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National

The political welfare straw man

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6 minute read

From the Canadian Taxpayers Federation

Author: Jay Goldberg

After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.

For Ontario’s political parties, the jig may finally be up.

Premier Doug Ford is just six months away from scrapping Ontario’s political welfare system. Political welfare has been a golden goose for the province’s political bigwigs and a nightmare for everyday taxpayers.

The program will soon be relegated to the ash heap of history, so long as Ford doesn’t go wobbly.

How did we get here?

Nearly a decade ago, former premier Kathleen Wynne banned corporate and union donations to political parties in Ontario. But at the same time, she created a taxpayer-funded political welfare scheme. As a result, political parties get a set amount of money from taxpayers four times a year for every vote they received in the previous election – no strings attached.

In trying to sell this political welfare cash cow to Ontario taxpayers, Wynne presented the situation as a trade-off: to ban corporate and union donations to political parties, the so-called per-vote subsidy was needed.

“Democracy is not free,” argued one of Wynne’s ministers when the Liberals introduced the program.

Before Ford got to Queen’s Park, he knew all of that was hogwash.

“I do not believe the government should be taking money from hard-working taxpayers and giving it to political parties,” said Ford in 2018.

Political parties, Ford argued, should survive by raising money from everyday taxpayers. There was no need for corporate and union donations or taxpayer handouts.

Sadly, Ford lost his way.

After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.

Of course, Ford didn’t let logic or facts get in the way. The truth is Ontario’s political parties raised millions during the pandemic and didn’t need taxpayer handouts.

But now it appears Ford is finally seeing the light: Wynne’s political welfare regime is set to expire at the end of 2024.

Let there be no mistake: there is no valid argument in favour of keeping this taxpayer atrocity.

Ontario’s political parties will not go broke when the taxpayer taps turn off next year. In fact, they’re currently swimming in buckets of cash.

The province’s four major political parties – the Progressive Conservatives, Liberals, NDP and Greens – raised more than $14 million collectively in 2023, and currently have the same amount of money in the bank.

The PCs, Liberals and NDP all have at least $2.3 million in their bank accounts. Even the Green Party, which holds just one seat at Queen’s Park, is sitting on more than $500,000 in cash.

Clearly, Ontario’s political parties won’t go broke if they get off the taxpayer dole.

Even if Ontario’s political parties weren’t sitting on a massive war chest, the reality is they would adapt quickly to a new system reliant on small-dollar donations.

Former prime minister Stephen Harper ended the federal version of Wynne’s political welfare scheme over a decade ago. And corporate and union donations have been banned federally for two decades. Prime Minister Justin Trudeau hasn’t so much as tweaked those changes.

Since Harper put an end to federal political welfare, Canada’s political parties have flourished.

They’ve all gotten better at appealing to everyday Canadians to make small-dollar donations and they’re raised more money since the per-vote subsidy was scrapped than they did before.

That’s exactly what will happen when Ford kiboshes Ontario’s version of the per-vote subsidy at the end of the year. And that’s how it should be.

If political parties want to raise cash, they should do so by winning over taxpayers, not raiding their wallets.

The deadline is looming, but the fight here in Ontario is far from over.

Ford extended the life of the political welfare regime before and he could do it again.

That means taxpayers must stay vigilant.

If Ford sticks to his word, Ontario taxpayers will have one less monkey on their backs come 2025.

Let’s make sure that comes to pass.

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Alberta

Healthcare Innovation Isn’t ‘Scary.’ Canada’s Broken System Is

Published on

From the Frontier Centre for Public Policy

By Joseph Quesnel

“Our healthcare system is a monopoly installed at every level with the culture inherent to monopolies, whether public or private. The culture is based on regulation and budgetary controls, closed to the outside world, impermeable to real change, adaptation and innovation. It is a culture that favours inefficiency.”

Why is the Globe and Mail afraid of healthcare reform that works?

The Globe and Mail editorial board seems to find healthcare innovation “scary.”

On Sept. 3, it published an editorial called “Danielle Smith has a scary fix for healthcare,” criticizing the Alberta Premier’s idea to introduce competition in the province’s health system. Premier Smith’s plan involves third-party leasing of underperforming hospitals while the government retains ownership and continues funding.

Let’s be clear: the real problem isn’t Smith’s proposal – it’s the current state of healthcare across Alberta and Canada. Sticking with the status quo of underperformance is what should truly alarm us. Rather than attacking those trying to fix a broken system, we should focus on much-needed reforms.

So, what exactly is Smith proposing? Contrary to what you may have heard, she isn’t dismantling Alberta’s universal healthcare or introducing an American style system. Yet the public sector unions – and certain media outlets – seem to jump into hysterics any time innovation is proposed, particularly when it involves private-sector competition.

Predictably, groups like Friends of Medicare, with their union ties, are quick to raise the alarm. Yet media coverage often fails to disclose this affiliation, leaving readers with the impression that their views are impartial. Take Global News’ recent coverage, for example:

In late August, Global News reporter Jasmine King presented a story on potential changes to Alberta’s healthcare system. She featured a spokesperson from Friends of Medicare, who predicted that the changes would be detrimental to the province. However, the report failed to mention that Friends of Medicare is affiliated with public sector unions and has a history of opposing any private sector involvement in healthcare. The news segment also included a statement from the dean of a medical faculty, who was critical of the proposed changes. Missing from the report were any voices in favour of healthcare innovation.

Here’s the real issue: Canada is an outlier in its resistance to competition in healthcare. Many European countries, which also have universal healthcare systems, allow private and non-profit organizations to operate hospitals. These systems function effectively without the kind of fear-mongering that dominates the Canadian debate.

Instead of fear-based comparisons to the U.S., let’s acknowledge the success stories of countries that have embraced a mixed system of healthcare delivery. But lazy, fear-driven reporting means we keep hearing the same tired arguments against change, with little context or consideration of alternatives that are working elsewhere.

It’s ironic that The Globe and Mail editorial aims to generate fear about a health care policy proposal that could, contrary to the alarmist reaction, potentially improve efficiency and care in Alberta. The only thing we truly have to fear in healthcare is the stagnation and inefficiency of the current system.

Claude Castonguay, the architect of Quebec’s Medicare system, released a report in 2008 on that province’s health system, calling for increased competition and choice in healthcare.

“In almost every other public and private areas, monopolies are simply not accepted,” he wrote. “Our healthcare system is a monopoly installed at every level with the culture inherent to monopolies, whether public or private. The culture is based on regulation and budgetary controls, closed to the outside world, impermeable to real change, adaptation and innovation. It is a culture that favours inefficiency.”

The fear of competition is misguided, and Canadians are increasingly open to the idea of paying for private treatment when the public system falls short.

Let’s stop demonizing those who propose solutions and start addressing the real issue: a system that is no longer delivering the care Canadians need. The future of healthcare depends on embracing innovation, not clinging to outdated models and misplaced fears.

Joseph Quesnel is a Senior Research Fellow with the Frontier Centre for Public Policy.

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Agriculture

Farm for food not fear

Published on

From the Frontier Centre for Public Policy

By Lee Harding

Fall harvest is in the storehouse. Now, let’s put away all proposals to cap fertilizer inputs to save the earth. Canadian farmers are ensuring food security, not fueling the droughts, fires, or storms that critics unfairly attribute to them.

The Saskatoon-based Global Institute for Food Security (GIFS) did as fulsome an analysis as possible on carbon emissions in Saskatchewan, Western Canada, Canada, and international peers. Transportation, seed, fertilizer and manure, crop inputs, field activities, energy emissions, and post-harvest work were all in view.

The studies, published last year, had very reassuring results. Canadian crop production was less carbon intensive than other places, and Western Canada was a little better yet. This proved true crop by crop.

Carbon emissions per tonne of canola production were more than twice as high in France and Germany as in Canada. Australia was slightly less carbon intensive than Canada, but still trailed Western Canada.

For non-durum wheat, Canada blew Australia, France, Germany, and the U.S. away with roughly half the carbon intensity of those countries. For durum wheat, the U.S. had twice the carbon intensity of Canada, and Italy almost five times as much.

Canada was remarkably better with lentil production. Producers in Australia had 5.5 times the carbon emissions per tonne produced as Canada, while the U.S. had 8 times as much. In some parts of Canada, lentil production was a net carbon sink.

Canadian field peas have one-tenth the carbon emissions per tonne of production as is found in Germany, and one-sixth that of France or the United States.

According to GIFS, Canada succeeds by “regenerative agriculture, including minimal soil disturbance, robust crop rotation, covering the land, integrating livestock and the effective management of crop inputs.”

The implementation of zero-till farming is especially key. If the land isn’t worked up, most nutrients and gases stay in the soil–greenhouse gases included.

Western Canada has been especially keen to adopt the zero-till approach, in contrast to the United States, where only 30 percent of cropland is zero-till.

The adoption of optimal methods has already lowered Canadian carbon emissions substantially. Despite all of this, some net zero schemers aim to cut carbon emissions by fertilizer by 30 percent, just as it does in other sectors.

This target is undeserved for Canadian agriculture because the industry has already made drastic, near-maximum progress. Nitrates help crops grow, so the farmer is already vitally motivated to keep nitrates in the soil and out of the skies–alleged global warming or not. Fewer nutrients mean fewer yields and lower proteins.

The farmer’s personal and economic interests already motivate the best fertilizer use that is practically possible. Universal adoption of optimal techniques could lower emissions a bit more, but Canada is so far ahead in this game that a hard cap on fertilizer emissions could only be detrimental.

In 2021, Fertilizer Canada commissioned a study by MNP to estimate the costs of a 20 percent drop in fertilizer use to achieve a 30 percent reduction in emissions. The study suggested that by 2030, bushels of production per acre would drop significantly for canola (23.6), corn (67.9), and spring wheat (36.1). By 2030, the annual value of lost production for those crops alone would reach $10.4 billion.

If every animal and human in Canada died, leaving the country an unused wasteland, the drop in world greenhouse gas emissions would be only 1.4 percent. Any talk of reducing capping fertilizer inputs for the greater good is nonsense.

Lee Harding is a Research Fellow for the Frontier Centre for Public Policy.

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