Tuesday, June 16, 2009

Daily Digest June 16, 2009

ARCHIVED at http://cdndailydigest.blogspot.com/


Hide and seek 

Some may not see the better times

Having a sense of care for our community Post a comment
If more people assumed the responsibility of being good stewards, we wouldn't need litter cleanup campaigns.

Swine flu not done yet

Ottawa soap opera: Grits should give it a rest

Staying alive' the aim of human rights body

Showdown gets response

A pathetic spasm of ethnic nationalism

Are our MPs chisellers? We'll never know

Standing up to the mullahs

Sizing up the Green Revolution

A strong North must be prosperous


Timing everything for Ignatieff

Let's see some sincerity

Liberals learned lesson since last election fiasco

Full-day learning deserves support

Ball in Harper's court

Opportunity to transform early learning in Ontario

Who's calling shots for Liberals?

No angels in Iranian election fight

Get the fees out of high schools

The theocrats overreach

Early is not everything

Talking the talk

Appetite For Censorship

The future of Canada depends on immigrants

Questions over early years plan 

  Hudak frontrunner to lead Tory party

Ignatieff, Harper in duel of egos

Great school plan needs a realistic price 

Timing is everything for Grit chief Ignatieff

A political standoff

Iran's leaders suffer defeat

Ignatieff's 'coaching' perplexes

Manitoba among best of a bad lot at teaching history

Netanyahu makes a bold play

Hope MPs honest

Liberals trying to send feds down Chalk River

Truth panel must get right to work

Mercy essential to justice 

The road to recovery will not be straight and smooth

Children's needs are above politics

Federal leaders would be wise to avoid a vote


Foreign fighters join Afghan insurgents

Obama's bulldozer risks turning the Taliban into Pakistan's Khmer Rouge

' Afghanistan's Hamid Karzai Accused Of Compiling Coalition of "Gangsters and Warlords"

U.S. General Takes Helm in Afghanistan w/Photo

What a New Strategy Should Have to Succeed in Afghanistan

Navy waters down plans for Arctic patrol ships

Opportunity' in crisis to create global economic order, Brazilian leader says

Iran's enemies are circling

University says it can meet Canada's isotope needs

Gardasil Follow up

The Children's Aid empire

Readers detail rarely-seen ugly side of child-protection agencies

Tories proposing prison, parole reforms

Handing heroin to addicts

Canada takes in 6 times as many refugees as U.S., per capita

Williams makes case to PM for St John's search base

Quebec fete furor hits sour note

Front-runner Hudak seeks middle class votes

Is the Elliott campaign push polling?

Hibernia South deal would reap $13.5 billion for Canada, N.L., Williams says

Latest : Election speculation VIDEO

It's all about who?

Threat of summer election still looms

Common sense has 4 days to prevail

Harper-Ignatieff meeting cools election talk

Canada election risk recedes after talks

Harper, Ignatieff make progress in talks to avoid election

PM, Ignatieff to meet again

PM, Ignatieff to hold more talks Wednesday PM, Ignatieff set for third meeting

No need to strengthen ethics laws, Tories say

Stimulus on track to create or save 190,000 jobs, says Flaherty

Deepening recession inflated deficit: Flaherty

Opposition vows to gut Tory house arrest bill

Feds to spend $6m looking for isotope alternatives

Almost all economic stimulus cash would keep flowing during election


Ottawa urged to assess EI premium setting

Ottawa earmarks $6M for isotope research
Canada agrees to stricter controls on Afghan hired guns 

Give budget officer more money: Commons group

'Canada's budget watchdog' gets knuckles rapped

Think-tank recommends EI system changes

Experts douse Tory inmate crackdown plan

Une troisième rencontre Harper-Ignatieff mercredi matin

 Ignatieff lance un ultimatum

6 millions pour la recherche

Ultimatum pour un passeport

Harper et Ignatieff discutent pour tenter d'éviter des élections

Ottawa prétend être en voie d'atteindre son objectif de création d'emploi

Une entente de principe a été signée pour le développement d'Hibernia South

Les deux formations anglophones seront de la partie le 23 juin à Montréal

Ottawa parle peu d'une entente sur le recours aux firmes en sécurité privées

La Marine revoit à la baisse ses projets pour les patrouilles dans l'Arctique



Under to-day's OPINION AND INFORMATION - section there is just a long list of unsorted links. Part of the reason why (the other has to do with assisting in reorganizing the basement) was locating INFORMATION to support an OPINION.

The result was the Letter to the Editor that follows. It includes data and quotes.  Locating ther articles that support them eats up time.

You may agree or disagree with what's written.  In either case you can check out the accuracy at posts end where there is an annotated copy of the Letter and links to the supporting document.

There's a saying "Penny wise and pound foolish". In my view that's what Harper & Co. were in being niggardly in funding the new EI system they brought in last year.

Date: Tue, 16 Jun 2009 18:26:35 -0400
To: Letter to the Editor <joe.hueglin@bellnet.ca>
From: Joe Hueglin <joe.hueglin@bellnet.ca>
Subject: EI Account shorted $13 billion.

Dear Editor,

The Employment Insurance Account ended the 2007-2008 fiscal year with a $56,952,606.000.00 surplus.

$2 billion was established "as a contingency fund that will support relative premium rate stability." when a new system became law, rather than "a contingency reserve of $10-$15 billion." called for by the Canadian Institute of Actuaries.

Minister of Human Resources and Skills Development, Diane Finley, says Leader Michael Ignatieff's plan for employment insurance is "irresponsible" because it would only result in huge increases in payroll taxes." that "they have worked hard to get EI benefits to this point and will continue to do whatever they can." and "That payroll tax increase would kill jobs and small business,"

There will be an increase in EI spending this year.  Had the Flaherty and Finley followed advice given them  "by the former Chief Actuary of the EI program, by the Auditor-General of Canada and by the Canadian Institute of Actuaries." there would have been an adequate contingency fund set aside for recession rather than threats of job threatening tax increases .

The Supreme Court of Canada ruled the Government could do what it willed with the E.I. payroll taxes paid by both employees and employers.  It is unfortunate, now that recession has struck, they were, for whatever reasons they had, $8-13 billion short in planning for the inevitable.

Yours truly

Joe Hueglin,
5838 Mouland Avenue
Niagara Falls Ontario
Tel. 905-356-3901.


From: The Natroses

Hi Joe,
I had a good laugh on Ron's posting. Sad to say, when I am in a rocking chair - issues such as global warming, history will tell us it was the time when issues were made complicated, and to confuse the common person. It was done so people would be manipulated into doing things and buying things, that they would not do so normally. On the environment front, I read another article about white roofs, on all buildings in warm climates. That makes sense in a warm climate, where white will reflect the sunlight, and thus keeps the building cooler. This does not make sense in colder climates such as Canada, since a white roof will make it that much harder to heat the building. This is why black is a popular choice among roofs of buildings because it will retain heat during the cooler parts of our season, and when it is warm - most homes are equipped with ventilation fans to remove the warm air from the attic. The science part is being rewritten, whenever the move strikes the environmental nutwings strikes them.

Oops, I am showing my contempt. I better watch out, the Human Rights Commission might use me as their new example, the difference between contempt and hate. One commission, that has moved away from their mandate into the realms of policing free speech. Now it has reached the ears of our politicians on the Hill, who will be debating the difference between contempt and hate. How much do you want to bet, that our politicians will moved onto the side of the Human Rights Commission in the interest of looking out for themselves. A group, that is exposed to hate and contempt daily in our media, private conversations, and of course the Internet.

Speaking about politicians, economists who many work for the government are very apt to coined new words, to further confuse the average Canadian and thus making economics a very complicated issue.  Monetizing the debt is simply printing new money. They had to event a new word, so they do not scare all the big bankers, who are so dependent on governments and for that matter everyone else to borrow money from them, at the highest interest rate possible. One must keep the bankers accustom to their high standards of living.

Now speaking about bankers, the Bank of Canada has stated that our banks are good, the deficit is no longer a problem, our economy is recovering but there is one problem which is household debt. By the end of 2009, this same economists will shift the blame from the greedy elite to ordinary people and it will become our responsibility to clean up the financial systems and ordinary households will be blame for the current economic crisis. Hard to do, when one does not have any influence to call the shots.
Shifting blame to others, is politically smart when they are the cause of the crisis in the first place. Take the example of St. Theresa Point in Manitoba, a reservation where their is a severe outbreak of the swine flu. One can have all the medical supplies in the world, but health outbreaks are pretty hard to controlled, when one is dealing with substandard housing, poor water, poor education services and poor health services combined with the lack of health professionals.  Harper left the impression, that the First Nation's people of St. Theresa Point had no right to complain and that the government was doing everything possible. What was not stated, the outbreak was due to the lack and the will of the government, of neglecting reservations to the point where the First Nations are living in Third World conditions.

From: Rebecca Gingrich
Subject: DD

The Canadian government allowed this poison to be sprayed in New Brunswick and refuses to compensate the Veterans who were poisoned by it.  What a great and caring country we live in.  The angst over the isotopes is nothing but a political game played on the backs of the ill.  Has anyone checked how timely the medical treatment with isotopes is occurring in Canada?  We have no healthcare left in Canada.  Hospitals are being closed, medical personnel being laid off, our medical equipment is outdated, if not downright dangerous, and our politicians wax eloquent about their care and concern for people not getting timely care with the loss of isotopes?  What about all the other healthcare treatments that are now missing.  We are expected to drive and drive to get care because our community has lost it's medical facilities.  Our emergency departments are shut down and we are not supposed to notice.

Our governments are all the same.  We are asked to be a cheering section for the various parties when in reality they are nothing more that selfish, self important thieves with only one concern--their own power.  Why do we treat our various Parties like favourite sports teams?  We should have realized by now that we are on our own in this country.  The only thing we get from any level of government is theft, greed and spin.  Does anyone believe this any more? 
I am not a Liberal or a Conservative--I am a Canadian that is being played for a fool.  We are supposed to be concerned about who 'leads' this country, when in effect they are all leading us to oblivion.  All our governments are out for themselves and their Corporate buddies.  We just get to pay the freight.  We are supposed to believe the economic 'downturn' is over because the coke oven in Hamilton is bringing back 600 workers.  It is reported this morning that nothing will be produced there--it will be to assist the American company and prevent the American owners from having to pay millions in severance to the workers.  Great eh--what concern for the citizen!!!

The Natroses have it exactly right.  I want to thank them for their accurate description of Canada today.  And yet too many Canadians are blind to the truth--and we will continue playing with our lives and those of our children and grandchildren.  Wake up people.  It is only us that can get this country back on track and casting a ballot will not solve anything.  There is no choice.  We have to start over and try to get it right this time.


Agent Orange Continues to Poison Vietnam

Brad Thomson
We have all heard the expression, "Money doesn't grow on trees". This is ridiculous, money is made out of paper, trees are exactly where it grows. Unless, of course, one goes to the bank for a loan. Then money is fabricated out of thin air.
When a bank decides to loan you money, it goes to its computer and does some typing. Presto, you have money in your account. With the caveat, of course, that you have to pay back more than they just invented. The problem is that you cannot invent money yourself.
If a bank has in its possession one billion dollars, some of which grew on trees and some of which was fabricated out of thin air, they are allowed to loan out, or invent, ten times this amount. This is called fractional reserve banking.
All of this talk about economic trends, consumer confidence, interest rates and so forth is utter mumbo jumbo. The fact of the matter is that banks are private companies, and they own just about everything. We are all hopelessly indebted to them, a debt that grows on trees and is fabricated out of thin air.
Consolidation of banking power takes place when loans are called in, when the money supply is reduced. No one can pay up, so the banks take possession of your property. This has been going on for so long now that almost all world wealth is controlled by a very few families. Rockefeller, Rothschild and a not many others.
The correct monetary system would have involved the banks being owned by the people, by the state, with being money issued in proportion to economic productivity, and at no interest. It is far too late for this now, since the filthy rich private bankers own all arms manufacturers, all pharmaceutical companies, all oil companies, all media, and all politicians worldwide.
These evil psychopaths are now well on their way to one world government, one world currency and one world army. They admit this, out in the open. They are clearly on record time and again as stating that they wish to reduce the population of the planet to about 500 million. AIDS, SARS, H1N1 are all man made diseases for this purpose.
All of us need to stop babbling aimlessly about Harper versus Ignatieff, left versus right and so on. We do not seem to see the forest for the trees. We are fiddling while Rome burns.
Brad Thomson
Gatineau, Quebec

From: "Mahmood Elahi"
To: "Kate Malloy" <kmalloy@hilltimes.com>
Cc: <persichilli@corriere.com>,
Subject: With no interest in ruiing a minority government, Harper should step aside and let Jim Prentice run the government

Ms Kate Malloy
Editor, The Hill Times
Copy to Mr. Angelo Persichilli : You didn't mention that Mr. Harper has failed to realize that a majority government is beyond his reach (thank God!). He is basically an autocrat who is looking for a majority government which will allow him to rule like an autocrat. But as the inventors of democracy -- the Athenians -- tell us that democracy is not a tyranny of the majority but a form of government where all citizens must have a voice.
With no interest in running a minority government, Harper should step aside letting Jim Prentice run the government
Re "Election -hawk Liberals shouldn't underestimate Ignatieff," by Angelo Persichilli (June 15).
It is said the coming events cast their shadows before them and it is clear that Prime Minister Stephen Harper will go down in defeat in the next election and he is himself responsible for his coming defeat. Since winning a minority government in 2006, Mr. Harper made winning a majority government his primary goal. But he falied to realize that with five parties he Conservative, the Liberal, the NDP, the Bloc, the Green --  wooing voters who are higly diverse in their political orientation, a majority government was beyond his reach.
Under the circumstances, a minority government can only function by entering into an informal coalition with another party or in consultation with other parties. But Harper's confontational style precludes such cooperation. In fact, he has been trying to impose his minority rule by constant threats of going to the polls. But such a strategy has proved highly counterproductive.
Mr. Harper should have looked to Germany where a grand coalition between centre-right Christian Democratic Party (CPD) of Chancellor Anglela Markel and centre-left Social Democratic Party (SPD) is successfully running the government. This meant that the right-wing party must make concessions to its left-wing coalition partner.  But Mr. Harper seems to have little interest to form any informal alliance with the Liberal party and has been running attack ads against Liberal leader Michael Ignatieff. 
As such, he should step aside and let a more moderate Jim Prentice run the minority government. Otherwise, Mr. Ignatieff should bring down this government. A minority government cannot work if it behaves like a majority government. Such a minority government is clearly dysfunctional. A quick summer campaign will not be bad. However, Mr. Ignatieff, who is likely to form a Liberal minority government, should eschew the confrontaional style of Mr. Harper and ineffective style of Lberal leader Paul Martin who earned the title of "Mr. Dithers" for his prevarication.

From: Peggy Merritt
Subject: here we go again

Hi Joe:  This separation between new and old conservatives is nonsense. 
My premise is that we should get the government out of losing investments.  If Chalk River is such a success why isn't the Maple system up and running after many years and the huge cost? What can a government do when there is panic about heavy water leaks? Up on Lake Huron there is a very successful Atomic Energy facility which is privately owned and debt free. The facts are that business makes mistakes and are accountable to the private sector.  When government civil servants make mistakes accountability goes out the window. If someone is discovered to had been irresponsible it becomes almost impossible to change the situation.  On the second issue I still maintain that large corporations  like GM are having a free ride at tax payers expense.  The problem is huge and complicated and does involve many innocent workers.  As I said before it is my hope that the.industry's restructuring will show that the management and union decisions  will be responsible to the taxpayers of
both the US and Canada.

The present Conservative government was given a basket full of problems that the previous government (after 13 years in office) would not tackle  because  they were controversial  and might cause them to lose an election.  After a mere three and one half years in office under the leadership of Stephen Harper the conservatives have made a valiant 
effort (in a minority situation)  to carry out change which involved cutting wasteful spending and reviewing all the ministry programs. 
Conservative don't go in for National Day care programs and elaborate government ministries but give money directly to parents to decide how they want to look after their children. They don't support a vague Kelowna Accord which gives money ot Aboriginals without any strings attached ( we have been doing this for years and not solved any First Nation problems. )  I don't know the exact numbers but our Indian Affairs Minister has settled many land claims and among other things given the right of aboriginal women to have ownership in property should there be a break up in the family. It is not the Conservative way to make elaborate political  sound good gestures by throwing money at problems. The Conservatives have demonstrated the courage to make fiscally responsible and sometimes unpopular decisions that benefit Canadian taxpayers by solving many long standing problems that have plagued the country for many years.  If this is New Conservative philosophy then count me in!  Joe, I do usually  have to time to write long philosophical comments .. this is an exception   because it is heart felt and sincere and if this generates discussion so be it 
Thanks   Peggy Merritt

From: Rory J. Koopmans Edmonton, Alberta
To: donplett@conservative.ca; dougfinley@conservative.ca; hawnl1@parl.gc.ca
CC: harper.s@parl.gc.ca; ed@goodcoffee.ca

Date: Tue, 16 Jun 2009 12:16:52 -0600

Rory J. Koopmans
Edmonton, Alberta
June XVIth, MMIX
Donny Osmond Plett
Tory Headquarters
Ottawa, Ontario
Donny O.:
As part of the retirement package to be given to "Senor Vitor Marciano", may I suggest the following out of respect IV his talents as an organizer. He really does deserve this honour, specifically b/c he brought down a sitting cabinet minister. Might I suggest you name the Tory National Headquarters War Room after the "Portugeuse Wonder Child." So "The Vitor Marciano Centre of Excellence." Then all Tory operatives who work out of that room in the future can learn about Vitor and his fabulous tactics. You could put a picture up of him at the front of the room, with scented candles & soft music playing in the background. Then people could sign a Guest Registry when they attend the monument and have their names forever immortalized.
I hope you get back to me at your earliest convenience, I of course would pay for the picture frame.
Always Willing II Fight IV The Tory Cause,
Rory J. Koopmans 

From: Rebecca Gingrich
Subject: GW/Climate Change

They may have changed the name to 'climate change' but they are still predicting GW?

Manhattan floods, Chicago heatwaves and withering Californian vines: how scientists see the US in 75 years

Subject: It's only our information and our money.  Talk about freedom and democracy

Is there anyone watching over our tax dollars.  They want to maintain data 'integrity'--did any of our elected and unelected trough slurrpers ever think of using integrity to 'govern'??  Sober Second Thought indeed!

Tuesday, June 16, 2009
Investigation Required Over Liberal Senate Efforts to Buy Election Software
Here's a question: Why did the unelected Canadian Liberal Senate Caucus try to purchase voter tracking software?

More reasons that Senators should be elected...

A letter from Liberal Senate Caucus (LSC) representative Grant Mitchell to the Board of Internal Economy reveals that in March 2009, the Liberal Senate Caucus (LSC) sought approval to use the taxpayer-funded budget for the purchase of Voter Activation Network (VAN) software at a cost of $60,000. Read the letter HERE.

VAN is the voter tracking software reportedly used by the Liberal Party of Canada, by many U.S. Senators and the Obama campaign.

The Memorandum of Understanding (MOU) signed by Senator Mitchell outlines plans for the software to "link to the voter file to maintain data integrity." The Elections Act clearly prohibits such a use by a Senator and a Senate Caucus. The voter list is only to be used for Members "communicating with his or her electors" and "soliciting contributions for the registered party and recruiting party members" (S. 110 (1) and (2)); neither of which is allowed by a Senator.

Rory J. Koopmans
Edmonton, Alberta

June XVth, MMIX
Rt. Hon. Stephen J. Harper, PC, MP
24 Sussex Drive, Ottawa, Ontario
I cannot emphasize how much there needs II be a change in National Council. You have a "Secretary" who has poisoned the well. Sure, he is owed kudos IV his past work IV the Alliance & Candidate Betty Unger. Plus he is to be congratulated IV toppling Anne McLellan.
The way of the future for "Secretary" Marciano is to explore the past. I propose taking him off National Council in exchange IV giving him a paid researcher position to study previous Tory election results, bothin Canada & the United Kingdom, then extrapolate those results IV election gains in the future.
In exchange IV having him removed from the Council, I would front the party $2,500.00 towards the research budgets staggered in monthly payments of $125.00 per month in cash. I'd even put that in writing.
Of course I'd want a guarantee in return that no one would try & remove me from the party. I wish to die as a member of the Conservative Party. I could not bear it if I wasn't allowed II stay. Again, I'd want that agreement II let me be in peace also in writing. A truly fair exchange.
Subject: Budget Crunch Forces Australia to Withdraw Solar Rebate ... and why governments shouldn't subsidize this kind of stuff in the first place
From: "Efstratios Psarianos"

No way ... a country cuts back on high $$$ subsidies for puny solar-power generation cuz it doesn't have the ca$h? What's the world COMING to?<
Solar-power stuff going on in Australia, with accompanying (pungent) notes. Expect no less ...
Ontario residents whose government is proposing 42-cent-per-KW-hr pricing for solar power in Ontario, take note.
 Budget Crunch Forces Australia to Withdraw Solar Rebate
BANGALORE, INDIA--June 16, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--In an abrupt move, Australia's federal government announced that it was withdrawing discounts on solar power systems to households beginning June 10. The rebate plan, which provided discounts on solar power systems, received unprecedented popularity and generated more than 30,000 applications last month. The government, which had allocated $123.3 million for plan, decided to annul it three weeks before the closing date, as the costs escalated to about $616.5 million. The Ministry of Environment had allocated an additional budget of $178 million last month, but the funding was utilized to fulfill orders for applications last month. The sudden announcement gave solar power retailers only eight hours to process applications. The industry was in a flurry of activity, with many retailers extending working hours to accommodate last-minute applicants. The scheme became so popular that retailers were not able to keep pace with demand. About 63,000 households that have already applied will benefit from the old plan.
The value of credits will depend on the size of the system used, the power produced, location and geography. For instance, in the case of solar systems installed in Perth, Brisbane, Sydney or Canberra, for a system of 1 kilowatt (kW) or 1.5 kW installed, the owner would receive $4,233.3 or $6,329, respectively, at an REC market price of $41.1. Cities receiving more sunshine are expected to benefit from higher money-back value. A household in Melbourne, which receives lesser sunshine, will get $3,616.8 and $5,466 for 1 kW and 1.5 kW systems, respectively, at the same market price. Since the value of the credit will be market driven and therefore volatile, industry experts are concerned about the effectiveness of this scheme.

OK, let's consider the higher-priced Perth case: the Australian government is proposing its paying out $4,233 Aussiebucks for one KW of solar-power generation capacity. One Aussiebuck is worth 90 cents Canadian today, so let's say that $4,233 AUS is worth $3,800 CDN.
$3,800 CDN per kilowatt-hour is actually an OK price for a new thermal-power station ('thermal power' meaning that it's driven by burning some fuel or other). The catch is that a thermal-power station can run all day, whereas a one-kilowatt solar panel will generate only one kilowatt maximum at high noon on a sunny day. OK, let's say that that one kilowatt will drive an air-conditioner that'll keep a house cool at high noon. In that case, the appropriate thing to compare the solar panel is is a PEAKING power station, that is one that gets turned on when electrical demand spikes and which is turned off otherwise. A peaking plant is comparatively cheap: prices of $2,500 CDN per kilowatt are normal.
So already, the Aussie subsidy is high. Add to that the fact that it's one that covers PART of a panel-buyer's original cost, and we see that solar panels are VERY expensive compared to peaking power plants. Plus, they're only useful during the day, so useless during evening peaks when folks are watching TV and what-not. Plus, those dang air-conditioners might STILL be on. One way to counter this is to install batteries that charge up in off-hours and discharge during peaks ... but this costs, batteries have to be maintained and replaced, and why have solar panels when batteries coudl go a long way to reducing power costs to consumers and cinvestment costs to utilities (less need to set up peaking power-stations)?
    - expensive solar panels that work only part of the day get heavily subsidized;
   - as soon as a government runs in financial trouble, it throws expensive, economically-nonsensical programs overboard.
Think it might happen in Ontario, whose government is proposing its paying out SIX-odd times the average price of electricity for solar-generated power? La la LA la la la ...
Maybe Ontario won't pull the plug. But it should. And even better, it shouldn't try to pull expensive, happy-happy, dingbat stunts in the first place.
Australia's federal opposition party claims that the existing solar rebate scheme has been affected because of the country's budget deficit of $47.6 billion. The scrapping of the rebate scheme has put the country's solar power industry in a state of economic chaos.
Biens, voyons! Harvesters of economic rent (i.e., subsidy seekers) have their plans turned upside down because of inconstant policy? A lesson to everyone: watch out when investing in stuff based on government subsidies ... policy changes are a VERY REAL risk to business.
Stratos (Energy Sector MBA, by teh way)

The Employment Insurance Account ended the 2007-2008 fiscal year with a $56,952,606.000.00 surplus. (1)

$2 billion was established "as a contingency fund that will support relative premium rate stability." (2) when a new system became law, rather than "a contingency reserve of $10-$15 billion." called for by the Canadian Institute of Actuaries. (3).

Minister of Human Resources and Skills Development, Diane Finley, says Leader Michael Ignatieff's plan for employment insurance is "irresponsible" because it would only result in huge increases in payroll taxes." that "they have worked hard to get EI benefits to this point and will continue to do whatever they can." (4) and "That payroll tax increase would kill jobs and small business," (5)

There will be an increase in EI spending this year. (6) (7)  Had the Flaherty and Finley followed advice given them  "by the former Chief Actuary of the EI program, by the Auditor-General of Canada and by the Canadian Institute of Actuaries." (8) there would have been an adequate contingency fund set aside for recession rather than threats of job threatening tax increases .

The Supreme Court of Canada ruled the Government could do what it willed with the E.I. payroll taxes paid by both employees and employers.  It is unfortunate, now that recession has struck, they were, for whatever reasons they had, $8-13 billion short in planning for the inevitable.

(Some of the referenced articles are lengthy.  The unusual step of citing passages is taken to facilitate your checking them out. Please inform me should you prefer this not be done in the future. J.H.)

(1) Public Accounts of Canada 2008 Summary Report and Financial Statements Canada
     Prepared by the Receiver General for Canada

         Accumulated surplus at the
        beginning of the year . . . . . . . . . . . . . . .           54,120,095      50,817,763
         Accumulated surplus at the
        end of the year. . . . . . . . . . . . . . . . . . . . .        56,952,606      54,120,095

(2) Appendix VII - Review of Main Legislative and Regulatory Modifications to the Employment / Unemployment Program from 1930
     to 2007 http://www.hrsdc.gc.ca/eng/employment/ei/premium_rate/2009/appendix_7.shtml


        * Budget 2008 announced the creation of the Canada Employment Insurance Financing Board to improve the governance       and management of the EI Account. The creation of this new Board will enhance the independence of premium rate setting,         and ensure that EI premiums are used exclusively for the EI program.
  • maintaining a $2 billion cash reserve as a contingency fund that will support relative premium rate stability.
(3) No need to refund EI surplus: Top court

        The Canadian Institute of Actuaries called on the Harper government Thursday to make good on the budget announcement.   But president Michael Hale said that the government needs to keep a contingency reserve of $10-$15 billion.

        "In the midst of a recession, the institute believes that the federal government should improve the rules adopted in its 2008   budget, by establishing a system such that EI premium rates will not have to be increased to deal with rising unemployment      costs," he said in a statement.

(4) Finley Defends Tory EI Program

(5) Understudies and a grab-bag of issues

(6) Canada spending on jobless up $5.5-billion: Flaherty

        OTTAWA -- Canada will spend an extra $5.5-billion (US$5.1-billion) this year on benefits for the unemployed under the   country's existing Employment Insurance (EI) program, Finance Minister Jim Flaherty said Tuesday.

        "The amount of EI benefits that are being paid out is higher because of the increased unemployment in certain regions of the    country. As you know, it's an automatic stabilizer," Mr. Flaherty said.

(7) Improvements to Employment Insurance benefit Canadian businesses and workers
        The cost of EI benefits is expected to rise by about $5.5 billion in 2009-10 over last year. EI benefits for 2009-10 are        expected to be $2.5 billion higher than at the time of the 2009 Budget.

(8) What Happened to the $54 Billion EI Surplus?
        The accumulation of an EI surplus far in excess of the $10 - $15 Billion estimated amount to balance program revenues and       expenditures over a business cycle has also been strongly criticized by the former Chief Actuary of the EI program, by the      Auditor-General of Canada and by the Canadian Institute of Actuaries.

        Bill C-50 does not eliminate the EI Account and the accumulated EI surplus. But, in creating a new separate EI reserve  account, it is clearly intended to relegate the accumulated EI Account surplus to history. Section 127 of the Bill explicitly   prohibits the CEIFB from taking into account in premium-setting the balance in the Employment Insurance Account