” category or perhaps is just having trouble with hiding its real agenda.

Where Harper is really ahead is in doing the “exact opposite of what you promised” category using multiple knives assisted perhaps by the finance minister.

Income trust investors know all about this one, promise never to tax trusts, then as a result watch all those poor trusting seniors pour their money in, and when they are feeling nice and comfortable it’s time for the stab in the back.

Take your pick.

The Problem with Broken Promises

2007-09-29T19:49:00.000-03:00

The problem with Stephen Harper’s broken promises is that they keep coming back to bite him.

The softwood lumber deal (broken promise no.17) took another bite this week, in an article in the National Post a US. Lawyer maintains.

"The [Canadian] government didn't care about lumber," said Elliot Feldman, a Washington, D.C., lawyer who represented Ontario's forest industries before the softwood agreement was made last April. "The government cared about its foreign-policy agenda with the United States and wanted to clear this out of the way. That's all that mattered."

What a surprise, making a good impression with his neo con friends in the Whitehouse was more important than a solemn promise to Canadians, with a little bit more work he could have done both.

Instead after years of campaigning for the return of 100% of the illegal tariffs collected, he left a $1 billion tip on the table in his rush to make new friends.

Don’t get in the way of Stevies real agenda unless you want to become road kill.

Flaherty’s Folly

2007-09-27T16:23:00.000-03:00

In her new Blog Diane Francis of the National Post takes a look at the blunders of Canada’s worse finance minister ever.

It’s well worth a read.

Another One Down

2007-09-24T20:06:00.000-03:00

Earth to Flaherty, you have a problem.

Today Prime West Energy Trust agreed to be brought out by Abu Dhabi National Energy Company of Saudi Arabia for $5 billion.

To date this month we have had buyouts totaling $9 billion at a time when the credit markets are in crisis, just how much would it have been if the markets were normal?

Since Flaherty’s Halloween announcement on income trusts we have had buyouts totaling $26 Billion. Using industry average figures this represents a loss in distributions paid to investors of $2.0-2.5 billion a year and a loss in tax revenue to the government of $780-950 million dollars a year.

In addition we have lost Bell Canada in a similar way for an additional lose of nearly $800 million a year in tax revenue compared to allowing it to convert to an income trust.

This has all been caused by Stephen Harpers disastrous Income Trust policy, it couldn’t have backfired in a more spectacular way, rather than fix an alleged tax leakage problem he has already caused a revenue loss of $1.5 Billion, if nothing is changed and the present trend continues this could lead to $7.5 billion loss in tax revenue each and every year.

Not only is Stephen Harper a liar but his government is financially incompetent in a most spectacular fashion.

Jim McCallum got it right again.

"The irony here is that if they thought a new 31.5 percent tax on income trusts and ending interest deductibility was going to help them fund their GST reduction, the plan has backfired.

Once these companies are bought out by large American firms and private equity groups, they will leverage their debt and pay no taxes at all."

List of buyouts to date.

The Cost of Harper's Broken Promises

2007-09-21T20:17:00.001-03:00

Harper's claim to trust and integrity was damaged irreparably from the first day he took office but what about the dollar cost of his broken promises?

Nearly one year after he broke his promise on income trusts we are in a position to put a figure on the cost.

1) A loss of $35 billion and counting to investors.

2) A one time capital gains loss in tax revenue of $1 billion dollars claimed by investors.

3) A loss of approx 800 million in tax revenue due to Bell Canada being sold to private equity and not converting to an Income trust.

4) A loss of about $750 million a year in tax revenue due to the take over by private equity and conversion of income trusts to date

If as seems highly likely the present trend in the industry continues, this loss in tax revenue could easily reach $7.5 Billion a year, something Canadians will have to pay for through reduced government services or higher taxes.

$7.5 Billion dollars is a lot of money equivalent to a 1.5% increase in the GST or $375 per taxpayer, every finance minister’s worse nightmare but do we have a real finance minister?
It doesn’t have to end this way, the problem can still be fixed, the policy tinkered with to avoid the whole sale destruction of the income trust industry and loss of tax revenue.

Breaking the promise can’t have been easy, admitting you got it wrong and fixing it will be even harder.

Tories Scoff At Grit Plan (again)

2007-09-07T15:00:00.001-03:00

Anger over trusts runs deep, say Liberals
Tories Scoff At Grit Plan

The Tories again scoff at a Liberal plan that horror of horrors involves consultations with all effected parties not just a handful of the PMO staff some corporate buddies and paranoid bureaucrats.

Ralph Goodale and John Mc-Callum met with 35 oil and gas trust executives, seeking input on their trust policy they claim is garnering support. The two MPs also promised to scrap the Tory legislation in the 2008 budget, provided the Liberals form the next government. "Yes, we think we will get some votes on this issue," said Mr. McCallum

Chisholm Pothier, a spokesman for Finance Minister Jim Flaherty, said the latest Liberal musings on income trusts can't be taken seriously.

Representatives of the usually Conservative energy trust industry said it has been so badly damaged by the Tory move last Halloween they applaud the Liberal move to consult.

Complex issues demand study from all sides a lesson the Grits have learned well, I call it democracy in action a time when everyone has his chance to be heard, Mr Harper calls it dithering

This closed door approach excluding even his own MPs is why the good ship Harper is heading for an iceberg.

One that even his new light duty summer artic patrol boats won’t be able to save him from.

How to buy your own Income Trust

2007-09-06T14:23:00.001-03:00

Many people have been asking how when an income trust is taken over by a private equity fund, pension fund or other form of structure they avoid paying tax?

More importantly how can they get in on the action?

Here is how.

1) You will need one of the following,

a) A friendly banker

b) Lots of money for a few weeks or:-

c) Friends with lots of money, you have the option of also borrowing, why stop at one trust.

d) You are a registered Canadian Pension Plan

2) You need a target, any cash flow rich public company will do, thanks to Canada’s Jim Flaherty income trusts are now on sale 20% off, happy hunting.

Jim obligingly slapped a new 31.5% tax on them which drastically cut their market value, but don’t worry with your new structure you won’t have to pay any tax.

3) Once you have purchased your Income Trust use all the money that was paid to the former unit holders as distributions to pay the interest on the loan which is tax deductible, you should have lots of money left over which will be taxable. Don’t worry this is what accountants are for.

4) These steps are very important, your accountant will now load up the company with debt and additional expenses, purchasing new toys or another company for you, thus ensuring you never make a significant profit or pay any taxes unlike those poor income trust investors.

5) What to do with all that lovely money which is coming your way? There are a few rules your accountant will help, but how about?

a) Starting your own management and advisory firm (in the Cayman Islands of course) and charging your Canadian company heavy fees, $10 million a year for the onerous task if reading the annual report seems reasonable.

b) Make sure your friends and family form their own advisory firms,

c) You will need new branch offices with suitable accommodation in various parts of the world how about The Bahamas, Dubai, Luxembourg or Paris?

d) You will need new company cars, plans and yachts.

e) Call me I really want to help. (for a modest fee)

6) As you site on the deck of your new multi million dollar yacht watching the sun go down raise a glass to Jim Flaherty and the folly of Canadian politicians

If you are a pension fund none the above need apply, but feel free to adopt any points that appeals.

The government recognizes your members are special unlike 70% of Canadians, the income from these companies you own can flow entirely tax free into your fund. It thanks you kindly for the tax that pensioners from your plan will pay during there retirement.

Ordinary Canadians were able to do the same thing with RRSPs and Income Trusts but Jim fixed that with his Tax fairness plan. Jim wouldn’t even thank them for the tax they were paying in retirement, repeatedly before a parliamentary committee he said money from there grubby little hands didn’t count.

The government of Canada recognizes that your members are indeed special and the large pensions they will be capable of collecting from your fund will put them at the burden of having to pay high taxes in retirement, to ease this burden it introduced Income Splitting to help you, it won’t help the majority of Canadian but you are truly special. (and coincidentally mainly government employees)

Please send a thank you note to Stephen Harper and Jim Flaherty.

This is one of several ways how an ill conceived new 31.5% tax slapped on income trusts is creating a loss in tax revenue, actually creating the tax leakage Jim Flaherty claims he was trying to stop, unfortunately for Canadians the rest of his policies are about as well thought out.

Gath Turners Town Hall Meetings on Income Trusts and
Finances in western Canada Schedule

Does Stephen Harper deserve an Award?

2007-09-04T20:54:00.000-03:00

Breaking promises is nothing new in politics all parties have been guilty, but has Stevie broken a few records?

So far 42 broken promises is probably a record for the total.

Over 30 broken promises in the first 9 months is no doubt a record.

Breaking key election promises on the senate and accountability within hours of being appointed is also no doubt a record.

Although I haven’t been keeping track, the number of lies and smears both in and outside parliament must also be record.

In Canadian history does any other prime minister even come close?

What would be an appropriate prize?

Harpers unfolding Income Trust Disaster

2007-08-22T20:47:00.000-03:00

While Stephen Harper is scurrying around keeping in the dark and keeping his and his MPs mouths firmly shut, I thought it would be a good time to recap on the broken promise that has caused the most controversy, Income Trusts. It touches on many other broken promises and as events unfold is turning out to be a first class policy disaster the sort of thing that would give most finance minister nightmares.

The Story so far

Stephen Harpers breaks a solemn promise not to tax income trusts when his Finance Minister Jim Flaherty celebrates Halloween by announcing the “Tax Fairness Plan” a heavy tax on income trusts packaged with income splitting for retired pensioners a move which reduces the tax burden on high income seniors. The government claims it is losing $164 million a year in tax revenue due to income trusts.

The move shocks the markets and produces widespread condemnation in Canadian and Foreign press

Over the next week Income trust investors who “play by the rules” loss 35 Billion dollars, most have not recovered from these losses a year later.

Over the next months 7 reports by separate experts’ dispute that government is losing any tax revenue from income trusts, many show that trusts are net tax revenue positive.

Before a parliamentary committee Jim Flaherty once again claims that the government is losing significant tax revenue, the figure magically increases to at least 500 million a year.

When asked to show how he came up with these figures he produces 18 pages of blacked out information.

An Angus Reid poll indicates that 92% of Canadians think the government should reveal the blacked out information and explain its analyst.

A parliamentary committee recommends the Income Trust tax be reduced to 10% and be made refundable to Canadians, further study and separate legislation.

The government ignores Canadians and the parliamentary committee representing the majority of Canadians and limits discussion of the issue by incorporating the proposal unchanged into the budget

With enthusiastic support from the NDP the government omits to extend its rules changes to all forms of trusts including private equity trusts and large pension plans. What is left of the Governments "Tax Fairness" argument is shattered

In the following months enough Income Trusts are converted to these other structures to produce a $500 million a year loss in tax revenue to the government.

Bell Canada with its plans to convert to an income trust blocked is taken over by a combination of private (foreign) equity and Canadian pension plans, the government losses a further $800 million a year in tax revenue that income trust investors would have paid on there distributions.

The finance minister Jim Flaherty says, “It’s not my fault”

He does acknowledge that some tax will be paid on pensioners income although he didn’t include the taxes paid by income trust investors in the same way from their RRSPs, which way is it Jim?

The conversion of income trusts to other structures continue at an accelerated pace, if the present trend continues the tax revenue loss will reach $7.5 Billion a year by the time it ends. Equivalent to a 1.5% increase in the GST.

The Harper government continues to refuse to acknowledge or fix the problem it has created, this task will undoubtedly be left to the next “New Government”

Over 2.5 million angry income trust investors show no sign of forgiving and forgetting.

Private equity trusts and pension plans including those of government employees that “make up the rules” benefit.

The average Canadian who “plays by the rules” is left with the multi Billion dollar bill.

Don’t expect a thank you note

Catching up on Broken Promises

2007-08-22T19:38:00.001-03:00

A little catching up to do, I thought I could take a summer break but Stevie never stops. Its old news now, prior to being elected Stevie promised.

"We will purchase three new heavy naval ice breakers, capable of carrying troops. These ships will be built right here in Canada."

"A combined military civilian deep water docking facility in the Iqaluit region. At least 500 sailors will be committed for operating these icebreakers and the docking facility."

"New unmanned aerial vehicle or UAV squadrons in CFB Comox and CFB Goose Bay"

Sounds good and the reality.

Prime Minister Stephen Harper yesterday said his government will spend $3.1-billion for six to eight Canadian-made patrol ships capable of operating in ice up to a meter thick and certain other conditions.
These vessels will be able to capable of traveling in summer ice and be at the mercy of the Artic weather much of the time.
Or maybe he is counting on Canada's failure to reduce greenhouse gases to warm up the Artic enough by the time these vessels are built.

Kind of falls more than a little short, this has the honour of making it to no. 42 on the list of Broken Promises.

Stevie its always a good idea to check on the cost of new toys before promising to buy them for the kids, they get kind of disappointed when you don’t deliver.

Bullying the Press

2007-06-26T21:13:00.000-03:00

This post is a little bit of topic, but as its my Blog here goes.
Ralph Surette in a piece in the Halifax Chronicle describes how he was bullied to make him behave better
" Back in March, I got under the government’s skin with a column on a bunged-up reform of the Fisheries Act. Fishery Minister Loyola Hearn’s assistant called to inform me that "the government of Canada is unhappy with you." I told this to someone in Ottawa, who exclaimed: "That’s them. That’s them exactly. The dirty tricks. The attempt to intimidate. That’s the old Mike Harris gang in control." That includes Jim Flaherty, finance minister."
Full Story
I have heard of trying to influence the press but to my naive mind this crosses the line, supplying the story and trying to get it published is fine but threatening comments like "the government of Canada is unhappy with you." cross the line.
The press seem to lying down like wimps and taking it, I guess it's part of the abuse the press is used to and apparently too afraid to do anything about.

Government Advertising spending up 70%

2007-06-26T21:00:00.000-03:00

Steve Harper used to rip into every Liberal government for their "government advertising",at every opportunity.
In the last election campaign, the Conservatives included government advertising as one of the areas it wanted to clean up under with the Federal Accountability Act.
In the 2006 campaign, the Tories promised to open up the bidding process for government advertising and public opinion contracts to prevent insider firms from monopolizing government business.
Sounds good, and now the sad reality, government spending on advertising is up 70% and non-competitive contracts are up to 26% from 14% under the Liberals
http://www.politicswatch.com/ads-june21-2007.htm
We are going the wrong way Stevie, another variation of the Broken Promise on Accountability

The Atlantic Accord

2007-06-12T20:39:00.000-03:00

Whatever you think of the Atlantic Accord the can be no doubt that Steven Harper promised to honour it, Bill Casey the former Conservative MP claims Mr Harper has made subtle but critical changes to the wording which Harper of Course denies, the Premiers agree the Accord has been broken.
If you introduce a budget with an either/or clause on the Accord it would appear the intent would be to circumvent the intent of the accord, it fact you could ague as the Premiers do, that the very existence of the clause breaks the Accord.
This get the dubious honour of being broken promises number 41

A dishonourable mention goes to Peter Mackay for uttering the statement that
"'We will not throw a member out of caucus for voting his conscience. There will be no firings on budget votes as we saw with the Liberal government'."
True Steven Harper did not utter these words but you can be sure MacKay got his instruction from the control freaks PMO, so unless some new evidence comes to light this doesn’t make it onto Stevies list.

Even stranger is Harpers threat to take the issue to court. Even IF he were to win he would have all of Atlantic Canada mad at him not to mention a few Premiers, and then there are all the other groups he has broken promises too who no doubt would use the opportunity to press there case.
Seems like a no win situation to me, but then the master tactician would know.

It Should come as no surprise that Steven Harper has broken another promise as this post on another Blog explains the Conservative party is build on a foundation of broken promises

http://wheredthatbuggo.blogspot.com/
2007/06/cpc-built-on-broken-promises.html

Stephen Harpers Bad Hair Day

2007-05-03T06:33:00.000-03:00

It would appear from recent news

http://www.canada.com/topics/news/national/story.html?id=6a1c381b-99e3-4fde-b7ea-e724143ff3ba&k=82287

That breaking promises does not bother Stephen Harper as much as his hair stylist, according to recent report he has his own stylist on staff at taxpayers expense, next time I get a haircut I should try sending the bill to revenue Canada.
She certainly seems to get more of his attention than the many Canadians he has broken his word to.
No new broken promises here just the old accountability issue and stealing from taxpayers, just in case we need another reminder

The PMO is quick to point out she is not a clairvoyant as well, too quick!

http://www.canada.com/topics/news/national/story.html?id=eece205d-42c3-4585-b433-48a9b23d0219&k=53835

2007-04-05T20:56:00.000-03:00

Some of Stephen Harpers Broken Promises

What’s your Number?

Will you be next?

1) Promise Made: Mr. Harper campaigned for an elected senate and pledged that “all appointments would be made on merit-based requirements”.
Promise Broken: In his first act as Prime Minister, Harper appointed his campaign co-chair Michael Fortier as a Senator and Minister of Public Works –the largest governmental procurement department and home of the sponsorship scandal. Because Mr. Fortier is not elected, he cannot be held accountable for his actions in the House of Commons.

2) Promise Made: In Opposition, the Conservatives fought hard against floor-crossing. Days before the election, 40 Conservative MPs supported a private members’ bill banning floor crossing without a by-election.

Promise Broken: Within hours of receiving the election results, Mr. Harper dismissed the valuable contributions of many of his fellow Conservative candidates and instead sought out the Liberal Minister, David Emerson, for a key position in his cabinet.

3) Promise Made: Prior to the election campaign, Mr. Harper unveiled his party’s Accountability Act, which aims to “crack down on the revolving door between ministers’ offices, the senior public service and the lobbying industry”.
Promise Broken: The Accountability Act apparently didn’t stop Gordon O’Connor from walking right through this revolving door into the crucial portfolio of Minister of Defence. Minister O’Connor, formerly a lobbyist for the defence industry, is now responsible for overseeing some of the largest defence contracts in Canadian history.

4) Promise Made: Mr. Harper’s election platform committed to strengthening the role of the Ethics Commissioner and preventing the Prime Minister from overruling the Commissioner’s decisions in the application of ethics rules.
Promise Broken: Despite “numerous attempts” to interview Mr. Harper over a four-month period, our new Prime Minister refused to make time for the Ethics Commissioner to discuss his role in the Gurmant Grewal taping affair.

5) The Conservative government announced today that, for the first time in Canadian history, the next judicial appointee to the Supreme Court of Canada will be questioned by a public parliamentary hearing. Although Conservatives promised a free vote in the House of Commons on the appointment of new Supreme Court justices during the election campaign, they will now appoint an ad-hoc parliamentary committee to question the new appointee.

6) During the election campaign, the Prime Minister promised the Canadian people that he would “lead by example”. In his Federal Accountability Act, Harper went so far as to promise that he “will prevent the Prime Minister from overruling the Ethics Commissioner on whether the Prime Minister or an official is in violation of the conflict of interest code”.
“Now, Mr. Harper has admitted he has even gone so far as to try and have Dr. Shapiro replaced, showing utter contempt for the Parliamentary process by trying to unilaterally remove a duly appointed officer of Parliament – an officer seeking to carry out his duties under the law “, Mr. Easter continued.

7) During the election campaign, the Conservatives promised to make all capital gains exempt from taxation, as long as the funds were reinvested within a six month period. The proposal was widely criticized by economists because of difficulties in implementation as well its prohibitive cost.
Two budgets later and still no exemption

8) Stephen Harper also promised to revamp the income support system, to make it more responsive to farmers’ needs, saying “A new Conservative government will scrap CAIS.” Minister Strahl is now saying he will “transform” it.

9) The Prime Minister has repeatedly reiterated his commitment to end “the revolving door between ministers’ offices, the senior public service, and the lobbying industry”. During the last election campaign, he pledged to Canadians that “under a new Conservative government, politics will no longer be a stepping stone to a lucrative career lobbying government.”
But now that Mr. Harper is in power, the actions of many of his party’s members seem to contradict the very wording and spirit of this promise.
According to The Globe and Mail and information posted on the Public Registry of Lobbyists, a host of Conservative strategists, former staffers and political operatives—including former employees from Mr. Harper’s Opposition office, assistants to newly minted Cabinet Ministers, and even old Reform and Mulroney-era aides—have queued up in recent weeks to sway government policy.
“Prime Minister Harper has appointed three former lobbyists to Cabinet: Gordon O’Connor, Lawrence Cannon, and Jean-Pierre Blackburn,” Mr. LeBlanc added, also noting that several PMO staffers including Sandra Buckler, the Prime Minister’s new communications director, along with the chiefs of staff to Minister of Natural Resources Gary Lunn and Minister of the Environment Rona Ambrose, Government House Leader Rob Nicholson, Minister of National Revenue Carol Skelton were also recently registered as federal lobbyists.
Not only do these actions appear to contravene the Lobbyist Registration Act as well as the 2006 Conflict of Interest and Post-Employment Code for Public Office Holders, but they also violated the proposed Federal Accountability Act –the very cornerstone of the Conservatives’ election platform.

10) Mr. Graham also noted that the “Selective” Accountability Act breaks a key Conservative campaign promise to implement all of the recommendations made by the information commissioner.
“Where was the Prime Minister’s pledge on access to information, which was the core of his promise to clean up government?” he said.
Also missing from the legislation was any mention of preventing lobbyists from joining the government, where conflict of interest is an even greater concern.
“This is not surprising given that Minister of Defence Gordon O’Connor is a former lobbyist for major defence contractors,” he said.

11) Mr. Harper campaigned on an elected Senate and then appointed his election campaign co-chair as a Senator;
he vowed to stop the revolving door between lobbyists and government, and then appointed a senior lobbyist as Minister of National Defence; and
he promised Canadians his government would only make “merit-based” appointments, and is now handpicking House of Commons committee chairs.

12) As Leader of the Opposition in May 2004, Mr. Harper pledged to Canadians that a Conservative government would eliminate the GST on gas entirely if prices escalated above 85 cents per litre. Mr. Harper called the GST a tax on tax, referring to the federal excise tax which is also charged on fuel.
I think that the truth of the matter is that higher gas prices are…going to be something that we’re going to have to get used to,” the Prime Minister told reporters yesterday. (April 06)

13) During the election campaign, Mr. Harper promised that Quebec’s role at the international organization would be one of a “participating government,” knowing full well UNESCO’s rules state that only sovereign states may participate. As a result, today’s agreement only gives Quebec an official representative within the Canadian delegation.
Prime Minister Stephen Harper’s government today reneged on their campaign promise to Quebec which would have guaranteed the province a place at the United Nations Educational, Scientific and Cultural Organization.

14) “Last fall, during a rush of promises to garner votes for an impending election, Stephen Harper unequivocally promised to ‘stand up for veterans’ by immediately extending VIP services to the widows of all Second World War and Korean War veterans.
“Today in the House of Commons, Veterans Affairs Minister Greg Thompson confirmed that this government has no intention of honouring this commitment. In fact, yesterday before the Standing Committee on Veterans Affairs, Mr. Thompson had the gall to tell Canadians that it was never promised in the first place, when it is very clearly laid out in the party’s Blue Book for all to see.

15) appointing campaign organizer Michael Fortier to the Senate so he could sit in Cabinet, after years of calling for an elected Senate;

16) implementing an Accountability Act that will actually increase government secrecy and make it less accountable, after running an election campaign on openness and accountability in government;

17) trying to push through a highly politicized deal on softwood lumber that industry representatives oppose because it puts more than $1 billion into the hands of American lumber competitors, after campaigning for years against any deal that does not return 100 per cent of duties paid to the U.S.;
“The Conservatives said they would demand that the U.S. government play by the rules on softwood lumber, and return the more than $5 billion in illegal softwood lumber tariffs to Canadian producers. But the agreement they signed with the U.S. only allowed for $4 billion to be returned to Canadian producers, and even went as far as to leave the U.S. a $1 billion dollar tip.”

18) presenting a budget (2006) that increases income taxes, cuts billions of dollars from social programs and contains no vision for the economic progress of our nation, despite having inherited the strongest financial position of any incoming government in Canadian history.

19) July 14, 2006 Breaking an election promise to implement the Patient Wait Times Guarantee and instead recycling the Liberals’ $5.5-billion Wait Times Reduction fund, but downloading its responsibility to the provinces and territories without investing any new money;

20) The Harper Conservatives misled the public on their plans to arm Canada’s border guards and are now hiding the costs of this expensive campaign promise, says Liberal MP Mark Holland, Opposition Critic for the Canada Border Services Agency (CBSA).
“They now admit that this is a ten-year process and not the short-term solution they pretended it was when they made up this promise on the fly during the campaign,” says Holland. “Now they are refusing to disclose the costs over ten years, and are trying to bypass the scrutiny of the House of Commons Public Safety Committee

21) During the last federal election campaign, Prime Minister Stephen Harper promised that all government public opinion research would be published within six months of a project’s completion. Mr. Harper clearly stated that using public money for partisan polling was an abuse of power that his government would have no part of.
But now that the Conservatives have taken office, Mr. Harper appears to be singing a different tune. With only a month left until their promised deadline the Conservatives have yet to publish the March 3rd poll or the results of the environmental focus group testing.
Recent media reports indicate that on March 3, 2006, the Harper government commissioned an exhaustive poll to gauge public support for their five campaign platform priorities. Even though the poll’s questions were obviously partisan in nature, the $85,446 bill was sent to the Privy Council Office, not the Conservative Party of Canada.
Moreover, the Conservative Party’s most recent year end fiscal report indicates that no money had been spent on polling, yet we know that polling is happening. Canadians are right to wonder just how much of their hard-earned tax dollars are going towards partisan public opinion research.

22) The mean spirited cuts by the Conservative government announced this week may appeal to his socially conservative friends but they hurt so many others including women and aboriginals,” added Liberal Critic Anita Neville. “The Prime Minister has cut 39 percent of the operating budget from Status of Women, and he has cut the Court Challenges Program. During the election Stephen Harper said he would uphold the government’s commitments to women. Why has he broken that promise?

23) The Conservative federal election platform specifically states: “A Conservative government will…stop the Liberal attack on retirement savings and preserve income trusts by not imposing any new taxes on them.”
On Tuesday, Prime Minister Harper’s Finance Minister Jim Flaherty announced that income trusts will be taxed like corporations starting in 2011, blatantly contradicting a major Conservative election promise to Canadians.
“Since the last election, many Canadians put their money into income trusts precisely because Prime Minister Stephen Harper told them to do it, and told them he'd protect them,” said Liberal Leader Bill Graham. “This isn't about corporations. It's about Canadians from all walks of life that’ve lost their savings. It’s about Canadians sitting around the dinner table with their heads in their hands saying ‘what do we do now?’

“The Prime Minister is the author of their fortune. Yet he refused to admit it's him that lured Canadians into investing in his promise. Will the Prime Minister at least admit that he misled Canadians and offer them an apology?

24) “In January the Prime Minister signed a declaration that he would support women’s rights and that his government would take ‘concrete and immediate measures’ to uphold its commitments to women. But last month this government did just the opposite when it eliminated equality from the mandate at the Status of Women.”

25)“Minister of Environment Rona Ambrose has repeatedly broken her promises to the people of Quebec,” said Quebec Liberal MP Raymonde Folco. “First Ms. Ambrose said she was open to allocate $328 million to Quebec. Now she is not.

26) “During the election Canadians were duped into believing a Conservative government would honour the terms and objectives of the Kelowna Accord. But that promise was broken with the Conservative budget, which cancelled the $5.1 billion agreement.

27) “The Conservative platform promised to cut income taxes for all Canadians, yet on July 1, taxpayers noticed an extra hit on their paychecks. The promised tax CUT had turned into a tax HIKE at the lowest bracket, hurting virtually all taxpayers.”

28) Passing a Federal Accountability Act that Information Commissioner John Reid describes as “retrograde and dangerous,” and that breaks 21 election promises relating to conflict of interest and failing to change the Access to Information Act;

29) Breaking an election promise of openness and accountability by refusing a call from Canada’s Chief Electoral Officer to open the party’s books for a full independent audit after Prime Minister Stephen Harper refused to admit that his party had violated election financing laws;

30) Breaking an election promise that no province would lose out in any new equalization program by back-peddling on a firm commitment to remove non-renewable resource revenue from the equalization formula, which would result in hundreds of millions of dollars being lost to some provinces;

31) Breaking an election promise to create 125,000 new spaces, while canceling the Liberal early learning and child care agreements to pay for a $100-a-month taxable allowance that does nothing to help families in need of child care;

32) Breaking an election promise to honour the $6.9-billion Canada-Ontario agreement;

33) Breaking an election promise to immediately compensate victims of Hepatitis C;

34) Breaking an election promise to outdo the Liberal government on investments in integrating foreign-trained workers into Canada by actually investing nine times LESS.

35) Breaking an election promise to reverse the Canada Post decision to close down the Quebec City mail sorting plant and save 300 jobs from moving to Montreal.

36) The Conservative government’s failings on immigration include a broken promise to establish a Foreign Credentials Agency, the abandonment of the Liberal government’s work on family reunification, and a failure to do anything to decrease backlogs in immigration applications. It has also slashed $20 million set aside to update Canada’s citizenship laws.

37) ACOA “This is a minister who campaigned on a promise not to cut funding to the Agency and then cut millions of dollars from it just a few weeks ago,” said Mr. D’Amours. “Now service is going downhill fast while Minister MacKay travels the globe, leaving the needs of his own constituents in limbo.

“Of course, we should hardly be surprised. This is the same government that referred to ACOA in the past as ‘corporate welfare.’ It appears Mr. MacKay agrees with this. He owes Atlantic Canadians an explanation as to why he continues to ignore them,” he said.

38) Equalization:- Prime Minister Stephen Harper wrote a letter to Williams in January 2006 vowing to keep non-renewable energy resources out of the equalization formula.
"The Conservative government will ensure that no province is adversely affected from changes to the equalization formula," Harper wrote at the time.
Newfoundland and Labrador Premier Danny Williams said the federal budget released Monday is a betrayal of his province, and he wants voters to punish the Conservatives in the next federal election.
"What they've done today is basically and completely shafted us," Williams told reporters after the budget was released. "It's scandalous what they've done, when you think of it."

39) Child Tax Benefit Stephen Harper had been campaigning to have the child tax benefit increased to $5100 per child. Instead he increased the Child Tax Credit which will do absolutely nothing for the poorest children whose families have no taxable income.

40) Prime Minister Harper had pledged to boost aid spending beyond Liberal government's planned 8% annual increases to achieve the average aid donor country performance by 2010. While the 2007 Budget reported that $315 million would be added to Official Development Assistance for this current year, 2006/07, it promised no new funding initiatives for 2007/08.

41) Whatever you think of the Atlantic Accord the can be no doubt that Steven Harper promised to honour it, Bill Casey the former Conservative MP claims Mr Harper has made subtle but critical changes to the wording which Harper of Course denies, the Premiers agree the Accord has been broken.
If you introduce a budget with an either/or clause on the Accord it would appear the intent would be to circumvent the intent of the accord, it fact you could ague as the Premiers do, that the very existence of the clause breaks the Accord.

42)

In the election campaign Stephen Harper to increase Canada’s presence in the Artic by.
By building three heavy armoured Icebreakers capable of carrying troops.
Building a year round combined military civilian deep water docking facility in the Iqaluit region.
Establishing a new unmanned aerial vehicle or UAV squadrons in CFB Comox and CFB Goose Bay.
Instead he delivered a commitment to build.
Six to eight Canadian-made patrol ships capable of operating in ice up to a meter thick and certain other conditions. These vessels will be able to capable of traveling in summer ice and be at the mercy of the Artic weather much of the time. I guess he should have checked the price tag before opening his mouth.