Jean Chretien And The Border

Former Prime Ministers never die. They join law firms instead.

Brian Mulroney is a Senior Partner in Montréal’s Ogilvy Renault and John Turner is with Toronto’s Miller Thomson. Why, even Pierre Trudeau did that. He joined the Montréal law firm Heenan Blaikie as Counsel. Former Ontario Premiers Rae and Peterson also joined law firms as have other Premiers.

It hardly is a surprise then that M. Chretien also joined a law firm when he left office. Interestingly, that firm is Trudeau’s old firm Heenan Blaikie.

As you may recall, the former Prime Minister was deeply involved in the border file. After all, he and former Ontario Premier Ernie Eves were responsible for the $300 million Border Infrastructure Fund and the setting up of the Joint Management Committee.

Interestingly, BIF was set up so that

• “action that can be taken in the near term to address congestion issues on the Windsor side of the Windsor - Detroit Gateway…
  
  Eligible projects for the new program fall into three distinct categories:
  
  1. Physical Infrastructure: Projects for the improvement of physical infrastructure at or around border crossings include dedicated lanes, local access roads and other transportation infrastructure leading to and from a crossing; additional lanes and approaches; and Canadian highways that provide direct access to a border. These improvements to infrastructure will better facilitate the free flow of people and goods across the border. "

One of the criteria in choosing projects included

• “Co-ordination with adjacent U.S. border facility and road access network"

That sure sounded to me like building a road on the Canadian side that would link up to the Ambassador Gateway project on the American side. After all, the projects were for existing crossings such as the $20 million that the Federal and Provincial Governments offered to the Detroit/Windsor Tunnel for improvements.

As we know now, nothing was done to build that road. I always wondered why not if it was so important to take interim steps. The answer has become clear. If that road had been built to the Ambassador Bridge as it should have been done under the BIF program, then there would be no need for a DRIC bridge.

Accordingly, that road would never have been built unless the Bridge Company had sold out. If that happened, we still never would have seen the DRIC bridge either but rather a twinned bridge would have been propsed as teh ideal solution to tie into the Ambassador Gateway project.

What has Chretien’s joining with a Montréal law firm have to do with the border file now you might think. Take a look at this:

• “Billions promised for projects
  Needed Boost
  
  Kathryn Leger, Financial Post
  
  Enthusiastic talk about infrastructure spending by political parties in the federal election campaign represents stability in the midst of deepening market turmoil and expected economic fallout facing corporate Canada…
  
  Infrastructure lawyers say they see little real difference between the Conservative or Liberal infrastructure spending plans, nor do they see much of a change in direction following the Oct. 14 election...
  
  Those plans include infrastructure framework agreements between the federal government and Ontario (Ottawa is putting up more than $3-billion with matching funding by the province for the $6.2-billion accord) and smaller, similar cofunding agreements with Quebec and Manitoba.
  
  "They are doing lots of talking about infrastructure, and whether one plan is better than another is hard to say," Mr. Younger said. "Ultimately, it is a question of what the federal budget can afford."
  
  Michael Ledgett, a Toronto partner in Heenan Blaikie's infrastructure and public-private partnerships group, shares the view. "I think the Conservatives inherited and adopted to a large extent the point of view of the Liberals, and they have expanded that and they have gone along the same trajectory," said Mr. Ledgett, who is acting for the federal government for the proposed (since 2004) Windsor-Detroit bridge and border crossing, a project eventually expected to top $1-billion.
  
  "I don't think that the positioning of either party is much different," he said. "They have both adopted the point of view that infrastructure is decaying and needs to be replaced and renewed, and that one of the primary tools for doing that is public-private partnerships."

Is this just a mere coincidence or something more? It would be interesting to find out when Michael Ledgett was retained and by whom since it appears that he is involved in the P3 side of the issue. It would also be interesting to know if the former Prime Minister is still involved as well.

Depending on the date that he was hired, it may make a mockery of the suggestion that the DRIC was looking seriously at the Governance issue. If it was done early on, then the entire DRIC process is suspect as far as I’m concerned. It means to me that the decision had already been made as to what was to happen at our border crossing and that the DRIC process was designed to accomplish what had already been decided. It was mere window dressing to make us believe that we had a voice in the process.

Our infrastructure lawyers are such political geniuses as well

• "nor do they see much of a change in direction following the Oct. 14 election"

Look at Windsor. There are enough infrastructure projects to go around for everyone so that there is no need to bicker. I find it fascinating that a law firm with such “Liberal” ties is still working on a file for the Conservative Government. It was just as fascinating to me that the Conservatives as one of their first pieces of legislation introduced Bill C-3 which was effectively the Bill that the Liberals introduced previously.

Then again, why should it change with the bureaucrats in control. They have their "slam dunk" Plan which they have sold to the Politicians.

It does not matter that the Bridge Company helped make this area economically successful by making its bridge the number one border crossing in North America at its expense. It does not matter that the Company virtually ended truck backups by opening up Customs booths at its costs while Governments would have invested hundreds of millions of taxpayers dollars and accomplished little with silly ideas like Eddie’s Horseshoe Road. That does not count for anything. Heaven forbid, they made money on their investment.

In the end then, all this may be exactly what many suspected years and years ago. This border crossing issue is nothing more than an anti-Bridge Company exercise in return on investment in the guise of political economic nationalism with money as the guiding principle for its proponents.

Really, how can anyone take this file seriously when one of the key advisers to ex-Prime Minister Martin, Richard Mahoney, was also in a senior management position with Borealis Capital, one of the competitors to the Bridge Company with its DRTP project.

It is as simple as that when one considers that under the Government policy on both sides of the river if it comes into being, the P3 will be operated by a private interest for 75 to 99 years. Forcing out one private enterprise operator for another just raises a lot of questions that may one day be litigated before we find out the real answer to them. It may be exactly what Gord Henderson allowed to slip out back in February, deliberately or not, I am not certain:

• “How can Canada call itself an independent, self-respecting nation when it allows a privately owned firm, headquartered in another country, to arbitrarily determine how and where visitors get to enter this country from the U.S.? Where is our legitimacy as a country when one billionaire, 80-year-old American transportation tycoon Matty Moroun, and his supporting cast, can call the shots in determining whether motorists arriving in Canada are allowed to use a key artery, northbound Huron Church Road, to reach city destinations…
  
  We didn't make much of it at the time. But we surely understand now why Herb Gray moved heaven and earth, as Liberal minister responsible for FIRA (Foreign Investment Review Agency) in the early 1980s, in a failed effort to prevent Moroun's trucking empire from acquiring the Canadian half of the bridge. That battle was lost in the federal courts and ended with an out-of-court settlement following a marathon legal struggle.
  
  Gray understood what was at stake. An economic nationalist, he recognized that having the nation's most critical border crossing owned and operated by a private company, a foreign controlled one at that, would not be in Canada's best interests. He knew that real countries, serious countries, don't let private companies run their borders.”

It is a shame that so many people have been suckered so easily. Will our economic nationalists be happier if the new DRIC bridge is run by the "Australians" that the MDOT people talked about at the Cropsey hearings. I wonder if they are the same ones as the group who used to run the Tunnel. Perhaps they should ask Windsor Mayors/WTC Chairs what they think of that idea.

As I said before, this border file has many twists and turns. Add this one to the list as well. Its significance...your guess is as good as mine. But I am certain we will find out one day soon.

Create-Eh-Cup

I hope you are enjoying this magnificent holiday weekend.

This is the beginning of the over-indulge season isn't it! All of that delicious food that just has to be eaten. We can diet in the new year!

Most of us have a lot to be thankful for...family, health, a good job, security. However, the stock market melt-down, bankruptcy of major banks world-wide and the problems in the financial market remind us how fragile everything is.

For many of our friends and neighbours, the loss of work because of the slowdown in manufacturing, the decline in house prices and the difficulty in making mortgage payments make this a very difficult time.

Windsorites are very generous, opening their hearts and wallets to complete strangers just to help out in times of trouble. This is one of them.

My daughter came up with an idea...Create-Eh-Cup...which I hope you will consider. It is not too much to ask of you is it but it can help out a family in a tough time of the year. Take a look at what she is suggesting and particiapte.

Send me a copy of your Create-Eh-Cup for her to post but more importantly, start putting aside a toonie. Perhaps you might consider it the cost of "subscribing" to this BLOG!

Thanks for your help.

Create-Eh-Cup

• No one should have to suffer this holiday season!
  
  Think about how much you spend per day on caffeine at your local Tim Hortons, Starbucks, or even at the fast-food drive-thru on your way to/from work, as a social activity or even at school.
  
  From October 14, 2008 until December 15th, this is my 3-step idea that I’d like to propose to all my friends on Facebook:
  
  1. Save ONE cup of any size that you purchased and decorate it however you wish. Use wrapping paper, newspaper, if you have kids, have them contribute by painting or colouring, but make sure you put your name on the front and place it somewhere accessible in your house to be displayed.
  
  2. At the end of each week, place a single toonie in that cup! It’s that easy.
  It's not about how much a person gives (thus the tiny amount of $2/week), it is about getting as many people to participate in a cause to help those in need in our city.
  
  3. On December 15th, I would love to have everyone send the total amount OR go and buy some groceries and donate to one of the following food banks.
  
  **Please start sending me photos of all your creative cups and I will post them!**
  
  Thank you to everyone who is willing to contribute!

For a listing of Food Banks in the area, go to
FOOD BANK LISTING

Want To Buy A 1999 Arena

It's called high pressure sales tactics. Now you know how it feels when you buy a used car with low mileage at a terrific price and find out it's really a clunker that costs you more in the long-run and really does not suit your purposes.

We had rammed down our throat by a Mayor and old Council afraid of not being re-elected a "used" 1999 concept designed for a family of 35,000 residents in Port Huron at a cheap price instead of buying in 2006 a recreational and arena complex needed by a City family of 200,000 people. The newbies on Council went along with it too. And we bought the deal!

We saved money over getting something that we really needed. According to Councillor Loopy:

• "You have to be realistic. I can appreciate you want it more comfortable, but I don't know how much more that would cost."
  
  Coun. Percy Hatfield, a member of the arena construction steering committee, can answer that: "It would cost millions more ..."

In passing, we can assume that Councillor Loopy will not be running for Mayor. Is that why his name appears in print to deal with the criticism rather than that of the Chair, the Councillor formerly known as Councillor Budget. Is that why the Ward 1 Councillor will NEVER appear on John Fairley's interview progran? John would rip him to shreds!

What's everybody getting so excited about now respecting the new arena? It has always been about politics--getting re-elected--and not the arena. We rushed because Project Ice Track went to Tecumseh after they were high-sticked in the face by the City in the first place. We made a deal even before signing the contract. Time was of the essence.

Because of the costs of that arena, we effectively ran out of money for other projects until it is paid off. But it did pay-off for 4 years for those who came back in office.

I have always been concerned about the arena deal and how the process was handled. Does anyone have any idea what it is really costing us when one adds in the extras including the road-building?

To keep with the car analogy, as the Star said about the LaSalle arena:

• "LaSalle taxpayers not only have a right to feel angry. They have a duty. Their town offered them a great deal on a car and only told them after the sale they would have to pay extra for the engine. "

Why get so upset now? Instead of partnering with a private enterprise party who was to bear all of the risks over and above a $15M taxpayer payment by building a new arena downtown to revitalize the area, we are taking all of the financial risk to create a "new downtown" in the East End. And we gave away a prime piece of downtown real estate for good measure.

The picture above came from a BLOG I wrote in October, 2006. Why the fuss? As I wrote before:

• "You now know that Councillors were in such a rush to do something to get re-elected that they had no idea what they were getting and that they were buying something that did not work for us"

I asked then:

• "Are we getting a state-of-the-art 2006-designed facility that makes us a world leader in arenas or something designed in 1999 (or perhaps earlier) that was to be built in Port Huron? Have there been new, innovative design elements introduced since 1999? Has anyone compared what this arena is like compared with other arenas in other cities? Note that in its Report, Administration has said that it has NOT completed (or has it even started?) its due diligence of the PCR proposal. That was supposed to take 90 days."

It should not be a surprise that there is a lack of seating. If we had elected ex-hockey dad, Dave Wonham, as mayor, we would not have had this issue. He first pointed out the lack of seating at the three "Practice rinks" so tournaments could not be held. Read on from my October 10, 2006 BLOG "What Does $48 Million Get Us--A LaSalle Arena:"

• "Here is something that might give Hockey League people pause. Where are the seats for the Practice Rink area? I did not see them on the PCR plan in their package! They were not referred to in their specs.
  
  I thought I heard that there was going to be seating for 280 for the three "Practice rinks." But weren't they to replace Riverside and Adstoll? Does such a low seating number make sense if the way money is going to be made is to hold hockey tournaments, ice skating shows etc. Where are people going to sit? The PCR proposal only seems to include "in-rink and heated out-of-rink public viewing galleries for each rink" but no description of any seating.
  
  Then this is NOT replacement but changing the whole nature of what the Community rinks were. It is nothing more than three ice-pads. It is NOT replacing Adstoll or Riverside. How could it be?
  
  I received this information in an email from Mayoral candidate, David Wonham, who is a "hockey dad." His children played hockey and he travelled around to other cities for tournaments over the years.
  
  "Adstoll sits 900, and has had 1300 at one time, Riverside's seating is similar [700 seating but sometimes up to 1,000 people attend]. Is the new facility of PCR only for practice ice, and not suitable for games, championships or tournaments.... Adstoll is about 60% WMHA, and hosts Riverside, Sunparlour and the Riverside Skating club also. Riverside is similar, but also has a large hall attached."
  
  The cost of a Twin pad recreational facility was said to be in the range of $22 million. We are to get an extra rink with PCR but obviously, we are not getting the "arena" aspect of the existing sites if PCR's total price is $48M."

Here is what PCR offered and what we bought. Read it carefully:

• "The Centre we propose is approximately 288,000 sqft which will include a spectator arena....Also included within this structure, provisions have been made for 3 recreational ice pads and a community center."

We got what we paid for: provisons!

That's why Councillor Loopy can insult taxpayers by saying:

• "we're locked in because of the design. He said Windsor got a great deal on a completed design and that if the same arena were to be built in some other community today it would cost up to $15 more than what the city paid."

Yes Councillor, that is why I do not take the supposed cost of the arena seriously at all. Again as I BLOGGED

• "how [can] a 1999 arena priced at $60M be built in 2006 after the increase in costs over that time period (eg 35% for the bus terminal, tripling for streetscaping) for $48M"

The Mayor seems to have forgotten also why the rinks opened early, before everything was completed. It's that damned amnesia disease striking again at City Hall. In his CKLW interview he claimed that the Community rinks were opened since users wanted to get on the ice to accommodate their schedules. He also said if it was up to "us," the entire facility would have opened up at the same time.

That is not quite right Mr. Mayor. As I BLOGGED before:

• Remember the story:
  
  "The city will explore the possibility of moving up the opening date of its new arena, at a projected extra cost of at least $500,000.
  
  Originally planned to open in January, the $64-million, 6,500-seat WFCU Centre could open in September, arena steering committee members have been told. That's because part of the 302,000-square-foot complex on McHugh Street will be ready by then, parks and recreation director Don Sadler said Thursday."
  
  We were not told the reason why the opening date might have to be moved up. However, it appears that our Arena geniuses did not consider that if the Arena opened in January, 2009 groups would have booked their ice time elsewhere. The Arena would lose big bucks being empty for months:
  
  "J. Wilson is concerned that in 2009 half of the pads could be empty when groups book elsewhere and don't sign on to the new facility. She adds that the business case presumed a full year of operation. She can prepare a report for various operations based on concerns and look at nine pads, closing both Riverside and Adstoll."

For those of you who thought we would get at least as much as we were giving up by closing down Riverside and Adstoll and that we would get hopefully more after spendign $65M and counting, were you ever wrong. All we got was a TRADE-OFF. But hey, Eddie got his second term so he is happy:

Stop complaining and whining and naysaying. We wanted an arena. We got one. Who cares if it works or not. The Cleary turned into a white elephant. So will this arena. We'll just have to live with it now.

And some want Eddie to do a Tunnel deal or be involved in the design of a road to the border or take seriously a canal project. HELP!

What Are Friends For

Our sports jock Mayor, Eddie Francis, must be livid. He has to be fuming. He has to be outraged.

It would not surprise me one bit to hear him tell everyone on his CKLW interview show on Tuesday, the day of the federal election, to vote Liberal! That would serve them right.

And why not? Where is the gratitude shown by the Conservatives and the NDP?

Poor Eddie. He had to travel to London, England to try and get the Red Bull air races to come back to Windsor/Detroit. He had to spend several days there handing out his business cards to the movers and shakers from around the world who also came to London for the race. Do you see our Federal Politicians trying to help him out? Not a chance.

Eddie had to go and meet with the people from Detroit Riverfront Conservancy to try to salvage the air races for this region. Imagine that he would be able to meet again with Roger Penske so they could talk about their good times together with Super Bowl and the Grand Prix. Just in case you did not know, Roger is tied at number 321 as well on the Forbes 400 List. Do you see our Federal Politicians trying to help him out? Not on your life.

Instead what does Conservative Michael Fortier do? Does he show gratitude for Eddie’s assistance in helping to stall off the Bridge Company and putting roadblocks in their way to give the DRIC people the chance to build their bridge?

Oh no, he has other people to help:

• “Federal International Trade Minister Michael Fortier says he is seeking a meeting with Formula One boss Bernie Ecclestone to try and save the Canadian Grand Prix [in Montreal] for 2009. Fortier met Thursday with Montreal Mayor Gerald Tremblay and Quebec Economic Development Minister Raymond Bachand to discuss a course of action.”

What about NDP leader, Jack Layton? You would think that he would be pleased that Windsor sends two NDP MPs to Ottawa. How does he show his gratitude:

• “NDP Leader Jack Layton says he'd spend federal money to bring the Canadian Grand Prix back.
  
  Speaking on the Montreal morning television show Salut Bonjour, Layton said the event is very important -- and not just for fans of motor racing.
  
  He says the event is important to the local economy.
  
  He says an NDP government would partner with the city and the province of Quebec to help restore the event to the motor racing calendar.”

Well fellows...where are the federal funds for Windsor if I may be so bold to ask? Did anyone call up Eddie asking how Windsor could be helped? There goes Councillor Valentinis asking his question again!

If all that is not bad enough, then those people in the Fort Erie/Buffalo region are trying to muscle in on our idea of sports as an income generator for the region. First THEY want to build a new bridge which Eddie’s good buddy, L. Brooks, says may take business away from this region. Then THEY take OUR Cabinet Minister, Sandra Pupatello, to the United Arab Emirates to help them out:

• “Talks of building a NASCAR-ready race track in Fort Erie have been revived to the point that several leaders from the town are in Dubai meeting with potential investors.
  
  Officials from Fort Erie Town Hall confirmed that Mayor Doug Martin, Jim Thibert, general manager of the Fort Erie Economic Development and Tourism Corp., and Sandra Pupatello, the Ontario Minister of Economic Development and Trade are in the United Arab Emirates as central figures in the Ontario International Investment team that is taking part in Dubai’s Cityscape Expo.
  
  While there, the trio are reportedly meeting with investors in the proposed $150 million (Canadian) speedway that would see a one-mile oval track and grandstand constructed on the west side of the Queen Elizabeth Way highway between Bowen and Gilmore roads — less than two miles from the Peace Bridge…
  
  The track could have an economic impact in Fort Erie, Niagara Falls and the Niagara Region in the $150 million to $200 million range.”

Why is Sandra helping THEM out when WE could be building a track here.

Hey I have an idea....perhaps Eddie should try to talk to some of his "enemies" instead for help and perhaps money. It cannot be any worse than relying on some of his so-called friends.

Stories For The Holiday Weekend

Gobble gobble gobble.

No that does not mean "Eat Beef this weekend!" It is Turkey talk for here is some interesting reading for your Thanksgiving holiday. Enjoy the beautiful weather!

SLAM THE PROVINCE MEETING

I see that there is another Special “Eddie is our saviour” Council meeting

• “A special meeting of Windsor City Council has been scheduled for Thursday October 16, 2008 at 6:00 p.m., Council Chambers, Windsor City Hall. The agenda will include a Border Update. Please note that TV Cogeco Cable 11 will broadcast this meeting LIVE.”

Someone obviously went to a lot of trouble to have this event televised so presumably this will be a big extravaganza in which the Mayor will tell us about Son of Greenlink which has already been rejected by DRIC.

Expect to see Parsons Brinckerhoff in attendance, probably making a presentation with all of the errors made by DRIC being pointed out in great detail. I wonder if David Estrin will dare show his face as the City’s lawyer. If so, I am sure that the Bridge Company lawyers would like to see that as well.

I would have liked to have given you a lot more information by calling up one of the Councillors and asking the question about what is going on. However, I decided that there was no point in doing so. I doubt if they have seen the Agenda for the meeting yet. Unless they are loopy!

I note that the Agenda for the October 20 meeting is to be posted today but no time is given for the Agenda for the meeting on the 16th to be posted. I wonder what else is on the Agenda or are we to be surprised by that as well.

I wonder if Delegations will be permitted to speak at the session. Probably not because Eddie will not want to hear himself being blamed for wasting millions of taxpayer dollars and stalling on 15,000 jobs. Nor will he have the nerve to listen as he is being slammed for still spending thousands on another rejected Plan. He would be so busy interrupting people with his Points of Clarification as delegations spoke that the "kill" button on the PA system would be worn out by evening's end.

Oh well, I assume this is the justification for months more of more stalling and delays. The big question of the evening is whether or not our Mayor will threaten litigation. By the way, on John Fairley's show, Councillor Valentinis made it clear that nothing will happen as far as a decison being made for litigation for months and months and months from now so don't take anything said seriously.

SETTING THE RECORD STRAIGHT

Mr. New Detroit Mayor would you please watch what you say so that Messrs. Sutts and Francis don’t have to clarify the record again to let people know what is going on. Remember, they were forced to do so by your predecessor.

We learned from a Free Press article on the ninth that:

• “Clifford Sutts, Windsor's lead negotiator on the tunnel, said he had not yet heard of the Harris proposal and declined to comment on it. He said Windsor Mayor Eddie Francis is awaiting a call from Cockrel on the issue once Detroit's new mayor settles into office.”

Yet you claimed, Mr. Mayor, in a Free Press article on the eighth:

• “A big part of the deficit stems from Kilpatrick’s failed attempt to sell Detroit’s half of the Detroit-Windsor Tunnel to raise $65 million, a proposal Cockrel said is dead. Cockrel said he has spoken with Windsor Mayor Eddie Francis about a modified proposal where the two cities would enter into a joint management agreement.”

You better clarify immediately exactly what you mean by that Mr. Mayor. I expect that your conversation with our Mayor took place some time ago but who knows. On September 18, you said

• "As it stands at this point, the tunnel deal as we know it is dead," Cockrel, who will be publicly sworn in as mayor Friday, said during a news conference at Detroit city hall. "But I think there is still some potential there.
  
  I've already had some preliminary discussions with Mayor (Eddie) Francis about that. I look forward to continuing that dialogue."

I note that Mr. Sutts did not say that he had not spoken with anyone from Detroit, just that he did not know about the Harris proposal

Who needs another accurate but narrow answer about what is going on with the Tunnel deal.

EDDIE’S WAY OR NO HIGHWAY

I find it interesting that the City and County seemed to have agreed that poverty is an issue for our area and to work on a solution.

• “Windsor and Essex County councils agreed Wednesday on several new regional initiatives -- including development of a broad-based anti-poverty plan.”

Moreover, it finally appears as if our Mayor understands that infrastructure jobs can be the way out of our economic dilemma:

• "Instead of plummeting from $230 million in 2002 to $158 million this year, Windsor's debt would be nearing $300 million, with punishing interest rates crippling the city's capacity to respond, including investing in labour-intensive capital projects."

Accordingly, one might have hoped that he would back off of his ridiculous opposition to the Ambassador Bridge Enhancement Project and the DRIC road to the Ambassador Bridge so that 15,000 or more high-paying infrastructure and spinoff jobs could be created. At the very least at the Joint Councils meeting, one would have expected that Eddie would have looked at some way to work out an arrangement with respect to the Manning Road construction so that some jobs can be created to give hope.

Not our Mayor. Oppose, oppose, oppose! And the heck with new jobs.

• “Burton's comment that the city shouldn't be putting up roadblocks to county projects like the widening of Manning Road didn't go over well with Windsor Mayor Eddie Francis.
  
  Francis said the city has the right under the environmental assessment process to comment on road projects in neighbouring municipalities.
  
  Francis said the city supports widening of County Road 22, E.C. Row Expressway and Manning Road, but objects only to the timing of the work, to ensure the Highway 401 extension to a new border crossing is completed first.
  
  "We're not against Manning and E.C. Row. We are against the sequencing," said Francis.
  
  "We can disagree without being disagreeable."
  
  Essex Mayor Ron McDermott said the congestion on County Road 22 and Manning Road needs to be corrected sooner rather than later "when half of us will be dead."

That’s it. No jobs. They did not bow down to Eddie’s wisdom.

CREDIT UNION SHOULD DEMAND ITS MONEY BACK

The subject of the Windsor Essex Development Commission and its future should have been one of the issues that was discussed at the Joint Councils meeting.

The City, County and the Woodslee Credit Union are major participants in the Windsor Star magazine that is going across Canada and have contributed significant sums to the ongoing operation of the WEDC.

The Development Commission some might argue is doing terrific work these days:

• They had a nice trade show in London, England the results of which no one has yet chosen to tell us
• “The Windsor-Essex Development Commission's website -- www.choosewindsoressex.com -- took a first-place award at the Economic Developers Association of Canada's annual Marketing Canada Awards”
• With the proactive and supportive stance of the WEDC, a Michigan-based information technology company opened up an office here with one employee although they hope “to add between 15 and 20 employees within the next year or two.”

To be honest though, who needs them. We ought to scrap the organization, refund the money given to support the group and let Windsor’s Mayor do all the work. He does it all now anyway.

After all, the Mayor just returned from overseas after talking to the Red Bull people in London and then he went to Germany to talk to the onion importers. Mind you, I don’t remember hearing the results of that trip either.

• “The mayor said that he will also use his brief trip overseas to visit Frankfurt, Germany, and hopefully advance the establishment of a perishable food distribution centre in Windsor, a proposal he has been pursuing for almost a year.
  
  "There have been a lot of steps taken on developing a business case," Francis said. "This trip is an opportunity to meet with the people in Frankfurt and determine the next step."

Now, his office handles new business opportunities for local companies. Here is the press release:

• “Lockheed Martin Seeks Business from Local Aerospace and Defence Companies
  
  Mayor Eddie Francis wishes to advise local companies of an opportunity from the Consulate of Canada in Philadelphia, PA. In partnership with the Embassy of Canada in Washington D.C. the Consulate requests applications from Canadian Aerospace and Defence Companies interested in doing business with Lockheed Maritime Systems & Sensors (MS2). The companies who are selected by Lockheed Martin will be invited to meet with MS2 on Wednesday, November 12, 2008 at MS2’s facility in Moorestown, New Jersey. Successful Canadian companies will receive an executive overview of MS2’s ongoing projects and requirements and attend one-on-one meetings with engineers and project managers responsible for vendor selection.
  
  Applications must be submitted by Friday, October 10, 2008. Please contact the Mayor’s Office for an application if your company specializes in the following: green power; defense-related companies, R&D or SME with capabilities for next generation; Technical Innovate Products, using COTS; and Training.”

Who needs a Development Commission with Eddie on the job! Just keep your mouths shut business people and you can get in on the new business opportunities through Eddie's office. It looks like he will control that now.

Let me see now, with my $25 pro rata refund of the Estrin legal fees, my share of the DRIC project reimbursement and money back from the WEDC extravaganza, I might be able to cover part of my increase in taxes.

Bridge Company: We Are Going To Build That Bridge

Nothing like being outspoken to shock some people back to reality from their DRIC dreams!

I would imagine that a number of bureaucrats on both sides of the river have been searching through their archives to try to figure out where Dan Stamper is coming from:

• “Ambassador Bridge has "right" to twin span
  Stamper: They have to live up to the law
  
  The Ambassador Bridge company claimed Friday it has all the approvals it needs to start building a six-lane twin span beginning next year.
  
  Legislation from the 1920s when the bridge was constructed provides the company all it needs to push forward with construction, said president Dan Stamper.
  
  "There are agreements and legislation out there," he said. "I think we have the necessary approvals. We are going to build a bridge because we have a right…"
  
  "My hope is people will live up to legislation and agreements made by everybody through the years. I think anybody against replacing an 80-year-old bridge has a different agenda -- one that's not good for the public or transportation.
  
  "Other than political interference, I see no reason we won't be in the ground next year."

His comments are hardly a surprise. No one as shrewd and as smart as the Owner of the Bridge Company would spend a decade and a half billion dollars building his Enhancement Project on spec! He must have an iron-tight, legal right to do so. I took Stamper’s comment in the Star and earlier ones in almost the same terms in a Canadian and American publication as a reminder to the Governments that the Bridge Company cannot be stopped by bureaucratic foolishness in breach of their legal obligations.

What is interesting to me is the timing. It is very clear from the Cropsey hearings that something is going on in the background. Senator Cropsey’s hints about agreements suggest to me that the Senate was provided with information that they had never seen before.

It was certainly not provided by MDOT, over whom the Legislators are supposed to have oversight. Aren't the Legislators supposed to be kept properly informed by MDOT when their representatives appear in front of them?

That did not happen. Is it a game in which certain information is not to be provided unless specifically asked for? Isn't MDOT supposed to provide them with complete and proper information so that informed decisions can be made?

It took Dan Stamper to tell the MDOT and FHWA representatives as well as the Senators what the contractual rights were, as an example, with respect to maintenance reports and inspections. It was a shock to me that the MDOT representative would make the outrageous remarks that he did in the previous hearings. Either he did not know, which is absolute negligence, or he was deliberately keeping information from the Senator. In either case, MDOT ought to be embarrassed or worse.

Frankly, this echoes what Stamper told the Canadian Senate in their hearings:

• “There are numerous pieces of legislation governing the Ambassador Bridge, not only in Canada but in the U.S. as well. This legislation in both countries has been created and together they govern the Ambassador Bridge as an international border crossing. Any unilateral change may disrupt the meaning and application of these international agreements.”

I wonder if the Canadian polticians are just as in the dark as their American colleagues or has Transport Canada told them everything? Wouldn't that be a scandal! I have a suspicion that the Senators do not know everything based on this language:

• "Senator Dawson: At the beginning, when this bill came in we were led to believe, and I am not saying there was any bad faith, it was going to be a bill that would pass easily...
  
  All of a sudden we understand that there is an adverse effect for one of the strong participants in the bill."
  
  
• "Senator Munson: I wish to echo the sentiments of Senator Dawson and Senator Mercer. This seemed to be slam dunk before."

Suggestions of litigation are hardly new either:

• “The key elements of Bill C-3 are designed to give bureaucrats the opportunity to take business away from our border crossing and send it to a government-sponsored new bridge… Accordingly, it should not come as a surprise to anyone when we say that we will protect our business.”

Like it or not, and obviously the bureaucrats do not like it, Bridge Company has its protected rights in the Windsor/Detroit corridor. Let me remind you again of what the Department of State said in the United States. That Department issues Presidential permits that would be needed for a DRIC bridge but not by the Ambassador Bridge Company. In a letter dated November 4, 2005 we learned that DRIC in a “closed-door session,” sought

• “State Department concurrence in the conclusion that the centrally-located alternatives are the only practical alternatives for a new Detroit River International crossing.”

Not only was that concurrence not granted but the State Department stated

• “Lastly with respect to the conclusion that the only practical alternatives for a new crossing are those that are centrally-located [ie the DRIC proposal], we would point out that the proximity of any new crossing to the existing crossings may mean that a problem at any one crossing may affect all the centrally located crossings.”

By that, State effectively rejected the DRIC proposal due to the damage that it could cause and preserved the Bridge Company's rights conclusively.

I have never understood why millions of dollars and several more years of time has been wasted on the DRIC process when the clearest possible language has been used by the State Department on behalf of the President. Don't the Canadians understand it either?

Interestingly, Stamper’s language in the US publication is consistent with what he said in the Star:

• “Dan Stamper, president of Detroit International Bridge Co., which owns the Ambassador Bridge, said in an interview that with or without approvals from U.S. and Canadian officials, he would move ahead with plans to construct a new, six-lane twin span.
  
  "We are going to build that bridge," he said…”

I assume that what Stamper is saying is that, if it is needed, the Bridge Company will take the appropriate legal action to protect their business and to ensure that the Governments live up to what they have agreed to do. They would the appropriatge steps to prevent the Governments from continuing to promote DRIC and from using the Environmental Assessment process as the means to try to stop them:

• “Stamper said legal action by the bridge company remains an option to push forward with its plans or stop DRIC, but hopes it will not be necessary.
  
  "We have not yet threatened to sue anybody, but we reserve all our rights including legal," he said. "I've had plenty of opportunities, but have not sued anybody. We believe rational people will come to rational decisions.”

We are in a state of limbo right now. With the Canadian election coming up within a few weeks to be followed by the elections in Michigan and United States, not very much is going to happen from the political perspective until we know who is in power.

To me, what Stamper is doing is positioning his Company for the new political regimes on both sides of the border. The Ambassador Gateway project has moved forward and it should finish on time and on budget. The next step obviously is to start construction on the Enhancement Project. That was part of what the Ambassador Gateway was designed for as MDOT has conceded.

There is a touch of frustration and annoyance that comes through loud and clear in what Stamper is saying. Well, you would be concerned too if your billion-dollar project is being delayed improperly! Stamper is telling them that he has no intention of being delayed any longer.

As for lawsuits, the American publication reminded us:

• “Moroun has a long history of suing governments. One case with Canada lasted 11 years, another, against the U.S. General Services Administration, stretched 25 years.”

We are rapidly moving to decision-making time. The plan of the bureaucrats crashed in flames with the first Michigan hearings and with the Globe and Mail article. Those two incidents on their own finally taught them that they had completely misjudged what the Bridge Company was prepared to do. They never expected that the Bridge Company actually wanted to build their Enhancement Project. They were expected to sell out and at a cheap price.

Anyone who has driven through the Ambassador Gateway project construction should get the message by now wouldn't you think!

Now they know the reality. Their rationale for a DRIC bridge has been shot down as summarized by the comments made by Senator Cropsey in a very nice package. The comments made by Transport Canada during the Parliamentary Hearings and the Observations made by the Canadian Senate will make it extremely difficult for Transport Canada to move forward with a DRIC bridge as they have described it. It will be interesting to see what happens next.

When we finally find out what is going on behind the scenes, I expect that a number of people will be deeply embarrassed about the waste of taxpayer money on the DRIC project to say the least. I wonder what my personal pro-rata share of the DRIC costs are so I can ask for it back just like my $25 for Estrin legal fees.

For myself, I will be interested in reading what the Bridge Company is relying upon and what the political decision-makers seem to know little about. It will be interesting once it is revealed to see how the bureaucrats would try to justify what they have done for so long and at such an outrageous price.

M. Fortier, assuming that he is elected, (but according to the pundits that seems doubtful), and the Conservatives form the Government, may have a very challenging time with Mr. Stamper.

Bank Of Windsor Taxpayers Going Broke

The Federal Finance Minister is praying that the Bank of Canada will not have to step in before the federal election to save the faltering Bank of Windsor Taxpayers. He is desperately afraid that if this Bank fails then other municipal Taxpayer Banks may also fail and there goes their majority government hopes.

The Windsor Taxpayer Bank it is almost tapped out given the unceasing demands by rapacious Governments. One knows when the situation is desperate when the Governor of the Windsor Bank said the following:

• "It's going to be rough. We are in deep s**t. It will catch up to us and have a significant impact," said Francis...
  
  Financial markets are crumbling. And guess who's left on Main Street to deal with all these issues? The taxpayer," said Francis...
  
  The bottom line, said the mayor, is that this is no time to be hammering Windsor residents with property tax increases. "People can't handle any more. There is now more pressure to deliver a budget with no increase, so that it doesn't add to their woes. We can't be adding to the pressures they're already feeling at the kitchen table."

This BLOG is certainly educational if nothing else.

Today I'm going to teach you a lesson in municipal economics. We are going to learn how taxpayers are made sad while Bond Raters are made happy. We will learn how taxpayers give their hard-earned money to their City at no interest while they become impoverished. We will learn why increased taxes reduces economic activity.

According to Standard & Poor's our bond rating is still AA. According to them:

• "Among the reasons cited for the rating are "declining debt burden, robust budgetary surpluses and improving financial flexibility."

Good for investors who hold the City Bonds. Unfortunately, the story might have been different if Standard & Poor's did an analysis or gave a rating for the Bank of the Windsor Taxpayers. Its rating would be just about at junk bond level I would think.

We will learn in this BLOG how our political leaders can say is things such as:

• "This has been great news story for the community, for people who use the facility,"

even though the costs of the 400 Building have risen dramatically over the initial cost, and even as the audit of the 400 building has been kept from view from citizens for almost 1.5 years. It seems that the Mayor and certain Senior Administrators have seen all or at least parts of it. No one explained how the CAO could claim that it came in $1M under budget when clearly it did not as City Hall staff have now reported. It was over-budget.

You will learn that City Hall's "pay as you go" philosophy is great for Administrators. That can keep borrowings down and interest rates lower as the City supposedly becomes financially stronger and fiscally responsible. The problem is that the cash comes right out of the pocket of taxpayers.

We become the "banker" to the City except we are forced to "give" the politicians the money whether we want to or not. It is taken from us through increased taxes or through games playing like 86% increases in WUC charges and sewer levies. A debt reduction Levy is not really used for debt reduction but rather for "debt avoidance." That means, while we think that our money is being being taken to reduce the amount of our debt, it is not. It is being used on spending programs.

In some cases, pay as you go makes sense, say for small item purchases. So if you bought a TV set, you really should have the cash rather than pay the outrageous interest rate that stores and credit card companies charge for credit purchases.

But how many people would buy their house that way? Very few. Most people do not have the money to do so and would take out a mortgage. Even if a person had the money, it would be unlikely that it would all be paid out just for the home since who wants to be "house-poor." Life is more than a house eg travel, education, entertainment etc. Perhaps a bigger down-payment would be a compromise. After all, the purchase of a home is a big ticket item and one normally would amortize it over a long period of time as one lives in the home. No one gets too excited about it because it is the norm. As long as money is managed properly, then the individual can live quite well even if some money is paid out for borrowing.

So take the 400 building or the arena. Taxpayers are going to pay "cash" for it upfront even though the buildings will last for years. Taxpayers today are stuck paying for it all and in effect the taxpayers tomorrow get the benefit of it without paying a penny for it. Of course, if a "mortgage" or "bond" had been placed on it, sure interest would be paid out but all taxpayers over the life of the building would pay their fair share.

Look at what else Councillor Lewenza claimed. He said that we saved millions in interest payments. That is true for the City BUT not necessarily true for taxpayers. After all, we had to find the money to pay for our taxes.

However, here is what the Councillor ignored: the multiplier effect. That is defined as

• "An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent."

Here it is explained in more detail and what the effect of taxes is on the economy:

• "In the Keynesian multiplier story the initial consumer expenditure creates new income for the next person, who in turn creates income for another person and so on. However, to have income for consumption one must first produce something useful that can be exchanged in the market.
  
  Through the production of goods an individual can secure the produced goods of other individuals in an economy. His production backs up, so to speak, his demand for the goods he wants to secure. For instance Bob the farmer secures one loaf of bread from John the baker by paying for the loaf of bread with five tomatoes. Bob also secures a pair of shoes from Paul the shoemaker by paying for the shoes with ten tomatoes...
  
  Let us examine the effect of an increase in the government's demand on an economy's overall output. In an economy, which comprises of a baker, a shoemaker and a tomato grower, another individual enters the scene. This individual is an enforcer who is exercising his demand for goods by means of force.
  
  Can such demand give rise to more output? On the contrary, it will impoverish the producers. The baker, the shoemaker, and the farmer will be forced to part with their product in an exchange for nothing and this in turn will weaken the flow of production of final consumer goods. Again, as one can see, not only does the increase in government outlays not raise overall output by a positive multiple, but on the contrary this leads to the weakening in the process of wealth generation in general. According to Mises,
  
  "there is need to emphasize the truism that a government can spend or invest only what it takes away from its citizens and that its additional spending and investment curtails the citizens' spending and investment to the full extent of its quantity."

Thus thanks to the increased taxes to pay for the 400 Building or the arena upfront our local economy suffers. Consumers are deprived of all of that money and so cannot spend. The 400 Building took $30M right out of the local economy at once rather than say $2M per year if it had been financed over 30 years at 6% interest per year. Consumers still could have spent $28M which amount would have been subject to the multiplier effect AND the 400 building still could have been built.

The other part that is so troublesome is that Government starts believing that the money is theirs to spend as they wish and never to give back to taxpayers in the form of a tax reduction. It just encourages more spending. Thus the justification for being able to pay for the Arena was paying off Huron Lodge and other pay-as-you go items. As Gord gushed:

• "By turning its finances around and funding major projects out of revenues, Windsor is saving $81.7 million in interest payment over 20 years, more than $4 million annually, that would have been paid on debentures.
  
  TORRENTS OF MONEY
  
  By 2009, when major projects like the Norwich Block fiasco, the city hall welfare tower mistake and the new Huron Lodge at St. Clair College have been paid off, the city will find itself with torrents of money flowing in and no major funding obligations. In 2009 it will have an additional $23.5 million available, in 2010 $36.4 million and in 2011 another $36.4 million."

And the most ludicrous statement of all from the Mayor:

• "But our financial prudence is paying off and giving us flexibility. We can pay for this (the arena complex) without going to debentures and without going to the taxpayers," explained Francis."

DUH, where does he think this money is coming from? Does it grow on the trees in our WOW-Factor gardens on Dougall, amongst the weeds that are growing back nicely.

Unfortunately with the Bank of Windsor Taxpayers, we are stuck. We cannot take out out money out and put it somewhere else. The only way we can salvage our situation is to move out of town. No one would do that, right. Think again:

• "Windsor had the worst population decline of any major Canadian census metropolitan area in 2006-07, and observers and federal election candidates warn the troubling trend is going to continue..."