Spec Online

Interest rate dilemma

Canadian Press reports:

'Rising mortgage rates announced yesterday signal the end of historically low home borrowing costs and present Canadian consumers with a dilemma: either stay flexible, hope for the best and ride out the next several months or lock in to long-term loans.

Three big banks raised their mortgage rates by more than half a point, effective today, and most industry watchers expect that's just the beginning of future small jumps that will hike the cost of home ownership the rest of this year.

For consumers nervous about the changes, the security of five-year, or longer, fixed loans may be the best option, says Robert McLister, a mortgage planner and editor of the Canadian Mortgage Trends website.

The changes affect closed mortgages with terms of three, four and five years at RBC Royal Bank, Laurentian Bank, and TD Canada Trust. Rates for mid-term mortgages like these tend to reflect the banks' borrowing costs on bond markets, where mortgage loans are financed.

Other banks are expected to follow suit.'

What do you think? Are you planning to lock in a mortgage, or loan, if possible? Are there other actions you might take?

A choice on corporate tax cuts

Les Whittington and Susan Delacourt of Torstar's Ottawa bureau report:

'Michael Ignatieff promised that if elected, he will cancel $6 billion a year in corporate tax cuts planned by the Conservatives so that his Liberal party can pay for a more caring, environmentally friendly and smarter society in the years ahead.

"We've got to create fiscal room to realize some dreams," Ignatieff said after a three-day policy-renewal conference.

The Conservatives' commitment to continue phasing in billions of dollars in corporate tax cuts at a time when Ottawa is running a $54 billion annual budget deficit has been harshly criticized by the New Democrats. But Ignatieff's vow to freeze business taxes came as a complete surprise to observers and Liberals alike.

"We have a clear choice: tackling the Conservative deficit and starting to invest in our future, or giving further tax cuts to corporations before when we can afford them," Ignatieff explained.

The Harper government plans to bring corporate income tax rates down to 15 per cent by 2017. But by freezing the rate at its current 18 per cent, the Liberals say Ottawa would ultimately have $6 billion in extra annual tax revenues.

This would help a Liberal government bring down the budget deficit to a planned $18 billion or so annually in a few years and also pay for what Ignatieff said would be a very few new spending programs.

"With the deficit that Stephen Harper has left behind, we can't do everything at once – but we can't afford to stand still as a country," Ignatieff said. "If we make smart fiscal choices, we can start moving forward again."

What do you think?

Freezing public wages

Canadian Press reports:

'One day after announcing a wage freeze for most public sector workers in Ontario, Finance Minister Dwight Duncan is suggesting municipalities follow his lead.

Duncan, in an interview with The Canadian Press, didn't include towns and cities in his plan to immediately freeze non-unionized public sector wages and cap compensation for unionized workers for two years as their contracts expire.

He says municipalities are a separate order of government with their own taxation powers, but adds he would welcome a move by them to take the same path on staff wages.

The biggest cost for most local governments is salaries for police and firefighters, and Duncan says mayors and councils could negotiate with their unions to keep a lid on salaries.

He says municipalities must realize that money from the province will be tighter in the next few years, and it won't be funding increases in overall compensation for workers.

The Association of Municipalities of Ontario says it would like to hear exactly what Duncan has in mind, especially since so many of their collective agreements are determined through interest arbitration.

That's where an arbitrator determines what wage increases will be, and the association notes they likely won't give an increase of zero.'

What do you think?

Quebec knows best?

The Canadian Press reports:

'MONTREAL - Muslim women will be forced to uncover their faces if they want services from the Quebec government, according to landmark legislation tabled yesterday in the province.

In tabling the bill, Quebec delves into sensitive territory where governments in Canada have largely avoided treading: setting hard-and-fast rules for accommodating minorities.

The bill says people obtaining, or delivering, services at places like the health- or auto-insurance boards will need to do so with their faces in plain view. Face-coverings won't be tolerated if they hinder communication or visual identification.

Premier Jean Charest characterized the legislation as a defence of two valued principles, gender equality and secular public institutions.

"This is a symbol of affirmation and respect ... first of all, for ourselves, and also for those to whom we open our arms," he said. "This is not about making our home less welcoming, but about stressing the values that unite us."

What do you think? Is it paternalistic and demeaning for the government to tell Muslim women they won't be treated equally if they choose to wear a niqab?

Muzzling Ann Coulter

Torstar News Service reports:

'OTTAWA - Hundreds of screaming students succeeded in what few thought possible Tuesday night - they silenced incendiary right-winger Ann Coulter.

Organizers for the American's tour of Canada scrubbed her much-anticipated speech at the University of Ottawa when students crowded the entrance before her arrival. A spokesman for the organizers said about 2,000 "threatening" students posed a security threat to the darling of the American right, and she was advised against appearing.

"It would be physically dangerous for Ann Coulter to proceed with this event," said conservative political activist Ezra Levant inside Marion Hall.

"This is an embarrassing day for the University of Ottawa and their student body . . . who chose to silence her through threats and intimidation."

The announcement was greeted with shouts of "Shame" and "We want Ann" from about 100 people who had managed to get into the hall.

Outside students celebrated: "Nananana, nanana, Goodbye Ann Coulter."

What do you think? Should she have been allowed to speak? Considering her remark the night before advising a Muslim student to take a flying carpet or camel rather than an aircraft, should Coulter's comments be considered hateful, and possibly illegal?

Taxing local TV

The CRTC has ruled cable companies must negotiate with television networks to pay for local programming. Critics argue the extra cost incurred by cable companies to carry local signals will simply be passed on to consumers. Defenders say the extra revenue is essential for local television broadcasting to survive in a dramatically altered economic environment. What do you think?

Obama's health-care victory

Supporters are calling it the most socially progressive legislation the the United States has seen in a half century, while critics insist the massive health-care reform program amounts to a government takeover that will bankrupt the nation. Some features of the reform package passed on the weekend include:

TAXES: Dramatically scales back tax on high-cost insurance plans that was opposed by House Democrats and labour unions. The tax would be delayed until 2018. It is imposed at $10,200 for individuals and $27,500 for families.

PRESCRIPTION DRUGS: Closes the gap in the Medicare prescription drug benefit for seniors who have spent $2,830. Beginning in 2011, those seniors receive a discount on brand-name drugs, initially 50 per cent off. When the gap is eliminated in 2020, seniors will still be responsible for 25 per cent of the cost of medications until catastrophic coverage kicks in.

EMPLOYER RESPONSIBILITY: Businesses are not required to offer coverage. Instead, employers are hit with a fee if the government subsidizes their workers' coverage. The $2,000-per-employee fee would be assessed on the firm's workforce, minus an allowance.

What do you think?

Climbing dollar, falling hopes?

The loonie is close to being on par with its U.S. counterpart. That has some travelers and shoppers getting ready to take advantage of the fact, but has manufacturers and those who sell internationally very worried. What do you think about the high dollar? Should we be worried?

Trashing city hall renos

The Spec's Emma Reilly reports:

'It's on time. It's on budget. It's a disgrace.

That's one of the slogans on a series of posters about City Hall displayed at a James Street North art gallery.

The posters feature the tag line "Councillor Lloyd Ferguson is the plastic pink flamingo on the front lawn of heritage."

Graham Crawford, the founder of Hamilton HIStory and HERitage museum and gallery and the artist behind the project, says the posters allow him to express his frustration with the City Hall renovations.

But Ferguson, the chairperson of the renovations committee, says the posters border on defamation.

Each shows a picture of City Hall alongside different slogans such as "If a contractor did this to your house, would you pay him? Or just not elect him again?"

The City Hall renovations are slated to finish in June, six months ahead of the original target date of December. They are also expected to come in about $4 million under the budget of $74 million.

Crawford said he was inspired to create the posters after the city made several changes to the heritage building, including relocating the cafe to the first floor and using concrete instead of marble on the exterior.

"Decisions have been made by people who, in my view, literally don't understand what the building is," he said. "Posters, I find, are a good outlet for me personally to get my messages out."

Ferguson says he understands not everyone is going to be happy with the renovations, but some of the posters could be interpreted as libellous.'

What do you think? Is it fair to criticize the councillor personally, especially considering the project is ahead of schedule and below budget?

Toronto its own province?

Owen Sound Tory MPP Bill Murdoch says Ontario would be better off if Toronto was its own province, sort of a city-state like Washington, D.C., presumably. He believes rural Ontario gets short shrift because decision-making is Toronto-centric. Others have argued for Toronto secession on the other side, saying it would give the city and GTA the power to make its own decisions without needing approval from the province. What do you think?

(Blogger's note: For the record, this post was suggested by a user. We weren't going to give the matter this much attention given Murdoch's track record. But, as the user points out, he is an elected official, and this is a subject that has been a talking point in the past. So, we defer.)