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Open Letter to Prime Minister Harper

Submitted by Leo Kolivakis on 05/03/2011 23:25 -0400

Dear Prime Minister Harper,

Congratulations, on Monday you captured your majority, with the NDP forming historic Opposition.
I'll be the first to admit that I thought it would be another minority
government, but it turns out the NDP really helped you in Ontario and
Quebec, taking away many long held Liberal and Bloc seats.

I want to share some of my post-election thoughts with you:

First,
while you're the majority now, you lost ground in Quebec and barely
have any seats there. The Bloc and Liberals got decimated, and they both
deserved it, but I worry about Quebec and a renewed sovereignty
movement. Don't make the mistake of ignoring or minimizing Quebec's
importance to Canada. You have to find a way to make Quebecers feel at
ease with you. Right now, they don't trust anyone from established
parties which is why they voted NDP.
Second, and more
importantly, don't fall under any illusion that we're heading into some
Canadian economic nirvana. There are some serious imbalances in the
Canadian economy as the Canada bubble keeps inflating on the back of Canada's mortgage monster.
Don't worry, unless something drastic happens in China, I doubt this
bubble will burst anytime soon, but when it does, watch out, it's going
to get ugly and it's going to last a long time.
Third, I know you
like to govern with absolute control. Stop it. It's sheer nonsense that
every press release has to be cleared by the Office of the Prime Minister. Learn to let go, trust your regional offices and give them more, not less, power and resources to do a proper job.
Fourth, cut the fat across all government departments and Crown
corporations. People think I'm a fiscal liberal, but when it comes to
the public sector, I think we need to increase the harmonized sales tax
(HST) and examine spending at every single government department by
evaluating the services they provide and cut all fat out of their
budgets. (Hint: Some departments
have lots of fat to cut while others are running bare bone operations
and are dangerously close to not providing adequate services).
As far as Crown corporations are concerned, the
same goes for them. Do we really need all these Crown corporations or
can we amalgamate them? For example, can Export Development Canada (EDC)
merge with Business Development Bank of Canada (BDC) and cut costs while
improving services? Can the Canada Pension Plan Investment Board merge
with PSP Investments and cut costs while improving the management of
public pensions? Why does each Crown corporation have its own pension
plan? I'm not saying drastic changes are needed, but in an era of fiscal
austerity, everything should be looked at closely and you have to
figure out ways to reduce spending all while improving services.
Sixth,
and this is critical, when it comes to retirement security the NDP and
Liberal proposals were way ahead of anything the Conservatives were
proposing. How do I know? Because they didn't pander to the banks and
insurance companies like your party did, but focused on improving the
current public defined benefit plans (expanding the CPP).
You
might also consider my proposal which is to do away with private sector
defined-benefit pensions altogether, replacing them by expanded CPP or
expanded defined-benefit plans managed by experienced pension
professionals. We can create new public DB plans, cap them at a certain
size, and introduce world leading governance standards. Why do this?
Very simple, companies should worry about business, not pensions, and
the switch into defined-contributions (DC) plans is not in the best
interest of workers (only banks and insurance companies).
On health and education, we need to close the productivity gap with the
US and start teaching children all about proper nutrition and the importance of vitamin D. After 14 years of multiple sclerosis (MS), I'm feeling better than ever. I don't know if it has anything to do with my recent CCSVI procedure
or my large intake of vitamin D while following a mostly Mediterranean
diet, but I'm stronger, walking further and going to the gym more often,
all things I wouldn't have attempted to do last year. My neurologist at
the Montreal Neurological Institute, Dr. Lapierre, will evaluate me
tomorrow afternoon, and I think he'll be very pleasantly surprised (but
probably won't admit that the procedure helped me). In any case, I
believe in health promotion and disease prevention, which is something
we need to focus on more as we educate our youth.
Last but not least, please do
more to help Canada's disabled in terms of taxes, social programs,
disability retirement funds, and especially employment. Your party
really screwed up royally with Nortel's disabled and that's inexcusable.
Also, the federal government needs to hire a lot more disabled at all
organizations, including Crown corporations, at all levels of the
organization. It's high time we stop paying lip service to "equal
opportunity employment" and start actually hiring more disabled which is
the one minority group that is often ignored. (Read my recent post on turning 40)

So
congratulations, enjoy the short honeymoon because there is lots of
work ahead. If your staff needs help understanding some of my proposals
above, they can hire me as a consultant. In the meantime, you can
support my blog by donating generously at the top right-hand side. I'm
tired because I stayed up late last night watching the most exciting
elections this country has ever experienced. Time to hit the sack early.
Best of luck governing this great country of ours.

Sincerely,

Leo Kolivakis

Publisher of Pension Pulse blog.

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Thu, 05/05/2011 - 21:22 | 1246067 FrankDrakman

Dudes:

As a wise friend of mine once said "Voting Liberal is like having sex with a condom. What's the point?"

Many Canadians have now observed that, for the Liberal party, in Getrude Stein's famous words "There is no there, there".

If you're going to vote left, vote NDP. If you're going to vote right/centre, vote Tory. If you want to waste your vote completely, vote Liberal/Green/Bloc/Marxist-Leninist.

Wed, 05/04/2011 - 19:53 | 1241216 kjmck

Leo - have been tied up all day and just saw your comment to my post. I think you've read more into my post than was intended. I am a typical conservative in that we do support fiscal conservatism but not at the expense of the "truly" disadvantaged. What i recoil at is the generic entitlement propoganda of the leftists. As an example, I have a friend who is a captain in the Toronto fire dept. and is proud of how he can game the public system in every possible way for his own benefit with all the protection of his union.......at our expense. This kind of entrenched mentality in the socialist mindset will not be reversed without a financial crisis. There is simply too much union protection. The NDP is the enabler. YThe youth of today are uneducated in these matters. My wife hired a coupled of college kids last weekend to help with yard spring clean up. They brought up the election and said they were voting NDP. When my wife asked why, they stated that Jack Layton was the only guy who said that tuition costs were too high. Sometimes democracy...............

Wed, 05/04/2011 - 11:30 | 1238426 rete

This open letter was written by a statist looking for a boondoggle to join. Go away.

Wed, 05/04/2011 - 11:49 | 1238560 Leo Kolivakis

You can't criticize my views with intelligent counterpoints, so you label me a ''statist''. Pathetic!

Wed, 05/04/2011 - 11:13 | 1238280 geminiRX

You were right about the summer melt-up last year. What are your predictions for this summer?

Wed, 05/04/2011 - 11:46 | 1238541 Leo Kolivakis

Get ready for another hot summer! :p

Wed, 05/04/2011 - 10:13 | 1237858 Vendetta

When I was in Canada about a month or two ago, I flipped on the TV and heard political ads and 'news' that sounded exactly like the rhetoric I hear in US political commentary. I guess they got the same script ... it was disturbing to hear.

Wed, 05/04/2011 - 10:44 | 1238038 Leo Kolivakis

Yup, a bunch of negative ads where they were slamming each other. I can't believe these ads are effective and some firm is making oodles of money peddling this crap. Very disheartening.

Wed, 05/04/2011 - 09:23 | 1237661 mirac

Harper is either a psychopath or a sociopath, a maple syrup encrusted NeoCon, and a religious nutcase, referred to as a Christion Zionist, same religious sect as practiced by Sarah Palin. Your letter will not be read, or considered, of that I am sure!

Thu, 05/05/2011 - 10:00 | 1242949 TSA gropee

You speak of this as a bad thing indicating your near complete ignorance of it. Godless tripe.

Thu, 05/05/2011 - 13:19 | 1243918 akak

As Sinclair Lewis famously stated, "When fascism comes to America, it will be carrying a cross and wrapped in the flag." Note that he did not specify to which part of "America" (the New World) he was referring, nor to which flag.

Politicians who wear their Christianity (particularly the fundamentalist, no-nothing sort) on their sleeve scare the Hell out of me.

Wed, 05/04/2011 - 09:17 | 1237643 ebworthen

Bless you for caring and for trying Leo.

I'm afraid, however, that yours and other pleas will fall on ears as deaf as those in the government of the U.S.

Politicians care about elections, not people.

Politicians claim autonomy - but are simply one tentacle of the Kleptoligarchial Octopussy of crony capitalism fused with a socialist blind squid to create the chimeric beast that devours the responsible middle class along with entitlement lackeys and hapless seniors, widows, orphans, downtrodden, and the otherwise meek and vulnerable to feed it's insatiable lust for power and mammon.

The beast will not be stopped until it is killed.

Wed, 05/04/2011 - 08:54 | 1237563 dollartheque@ya...

LEO, a sudden crash in the S&P/tsx60 , due to china collapse or canadian real estate bubble explosion will send the CAN$ to the moon, not sure its time to short it any time soon

Wed, 05/04/2011 - 08:26 | 1237474 casey13

I agree with most of your sentiment today but don't see any great tragedy if Quebec were to separate.

They switched from socialist MP's from the bloc to socialist MP's from the NDP.
They constantly have their hand out with a permanent state of blackmail on the rest of Canada.

They are the biggest threat to the future long term success of Canada.

If they leave we get short term pain but longer term a more cohesive and stronger Canada.

Wed, 05/04/2011 - 08:50 | 1237550 Leo Kolivakis

Canada simply isn't Canada without Quebec! Vive la différence!

Wed, 05/04/2011 - 09:31 | 1237689 sushi

C'est vrai.

Wed, 05/04/2011 - 08:49 | 1237531 Fancy Bear

Agree. If they can't get over their differences they should leave, or be kicked out. But abandoning the bloc is a significant step forward. Quebecers/ois deserve high fives for that, at least.

Wed, 05/04/2011 - 08:12 | 1237406 falak pema

VAT is what we do in EU. And we need to increase corporate tax here. As a small business owner I pay 33% corporate income tax on gross profit . The Multinational corporate (Total being the biggest in France) don't pay corporate IT or very little! On average the big boys pay 8% CIT on gross earnings (official govt. figures).

Given that the future economic growth is with small businesses according to all economic surveys, some of which export like mine to Asia, given that all future employment will be in small businesses most of whom are local service providers and cannot be outsourced, its time they increased CIT on the big boys, and on world wide basis as this is all globalised! Down with crony capitalism and tax havens!

Wed, 05/04/2011 - 10:07 | 1237842 Vendetta

same problem in US except there is no VAT. The imbalance between tax rates of corporate giants versus small businesses puts small businesses at greater risk of folding and open the doors for monopolization by the biggies. That and the buying power of the big guys in overseas markets allows them to lower prices like a japanese memory chip manufacturer dumping memory chips into a market at below production cost to kill off competition and grab market share and control of it.

Here in the US mom and pop grocery stores and similar retail outlets are disappearing faster than the dodo bird leaving walmart supercenters standing. Once the competition is gone, they name their prices and no one can fight them .. just say no to corporate monopolies.

Wed, 05/04/2011 - 08:58 | 1237577 the misanthrope

Why not just cut your tax rate? And reduce government spending?

Wed, 05/04/2011 - 08:12 | 1237402 Fancy Bear

Get ready for the prison projects and get-tough-on-crime-that-doesn't-exist bills that comfort immigrants by reminding them of their homeland governments but terrify regular progressive Canadians.

Multi-party political landscapes are only good when there's a minority government. The system backfires once in a while and you get a majority that represents the views of very few in popular terms.

I hope the opposition watch Harper very closely. He has bribe-me written all over his smug doughboy face. I wouldn't be surprised if he were to continue to dismantle world-renouned Canadian institutions (e.g. Statistics Canada) under private and/or foreign influences.

Wed, 05/04/2011 - 08:49 | 1237526 wang

No, it's not the photo of the graduating class (actually it could be)

New Democrats were scrambling to make sense of their stunning victory in Quebec that added 57 seats to the party roster. Among the new NDP MPs are nine students and recent graduates, a former Community Party candidate and woman who spent part of the campaign vacationing in Las Vegas.

The party said none of its candidates was available for interviews

http://news.nationalpost.com/2011/05/04/the-really-new-democrats/ My guess is that

Wed, 05/04/2011 - 08:10 | 1237399 breezer1

leo, you lost me at the increase the gst part. try to stay away from the acid leo.

Wed, 05/04/2011 - 08:26 | 1237473 Leo Kolivakis

Ask any economist with any credentials what's the best way for the US to cut its debt, andd they will tell you to increase consumption taxes. Educate yourself before falling for the right-wing crap that all taxes are bad!!

Wed, 05/04/2011 - 08:56 | 1237570 the misanthrope

The best way for anyone to cut their debt is to reduce their spending.

Wed, 05/04/2011 - 10:39 | 1238018 Leo Kolivakis

Yeah, how's that working in England and Greece? C'mon guys, you're not all that dumb! There are limits to austerity. Period.

Wed, 05/04/2011 - 07:31 | 1237326 the misanthrope

Leo, how do you reconcile your request for an increase in the HST(it's not the GST anymore) with what seems like your suggestion to cut from the public sector? And in the same sentence? That whole paragraph makes no sense. Why do we need an increase? Do you have any idea how that tax is abused and the way some businesses cheat and keep that money? And how does that help the disabled in terms of taxes? And why not a suggestion to remove the cap on maximum earnings subject to CPP so that the overall rate could be lowered? Then you make a self serving comment for a job? For the most part that is a terrible letter. Poorly written. Tell us, what was the party of the candidate that got your vote?

As for the MS, apparently Vit.D does help. Get outside. Hope it helps

Wed, 05/04/2011 - 08:24 | 1237374 Leo Kolivakis

misanthrope,

Thanks, I edited it. When I say increase the HST, I really mean restore it to what it was (Conservatives cut it by 2% at the worst time, exacerbating our deficit). I believe in consumption taxes, not income taxes. I think governments around the world need to increase consumption taxes and cut spending. What is so hard to reconcile with this statement?

Wed, 05/04/2011 - 10:27 | 1237950 Kayman

Consumption taxes are regressive, which fall disproportionately on the poor.

Consumption taxes which would replace income taxes, would have my vote.

BUT, as usual, the value-added tax argument is a smoke screen to simply add another way to tax people.

Wed, 05/04/2011 - 10:40 | 1238005 Leo Kolivakis

''Consumption taxes are regressive, which fall disproportionately on the poor.''

Hmm, explain me that one? The rich buy more, spend more on the goods and services they purchase, so how exactly is a sales tax regressive???? Bottom line: governments need revenue and they'd better snap out of it and do what it takes to increase revenues and cut spending. There is simply no choice.

Wed, 05/04/2011 - 08:57 | 1237558 the misanthrope

If you don't believe in income taxes then where is your suggestion in your letter to cut them? Nowhere. Why should someone earning 15-20K pay any income tax? You never made any reference to income taxes in that letter. And again, if you think governments should cut spending, why do they need more taxes? It is the same with folks like you, that believe you or someone like you has a better idea of how to spend money that belongs to someone else. And again, the allowance of input tax credits in the current HST allows for some of that money to be kept by those collecting it. Do you really not know this? The way it is set up is ripe for theft. And still, what about the ceiling on CPP? Self employed pay 9.8% of earnings for CPP. For what? Should there not be a method to opt out of CPP?

It's a poorly written "letter" and a little self-serving.

Wed, 05/04/2011 - 07:30 | 1237321 kjmck

Quebec voters have wasted their currency for decades. And now they've gone "all in" with Layton and his far left agenda. What a shame! Now that the NDP has achieved far more than most of us would ever have imagined, we need to educate the country (and yes, that includes Quebec) on just what the implications to Canada and Canadians mean if the NDP agenda was ever implemented. It's too late to do so one or two elections down the road. The country will be ruined if we wait. At the same time, Conservatives and Liberals need a lesson in demographics and devise a strategy that focusses on the youth of today, and in particular gen x. Tragically, the youth of today are far too left in their leanings (aided and abetted by so called classroom educators who equally do not have a clue). The coming tsunami of "the lefter leaning" has the potential to kill this great country.

Wed, 05/04/2011 - 08:10 | 1237401 New_Meat

Maybe now the Quebecois can be put in the way of being educated. After all, Les Habs are off to the golf course, all is triste, and the search for a better way can be started, n'est ce pas?

;-)

- Ned

Wed, 05/04/2011 - 08:01 | 1237383 Leo Kolivakis

kjmck,

I am a fiscal conservative but very much to the left when it comes to protecting the poor, sick, disabled and our elders. Enough corporate handouts. Time to bring back fundamental values to our society based on fairness, not lobby groups.

Wed, 05/04/2011 - 09:57 | 1237790 Vendetta

+47. Ditto. Being fiscally conservative and being compassionate to citizenry vulnerable through no fault of their own is all good. The ideological extremes outside of those parameters leave fairness and humanity in the gutter like we have today.

Wed, 05/04/2011 - 09:29 | 1237680 sushi

Time to bring back fundamental values to our society based on fairness

---

What? You object to Bruce Carson getting $25 million in public funding to set up a PR organization to turn the tar sands into tar butter?

Wed, 05/04/2011 - 07:29 | 1237320 kjmck

Wed, 05/04/2011 - 06:59 | 1237302 anynonmous

Hi Leo, with the decimation of the bloc (separatists) who were replaced by the federalist/socialist NDP in Quebec, why do you see separation as a threat? Has Quebec not been the recipient of more than its fair share of transfer payments?

Perhaps the Quebec voters understand that a tax and spend socialist party such as the NDP, even if they are the opposition, will ensure a continuation of the free ride and special treatment that Quebec has received for decades. Give credit to the pragmatism of Quebec's electorate.

Wed, 05/04/2011 - 06:35 | 1237286 exportbank

Leo, good to hear that you're health has improved.

I'm older and for many decades set money aside for my retirement. It's not funds I put on the risk table - as a responsible individual those savings are being decimated by inflation and interest rates that are in reality negative.

The dollar I put aside 45-years ago is now worth fuck all because governments and central banks inflate it away. Friend's that ran their nest egg in the markets are no better off because after four decades of ups and downs they are worse off than the bond buyers (and more stressed) Inflation is a suckers game to rob the private sector and transfer to the public sector.

Generally in Canada there are two types of retirement - the public sector fully indexed royalty that has a plan guaranteed by the private sector that in 90% of the cases has no real plan or savings.

The largest voting block in most countries is now the greater public sector now over 20% of all voters. We're doomed -

Wed, 05/04/2011 - 05:22 | 1237254 dollartheque@ya...

are you guys shorting China/Canada?,

Wed, 05/04/2011 - 06:06 | 1237271 Leo Kolivakis

Too early on both counts but my stock portfolio is 100% USD now. Think the CAD might touch or even surpass 110 then SHORT it!!!

Wed, 05/04/2011 - 10:32 | 1237972 ZeroPower

Agreed, looking for that 2008 low on USDCAD, maybe a bit lower for a further shakeout.

But unsustainable in the longer term.

Wed, 05/04/2011 - 05:17 | 1237252 dollartheque@ya...

so is a crash in the canadian economy actually good for the CAN dollar short term?

Wed, 05/04/2011 - 01:23 | 1237114 Ham Wallet

I'm guessing Leo is a French-Canadian.

Isn't Quebec the biggest welfare queen of the Canadian Provinces??

Why would anglo-Canada care if they left?

Wed, 05/04/2011 - 10:25 | 1237927 oddjob

We don't care.Quebec is largely made up of seasonal gypsy fruit pickers that smell up every town out west on their summer crime sprees.

Wed, 05/04/2011 - 10:32 | 1237964 ZeroPower

Perhaps its cause im no longer there, but Quebec isn't as bad as earlier thought, only due to the seperatist hippys that is.

Montreal is quite easily one of the top cities in N.A, and you can still easily get by not knowing French. Food is KEY, and every culture has its own little niche somewhere.

We picture the Westerners as being a bunch of cowboys so, go figure.

Wed, 05/04/2011 - 02:17 | 1237166 akak

Actually, I believe that Leo is a Greek-Canadian, which I am guessing means that he couldn't give a damn if Quebec leaves or not, as long as he can get the rest of Canada to go to war with Turkey.

Wed, 05/04/2011 - 05:43 | 1237262 Leo Kolivakis

I have nothing against Turkey and consider Montreal, Quebec my home. Proud to be fluently trilingual. :)

Wed, 05/04/2011 - 01:12 | 1237102 Calmyourself

Dear PM Harper,

Use some pension funds and buy Chinese solar bitchez, bail out uncle Leo.. Could not help my self Leo.. It's the single malt talking.. Good lukc with the MS that stinks..

Open Letter to Prime Minister Harper

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