Friday, March 20, 2009

Money For Nothing.....
As Citizen Ellie was preparing a cheque to cover her interim property tax, the words "scandal", "impeachment", "judicial inquiry" and "farting machine" flitted across her consciousness.
Yes indeed ! Right here in River City..... we've got scandal with a capital "S".
Think about the sponsorship scandal which eventually brought down the Liberal government. It resulted after Auditor-General Sheila Fraser discovered that $100 million of the $250 million federal government's sponsorship program had been inappropriately spent. Retain that $100 million figure in your little grey cells.
When the costs of cancelling the north-south light rail transit (LRT) project are finally tallied, they will far exceed $100 million. In terms of dollars, our "made in Ottawa by Ottawans" scandal will make the sponsorship scandal look like small beer. Can we impeach anyone ? Should we have a judicial inquiry ?
To date the city has spent $54,561,96.00 on the now non-existant (or ghost, if you prefer) LRT line. This money has gone to pay legal fees and other ancilliary costs resulting from the multi-million dollar breach of contract lawsuits being brought against the city by Siemans and St. Mary's Cement. Together these companies claim the city owes them $270 million. If these companies win their cases, Ottawa ratepayers could be on the hook for maybe more than $400 million. Do the math. Add $54,561,961.00 to $270,000,000.00 and you get $324,561,961.00 -- plus the costs of whatever experts are required for the litigation. That's more than the $100 million which brought down a government.
The sponsorship scandal costs were borne by taxpayers across Canada and some of the money has been recovered. The multi-million dollar projected cost of the LRT fiasco will be carried by a much smaller population base -- those of us who have the misfortune at this point in time of living in this country's most ineptly-governed municipality. Sooner or later the bill will come due. Double-digit property tax increases, anyone ? That giant sucking sound you will hear is your hard-earned money swirling down the LRT lawsuit drain .
Prior to the 2006 municipal election campaign, city council had approved a transit plan which included a dual-track electric light rail line from the University of Ottawa to Barrhaven -- the infamous north-south route. Estimated cost for this project was $1 billion and had it proceeded as planned, the trains would have been running by 2010. Costs were to be shared by the city, the province and the feds. Tenders were called and contracts were awarded. That's how Siemans and St. Mary's Cement got into the act and that's why they're suing the city for breach of contract.
Then along came the 2006 municipal election. Larry O'Brien, whose strength came from the right wing sector of the community, ran for mayor on a zero tax increase platform. His opponent, Alex Munter, came from the other side of the political spectrum. The election was close. Larry O'Brien ascended to the mayor's chair.
Mayor Larry could not have achieved his goal of zero tax increases unless he had help. If a big, expensive project came off the books, that might do the trick. Ottawans were still somewhat divided over the transit plan despite its approval by council. Enter John Baird, then Treasury Board President, keeper of the feds' purse-strings.
Minister Baird apparently had second thoughts about the viability of the north-south LRT project so he pulled the feds' share of the costs.
The new council's first order of business was to scrap the north-south LRT route. With no federal money forthcoming, the province then put its share on hold. It should be remembered that apart from the mayor and three newbies elected in 2006, the council which voted to shut down the LRT plan was pretty much the same group which approved it in the first place. Did anybody consider the legal implications ? Were they so naive as to think big companies such as Siemans and St. Mary's Cement would just say "bye-bye" and walk away ? At least one councillor, Christine Leadman, has been quoted as saying that if she had the opportunity to do it all over again, she wouldn't vote to cancel the project.
Back to the drawing board. A new transit plan (which is pretty much the same as the old plan) received council approval last November. The major difference is the cost -- this new plan includes a tunnel in the downtown core (conveniently forgetting this part of the city lies on a fault line). Costly ? You bet ! Just ask Bostonians about the cost overruns of their "big dig".
John Baird is now Transport Minister. He is enthusiastic about the new plan. "We are very supportive of the plan and we want to be a major funding partner," he now says.
Why did Minister Baird cancel federal funds for the first plan and does his
change of heart mean shovels will soon be in the ground ?
Not so fast ! Enter provincial Municipal Affairs Minister Jim Watson. Minister Watson wants a full review of the plan -- affordability and ridership are his watchwords.
That's admirable. Looking out for Ottawa taxpayers. But is there more to his agenda? Rumor has it that Minister Watson may be considering his own run for the mayor's chair in 2010.
Don't hold your breath waiting for the LRT. Even if she lives to be 100, Citizen Ellie doesn't expect to see it in her lifetime.
Double-digit property tax increases to pay for the LRT lawsuit are another matter. They are coming. Start saving now !
Now That's A Protest !
Ottawa ratepayers are angry but not angry enough yet to mass in City Hall Plaza with pitchforks at the ready.
We're a pretty reserved bunch -- unlike our neighbors to the south who are discovering all kinds of new methods to express indignation at politicians and political decisions -- not to mention bankers, corporate executives and financial gurus..
According to an item heard last week on NPR (the U-S version of CBC radio, only NPR does it better), the council in an Ohio city had to cease deliberations and clear the chamber when an irate taxpayer switched on a farting machine.
Picturing a similar event during an Ottawa council session caused Citizen Ellie to break into hysterical laughter. When she recovered she googled "farting machine" to see what might turn up as she had never heard of such a device.
They're out there folks ! Some just make rude noises. Others emit unpleasant odors. The deluxe variety does both. A farting machine can be ordered for as little as $3.98 U-S, plus the usual postage and handling fee.
The angry Ohio ratepayer must have read the late Saul Alinsky's "Rules for Radicals" in which he describes some of his more spectacular sucesses as a community organizer. To learn more about the great Akron fart-in, you'll have to read Alinsky's book. Suffice to say it involved a bean supper and a large block of tickets to a black-tie concert.
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