Tuesday, January 27, 2009

Conservative "Please Keep Us In Power" Budget


Here is what it says about Windsor, sort of, respecting the border and what it does not say:
  • Providing up to $14.5 million for two bridges at two of the busiest U.S–Canada border crossings: the Blue Water Bridge in Sarnia and the Peace Bridge in Fort Erie.

  • Immediate Action to Build Infrastructure. Accelerating and expanding recent historic investments in infrastructure with almost $12 billion in new infrastructure funding over two years for the construction and repair of roads, bridges, small craft harbours, broadband internet access, electronic health records, laboratories and border crossings across thecountry. This will support economic growth and employment this year and next, while also bolstering Canada’s long-run productive capacity.

  • Providing funding to modernize and expand border service facilities at Prescott, Ontario; and at Huntingdon, Kingsgate, and the Pacific Highway in British Columbia.

  • Federal infrastructure. Federal infrastructure will be renewed, providing benefits to Canadians through better passenger rail services, safer bridges and highways, refurbished harbours for small craft and more efficient border crossings.

  • [Past promises] The Government is supporting provincial, territorial, and municipal infrastructure by expediting priority projectsunder the $33-billion Building Canada plan..
    Announced in Budget 2007, the seven-year, $33-billion Building Canada plan consists of a suite of programs to meet the varying needs of infrastructure projects across Canada:
    The Gateways and Border Crossings Fund and the Asia-Pacific Gateway and Corridor Initiative to strengthen trade-related infrastructure.
    • The Public-Private Partnerships (P3) Fund, the first national infrastructure program in Canada dedicated toward public-private partnerships.

  • Federal Bridges
    Bridges are integral to the efficient movement of people and goods across Canada. Over the past two years, the federal government has invested nearly $150 million in improving the safety and longevity of federal bridges.
    Budget 2009 builds on these investments and provides funding for the following bridge rehabilitation projects:
    • The Champlain Bridge, Canada’s busiest bridge, will receive $212 million on a cash basis. The Champlain Bridge links traffic going to and from the Island of MontrĂ©al and is a key connection for truck traffic heading to or returning from the United States. Rehabilitation work will ensure that the bridge can continue to sustain traffic volumes and provide long-term safety benefits.
    • The Blue Water Bridge in Sarnia and the Peace Bridge in Fort Erie, which are two of the busiest U.S.–Canada border crossings, will receive up to $15 million on a cash basis. These projects will help to reduce traffic congestion and facilitate local border crossings.
    Other federal bridges in need of rehabilitation—including several in the National Capital Region, the Burlington Lift Bridge in Burlington and the LaSalle Causeway in Kingston—will receive up to $42 million on a cash basis.

  • Border Facilities
    More than 30,000 commercial trucks cross the Canada–U.S. border every day and 60 per cent of Canada’s international trade crosses the land border, either by rail or road. Canada needs modern border infrastructure to efficiently process this commerce. The Government will invest $80 million on a cash basis to ensure that Canada’s shared border with the United States remains secure and efficient. This funding will modernize and expand border service facilities at Prescott, Ontario and at Huntingdon, Kingsgate, and the Pacific Highway in British Columbia.

  • These investments will reduce the processing time for thorough inspections of commercial shipments. They will also allow the Canada Border Services Agency to improve its infrastructure in northern British Columbia and the Yukon. Combined with investments in the Peace Bridge and Blue Water Bridge, these investments will complement recent and planned investments by the United States on its side of the border. The new American
    administration is working on an ambitious infrastructure program, which is expected to include new investments in highways, bridges and border facilities. It is vital that Canada and the United States move forward, together to support our integrated economies.

  • Funding will also be used to modernize VIA Rail Canada’s fleet of locomotives and passenger cars, and to upgrade key stations in Toronto, MontrĂ©al, Vancouver, Hamilton, Belleville and Windsor.

Actually, when it comes down to it, the Government attitude to the Windsor border is to let the Bridge Company spend their money to make the border work! And they do. Save and except for the Enhancement Project because the Feds have to have DRIC.

Last Chance To Complete The Survey


Time is almost up!

Make sure you fill in the survey blanks before it is too late. And provide comments too.

Feel free, and in fact I encourage you, to ask your family, friends and colleagues to respond as well. Just forward the survey address to them.

Here is the website:

The polling will remain open until 10 PM on January 28.

Happy polling!

Canada's Plot Against Obama


Talk about a bunch of sucks. The Federal Conservative Government is just about as bad as it gets. All of these nice comments about the new US President and the fact that he is going to visit Canada as his first official trip out of the United States. How charming!

Sorry but this BLOG is another long read and a detailed one but you may as well understand what is going on in the background re our border crossing and learn how the Canadian Government operates to try to beat the Americans.

All of the actions taken by Canada over the summer in meeting with American legislators, media stories over the past few months and Reports that have come out are designed to soften up the "Canada desk" in the US. It's an all-court press!

The Inaugural was a good excuse too for politicing:
  • "[Michael J. Fox] was one of about 200 people at the gleaming embassy on Pennsylvania Avenue, just down the street from the Capitol. Its rooftop terrace, with an up-close view of the iconic building and a panoramic view of the National Mall and other landmarks, is always a hot ticket on the day a new president is sworn into office.

    No more so than this year, with one of the most momentous inaugurations in American history playing out on the streets below.

    Canadians and Americans mingled over glasses of wine and shrimp, mini-hamburgers and smoked salmon canapes to take in the pageantry, braving icy winds to survey the scene six storeys below as millions of people amassed in front of the Capitol and spilled down the National Mall to witness history...

    They had nothing but raves for the Canadian party and the embassy's choice locale...

    Outside, on the steps of the embassy, a tailgate party was in full force. The CFL's Grey Cup was on proud display, Mounties chatted and posed for pictures with the party-goers, and a Beavertail booth was attracting a large crowd eager for the Canadian pastry treat."

Really, the Government does not have any choice. After the Conservatives tried so hard to ensure that President Obama would not win the Democratic primary nor be elected, they have to do something if this Country is not going to be hurt by the Americans. I must admit that I am surprised that Ambassador Wilson still has his job after NAFTA-gate. I wonder if he will be around when President Obama and Prime Minister Harper will have their meeting or will he graciously decide to leave his office after the Inaugural Balls.

Canada is in a very difficult position after all. It looks like President Bush could not stomach us and I am not certain that the new President will like us either:

  • “With only one day left in his presidency, President Bush's last 24 hours inside the White House will be "mostly private," White House aides told FOXNews.com on Monday.

    The president began his day by chatting with a host of foreign leaders, including Prime Minister Gordon Brown of England, President Mikhail Saakashvili of Georgia, President Dmitry Medvedev and Prime Minister Vladimir Putin of Russia, President Lee Myung-bak of South Korea, President Shimon Peres of Israel, Prime Minister Taro Aso of Japan, former President Vicente Fox of Mexico, President Silvio Berlusconi of Italy and President Luiz Inacio Lula da Silva of Brazil, President Nicolas Sarkozy of France, and Chancellor Angela Merkel of Germany.”

Can you guess which world leader’s name is conspicuous by its absence? Yup, it is Stevie's! So much for trying to threaten Bush over oil and energy.

However, Canada is never say die. You want to see how propaganda works then just reread my BLOGs on the Kergin Report, the Star Editorial on the Report and the one about Afghanistan and the DRIC bridge. One media story after another reporting on these matters and setting out a framework in advance that Canada will suggest to the United States.

Nothing like repetition in case the Americans are just too dumb to get it or may not have seen it in the media! After all, the NFL Play-offs leading up to Super Bowl were on.

The BLOG I wrote the other day was about the session held that gave rise to the Carleton University Canada-US Project Report: From Correct to Inspired: A Blueprint for Canada-US Engagement.

At least Kergin’s Report’s title was cute. This one was typical academic, pompous and arrogant. "Inspired." Hardly.

To me however, the Report was a fascinating with respect to the border. Oh it discussed an approach to be taken with dealing with the United States with its new President. Very close to what Kergin's Report said. Surprise, surprise. I’ll let you read that for yourself, dear reader. It is almost as interesting to me as Eddie’s harangue at Council the other night to try to justify spending $60,000 for the Greenlink health ad blitz.

The Carleton Report clarified to me that this entire DRIC process is a joke. It is more than a joke; it is a complete farce. There is no doubt in my mind whatsoever that everything that DRIC did really did not matter as long as it resulted in the Bridge Company Owner selling out. This is nothing more than getting rid of an American owner of the Ambassador Bridge. It is part of a program that was started under John Diefenbaker and continues today, no matter which party is in power.

In this way, the bureaucrats who are pushing the DRIC project can say anything and do anything and they will never be criticized for it. That is why Sean O’Dell can say what he says about traffic volumes and monopolies without fear. It is all part of the half century push that included the Foreign Investment Review Act. When that failed, we now have the International Tunnels and Bridges Act as its replacement.

Let me try and explain more precisely. The Carleton Report included background papers prepared by a number of academics and others of over 200 pages. The Ambassador Bridge was mentioned in this context towards the end on Page 210 of the 220 background pages:

  • “Incredibly, the most strategic corridor between our two economies is owned by a small privately owned American family firm. The owner’s shoddy maintenance of the Detroit-Windsor bridge has caused officials on both sides to despair – but not sufficiently to approve or fast-track an alternative crossing, despite fifteen years of pointless squabbling between the six governments involved. The most recent government study has promised to remedy the scandal with a new crossing … within the next fifteen years?”

Such a learned comment. Do you see what I mean about anti-Americanism? Small firm, shoddy upkeep. Oh please! What would he say about the College St bridge closed by the City?

I trust that the Canadian Government does not provide this paragraph to President Obama to show him how much Canadians love him and his country.

This paragraph was written by

  • “Robin Sears is a veteran communications, marketing and public affairs advisor. He joined Navigator as a partner in strategic communications in 2004. Since then he has led Navigator client teams in healthcare, financial services and in the film and television industry, amongst others.”

Just in case you forgot,

  • “Estrin soon after hired New York traffic expert Sam Schwartz to come up with a bypass plan, followed later by his adding government lobbying and public relations firm Navigator Ltd. -- led by Liberal insider Warren Kinsella. Kinsella -- best known as a former adviser to Prime Minister Jean Chretien -- was officially listed as lobbyist for the city of Windsor between Dec. 20, 2004, and June 23, 2005 -- the same period when the Schwartz plan was laid out to Windsor residents and industry and government leaders."

Here’s something else that you might find amusing. Carleton held a round table discussion involving three Ambassadors representing the two countries. One was Ambassador Kergin who worked for the Ontario Government on the border matter and he wrote the Report with respect to DRIC to which I have referred. Another was former Governor of Michigan and Ambassador to Canada, Jim Blanchard whose firm also worked for DRIC. Uninterested commentators?

The major border background paper was written by Shirley-Ann George and entitled “A New Canada-US Border Vision.” She is Senior Vice-President, Policy, at the Canadian Chamber of Commerce. Here is what she thought was important as set out in the Executive Summary of her article:

  • A New Border-And-Beyond Engagement Strategy: Principles

    -Take a bilateral approach to border management.
    -Give strategic and resource priority to trusted shippers and travellers.
    -Expand the definition of the border to not always be ‘at the border’, including performing
    inspections and risk assessments at offsite venues.
    -Move the border ‘away from the border’ to our shorelines and foreign ports.
    -Achieve regulatory cooperation or mutual recognition on remaining differences between our domestic product and consumer safety regulations.


  • Just Do It: Short-Term Recommendations

    -Expand participation and deliver measurable benefits in trusted shipper and traveller programs.
    -Provide 24/7 access and border services at major crossings.
    -Implement a ‘single window’ or portal for entering all border related data required by various government agencies to facilitate importing and exporting reporting requirements.
    -Establish a robust and tested border contingency plan.
    -Rapidly roll out Enhanced Drivers’ Licenses.

  • Green Light Pilot Project

    Launch a “Green Light” pilot project at a major port of entry, co-managed by Canada and the United States, to expedite the movement of low-risk goods and people. This pilot project will provide uniform and consistent border planning, facilitating trusted shippers and travellers and coordinating agency resources, linking cross-border infrastructure projects and actually strengthening port (and between port) security, enforcement protocols and incident responses. A successful pilot project would create best practices that could be applied across the Canada-US border."

There was nothing that I saw in her article about adding capacity at the Windsor/Detroit border crossing nor building a $5 billion DRIC project. In fact, the gist of her article was to remove Customs away from the Border. If that is the case, then there is hardly the need for huge plazas.

I wonder why we didn’t hear this from DRIC as an alternative to be considered. Oh I get it now, then there would be no need for a DRIC bridge. Then Canada would have to figure out some other way to take over the Ambassador Bridge.

There was another background paper “A More Open and Secure Border for Trade, Investment and People” by Patrick Grady, a former official in Canada’s Department of Finance and now an economist with globaleconomics.ca. His paper discussed “The Thickening of the Border after September 11.”

To be fair, he did mention

  • “the growing number of infrastructural and administrative impediments facing Canadian exporters at the border. These include: bottlenecks in border infrastructure at such key places as the Ambassador and Peace Bridges;”

but he also mentioned:

  • “increased security requirements at the border slowing shipments; increased inspection requirements and fees both slowing shipments and making them more expensive; longer border wait times…

    It is particularly discouraging that disagreements over jurisdiction prevented an extension of pre-clearance at the Peace Bridge between Fort Erie and Buffalo, which could have served as a model for other border crossings in reducing bottlenecks…

    There have also been increased administrative barriers for personal and business travel. This has resulted in dramatic declines in cross-border travel.”

What he did not say in relation to Shared Border Management is that it was killed because there would have been no excuse not to allow it to take place at the Ambassador Bridge. Remember how the Canadian Government rushed to kill the Tunnel deal between the Bridge Company and Detroit because the Bridge Company was advocating preclearance on the American side.

Here is what he suggested as a solution:

  • Key Measures to Make the Border More Open and Secure
    • making the NEXUS and FAST cards really work as intended;
    • drivers’ licenses that qualify as WHTI-compliant real IDs;
    • adequate border infrastructure with effective pre-clearance;
    • substantial reductions in inspections of pre-vetted low-risk shippers;
    • pre-clearance for containers originating in Canada under the Container Security Initiative partnership;
    • the elimination of inspection fees;
    • harmonizing visa requirements;
    • enhanced security screening of immigrants from countries with terrorism problems;
    • the preparation of a joint contingency plan for keeping the border open in the event of a terrorist attack;
    • stepped-up efforts to secure mutual recognition of regulatory standards that cause problems at the border.”

I hardly believe that this is a ringing endorsement to spend $5 billion on a DRIC project.

Why even Mr. Sears did not talk about the need to build a bridge:

  • “The goal in a short-time frame should be the designation of export processing zones in each country with modern high-capacity links to air, sea, truck and rail suppliers. The obvious candidates are Halifax and Vancouver as they already have access to most of the required connections. Windsor-Detroit calls out for a similar enterprise, but for the increasing bottleneck it represents for an increasingly fragile Canadian auto sector. To underline the perilous foundation of Canada’s largest high-value added export sector one needs only contemplate one statistic: between 80 and 90 percent of Canadian-built cars are shipped south. If the impressively short-sighted and suicidally parochial politicians facing each other across the Detroit River could be encouraged by an engaged citizenry to consider a horizon somewhat higher than their toes, they would see available land for such a project on either side of the river, short connections to major highways and even an unused tunnel that could be the essential link.”

Accordingly, one ought not to have expected very much to have been said in the main Report about building a new bridge between Detroit and Windsor since it was not identified as a need by the experts in the background papers.

If that is what you thought, are you ever wrong. Remember, we have a 50 year goal in Canada that we have to reach. Accordingly here is what is written, out of the blue:

  • “Related to the problem of border administration is border infrastructure. As too many travellers and shippers have experienced, there are major bottlenecks at key border crossings, such as the Ambassador and Peace Bridges crossing the Detroit and Niagara Rivers, and a real need to expand bridge, tunnel, highway, and rail connections between the two countries to ease congestion at key transit points and ensure the smooth flow of trade. The current infrastructure, much of it built in the first half of the last century, is woefully deficient and ill-suited to the needs of the 21st century. While there have been some significant improvements – such as the twinning of the Blue Water Bridge and the new rail tunnel under the St. Clair River – new investments have not kept up with the tripling in trade volumes over the past quarter century. Two solutions in particular will need to be pursued to keep Canada competitive: making investments in border infrastructure an integral part of broader improvements in the overall road and rail networks, and moving as much of commercial border administration as possible away from the border in order to ease congestion.”

These academic geniuses are about as smart as the border bureaucrats. They have no understanding of how the border really works. Look at their "two solutions." If one moves everything away from the border to ease congestion, then there is no need to increase capacity at the border. In effect, the border disappears and the road over the Ambassador Bridge is just a connecting route between Highway 401 and the US Interstate System. It becomes a plain road with the odd stop by Customs to keep everyone honest, similar to what is done in Europe.

The real difficulty for Canada is that this bears no relationship to what the Report says is the REAL border problem:

  • "Third, there is a need for some common sense to undo the thickening of both sides of the border and to ease the congestion that currently impedes the success of key, highly integrated sectors of the two economies. The two governments should re-examine the benefits of a perimeter approach to the border and find a better balance between legitimate concerns about security and the need, particularly in a recession, for smooth, unfettered movement of goods and services across the border. The two governments should also take a blowtorch to regulatory differentiation and overlap that serve no useful purpose other than to preserve some government jobs and to perpetuate a preference for differentiation for its own sake....

    Re-imagining the border. As Shirley-Ann George and Perrin Beatty make plain, the border has become an instrument to address yesterday’s problems. Perversely, modern technology is being used to frustrate rather than facilitate trade. Rather than relying on preclearance and away-from-the-border audit techniques, the two governments have piled increasingly onerous demands on shippers and travellers. Modernizing the border will require that the two countries manage it together and see it less as a line dividing the two countries and more as a joint responsibility to maintain the security and economic integrity of both Canadians and Americans. Trusted traveller and shipper programs need to be expanded and improved so that they actually reflect trust. It may be time to resurrect the “perimeter” concept and find a better balance between security and economics."

Do you see what I mean? There is no need to spend $5 billion on a DRIC project. A new bridge is not the answer when other steps can be taken much more inexpensively. Even with a DRIC bridge, we would still have the identified problems so what would we have solved?

It is all a joke for Canadian nationalistic reasons only. The take-over desire predates the Moroun family ownership by a decade or more. DRIC is nothing more than a subterfuge to hide Canadian ambitions from the new US President who must issue in the end a Presidential Permit before the DRIC Bridge can be built! His Department of State has refused once already but Canada has to try again with the new incumbent.

It is pretty clear that the Ambassador Bridge Owner is a hindrance to the Governments' plans for Windsor/Detroit and also to sell/lease the Blue Water Bridge and perhaps also the Tunnel. He even impacts the Peace Bridge. His ownership or even his business needs to be eliminated immediately if Canada is to succeed.

There is nothing new in anything that is being said in the Carleton Report. It has been said by business people and government leaders ad nauseum in the past. What is clear is the anti-Americanism.

What an absurd approach by our Government!

The simple reason why nothing is done is because it would help out the border crossings and therefore help out the Ambassador Bridge. It would completely destroy the Governments' position with respect to the phony need to have a DRIC bridge for capacity reasons.

There is no traffic volume to justify a new DRIC bridge. There is no P3 money to finance a P3 DRIC bridge and various steps can be taken to ease congestion at all border crossings, not just here, so that there is no need for a DRIC bridge and the waste of $5 billion.

If you were a bureaucrat whose career depended on getting a new DRIC bridge constructed you would be in the position now of having to do virtually anything in order to get it built. Money doesn't matter because it's not yours but that of taxpayers. You will never be held accountable since by the time it is built you will be a long gone and retired on a civil servant's pension.

That is why Governments can fund programs such as those at Carleton. Academics can issue terrific reports that remarkably support Government positions.

The most disgusting part of all of this as I said the other day is how many bodies will be brought back to Canada in order to get the DRIC bridge built. As the Report states:

  • "it is in Canada’s interest to be a credible contributor to their solution rather than an annoying diversion...

    Partnering with the United States on global issues may well prove critical to gaining the administration’s attention and, at the same time, may enhance Canadian influence on issues that matter to Canada.

    There is no guarantee that the prime minister will succeed in getting sufficient attention from the new president at a time when his desk will be flooded with urgent priorities. Nevertheless, Canada brings some important cards to the table, none more obvious than that of the Canadian contribution in Afghanistan. Obama is committed to strengthening American involvement in what is, in fact, a two-country war – involving the no-man’s land that straddles the Afghanistan-Pakistan border. There are no easy answers, but Canada certainly has earned the right in blood and treasure to influence stronger US leadership and to spur a more substantive, more cohesive
    international effort."

Pathetic!

Monday, January 26, 2009

Have You Completed The Survey Yet


The response has been huge so far from BLOG readers!

Make sure you fill in the survey blanks before it is too late. And provide comments too.

Feel free, and in fact I encourage you, to ask your family, friends and colleagues to respond as well. Just forward the survey address to them.

Here is the website:

The polling will remain open until 10 PM on January 28.

Happy polling!

Budget Predictions About DRIC


Do not expect very much in the Budget for the DRIC project. I would be surprised in fact if there was any mention of it.

Part of Canada’s objective is to make it appear as if that project has disappeared to fool the Bridge Company. It has not been mentioned for example in the stories as to what is on the agenda when President Obama meets with Prime Minister Harper:
  • “Obama and Harper again talked about the countries' friendship and economies, Afghanistan and climate change, the White House said.

    "They had an initial discussion on the agenda which will include the economic situation globally, in our two countries and specifically in the auto sector. They also discussed the importance of the environment and energy as well as international issues including Afghanistan," said Dimitri Soudas, a Harper spokesman.

    Another Harper spokesman, Kory Teneycke, said the call lasted 15 minutes.”

I trust that our Mayor will not be offended. His personal call with the Prime Minister only lasted 10 minutes. It is the President of the United States after all.

It is not likely to be in the Budget because it is not a “shovel ready” project. Moreover, one when one looks at the comments made by Transport Canada and Infrastructure Minister Baird, the money to be provided in the amount of $7 billion is for the following types of projects:

  • “Infrastructure Minister John Baird said Tuesday’s budget will contain details on $7 billion in new infrastructure spending.

    Baird said Ottawa would set aside $4 billion for an infrastructure stimulus fund that provinces and municipalities could tap into for new projects; a $2-billion fund for infrastructure improvements at the country’s colleges and universities; and a $1-billion ‘green’ infrastructure fund.”

The DRIC project alone would eat up a vast majority of those funds. That would be political suicide for the Conservatives at this time. Accordingly, those funds are not going to be applied in this region except for municipal projects. And I do not mean the Tunnel deal or the Tunnel Improvement Project either since both of those projects have a long way to go, even if they ever get done.

In the Speech from the Throne, the Government made it clear that the projects would be immediate ones even if they have a benefit for the long-term. DRIC is nowhere near ready for a shovel to go into the ground.

  • “The economic stimulus plan will be a plan of action.

    Our Government is stimulating the economy, both through direct government action and by encouraging private expenditure.

    Our Government is taking immediate action to build Canada through new investment in infrastructure…

    These actions will be targeted, they will inject immediate stimulus while promoting long-term growth and they will avoid a return to permanent deficits.”

Note particularly the use of the word “immediate.”

In any event, the excuse to be given by the DRIC apologists is that the monies have already been budgetted for the project, or at least $400M has been for the road by the Feds, so it is not necessary to mention it again.

The Government of Canada is much more subtle, dear reader. As I Blogged before, they will sacrifice our soldiers in Afghanistan so that we can be friends with the Americans. What is it few more bodies in exchange for the economic health of this Country and a new bridge in Windsor so P3 companies can make a fortune at taxpayer expense. The Europeans are proposing to do it so we had better do it as well:

  • “Good luck, Gordon Brown, in trying to portray yourself as the economic wise man who can offer avuncular advice to the novice. It won’t make up for Britain’s reluctance to offer many more troops in Afghanistan – and the US suspicion that even if Brown wanted to, he couldn’t…

    When Tony Blair decided to throw his support behind Bush in the Iraq invasion, he put Britain in the front row of world powers. He was right that without that commitment Britain would have been in a junior league…

    Fine for Gordon Brown to link himself to Obama a dozen times in Prime Minister’s Questions this week, but if he doesn’t back that up with money and troops, he’ll find himself outrun by Nicolas Sarkozy. France’s newish President is making a strong pitch to be the most reliable candidate for Obama’s best European friend.”

Canada will try and set up the Permanent Joint Border Commission as set out by former Canadian Ambassador to the US, Michael Kergin. Of course, he would expect to be Canada’s representative

  • “to prepare recommendations to modernize our shared border and to secure our economic competitiveness, including devising a bi-national body to coordinate the implementation of new border measures.”

It would not surprise me at all to see former American Ambassador to Canada and ex-Michigan Governor, Jim Blanchard, try to be the American representative. After all he was a participant in the Carleton Roundtable.

Shhhh, let’s not give it away about these two individuals. Ambassador Kergin worked for the Ontario Government on the border matter and he wrote the Report with respect to DRIC which he praised. Jim Blanchard’s firm also worked for DRIC. Let us just pretend that they will not have a built-in bias.

It will all be done nice and quietly with hardly a mention about the DRIC bridge at all. After all, President Bush ignored what the Prime Minister wanted to do with respect to the DRIC project. Harper cannot afford to have President Obama turn him down cold either. If Obama does, then the Bridge Co. wins the race don't they.

It is much better to have lower level bureaucrats work out the situation and just have the Leaders rubberstamp it. Such a savings in time and effort for the Leaders.

It is Super Bowl weekend coming up. Let us see how the UltraSecret Canadian Playbook is used to try to score a touchdown. Let's see if Canada can win one for the DRICer.

Time For A Political Poll


Wow, do you ever read the Windsor Star Forums (or is that Fora)? What about the Letters sent to me or the Comments on other BLOGsites.

Windsorites certainly are opinionated about their politicians. And I am glad they are!

It's time again to do an unscientific, scientific poll about what you, the readers of my BLOG, think about our City politicians.

Feel free, and in fact I encourage you, to ask your family, friends and colleagues to respond as well. Just forward the survey address to them.

Here is the website:

The polling will remain open until 10 PM on January 28.

Happy polling!

Will Eddie Get Back The Cleary



Oh me oh my.

Councillor Gignac will be laughing, since she did not like the deal in the first place. Hopefully she will also be crying when she reads the St. Clair College Minutes below and understands the consequences. Does she have the nerve to confront the Mayor over what could be a huge give-away of City propety if President Strasser is correct and to demand an explanation?

The Hilton who wanted the building but were ignored as a potential bidder for it may still get it at a huge doscount. The Casino people will be furious if it becomes a competitor after the Arena has become one.

Is the Francis Cleary deal disintegrating in front of our eyes?

It may be good for the Symphony, they will have a place to play, but Eddie may get back his so-called White Elephant, the Cleary, even after giving so much money to the College as well as part of the deal. Remember that the College not allowed to "flip" it. As I Blogged before:
  • "We sure stopped St. Clair from flipping it and making a profit. All it means is that they could "sub-let it" and make a profit. And if the deal is a bad one for St. Clair----are they stuck? Nope, the City gets it back!"
And please, do not tell me that the University wants it if it becomes available. They cannot afford it now either with their financial problems.

More is coming out about why Eddie made his remarks about the Capitol recently and why President John Strasser of St. Clair is talking about his losses. Strasser has to be trying to get more money to save his neck since he could be accused of doing a dumb deal. Eddie is desperate to force paying Cleary users---Symphony, Light Opera etc-- to pay more rent so that he does not get the Cleary back or is forced to pay out more City money as a subsidy for the ARTS to save the deal to save his neck.

Is the give-away of the Capitol now to follow the precedent of the give-away of the Cleary as a compromise to what may turn bitter? Is this actually more theatrical drama the way the on-again/off-again Cleary deal was stage-managed by the two leading men?

Read these excerpts from the St. Clair Board Minutes in June and September and decide for yourself what is going on. I was made aware of College issues since I was told that the St. Clair paper raised the issue of College losses over the Cleary and quantified them too:
  • JUNE COLLEGE BOARD MINUTES:

    "Financial Statements for the St. Clair Centre for the Arts..

    The President explained that the Centre, in his report, would be broken down into seven areas and each of those areas examined for their purpose and contribution, revenue or otherwise.

    What factors formed the financial parameters for the first year of taking over the facility as outlined in the deal with the City from the College’s perspective, asked the President?

    It is obvious explained Dr. Strasser that five hundred students being housed in this facility would without a doubt cost the College money.

    The deal was the purchase price of one dollar and two years to March 10, 2009 of up to $2.6M the City would pay half the wages for those on the payroll. The City provided capital of $423,000 in the first year to do with however we choose.

    Another $423,000 will come to the College again in year four.

    The City also provided a municipal tax waiver, based on a stipend of so many dollars per student per year, given to the City from the College. The consolidated statements indicate a revenue of $3M with a cost incurred of $4.3M amounting to a $1.1M loss.

    However, there are items that do not come into account when you examine those numbers added the President.

    The College decided to take 30% of the income that was generated by the students here (housed at the SCCA), based on grant and tuition from the academic sector to balance off the use of the fourth floor of the facility along with all the basement and three of five rooms on the fourth floor.

    Three weeks out of each year, added the President, the theatre is devoted to the Performing Arts students to use for their production.

    Any time the College uses the Centre the discount for meals or room rentals is noted. This will help in giving a realistic perspective of the use of the Centre.

    The St. Clair Centre has provided the space to house programs such as Media Arts & Design.

    The building itself is worth approximately $37M with the land value of $2.3M and between $4M-$7M in inventory...

    The downside or areas of the St. Clair Centre that have been most daunting explained Dr. Strasser was the negative image the former Cleary Auditorium had and turning that around has been extremely challenging.

    The work culture of some of the employees is deplorable and it is one of the hardest aspects of the catering side to “fix” noted the President. We predicted there would be a transition time. The College never anticipated it would be this difficult and/or daunting a task.

    After reviewing the finances it now appears that there were items not included in the costs or that were put into other accounts that should have been noted by the City of Windsor.

    These inaccuracies have only come to light since the take over and would never have been determined otherwise.

    Looking ahead, Dr. Strasser referred to the image makeover of the Centre and how that is slowly becoming a reality.

    The catering services are examining the potential of running the Windsor cafeteria services much like what has been done in Chatham to improve food service to the students and staff.

    Our sales for inside events is increasing and could be increased five fold added the President.

    The downside of catering in the city is the negative attitude of some downtown businesses that have the notion that the College is somehow subsidized in its catering venue and therefore perceived as unfair competition.

    Should the College operate the Centre strictly as an educational institution, with some special revenue generating components, acquisition of the Centre would still be considered a great deal.

    The Centre can be utilized to further increase our enrolment added Dr. Strasser. With the significant increase in salary costs arising from the anticipated unionization of part-time employees, the Centre may have to entertain the idea of curtailing its revenue generating efforts and devote itself strictly to academic interests with a few exceptions after the calendar year 2009.

    However, any increase in enrolment comes with an increase costs in infrastructure.

    The Theatre division, considering the impact on the community, in particular the Windsor Symphony, the Windsor Light Opera, etc., would have to be considered in any future scenario.

    In reviewing the expenses for the Centre, the Chair questioned why the costs of heating/electrical aren’t charged to the academic side of the operation and Ms. Harris explained that the infrastructure charges have historically been charged against the facility.

    Mr. Barsanti added that there is documentation that indicates the room usage as well as cost of food, etc. These are valid credits against the students housed in the SCCA added Ms. Harris. Ms. Livneh requested that the Board receive quarterly reports of the St. Clair Centre financials to which administration agreed that would be done. The motion was moved and carried and it was therefore RESOLVED THAT the Board receive this report from the President of the financial status of the St. Clair Centre for the Arts for information."


  • SEPTEMBER COLLEGE BOARD MINUTES

    "First Quarter Financials – St. Clair Centre for the Arts

    Dr. Strasser addressed this item and provided a handout to the Board which included the last two slides from his June 24th presentation and is attached as Item 5.3 to the Minutes.

    1st Slide: The President reminded the Board members, that at the meeting in June, he informed them that the following items were a significant part of the agenda for the coming months:
    1) Complete the image makeover.

    2) Assess the following components to decide which is making a profit and which is not:
    (a) Inside events (banquets, weddings)
    (b) Catering
    (c) Thames Campus kiosk
    (d) Chrysler Theatre
    (e) Downtown kiosk

    3) Cafeteria at South Campus (SCCA staff catering as in Chatham).

    4) Catering – DECISION – Benefits vs. costs

    2nd Slide:

    The President again reiterated his bottom line that the College would still have made a good decision in taking over the operations of this facility should they have to utilize it solely in an academic capacity.

    As of this date, using the same parameters stated the President, the results are better than last year.

    Dr. Strasser indicated that now, just as was stated in June, the unionization of the part time workers is still a major pothole in the road which will impact heavily on any of the above decisions.

    In this part of his financial summary to the Board concerning the St. Clair Centre Dr. Strasser pointed to the 5 real questions that have yet to be answered.

    1) Can each profit centre (banquet, catering, campus grill, Thames kiosk and Theatre) be profitable without the City subsidy?
    * Answers necessary before next budget is in place
    - City subsidy
    - correct salary numbers assigned to appropriate area

    2) What are the true operating costs of the Centre with no streams?
    - We must identify the true costs of operating the Centre as an academic institution.

    3) What role does St. Clair College have in a contribution to the Arts?
    - Do we want to subsidize groups such as Windsor Light Opera, the Windsor Symphony, and Theatre Alive in support of the local arts community?

    4) Where are the synergies in any University of Windsor/St. Clair College Downtown partnership?

    5) What is the profit potential of other College food service areas under the St. Clair Centre for the Arts Management?

    The Chair followed the presentation up with a question of the President as to when the College had to make its decision to which Dr. Strasser responded April 1, 2009."

Unfortunately, the latest Minutes have not yet been posted but the deadline for something to happen is in April 1.

What is going on is hard to tell just from reading Minutes. What I suspect is that the Mayor and the President may have to meet again over a Rotary lobster or a Tim Horton’s coffee to try and resolve this creating another urban legend like the first time.

There are some interesting facts that are set out in the Minutes:

  1. It seems as if the College is Asset rich but cash poor respecting the Cleary and its operations


  2. Something seems completely contrary. If you add up what the President says that the Cleary is worth, it is somewhere between $45-$50M. Yet, Councillor Gignac stated that “the city won't get a dime for an asset that's been valued at between $8 million and $16 million.” Not only that, it cost “the city about $3.8 million in capital improvements and employee salaries” in addition.

    Now I don’t know about you, but I do not believe that the real estate in downtown Windsor has escalated that dramatically in such a short time. A difference of $30-$40M just does not make any sense. Someone needs to ask some tough questions about the City’s appraisal and what we have been told about values.

    Was this was a good deal or not even if the City was supposedly losing $1 million a year? Has the City lost millions of dollars on this transaction because it was not put out for tender? If so, how did this happen and why? This is not something that should be swept under the rug. There is too much money at stake.


  3. “Mayor Eddie Francis reminded the councillor [Gignac] that the Cleary lost about $1.1 million last year and would continue to be a drain on taxpayers. "It's projected to lose more when the casino facility opens up."

    Given the discrepancy with respect to value, the question of annual loss needs to be investigated as well. Was the Cleary run down so that there was a justification for getting rid of it? Could it have broken even or even made a profit given its importance to the local Arts community?


  4. The Mayor may well be justified in claiming that there was a loss considering that St. Clair is not making any money on it either it seems. Yet in June 2007, the St. Clair Board meetings stated:

    "The President did take this opportunity to give the Board a Financial update as it pertains to the April revenues generated at the St. Clair Centre for the Arts, based on the catering and Chrysler Theatre revenues. The finance department, reported Dr. Strasser, originally projected profits of $20,000/month and the actual profits, as of the end of April, were $50,000."

    We should note also that the Theatre is not being run away the old Cleary was before. We might just be comparing apples and oranges.


  5. It seems to me from what the President is saying that he has a lot to explain if the Cleary went from a profit position to a significant loss in such a short period of time. What due diligence did he undertake? I find it strange that he is discussing the “5 real questions that have yet to be answered.” Shouldn’t there be a sixth question: why weren’t these 5 real questions answered before the transaction was entered into?”

    With all due respect to the President, it is not enough in my opinion for him to baldly assert “his bottom line that the College would still have made a good decision in taking over the operations of this facility.” If there are losses, then I do not understand his comment. If it refers strictly to capital appreciation of an asset from a low of $8M to about $50M, then he should be our border negotiator, not the Mayor. Mind you, someone would have to spend that kind of money for that asset and that might not be so easy to accomplish.

There is no doubt in my mind that we are beginning to see a very ugly situation between the College and the City developing developing:

It seems very clear that the College will make certain damaging allegations against the City that will require a financial response from the City:

  • negative image the former Cleary Auditorium had and turning that around has been extremely challenging.
  • The work culture of some of the employees is deplorable but the College never anticipated it would be this difficult and/or daunting a task.
  • [And the most shocking of all] In the finances, items not were not included in the costs or were put into other accounts that should have been noted by the City of Windsor.

    These inaccuracies have only come to light since the take over and would never have been determined otherwise.

Where this all leads, I have no idea other than it will cost taxpayers more money and will leave some very troubling questions to be answered.

Is Councillor Gignac up to the job?