Wednesday, February 20, 2013

#RoofLeaks kicks off

In 2012, this blog launched #LiquorLeaks, a flood of documents regarding the Liquor Distribution Branch and the BC Liberal government's thirst to privatize the storage and hauling of booze in British Columbia. 
I spelled out how BC Liberal-connected Exel Logistics and ContainerWorld were strategizing to win the business. The tendering process was abruptly halted Sept. 27, 2012, the day the B.C. Government and Service Employees' Union reached a two-year deal with government. The four shortlisted companies had yet to make their final presentations. 
There is more to come from #LiquorLeaks. In the meantime, I now introduce #RoofLeaks, a compilation of records gleaned from my Freedom of Information requests directed at the B.C. Pavilion Corporation, the taxpayer-owned company that operates the Vancouver Convention Centre and B.C. Place Stadium. These are the two biggest and most-expensive buildings in downtown Vancouver. Magnets for big events and big controversy. And I will demonstrate for you why British Columbians should be concerned about how they are managed.

For starters, PavCo is seeking an order to quash my right to file Freedom of Information requests. It has effectively blacklisted me since making a complaint on Feb. 13 to the Office of the Information and Privacy Commissioner, claiming my requests are frivolous and vexatious, repetitive and systematic.

I say PavCo is wrong on all counts and I am contesting PavCo's application, which amounts to intimidation just ahead of the election. As a journalist reporting in the public interest, my goal is to show the public how its money is spent and how its assets are managed.

On Feb. 19, NDP members Doug Routley and Spencer Chandra Herbert took-up my case in the Legislature, seeking answers from Premier Christy Clark and PavCo Minister Rich Coleman. The following is an excerpt from Hansard:


Photo of MLA Doug Routley
Routley
D. Routley: The Premier has made claims to open government being one of her top three priorities, even telling the media that information belongs to the public. Yet on Friday we learned that investigative journalist Bob Mackin received a letter from PavCo telling him they have applied under the Freedom of Information Act to bar him from "frivolous and vexatious" claims to information. Does the Premier agree with this outrageous act by PavCo to silence one of its chief critics?
Hon. R. Coleman: The individual that the member refers to has been making and has received some information with regards to information and privacy from PavCo. But the members opposite and the members of this House should know that he is 89 percent of all the requests of information and privacy at PavCo. It's a large volume of work, so they were finally to the point where some of it became ridiculously frivolous in their minds. They asked and they have gone forward to ask the commissioner for an opinion.
 D. Routley: It's about the public interest — an uncomfortable fact for the government. It was through these claims to freedom of information that the public found out about PavCo's hundreds of millions of dollars of overspending. It was only through these requests that the public knew this.
Does the minister responsible for PavCo stand by the position that asking about massive cost overruns is frivolous or vexatious?
Photo of MLA Rich Coleman
Coleman

Hon. R. Coleman: Through to the member opposite: well, first of all, Member, the first thing you'd like to do yourselves is to try and get your numbers straight when you're actually making public comments. I've heard your members talk about the $100 million figure quoted for the roof for B.C. Place under PavCo's chair back in 2008. The member doesn't actually want to tell the rest of the story, which was about a pillow roof to replace exactly the same roof as was there before and not a significant investment to actually redo the entire stadium, which this was. PavCo announced the final approved budget of $563 million for B.C. Place revitalization in October 2009. They did it for $514 million...

Photo of MLA Spencer Chandra Herbert
Chandra Herbert
S. Chandra Herbert: This is about freedom of information. This is about giving journalists access to information they need to do their jobs. I know the minister wants to focus on sports stadiums, but we're talking about work that the media needs done so that they can support our democracy. Under the Liberals, PavCo has had a history of mismanagement. Five times over budget, the Telus naming debacle, PavCo's float plane fiasco, PavCo's botched casino deal, the convention centre going massively over budget… The list goes on and on. The Premier claimed that open government was one of her top priorities. Will she stand today and demonstrate that she actually puts action behind her words and tell PavCo to stop trying to ban the media from doing their job?

 Notice how Coleman referred to me, not by name, but as "the individual that the member refers to?" The Premier? She didn't stand.

Here's an uncomfortable fact for Coleman: The original budget for B.C. Place renovations was not $100 million, but actually $75 million, including a new, inflatable, fabric roof. That inconvenient truth is contained in a Jan. 8, 2008 letter from PavCo chair David Podmore to Wayne Henderson of Dominion Construction, the company that eventually was awarded the bid for phase 1 work. That letter is below.

Just 14 days later, on Jan. 22, 2008, Podmore told Vancouver city manager Judy Rogers in a letter that "the scope of the rehabilitation project is in the order of $100 million which includes replacement of the roof."

By April of that year, PavCo had changed gears and was considering the pre-Olympic installation of a Frankfurt-style retractable roof for $253 million. But the anticipated completion date of Jan. 31, 2010 was deemed too close to the Feb. 12, 2010 Winter Olympics opening ceremony. The project was delayed until after the Games at a Jan. 9, 2009-announced budget of $365 million.

That budget was increased (after the BC Liberals won re-election) to $458 million on Oct. 23, 2009. The government finally admitted it would be $563 million and now claims the final price was $514 million. Oh, they're so proud that it's $49 million under the final budget. But don't dare mention those pesky scope changes and cost increases! The leaky, grease-stained roof? Nothing to see there, move along. Those are such uncomfortable facts for a party so desperate to remain in power.

For the sake of all, let's hope Auditor-General John Doyle expands his fact-finding mission into a full-blown value-for-money investigation of the B.C. Place project. The taxpayers deserve to know the truth about the evolution of such a risky project that shows no signs of breaking-even.

Monday, February 18, 2013

The Fudgsicle Cometh? (updated)

Finance Minister on ice + fudge = Fudgsicle Budget '13
History says you should not believe BC Liberal Finance Minister Mike de Jong when he stands up and delivers his budget speech in the Legislature on Feb. 19.


Also, put aside that he’s a BC Liberal, the ruling party that appears to be on the way out of power under the style-over-substance Premiership of Christy Clark. 

It’s just that de Jong is delivering a pre-election budget. British Columbia governments, regardless of ideology, have had serious trouble telling the truth about finances en route to election day. This is the Land of the Fudge-It Budget. This time around, will it be a Fudgsicle?

Former Junior B hockey player and current shareholder in the inactive MSA Fundamental Hockey School de Jong laced up his skates in Victoria and hit the ice at the Save-On-Foods Memorial Centre for the cameras on Feb. 18, instead of buying a new pair of shoes, the tradition among finance ministers. He donned a Victoria Royals Western Hockey League jersey and donated $1,000 afterwards to KidSport.

Turn back the clock to March 24, 1988 when Social Credit Finance Minister Mel Couvelier gave birth to the Budget Stabilization fund -- $450 million of goodness to "help us absorb fiscal shocks." 

That was the 1980s and the Socreds evidently didn’t have the best spin doctors in their corner. The media instantly branded Couvelier’s plan the “B.S. Fund." It was the best knee-slapper since Socred Agnes Kripps proposed "BOLT" (Biology on Life Today) replace the word "sex" in 1970 (during the sexual revolution). It was surpassed in June 1996 by the nicknaming of the NDP's Cabinet Policy and Communications Secretariat (CPCS) as "cupcakes." But I digress.

“Due to the boom-or-bust nature of the B.C. economy, government revenues have been difficult to predict," Couvelier said. "In years when revenues peak sharply, transfers will be made to the fund. In years of revenue shortfall, transfers will be made from the fund.” 

Vaughn Palmer weighed-in with a March 25, 1988 column in the Vancouver Sun headlined “Mel’s Mirage: the $450 million jiggle.”
The fund does not exist in the sense that it can easily be turned into cash tomorrow, the way your bank account can. At the extremes, accounts can be manipulated to present a horn of plenty to the stockholders or a deathbed scene to the taxman.Similarly, the government slants its accounts to produce certain effects.Before an election, it wants the balance sheet to look as healthy as possible.
Couvelier sat down for a 90-minute session with the Vancouver Sun’s editorial board, which produced a story on March 29, 1988 in which Couvelier admitted it was an election ploy!
Couvelier said the fund, which amounts to a promise by the government to pay itself $450 million at some point, could be used "to support social programs or lower taxes or whatever the government decides to do with it - build highways, get themselves re-elected, whatever they want. . . "When it was suggested that re- election might be the so-called Budget Stabilization Fund's primary purpose, Couvelier replied: "Okay, that deals with motive. I'm saying the fund is there to be used for a rainy day."Now, my definition of a rainy day is not an election. But that's not to say we won't have a need to spend it in an election year."
On March 28, 1995, Finance Minister Elizabeth Cull heralded a balanced budget. NDP’s Mike Harcourt resigned from the Premiership on Nov. 15, 1995 and Glen Clark won leadership of the NDP in early 1996.

Cull tabled another allegedly balanced budget on April 30, 1996, but the Legislature was dissolved before it could be passed. New Finance Minister Andrew Petter reintroduced the budget on June 26, 1996, after the NDP won re-election. The NDP claimed “Jobs Up, Taxes Down, Debt Reduced, Budget Balanced.”

A July 4, 1996 Vancouver Sun story was headlined “B.C. finance minister admits budget ‘goof."
Glen Clark's NDP government is fighting to contain a mounting controversy over allegations it misled the public by campaigning on a balanced budget that turned out to be a $235-million deficit. Clark campaigned during May boasting that the NDP had brought in a balanced budget for the 1995-96 fiscal year. 
Auditor-General George Morfitt criticized both Cull and Petter for “inappropriate” actions. Morfitt criticized (Elizabeth Cull) particularly for injecting "$156 million of optimism" into forecasts for how the 1995-96 fiscal year would end up, optimism even above her own staff's most optimistic forecasts. Morfitt's report shows that Cull was frequently uncomfortable with the optimistic figures that were being urged upon her, mainly through the actions of (Glen Clark)'s confidante and top aide, Tom Gunton.
Fast forward to 2009 when the BC Liberals were aiming to get Premier Gordon Campbell his three-peat so that he could soak-up all the glory as B.C.’s Olympic Premier in 2010. 

On Feb. 17, 2009, amid the Great Recession, Finance Minister Colin Hansen tabled a budget with a forecast deficit under half-a-billion dollars. After the election and after the announcement of the Harmonized Sales Tax, Hansen tabled an update. The amount of red ink more than quintupled!

The Sept. 1, 2009 headline in The Tyee said it all: "B.C. budget includes record $2.8 billion deficit, cuts, optimism." 
British Columbia will have a record deficit of $2.8 billion, according to a budget update Finance Minister Colin Hansen presented today. That's five times greater than the $495 million projected in February and insisted upon by Premier Gordon Campbell during the election campaign.Back to de Jong and 2013. 
The Liberals are trying to make it look like they’re more fiscally responsible than the 1988 Socreds, 1996 NDP and 2009 Liberals. They even hired an expert! Tim O’Neill, a former BMO economist from the Maritimes! He’s independent! Shhh, don’t pay attention to the $25,000 he’s pocketing for less than a month’s work that resulted in a 22-page report, B.C. Budget 2013: Economic & Revenue Forecasts -- Review and Assessment. Don’t dare suggest it’s just spin. Gosh, no. The government would never do that. Perish that thought!

Well, it’s 20 pages after the title page and disclaimer. The first and last pages are half each, so that’s really 19. The margins are wide and the print is big. The word count is 4,520. Hey, that’s better than $5.50 per word. Not a bad gig, eh?

The word expenditure is mentioned just once. The word expense is nowhere to be found. 
The government paid for a report on what it will be taking in, not on what it will be paying out. A report on revenue only tells half the story. 

Surprise, surprise, O’Neill has nothing really bad to say, except, perhaps the government is too bullish on natural gas. (A degree isn’t necessary to arrive at that conclusion; one need only have watched the throne speech).

“I have concluded that there are no glaring problems or inadequacies that need to be addressed," wrote O'Neill. "There is ample evidence of professional competence, analytical rigour and appropriate caution applied in the work that goes into producing the revenue projections.”

There you have it. Voters beware! 

Budget tidbit: Will any ex-convicts be on the guest list for this year’s budget speech at the Legislature in Victoria? Just wondering! Last year there was one that we know of: Jaspal Atwal. Both Bill Tieleman and Alex Tsakumis wrote about that scandal. 

UPDATE (Feb. 22): The nearly $44 billion budget did nothing, zip, nada to tame the debt! The debt goes higher: it’s $56.1 billion this year, forecast to grow to $62.7 billion next year and, by 2015, $69 billion. A make-believe scenario to tame the deficit now without anything demonstrative to address the ballooning debt only shifts the burden from today’s families to families of the future. 


How can the Liberals spend more than $16 million of your money on an advertising campaign, which includes a brief image of debt-crushed Greece at the 2-second mark in the famous dominos ad, and claim that it is being frugal and responsible with the province’s finances? Was it really necessary to give B.C. Pavilion Corporation $2.7 million to make a bid to buy the rights for the 2014 Grey Cup for B.C. Place Stadium? Certainly B.C. Lions' owner Sen. David Braley has a large enough bank account to avoid needing a taxpayer-subsidy from a government that really can't afford such discretionary spending.

The best line of de Jong's budget speech? 
"Starting today, as British Columbians travel to other parts of Canada, they will be able to say with pride, “I come from B.C. where the government doesn’t spend more money than I send it. Where the government doesn’t burden future generations with the cost of programs being delivered today.”

Comedy gold. Who writes this stuff? 

Most British Columbians do not belong to the Liberals or any political party, for that matter. They’re not worried about those "socialist hordes at the gate" once feared by Premier W.A.C. Bennett. They’re actually worried about the persistent bill collectors and impatient bankers showing up at the door. 


The budget was skimpy on details. There was no detailed list of real estate for sale, nor was there a recap of major cost-cutting. 

The budget contains tax increases targeted at anyone who uses B.C.'s medical system, smokers, corporations and the perceived wealthy, those who earn $150,000 and up. All, except the health insurance premium hike, are things the NDP would have done. You could just tell that de Jong had practiced his lines. They were repeated over and over in the media. 

“I’d prefer not to have (raised taxes), clearly the guiding principle here was to achieve balance, a whole series of decisions flow from that, some of them very difficult,” he told reporters in a pre-budget briefing. “Those making more than $150,000, we're asking them to contribute a little more.” 

The budget was the bookend to the previous week’s throne speech, which included Clark’s unicorns and rainbows vision (delusion?) of a future in which we’ll be swimming in profits from the export of liquefied natural gas (meanwhile, Russia, Arab states, China, U.S. and even Australia are ahead of B.C.). 

An indication of how the Liberals (aka the Natural Gas Party) have lost the trust of the public is that the first major poll released after the budget, by Ipsos-Reid, indicated 72% of respondents didn’t 

Cartoonist and video satirist Dan Murphy (who the Province will someday realize was a mistake to let go) weighed in with his subtle and hilarious Budget Highlights Closed Captioned for the Truth Impaired.






While the NDP called the balanced budget “bogus," independent MLA John van Dongen used more flowery language to blow the whistle on de Jong's misconduct for dealing a bodycheck to the concept of truthful budgeting. Abbotsford South MLA Van Dongen did nothing to flatter Abbotsford West MLA Liberal de Jong with his speech, archived here. 

van Dongen
“This so-called balanced budget,” van Dongen said in the Legislature on Feb. 21, “is designed to manage and manipulate perceptions. As such, it is imaginary, a mirage, a facsimile of the real thing. The facts don't back up the perceptions being left with the public in saying that this is a balanced budget.”
“Madam Speaker, think for a moment of the apparent sleight of hand that occurred Tuesday. Did we loot the treasury as may have happened in Shakespearean days? Did we rob Peter to pay Paul? Or did we bank on selling millions of dollars in taxpayer assets and depend on reaching deeper into the pockets of families and business people as government spending on advertising itself continues to escalate?
“I've been asking questions about the spending of millions of dollars by government, missed revenue opportunities and missed investment opportunities, and my search for the most basic answers has been blocked at every turn. I probably don't have to tell you what those questions are, Madam Speaker, but I can tell you my efforts to pursue those answers have led me to a continued search for good government...
"This budget is a pre-election document that can change quickly after the votes are counted on May 14. The budget faces none of the normal scrutiny of this Legislature, which again emphasizes the need to move to a fixed fall election date to remove the obvious politicizing, regardless of political party, of election year budgets.
“I have always strongly agreed with the objective of a real balanced budget, but I do not believe it is achievable in this fiscal year based on current economic conditions and the measures presented on Tuesday by the Minister of Finance.”

Friday, February 15, 2013

PavCo tries to blacklist inconvenient sleuth

Remember the Vancouver Harbour Flight Centre, the private-public partnership seaplane dock built at the $883 million Vancouver Convention Centre (which was supposed to be built for $495 million)?

Holdout Harbour Air agreed to move from a temporary marina into the new $22 million VHFC, but pay $2 million for its own dock. Harbour Air was balking at the excessive $12 per-passenger tax. VHFC was built by Ledcor and Graham Clark, who was part of the board that privatized Vancouver International Airport and imposed the unpopular passenger tax called the Airport Improvement Fee. 

In September 2012, the lawsuits were dropped and VHFC and PavCo settled. According to the below settlement agreement, obtained under Freedom of Information, PavCo agreed to pay VHFC a secret sum and amend the lease agreement. The parties agreed to bear their own legal costs.




These documents should have arrived long before now. I made the request Sept. 13, 2012. It took just over five calendar months for PavCo to make the disclosure. And, as you can see, it is not even a full disclosure. 

This may be one of the last Freedom of Information disclosures I get, if PavCo has its way. 

PavCo Assistant Corporate Secretary and Freedom of Information Manager Alexandra Wagner notified me on Feb. 15, 2013 that PavCo filed an application on Feb. 13, 2013 under Section 43 of the Freedom of Information and Protection of Privacy Act with the Office of the Information and Privacy Commissioner. 

Section 43, headlined “Power to authorize a public body to disregard requests,” allows a public body to ask the Information and Privacy Commissioner to authorize the disregarding of requests that “would unreasonably interfere with the operations of the public body because of the repetitious or systematic nature of the requests, or are frivolous or vexatious.”

It seems I am too curious about about PavCo, the companies it hires, the money it spends, the Vancouver Whitecaps and B.C. Lions rental payments (or lack thereof), and the half-billion-dollars of taxpayers' money spent on the stadium renovation, which is now being examined by the Office of the Auditor General. (At least four of John Doyle's staffers, I am told, were seen touring the stadium on Feb. 8.).

Through FOI, I have received documents that helped me expose uncomfortable facts and inconvenient truths about B.C. Place Stadium, such as the janitorial worker whose death after collapsing on the job was covered-up for two years, the grease leaks from roof support cables that have caused millions of dollars in roof fabric stains and the high-level meetings held to resurrect a controversial casino proposal. Those are just three examples of many stories you would never know about if I only relied on PavCo news releases and news conferences. 

Now, PavCo's goal is to refuse to disclose any of my requests from Feb. 13, 2013 onward. 

PavCo wants to shut me down. 

I say, PavCo must not succeed. 

I am a frequent requester, but what I do is not frivolous or vexatious. Nor is it repetitive or wasteful. In fact, it is necessary and it is in the public interest. I ask tough questions of a Crown corporation that is ultimately owned by you, the public. A Crown corporation that runs downtown Vancouver's two biggest buildings and relies on scarce and hard-earned taxpayer dollars. A Crown corporation that has a tendency toward secrecy because it simply doesn't enjoy questions from the public, whether it's about a casino not wanted by neighbours or advertising signs not wanted by neighbours.

PavCo has consistently turned down my interview requests and not provided basic information in a timely manner. FOI has become the best and only tool for gaining knowledge of what goes on behind closed-doors. 

I would prefer I didn't have to ask PavCo to release records. I would prefer PavCo  would see fit to do its business in the open and in a proactive manner. How about public meetings of the board of directors? How about publishing the agenda before the meeting and the minutes afterward? How about disclosing all contracts worth $10,000-and-up on a quarterly basis? How about explaining why some of the contracts were awarded without a competitive bidding process? How about publishing the Joint Occupational Health and Safety Committee minutes every month? 

Alas, PavCo isn't transparent and I have to ask for these things on the public’s behalf. What makes it even more troubling is that PavCo seems to be contravening Premier Christy Clark’s own government-wide openness directive. 

The 2011 throne speech said: "Our government is committed to openness, transparency and engaging with British Columbians. Simply put: we need to be open with the information people have a right to see and open to ideas they have a right to voice."
In July 2011, at the 2:49 mark of this video, Clark said: "After all, it's taxpayers' money and it's taxpayers' information."
PavCo's board includes chairman Peter Fassbender (the Mayor of Langley) and Suzanne Anton (who wanted to be Mayor of Vancouver). Both of them are seeking Liberal nominations. I have asked for their assistance in overturning this ill-thought strategy. Ex-NPA Vancouver Coun. Anton, in particular, rallied against Vision Vancouver's creeping secrecy at Vancouver city hall. Now she is part of an entity that prefers to do its business away from the public eye. An entity that reports to Deputy Premier Rich Coleman, who is the minister responsible for PavCo. That's the same Coleman who is oddly never available when I want to interview him on PavCo, gambling and liquor issues.

I have appealed to PavCo to rescind the section 43 application. I hope reason and transparency will prevail at PavCo. I have also complained to Information Commissioner Elizabeth Denham, asking her to deny the PavCo application. It would be a very sad day for both citizens and the media in B.C. if PavCo were to succeed -- especially when an election is rapidly approaching and citizens need to be informed before they go to the ballot box. 

In the meantime, I have plenty of previously received PavCo information that I will eagerly share with you in the weeks to come, because you have the right to know.

Getcha popcorn ready!

(Pssst... if you have credible information that is in the public interest and you think I should receive it, I gladly accept brown envelopes c/o Business in Vancouver, The Tyee or CKNW AM 980. And, you must know that any citizen can make a Freedom of Information request. It is not the sole domain of nosy journalists like me. For instance, you can file an FOI request to PavCo, c/o Alexandra Wagner, by mail: #200-999 Canada Place, Vancouver, B.C. V6C 3C1; fax: 604-484-5154; or email: awagner@bcpavco.com. Never made an FOI request? The B.C. Freedom of Information and Privacy Association has user-friendly FOI request directions here. Happy requesting!)

UPDATE (7:53 p.m. Feb. 15): Fassbender responded with this message below: 
Thank you for both your phone messages and copying me on this correspondence.  I am going over the circumstances with the staff and am not prepared to comment without having the history from them. I want you to know that my first default is to leave matters like this to staff and do not get involved as I do not think it is appropriate in my role as Chair of the Board. I am sure you would like me to provide more comment but I am not prepared to do so.

Wednesday, February 13, 2013

Should you trust the Pacific Carbon Trust?

Get ready for Premier Christy Clark to tell you sometime before the May 14 election day about how her BC Liberal Party is committed to openness. She might even say it's the most open in British Columbia history.

Don't believe her. It's just not true. 

Here is evidence of yet another public body in B.C. that just refuses to respect that government information belongs to the people who pay for government. Public bodies, like Pacific Carbon Trust, prefer to be inefficient and resist the simplicity of transparency, for fear of uncomfortable questions that might (gasp!) embarrass the ruling Liberal politicians.

I made a Freedom of Information request on Oct. 19, 2012 to PCT for a list of its suppliers and contractors, $25,000 or more. I wanted to find out how much it was paying for carbon offsets, the modern version of the 16th century sin-absolving scam dreamed up by the Catholic Church. Today's indulgences allow polluters to voluntarily pay for their planet-staining sins. 

PCT is a B.C. Crown corporation dreamed-up by Gordon Campbell when he was premier, to force government to go "carbon neutral." Whether it's school boards or hospital authorities, if they don't meet targets for reducing carbon emissions, they pay a $25 per tonne penalty to PCT. PCT then funds private sector projects. Canadian Centre for Policy Alternatives did a good job of deconstructing this government scheme.

PCT responded on Nov. 28, 2012 with a list of contractors and suppliers. But many names and dollar values were missing. The 16 amounts paid in 2011 and 2012 for carbon offsets were censored. PCT tried claiming it could withhold names and dollar amounts under section 3 (outside the scope), 14 (solicitor-client privilege) or 17 (risk of harm to financial interests) of the Freedom of Information and Privacy Act. 

I complained to the Office of the Information and Privacy Commissioner. On Feb. 13, 2013, I received all the information that had been withheld from me.PCT's original use of sec. 3, 14 and 17 was, for lack of a better word, bogus. 

My colleague from Business in Vancouver, Nelson Bennett, also received his information from PCT. His quest was a year-long and he wrote about it in this story on BIV.com.

What do we know now? 

Over the last two years, a whopping $17,497,877 was spent by PCT under the guise of offsets.

Encana $1,617,716
Blue Source $1,228,173
Canfor Pulp Ltd. $329,910
South Coast B.C. Transportation (TransLink) $213,564
B.C. Transit $29,289

PCT also spent money on lawyers and accountants.

Lawyer Kai Alderson $27,019


Tuesday, February 12, 2013

Three years ago...

Yes, it has been three years.

Three years since the Vancouver 2010 Winter Olympics began on Feb. 12, 2010.

The Games of the Great Recession. The Bailout Games. The El Nino Games. The Summer Games in Wintertime.

Hands up if you remember the heatwave or got sunburn; the sunsets were fabulous from my perch in the press tribune at Cypress Mountain.

Since then, the London 2012 Olympics came and went. We're now less than a year until the Sochi 2014 Winter Olympics.

Coming later this month is the 10th anniversary of the City of Vancouver plebiscite on the Olympic bid, which was passed by 64% of the 46% of voters who went to the polls on Feb. 22.

Relive all the memories and learn shocking, never-before told stories. Read Red Mittens & Red Ink: The Vancouver Olympics e-book by Bob Mackin. The only book of its kind on the biggest, most-controversial sport and security spectacle in Canadian history.

Special $3 off discount -- only available on Feb. 12, 2013 -- to celebrate the third anniversary of opening day.

Click here to go to Smashwords and enter coupon code UV67Y to get your copy for just $5.99.

As a special bonus, click here to enjoy the Feb. 12, 2010 opening ceremony, in full.



Monday, February 11, 2013

B.C. Family Day: a new holiday, but it'll cost you

Today is British Columbia's first Family Day and the government is spending $1.5 million on events in Vancouver, Victoria, Cranbrook, Kamloops, Kelowna, Nanaimo and Prince George. It hired "experiential marketing agency" Inventa, which, in turn, hired "brand ambassadors" to promote the holiday -- a creation of Premier Christy Clark. Read my story here. 

Shouldn't a good idea just sell itself? Or is it a good idea?

Family Day will be a photo opportunity for Premier Photo Op, who is fighting an uphill battle to be re-elected on May 14. Since taking office on March 14, 2011, she has tried to be seen as a champion for jobs and families. But is she really helping increase jobs and help families?
B.C. Family Day: is that mama bear or papa bear?

As much as a day-off during the winter doldrums is welcome in this hectic world of ours (even the Work Less Party would agree), is it really the best strategy for a Premier who has staked her future on the message of jobs for families? The facts indicate another holiday will harm the economy. Simply put, if economic activity falls -- even by a fraction -- then it will be more difficult for the struggling B.C. Liberal government to balance the budget and harder for families to make ends meet. 

The Canadian Federation of Independent Business, whose members were already hobbled by the Harmonized Sales Tax and increased minimum wage, fears it will hurt businesses in lost sales, decreased productivity and increased costs. CFIB recently hired Mike Klassen (who is certainly no enemy of the ruling Liberals), who proclaimed "government gets the glory, but small business pays the bill."

When offices, warehouses, factories, mills, mines and construction sites are closed for a day, then economic activity decreases. Yes, there will be an uptick in tourism and hospitality spending, but it won't be enough to fill the gap. A study in the United Kingdom showed each bank holiday costs the economy an estimated £2.3 billion (about $3.6 billion).

(Don't waste your time with any comments calling me a party-pooper. I wish weekends were five days long and we only had a two-day work week, but we live in a capitalist-dominated world under a pro-business provincial government that claims to be the ultimate champion of free enterprise.)

Still don't believe me about the economic harm of a new holiday? Then read the Ministry of Labour's communications plan at bottom. Here is the relevant section that predicts less economic activity and higher labour costs for public sector workers. 

Estimate of the Economic Impact:
Applying a formula developed by BMO Capital Markets and that was first used in Ontario when it introduced a Family Day in 2007; the Ministry’s rough estimate is that a new statutory holiday could result in reduced economic activity in the range of about $198 million (i.e., the equivalent of approximately 0.1 per cent of provincial Gross Domestic Product).
In addition, a February holiday would have a direct fiscal impact on government. The Public Sector Employers’ Council Secretariat has estimated this to be approximately $28 million in additional wage/salary and benefit costs for employers in the broad public sector (0.12% of the public sector compensation base of $22.9 billion). 
Current Economy:
The Ministry of Finance has advised that Government is monitoring the current situation in the United States and Europe very carefully, as recent economic events in those regions are of concern. While British Columbia is not immune to economic events abroad, it has weathered the recession of 2008/009 better than most other provinces. Government expects that B.C.’s competitiveness will keep it in good stead going forward and is committed to the objective of a balanced budget in 2013/2014.
On September 8th, the Ministry of Finance released the first quarterly report, which indicated that the return to the two-tax PST/GST system will result in bigger deficits than forecast in Budget 2011:
o deficits of $2,778 million in 2011/12, and;
o $805 million in 2012/13.
The first quarterly update also projects a deficit of $458 million.

And, since that was written, the economic news has not improved. In November 2012, Finance Minister Mike de Jong projected a $1.47 billion deficit for 2012-13. B.C.'s debt was forecast to hit $55.9 billion in 2013 -- a massive burden for families today and families of the future. One need only look at the woes of Portugal, Ireland, Italy, Greece and Spain to understand the toll that debt causes on families.

The B.C. government is spending $15 million on the B.C. Jobs Plan advertising campaign, despite little evidence that Clark's policies have resulted in any private sector job creation. Sun Media's David Akin deconstructed the government's spin. B.C. is fourth worst in Canada in job creation. Statistics Canada said it lost 16,000 jobs in January and little has changed over the last year. 

If the NDP wins the election, don't expect Family Day to be cancelled. Why would the party of Big Labour take away a statutory holiday on which workers get time-and-a-half or better? 

Why was Feb. 11 chosen as the first Family Day, instead of synching with Feb. 18 -- when five other provinces and the United States have their annual third Monday of February statutory holiday?

Bill Tieleman, who is no friend of the BC Liberals, celebrates his birthday on Feb. 18. Sarah Palin, an obvious inspiration to Clark, has her 49th birthday on Feb. 11. But the real reason may be the Chinese lunar new year, which fell on Feb. 10. Clark was born in 1965, which was also a Year of the Snake. While the role of families has eroded in North American culture, the family unit remains the bedrock of Chinese culture, where family names come before individual names. Clark held a Feb. 7 event at the Floata restaurant in Chinatown to kick off the Year of the Snake/Family Day weekend.

If the NDP comes to power, they can move Family Day to the third Monday of February without fear of offending the Chinese community. The Year of the Horse starts Jan. 31, 2014.  

Anyway, Family Day is here to stay. Relax, have fun, stay safe and enjoy it. Just remember that there are costs attached. 

Thoughts on Penny

Who really is running Vancouver city hall?

The twice-elected Mayor is Gregor Robertson, the tuba-playing, bike-riding, organic-farming former NDP MLA who finally sold his holdings in Happy Planet Juice Co. in late 2012. Skeptics wonder if one of his lieutenants, Coun. Geoff Meggs, is really shifting the gears on the 10-speed behind the scenes. 

Penny Ballem: unelected and uncompromising?
City manager Penny Ballem is the top-paid civic employee, at $334,002 for 2011. She was hired, without competition, to replace the fired Judy Rogers in December 2008. Rogers got a $572,000 golden parachute, because the Vision Vancouver administration felt she was an NPA-loyalist. 

It wasn’t the first time Ballem got a no-bid gig. She did 78 hours work for $30,000 from eHealth Ontario. 

Ballem’s claim to fame was as deputy minister of health for five years under then-Premier Gordon Campbell. Health is the biggest and most complex ministry in government. She quit in 2006, calling Campbell’s plans for the ministry “unsound.”

Not only did Ballem replace Rogers in the city manager’s office, but she also took her seat on the  board of directors for the Vancouver 2010 Winter Olympics organizing committee, better known as VANOC.

Ballem was involved in city hall's $2.3 million purchase of used furniture and computers from VANOC. VANOC also got free rent in the city-owned 3585 Graveley Street “Campus 2010” after the Games. Ballem also signed-off on the transfer of VANOC files to the City Archives, mandating they be kept secret from the public until 15 years after the Games! The International Olympic Committee required the City Archives take it over, as per the host city agreement. But I couldn’t find anything from the IOC requiring the documents be kept secret until 2025. But that’s what Ballem agreed to do. So none of us who paid for the Olympics can see the financial and legal records or board correspondence, reports, agendas and minutes until after the Sochi 2014, PyeongChang 2018 and 2022 Winter Games have come and gone. 

In February 2011, Ballem excused Olympic Village developer Millennium from its mortgage, which once was worth $1 billion. She later admitted city taxpayers would lose $48 million on the Village, but downplayed the claims of those who said the loss was in the range of $200 million. 

Ballem has a reputation as an uncompromising micromanager and her influence has reached into every department at city hall. Those who have disagreed with her have retired, resigned or been fired. Ballem gagged city hall bureaucrats from talking to the media; they once were accessible and pleased to talk to reporters about the important work they do for citizens. Under her watch, it has become harder to receive records under Freedom of Information. 

Now comes the struggle over control of the city's community centres. Ballem is leading the charge to centralize control with the Park Board. The volunteer Vancouver Community Centre Associations are fighting back. Non-Partisan Association and Green Party politicians are opposed to the plan by the majority Vision Vancouver. 

Green Coun. Adriane Carr wanted to ask fellow councillors at the Feb. 12 city council meeting to order a staff report on the costs of centralizing the 23 community centres. As the Vancouver Courier’s Sandra Thomas reported, Ballem thwarted Carr’s motion. Now Carr has hired a lawyer.  

How can a public employee, no matter how senior, tell an elected official what can and cannot be debated in a democratic setting?

A source provided me a copy of the Feb. 5, 2013, 7:14 p.m. email by Ballem to Carr (copied to city clerk Janice MacKenzie and city lawyer Francie Connell), which said: 
"I apologize that I haven't had a chance to talk to you today about your motion - I just signed off the Council Agenda at about 6pm. Your motion presents a significant issue and given our last conversation about a motion which was a problem I thought I would send you a note. First, the GM of Park Board reports to the Park Board - if you wish to have a report to Council it should be directed to me to bring back.   
"The more important issue is that the Park Board instructed their GM to continue negotiations on a new contract with the CCAs. It would put both the Park Board and the City at risk if there was an airing of these issues in regard to impact  publicly. To reassure you there is work underway to ensure that the PB staff appropriately manage any risk in these negotiations. However for this reason the motion is out of order and I will not be allowing it to go out with the agenda. I have reviewed this with the City Solicitor and the Clerk. Please give me a call any time tonight if you get a break or first thing in the am. I am happy to discuss. Thanks so much pb"

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