There are a couple reasons Argentina hasn’t been able to keep its central bank account in check.
For one, an artificially strong currency has made foreign goods more attractive, and led the country to become more reliant on imports. While Argentina still enjoys a trade surplus, it has been shrinking because of growing energy imports. Argentina has had trouble borrowing money from abroad since defaulting on its debt in 2001, so it has to finance the bulk of its growing imports with its reserves.
Then there’s Argentina’s high inflation, which has coerced Argentines into holding on to US dollars rather than spending them, and using any pesos they have on hand to buy more US dollars. Those dollars, however, aren’t making their way to the central bank. Argentines are using their foreign cash to buy goods abroad or keeping it as collateral in case the country’s monetary system collapses again.
Argentina plans to spend another $8 billion of its reserves to pay off debts through the end of this year, which will leave very little wiggle room for its central bank to finance the country’s fiscal affairs. Soon the country could find itself incapable of paying its creditors and financing its imports—a recipe for another economic crisis.
Magazine publishing is a dark art. But the world of niche publishing—people who create magazines for necrophiliacs or donkey hobbyists, or for those of us who like to ride really small trains—features its own requirements.
Miniature Railway is hardly nostalgic. Henshaw is in the midst of creating a comprehensive map of all the miniature railways in the United Kingdom. “We estimate there are 1000 in total, but many are private, known only to a small group of friends. I have agreed to only show 400.” Henshaw admits that “quite a few” of those 400 are private. In August, The Telegraph wrote a feature on the “irresistible” romantic allure of a garden steam train. Apparently a popular activity among enthusiasts is cooking bacon and eggs in a shovel over the burning coals of a miniature train’s engine.
“There are many miniature railway enthusiasts in Australia, Canada, the U.S., and Germany, and a few in India too,” Henshaw says. “Most other nationalities find the whole subject perplexing.”
Miniature Railway’s ads are what you might expect: miniature railway destination spots, model train expos, and a locomotive plates maker in Droitwich (“NOT the cheapest, PERHAPS the most expensive, PROBABLY the best.”) The articles are also what you might expect—fascinating to the miniature railway enthusiast, slightly Greek to the rest of us. In the magazine’s pictures, Caledonian blue–polished trains snake through tall-treed woods and people convivially gather near cobbled tracks.
I wouldn’t imagine the cozy ethos of this digest-sized publication would translate well into digital modes, and David Henshaw more or less agrees. “I suspect that most small publications will go digital within a few years, but Miniature Railway is one of the few that will not.” One of the merchandise items featured on the back cover includes a heavy-duty binder with gold embossed letters intended to hold print copies. “Our readership is older, more traditionally minded.” Henshaw does express concern that soon there will not be enough printers around to print at a reasonable price—the print run per issue, which comes out tri-annually, is 800 and costs $1,800 (yearly subscriptions are $12 a year domestically).
Henshaw calls the economics of paper dubious. “These are interesting days!”
When Necole Hines moved to Calgary from Toronto nine years ago, she was offered teller positions at four different banks. When she got laid off from a recent job at a stock photography company, she easily found another in sales and administration at a magazine.
Ms. Hines – who spent a year in university but has no degree – has always made lower-end but respectable wages, most recently around $50,000 a year.
But that salary doesn’t go very far in what has become one of Canada’s most expensive cities, where an oil boom has created reams of new money and driven up the cost of everything from housing to groceries.
The signs of wealth are everywhere – from the frenzy to build the new tallest skyscrapers, skyrocketing sales at the four-year-old Bentley dealership, and plans for high-end malls and neighbourhoods at every turn.
In the country’s energy capital, where business people, lawyers, engineers and geologists earn some of the highest salaries in Canada, households making less than a six-figure income – who many would classify as middle class – face a tough slog.
Calgary families earning up to $68,175 still qualify for a three-bedroom social housing unit, proof that even amid Calgary’s wealth, middle-class households are being increasingly squeezed. The tight labour market created by the expansion of the energy industry has not eliminated the issue of income inequality. Far from it – the rise in the cost of living is adding to the pressure.
Ms. Hines will attest that if you’re not working for an oil and gas company, or one of the other corporate towers that make up the landscape of the downtown, it’s an expensive place to be.
“If you don’t get into that right industry, you’re still having to pay for the same things as somebody else making that amount of money,” Ms. Hines said.
She found she needed a car because public transit isn’t reliable, and food basics such as produce and cereal are more expensive. (The Consumer Price Index was higher in Calgary in 2012 than any other city in Canada, except for Edmonton.) In a city where home ownership is prized, the average single-family home costs more than $516,000, so the single mother of three rents the main floor of a house. Although she is the main breadwinner for her family, Ms. Hines has never felt as if she’s been able to get ahead. “In this city, it’s not that easy.”
Alberta’s bountiful oil and gas resources have given many people steady work, and have made others rich. Calgary is home to more than one in 10 of Canada’s wealthiest tax filers, those with an annual income of at least $201,400. Between 1989 and 2010, its share of the national total more than doubled, to 11 per cent from 5 per cent.
But the influx of money and 20,000 newcomers to the city each year – whether it’s for views of the Rocky Mountains or the low unemployment rate – means the demand for every service, from housing to hairdressers, has gone up.
“It’s not all sunshine and rainbows in Calgary,” Calgary Mayor Naheed Nenshi said in an interview. “There are a lot of people who are vulnerable. There are a lot of people who are living on the margins.”
While Calgary has become home to one of the country’s highest family median annual incomes – now at $93,410 – increasing wealth has not affected everyone equally. In an analysis of Statistics Canada income-tax data, the University of Alberta’s Parkland Institute says Calgary is Canada’s most unequal city, as the bottom 90 per cent of income earners saw an average increase in pay (adjusted for inflation) of only $2,000 between 1982 and 2010.
Alberta has the highest average hourly wages in the country, but certain sectors routinely benefit more than others. For instance, while people in business, finance or sales saw large average increases in hourly rates over the past 12 months, wages in art, culture and recreation occupations dropped.
We aren’t alone in having an inflated housing market. Here is what it looks like in Canada
With real home price appreciation near 20%, Canada’s home price growth has been raising eyebrows. Bank of Canada governor Stephen Poloz doesn’t see a bubble, but others aren’t so sure. Climbing alongside housing prices have been levels of household debt, which surmounted 165% of income in the second quarter of 2013. (That’s not too far from where they were in the US before it suffered its housing crisis.) And the Bank of Canada itself has even warned about risks posed by frothy condo sectors in big cities like Toronto. A few hedge funds, such as San Francisco-based Hyphen Partners, have even made high-profile bets on a Canadian housing bust. They haven’t paid off, yet.
A restructuring at Casino’s Moose Jaw and Regina will see 55 out-of-scope jobs lost, in the management and administration areas. Terminations are effective immediately.
SaskGaming made the announcement Wednesday, pointing to a decrease in revenues over the past year. In-scope jobs are not being affected.
Compensation packages as well as career counselling is being offered by both Casino’s.
50 jobs are being terminated in Regina, while Moose Jaw will see 5 jobs terminated.
If I remember correctly, neither Casino Moose Jaw or Regina make as much money as the government had hoped do the fact that if you are a high roller, you don’t want to gamble locally and instead you travel to gamble. It is interesting to see that despite the boom, revenues are down at Sask Gaming.
Any suggestions as to what the cause is;
- People realize that Casinos win more than they do?
- If you can escape Regina or Moose Jaw you will?
- Competition with SIGA?
- Rent increases and a tight rental market eating up disposable income in Regina and Moose Jaw?
- Maybe they do have the “loosest slots” in the province?
Last year was a busy one for public giveaways to the National Football League. In Virginia, Republican Governor Bob McDonnell, who styles himself as a budget-slashing conservative crusader, took $4 million from taxpayers’ pockets and handed the money to the Washington Redskins, for the team to upgrade a workout facility. Hoping to avoid scrutiny, McDonnell approved the gift while the state legislature was out of session. The Redskins’ owner, Dan Snyder, has a net worth estimated by Forbes at $1 billion. But even billionaires like to receive expensive gifts.
Taxpayers in Hamilton County, Ohio, which includes Cincinnati, were hit with a bill for $26 million in debt service for the stadiums where the NFL’s Bengals and Major League Baseball’s Reds play, plus another $7 million to cover the direct operating costs for the Bengals’ field. Pro-sports subsidies exceeded the $23.6 million that the county cut from health-and-human-services spending in the current two-year budget (and represent a sizable chunk of the $119 million cut from Hamilton County schools). Press materials distributed by the Bengals declare that the team gives back about $1 million annually to Ohio community groups. Sound generous? That’s about 4 percent of the public subsidy the Bengals receive annually from Ohio taxpayers.
In Minnesota, the Vikings wanted a new stadium, and were vaguely threatening to decamp to another state if they didn’t get it. The Minnesota legislature, facing a $1.1 billion budget deficit, extracted $506 million from taxpayers as a gift to the team, covering roughly half the cost of the new facility. Some legislators argued that the Vikings should reveal their finances: privately held, the team is not required to disclose operating data, despite the public subsidies it receives. In the end, the Minnesota legislature folded, giving away public money without the Vikings’ disclosing information in return. The team’s principal owner, Zygmunt Wilf, had a 2011 net worth estimated at $322 million; with the new stadium deal, the Vikings’ value rose about $200 million, by Forbes’s estimate, further enriching Wilf and his family. They will make a token annual payment of $13 million to use the stadium, keeping the lion’s share of all NFL ticket, concession, parking, and, most important, television revenues.
After approving the $506 million handout, Minnesota Governor Mark Dayton said, “I’m not one to defend the economics of professional sports … Any deal you make in that world doesn’t make sense from the way the rest of us look at it.” Even by the standards of political pandering, Dayton’s irresponsibility was breathtaking.
In California, the City of Santa Clara broke ground on a $1.3 billion stadium for the 49ers. Officially, the deal includes $116 million in public funding, with private capital making up the rest. At least, that’s the way the deal was announced. A new government entity, the Santa Clara Stadium Authority, is borrowing $950 million, largely from a consortium led by Goldman Sachs, to provide the majority of the “private” financing. Who are the board members of the Santa Clara Stadium Authority? The members of the Santa Clara City Council. In effect, the city of Santa Clara is providing most of the “private” funding. Should something go wrong, taxpayers will likely take the hit.
The 49ers will pay Santa Clara $24.5 million annually in rent for four decades, which makes the deal, from the team’s standpoint, a 40-year loan amortized at less than 1 percent interest. At the time of the agreement, 30-year Treasury bonds were selling for 3 percent, meaning the Santa Clara contract values the NFL as a better risk than the United States government.
Although most of the capital for the new stadium is being underwritten by the public, most football revenue generated within the facility will be pocketed by Denise DeBartolo York, whose net worth is estimated at $1.1 billion, and members of her family. York took control of the team in 2000 from her brother, Edward DeBartolo Jr., after he pleaded guilty to concealing an extortion plot by a former governor of Louisiana. Brother and sister inherited their money from their father, Edward DeBartolo Sr., a shopping-mall developer who became one of the nation’s richest men before his death in 1994. A generation ago, the DeBartolos made their money the old-fashioned way, by hard work in the free market. Today, the family’s wealth rests on political influence and California tax subsidies. Nearly all NFL franchises are family-owned, converting public subsidies and tax favors into high living for a modern-day feudal elite.
Pro-football coaches talk about accountability and self-reliance, yet pro-football owners routinely binge on giveaways and handouts. A year after Hurricane Katrina hit New Orleans, the Saints resumed hosting NFL games: justifiably, a national feel-good story. The finances were another matter. Taxpayers have, in stages, provided about $1 billion to build and later renovate what is now known as the Mercedes-Benz Superdome. (All monetary figures in this article have been converted to 2013 dollars.) The Saints’ owner, Tom Benson, whose net worth Forbes estimates at $1.2 billion, keeps nearly all revenue from ticket sales, concessions, parking, and broadcast rights. Taxpayers even footed the bill for the addition of leather stadium seats with cup holders to cradle the drinks they are charged for at concession stands. And corporate welfare for the Saints doesn’t stop at stadium construction and renovation costs. Though Louisiana Governor Bobby Jindal claims to be an anti-spending conservative, each year the state of Louisiana forcibly extracts up to $6 million from its residents’ pockets and gives the cash to Benson as an “inducement payment”—the actual term used—to keep Benson from developing a wandering eye.
In NFL city after NFL city, this pattern is repeated. CenturyLink Field, where the Seattle Seahawks play, opened in 2002, with Washington State taxpayers providing $390 million of the $560 million construction cost. The Seahawks, owned by Paul Allen, one of the richest people in the world, pay the state about $1 million annually in rent in return for most of the revenue from ticket sales, concessions, parking, and broadcasting (all told, perhaps $200 million a year). Average people are taxed to fund Allen’s private-jet lifestyle.
The Pittsburgh Steelers, winners of six Super Bowls, the most of any franchise, play at Heinz Field, a glorious stadium that opens to a view of the serenely flowing Ohio and Allegheny Rivers. Pennsylvania taxpayers contributed about $260 million to help build Heinz Field—and to retire debt from the Steelers’ previous stadium. Most game-day revenues (including television fees) go to the Rooney family, the majority owner of the team. The team’s owners also kept the $75 million that Heinz paid to name the facility.
Judith Grant Long, a Harvard University professor of urban planning, calculates that league-wide, 70 percent of the capital cost of NFL stadiums has been provided by taxpayers, not NFL owners. Many cities, counties, and states also pay the stadiums’ ongoing costs, by providing power, sewer services, other infrastructure, and stadium improvements. When ongoing costs are added, Long’s research finds, the Buffalo Bills, Cincinnati Bengals, Cleveland Browns, Houston Texans, Indianapolis Colts, Jacksonville Jaguars, Kansas City Chiefs, New Orleans Saints, San Diego Chargers, St. Louis Rams, Tampa Bay Buccaneers, and Tennessee Titans have turned a profit on stadium subsidies alone—receiving more money from the public than they needed to build their facilities. Long’s estimates show that just three NFL franchises—the New England Patriots, New York Giants, and New York Jets—have paid three-quarters or more of their stadium capital costs.
Many NFL teams have also cut sweetheart deals to avoid taxes. The futuristic new field where the Dallas Cowboys play, with its 80,000 seats, go-go dancers on upper decks, and built-in nightclubs, has been appraised at nearly $1 billion. At the basic property-tax rate of Arlington, Texas, where the stadium is located, Cowboys owner Jerry Jones would owe at least $6 million a year in property taxes. Instead he receives no property-tax bill, so Tarrant County taxes the property of average people more than it otherwise would.
In his office at 345 Park Avenue in Manhattan, NFL Commissioner Roger Goodell must smile when Texas exempts the Cowboys’ stadium from taxes, or the governor of Minnesota bows low to kiss the feet of the NFL. The National Football League is about two things: producing high-quality sports entertainment, which it does very well, and exploiting taxpayers, which it also does very well. Goodell should know—his pay, about $30 million in 2011, flows from an organization that does not pay corporate taxes.
That’s right—extremely profitable and one of the most subsidized organizations in American history, the NFL also enjoys tax-exempt status. On paper, it is the Nonprofit Football League.
This situation came into being in the 1960s, when Congress granted antitrust waivers to what were then the National Football League and the American Football League, allowing them to merge, conduct a common draft, and jointly auction television rights. The merger was good for the sport, stabilizing pro football while ensuring quality of competition. But Congress gave away the store to the NFL while getting almost nothing for the public in return.
The 1961 Sports Broadcasting Act was the first piece of gift-wrapped legislation, granting the leagues legal permission to conduct television-broadcast negotiations in a way that otherwise would have been price collusion. Then, in 1966, Congress enacted Public Law 89‑800, which broadened the limited antitrust exemptions of the 1961 law. Essentially, the 1966 statute said that if the two pro-football leagues of that era merged—they would complete such a merger four years later, forming the current NFL—the new entity could act as a monopoly regarding television rights. Apple or ExxonMobil can only dream of legal permission to function as a monopoly: the 1966 law was effectively a license for NFL owners to print money. Yet this sweetheart deal was offered to the NFL in exchange only for its promise not to schedule games on Friday nights or Saturdays in autumn, when many high schools and colleges play football.
Public Law 89-800 had no name—unlike, say, the catchy USA Patriot Act or the Patient Protection and Affordable Care Act. Congress presumably wanted the bill to be low-profile, given that its effect was to increase NFL owners’ wealth at the expense of average people.
While Public Law 89-800 was being negotiated with congressional leaders, NFL lobbyists tossed in the sort of obscure provision that is the essence of the lobbyist’s art. The phrase or professional football leagues was added to Section 501(c)6 of 26 U.S.C., the Internal Revenue Code. Previously, a sentence in Section 501(c)6 had granted not-for-profit status to “business leagues, chambers of commerce, real-estate boards, or boards of trade.” Since 1966, the code has read: “business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues.”
The insertion of professional football leagues into the definition of not-for-profit organizations was a transparent sellout of public interest. This decision has saved the NFL uncounted millions in tax obligations, which means that ordinary people must pay higher taxes, public spending must decline, or the national debt must increase to make up for the shortfall. Nonprofit status applies to the NFL’s headquarters, which administers the league and its all-important television contracts. Individual teams are for-profit and presumably pay income taxes—though because all except the Green Bay Packers are privately held and do not disclose their finances, it’s impossible to be sure.
Interest article in CBC that highlights the problems the Canadian Forces has with procurement and that is we don’t build enough naval vessels (or buy enough military hardware) to have the needed expertise to do it well (which even countries like the United States find complicated enough)
IMC’s report was overseen by its president, Tom Ward, a veteran of the industry who was in charge of building the Canadian Coast Guard icebreaker Henry Larsen. Ward declined to comment on his report or to say why it had so little impact. But shipbuilding experts say that the moribund state of the industry in Canada means that government officials know little about shipbuilding — so expert, third-party reviews of such massive contracts are essential.
“There’s no expertise in government,” said business professor Michael Whalen of Mount Saint Vincent University in Halifax.
“Who’s going to look at those issues and the proposals from the Irvings and their subcontractors? We don’t have anybody, because they haven’t worked in that area for 30 or 35 years. So we’re going to go out to third-party consultants who do have that kind of expertise and can advise us. Are we getting value for money? Are we getting the right ship for the money?”
Josh Harris said Newark’s Prudential Center was a more important financial piece in his purchase of the New Jersey Devils than the hockey team itself.
Harris and David Blitzer, a New Jersey native and senior managing director of Blackstone Group LP, purchased the National Hockey League franchise last month in an agreement that also gave the partnership control of the Prudential Center.
Located three blocks from Newark’s main transportation hub, the $385 million Prudential Center was opened in 2007. Harris called it “one of the most modern arenas in the country.”
“And we think that with the new capital structure and the new ownership group and the new management that we put in, that we’ll be able to make this arena really realize its potential financially,” Harris said in a Bloomberg Television interview.
Harris, who bought the National Basketball Association’s Philadelphia 76ers in 2011, acquired the NHL team in a deal valued at about $300 million.
Harris has already made changes to the Devils’ business personnel, hiring Scott O’Neil as chief executive officer. The former president of Madison Square Garden Sports, O’Neil is also the chief executive of the 76ers.
Harris said he viewed the Prudential Center as complementary to New York City’s two main arenas, Madison Square Garden in Manhattan and the Barclays Center in Brooklyn. The home of theNBA’s New York Knicks and NHL’s New York Rangers, the Garden is completing a $1 billion private renovation. The $1 billion Barclays Center, home of the NBA’s Brooklyn Nets, opened last year.
“If you’re a big concert event and you stop in New York, you’re probably going to play one of MSG and Barclays, and this arena,” Harris said of the Devils’ home.
O’Neil said in another Bloomberg Television interview last week that the Prudential Center was the fourth-highest grossing arena in the nation, behind Barclays, the Garden and Staples Center in Los Angeles. He didn’t offer specific figures or the source of his information.
Located about 11 miles (18 kilometers) from New York City, the Prudential Center has been a one-tenant building since the Nets moved to Brooklyn prior to the 2012-13 season. Harris said the venue’s concerts and special events would be enough to sustain the building without a second professional team.
“Having a basketball team, an NBA team, in this arena is not in the business plan right now,” Harris said. “We don’t think it’s necessary.”
Interesting bit of arena drama right now in New York. You have Madison Square Garden being evicted, the Nassau Coliseum being totally renovated and refurbished, the Baclay’s Centre opening, and now the New Jersey Devils being purchased not for the team, but because it gives them access to Newark’s Prudential Centre.
In case you think this is just a New York thing, check out what MSG is doing with the old Los Angeles Forum, a building many thought would be torn down.
The first thing to consider is that arenas are costing $300 million dollars at least with many heading towards the $500 to a $1 billion range (depending on land prices). Older arenas like Nassau and The Forum now have tremendous value, if you can call a $100 million renovation a value, in part because modern arenas have become so expensive, they aren’t viable in non-premier markets. Remember that the City of Edmonton is paying a subsidy to the Edmonton Oilers to operate their new arena and Glendale is paying a large subsidy to the Coyotes to manage their arena.
More than 50 mainland cities have answered Beijing’s call for cleaner economic growth with plans for aviation hubs – airports clustered with industrial zones.
They hope the projects will attract investment in the logistics, high-technology and finance sectors, the sort of businesses Beijing is encouraging as it seeks to move the economy away from an over-reliance on smoke-stack industries.
But critics argue the projects will exacerbate the problem of debt-fuelled construction, which local authorities have used for years to boost their economies.
Such “plans often start high key, but end poorly”, government researcher Wang Jun said.
“It is not necessarily a good thing for the whole nation, as so much investment will often lead to overcapacity and increase local government debts,” said Wang, who works at the China Centre for International Economic Exchanges. “There are already signs of redundant investment, as some regions in China have too many airports, which are not in full operation.”
Wang Xiaohua, an aviation consultant at Kent Ridge Consulting in Fujian, said developing an aviation hub involved more than simply building an airport.
It first of all required minimum annual passenger flows of 10 million and cargo volume of 200,000 tonnes, she said. Only Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen and Kunming met that criteria last year.
The mainland will need more airports as the economy grows, but profits are elusive. Of the mainland’s 183 airports, 143 lose money, data from the Civil Aviation Administration of China shows. That suggests that more than 60 of the 80 new airports envisioned in the latest five-year plan to 2015 will end up in the red.
More then one economist has said that the country whose debt we all should be working about is China and articles like this do little to convince people otherwise.
Saskatoon loves to talk about how it is a business friendly city and touts our lower taxes. As other cities have learned, being business friendly means a lot more than lower taxes, it means less red tape.
In 2010 the City of Calgary created the Cut Red Tape program to reduce red tape at The City of Calgary. The focus of the program was to remove red tape and make changes that result in our citizens and businesses seeing visible improvements. Some of those changes were small, constant irritants and others may be larger, fundamental issues in regulations or business processes. The aim is to shift our culture from a regulator perspective to a facilitator. The program has been supported by Council and funded through approved applications to the Council’s Innovation Fund on a project-by-project basis.
There are some real cost savings both to taxpayers and to the city. Take a look below.
Cities around the word are hearing from world class businesses that “business friendly” is a lot more than low taxes, it’s about creating a climate where business can be conducted easily. It’s something that Saskatoon has a way to go on but as Calgary is showing, it is something that can be improved.
A couple of years ago I had a prepaid phone with Virgin Mobile. My account had constant technical problems. Nothing nefarious but it just didn’t work. I would call in and the tech support people would immediately realize this account was messed up and would escalate the problem to more senior people. The more senior people would realize the problem was really messed up. It would get escalated (while I would get emails about the problem about every 30 minutes letting me know that a) it was messed up and b) they hadn’t given up on it. I would get credit or something for my time but eventually someone at Virgin decided the problem could not get fixed and they just set up a new account and moved over my number.
While Wendy and I moved to Bell, we think highly enough of Virgin to keep Mark’s cell phone with them and a large part of it has been exceptional customer service.
Lately my debit card hasn’t been working with the Bank of Montreal. It locks me out if I enter the PIN number in wrong and some times it just locks me out. I end up having to pay with credit and each time I call them up and I explain the problem. This is where it goes bad for me. They tell me that the system doesn’t work the way I describe it and it must be me. I have even been called a liar by the customer service reps. Instead of resetting my PIN, they make me go down to the branch so I can get it reset there.
The branch clerks are just as unhelpful. They too tell me that what I am describing is impossible. It’s nice to be called dishonest in person and over the phone.
The last time it happened, Wendy forgot her wallet at home and used my bank card. She used my old PIN number once and it locked her out. Again, we tried to explain on the phone and then in person and we were both called a liar and at the branch, they just blamed my card again.
Wendy and I have a joint account. Her card doesn’t work that way, just mine. It’s obviously a problem with either the BMO database or a weird account setting but no one offers to even look into the problem and that is what drives me crazy. I can handle a messed up account or software issues. I can even handle a “I have no idea why this is happening but I am working on it” answer but each time over the last two years I have walked away and realized that they a) either didn’t give a rip what was going on or b) are so disempowered that they literally can’t do anything to fix it. Either way it says a whole lot about the bank and how it treats its customers.
Right now I have given up on BMO. Air Miles are great but not if it means we great treated like this.
Retail analysts say that the world’s biggest retailer has reason to fear a small grocery chain that’s based in Idaho and boasts a business model that allows it to undercut Walmart on prices.
So about that eye-catching Walmart quote. Those are the words of Burt Flickinger III, a widely respected supermarket retailing industry expert who works for the Strategic Resource Group. Flickinger was quoted in a recent Idaho Statesman story about WinCo, a chain of roughly 100 supermarkets in the western U.S., based in Boise.
“WinCo arguably may be the best retailer in the Western U.S.,” Flickinger says while touring a WinCo store. “WinCo is really unstoppable at this point,” he goes on. “They’re Walmart’s worst nightmare.”
Flickinger isn’t the only industry insider discussing WinCo and Walmart in the same breath. “While many supermarkets strive to keep within a few percentage points of Walmart Stores’ prices, WinCo Foods often undersells the massive discount chain,” the industry publication Supermarket News explained last spring.
This is where it gets interesting.
While all of these factors help WinCo compete with Walmart on price, what really might scare the world’s largest retailer is how WinCo treats its employees. In sharp contrast to Walmart, which regularly comes under fire for practices like understaffing stores to keep costs down and hiring tons of temporary workers as a means to avoid paying full-time worker benefits, WinCo has a reputation for doing right by employees. It provides health benefits to all staffers who work at least 24 hours per week. The company also has a pension, with employees getting an amount equal to 20% of their annual salary put in a plan that’s paid for by WinCo; a company spokesperson told the Idaho Statesman that more than 400 nonexecutive workers (cashiers, produce clerks, and such) currently have pensions worth over $1 million apiece.
Even among Ottawa insiders, few would be aware that two officials running a tiny agency Flaherty set up to try to create a national securities regulator beat them all. Douglas Hyndman, chairman and chief executive officer of the Canadian Securities Transition Office (CSTO), makes $534,043, and Lawrence Ritchie, the CSTO’s executive vice-president and senior policy adviser, $537,469. Their salaries are public because Hyndman is on long-term loan to the feds from the British Columbia Securities Commission, while Ritchie is similarly seconded from the Ontario Securities Commission, and both B.C. and Ontario publish “sunshine lists” of salaries over $100,000. They are still technically on the provincial payrolls—even though they’ve been working for Flaherty since 2009—with Ottawa compensating their home provinces. (The Harper government’s refusal to support Alberta MP Brent Rathgeber’s private member’s bill to publicly disclose federal salaries over $188,000 led to Rathgeber quitting the Tory caucus last spring; the government wanted to reveal only a handful of salaries over $444,661.)
At a glance, their pay seems out of whack by federal standards. After all, Hyndman and Ritchie together oversee only about 20 employees. Poloz, by comparison, commands about 1,240 at the central bank. But Flaherty has staked more on his high-priced ringers than the size of their shop might indicate. In an email exchange with Maclean’s, Hyndman said his “relatively small staff” belies the complexity and importance of what the CSTO is trying to accomplish. “We are using the expertise of a core group drawn from provincial securities regulators, plus some additional staff, to develop critical improvements to Canada’s system of capital markets regulation,” he said. “We also need to maintain the flexibility to move forward on either federal legislation or a co-operative scheme with the provinces.”
That last part about being ready to pursue either of two very different policy options is key. Flaherty set up the CSTO back in 2009 to bring about his goal of establishing a common Canadian securities regulator, replacing a hodge-podge of provincial stock market commissions. But some provinces challenged his plan in court. In late 2011, the Supreme Court of Canada ruled that Ottawa was overstepping its jurisdiction. Despite that severe setback, Flaherty kept trying to coax provinces to come onside voluntarily—that’s the “co-operative scheme” Hyndman mentions. But if those overtures to the provinces fail, the court ruling left the federal government room to regulate in limited areas on its own—that’s Hyndman’s “move forward with federal legislation” option.
In fact, indications from federal officials suggest they are not optimistic that enough provinces will sign on to salvage Flaherty’s original grand plan. For instance, Hyndman said the CSTO’s “primary focus right now is developing proposed legislation and implementation plans that will be needed if no agreement is reached with provinces on a common regulator.” But exactly what parts of the financial marketplace the federal government will set out to regulate on its own has not yet been announced. It’s the subject of considerable speculation among private-sector experts. Flaherty’s office says the aim would be “preventing and responding to systemic risks, such as those posed by over-the-counter derivatives.”
Figuring out ways to regulate trading by sophisticated investors in derivatives, which go by exotic names such as “currency forwards” and “credit default swaps,” is a hot topic in international policy circles, largely because failures on this murky side of the market are blamed for the 2008 global credit meltdown and the recession that followed. Hyndman even suggests that losing the Supreme Court case focused the federal government’s attention “precisely where Canada needs to do a better job to get regulation right.”
Whatever slice of the market Flaherty decides to tackle, settling on that approach shouldn’t take much longer. “Our planning horizon is in months, not years,” Hyndman said. On whether he and Ritchie will go back then to their provincial jobs, or stay on to run an agency set up to bring new regulations into force, he said only, “We have not sought, nor been offered, permanent federal positions.”
Before you get all that upset, that is probably a deal for two guys of that talent who would make much more in the private sector. That being said, it probably won’t get enough provinces to sign on and in the end, will be a lot of money down the drain.