Thursday, October 20, 2011

TD Bank Head Warns Canadians

The head of the Toronto Dominion Bank delivered a strongly worded warning to business leaders in Toronto Wednesday night warning of serious challenges facing Canada in coming years.

While the scope of this blog is not intended to cover national news, there are statements in this warning that very much do apply to the local political scene.

One of Mr. Clarks observations is the fact our leaders have made decisions based on views they formed in a more prosperous time. This is an observation you can apply locally when you hear budget planners saying that a 21% tax increase is sustainable. Well, it might have been based on the economy we WERE experiencing, but hardly applies to the reality of today.

There have been huge commitments of taxpayer dollars in just the past decade that may very well prove to be unsustainable in the coming years.

Just of few of these major committments in recent years include $8 million or so for a theatre, $75 million (at least) for a conference centre, $16 million for a new staff office, $10 million for a emergency waterline to Harmac and at least $65 million for a water treatment plant.

Stop to think for a minute ....... where is that money going to come from and are these decisions that were made during times when it looked like the prosperity ride was going to go on for ever.

Do we really NEED to be spending $16 million on shiny new offices when our water, sewer and roads are being seriously underfunded?

Also consider some of the outlandish pensions and severance packages that have been promised to public employees, all of which will be impacted by extended periods of low interest rates.

If you want to read full coverage of Mr. Clarks address is can been seen on the Financial Post HERE.


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