By Kim Zarzour

March 11, 2011
 

An attempt to ease the property tax burden for struggling seniors and the disabled by Thornhill MPP Peter Shurman was defeated in the legislature Thursday.

 

Mr. Shurman's Bill 143 would have established a province-wide property tax deferral program for low-income seniors and those with disabilities.

 

Under the bill, Ontarians who meet the criteria would be able to defer their property taxes of up to $5,000 per year, with repayment plus interest on the death of the owner or transfer of the property from a surviving spouse. The Act would replace existing municipally managed programs that vary across the province.

 

"Property tax is one of the largest burdens that Ontario's seniors and persons with disabilities face today. Pair this with increases to the overall cost of living - the HST, hydro rates and MPAC assessment" and Ontario's most vulnerable are being forced out of their homes, Mr. Shurman said.

 

The bill, defeated after second reading debate, initially received the sponsorship of all parties - the first time in Ontario's legislative history that a bill receiving all-party support was defeated - and Mr. Shurman said today he was "galled" that the support was withdrawn at the 11th hour.

 

"It went down in flames ... shot down for partisan reasons", the Tory MPP said, "because this is an election year."

 

The bill had been co-sponsored by both NDP and Liberal members of parliament, but MPP Mario Sergio, the Liberal co-sponsor, was not in attendance at Thursday's debate.

 

Mr. Shurman said Mr. Sergio's sponsorship was withdrawn, something denied by the MPP's assistant, Sarah Morales. "He did not withdraw support. He would have voted for it. It was unfortunate timing he was out of town."

 

MPP Leeanna Pendergast, Liberal member for Kitchener-Conestoga, raised concerns about the cost of the program during the debate.

 

"It appears that the province would, in fact, bear the costs of the creation and administration of the deferral program [and would provide] the homeowner with a generalized tax break, which, combined with interest, would carry a significant cumulative cost."

 

The Ontario energy and property tax credit is already providing support, she said.

 

Peter Kormos, NDP member for Welland and Mr. Shurman's co-sponsor, lent his enthusiastic support to the bill.

 

"Why, for the life of me, would members of this assembly want to throw a wet blanket, want to dampen, want to obstruct a good idea from Mr. Shurman?" he asked the legislature. "Beats me ... It just curls my hair to see partisan interest intervening and obstructing good, sound ideas like the proposal from Mr. Shurman."

 

Warren Carroll, a founder of the 1,000-member Thornhill Seniors Centre, also lent his support to the bill Thursday: "Coupled with spiralling energy costs and HST on services previously not taxed, some of our members worry about keeping their homes."

The Canadian Press 

  

Updated: Wed. Mar. 2 2011 8:02 AM ET

 

TORONTO — An Ontario legislative committee begins hearings today into the proposed merger of the Toronto and London stock exchanges.

 

Ontario Finance Minister Dwight Duncan has come under fire from the provincial opposition for raising questions about the proposed merger of the TMX and LSE.

 

Duncan wonders whether it's really a merger of equals as the proponents claim, and has concerns about a loss of provincial control over an important sector of the economy.

 

The minister rejects suggestions his comments have prejudiced the committee, saying all he's done is ask questions.

 

Progressive Conservative critic Peter Shurman says Duncan's comments about the deal have been negative, which he worries will prejudice the Liberal-dominated all-party committee.

 

The Ontario Securities Commission will hold a public hearing into the possible merger of the stock markets, but not until the legislative committee completes its review.

 

Veteran Liberal cabinet minister Gerry Phillips will chair the committee looking into the merger of the stock exchanges, which Duncan says shows how important the issue is to the province.

By BOYD ERMAN AND KAREN HOWLETT

From Thursday's Globe and Mail

 

Heads of Toronto and London stock exchanges try to convince Ontario government of proposed deal's meritsThe architects of a transatlantic deal between the Toronto and London stock exchanges tried to win over wary politicians on Wednesday with assurances that "local markets are here to stay" and Canadian markets would continue to be regulated domestically.

 

But Tom Kloet, chief executive officer of TMX Group Inc. X-T and Xavier Rolet, his counterpart at the London Stock Exchange, spent two hours on Wednesday parrying questions about whether the domestic company would be the weaker partner and whether enough is being done to protect Canada's interests if lawmakers approve the proposed $7-billion-plus deal. Finally, they were asked whether Canada's premier stock exchange could have found a more "robust" partner.

 

At issue during the first day of an all-party committee hearing at the Ontario legislature was the fact that shareholders of TMX Group, owner of the Toronto Stock Exchange, would end up with seven of the 15 seats on the combined entity's board of directors. With majority control outside Canada, committee members said, the board could make decisions that are not in the best interests of this country.

 

"Critics would say control rests with the others and the Toronto Exchange could become that of a branch office," Progressive Conservative MPP Peter Shurman said.

 

Gilles Bisson, a New Democratic MPP from Northern Ontario, noted that Canadian stock exchanges are leaders in attracting mining companies. The potential for new listings is enormous, he said, especially with so much activity taking place in the Ring of Fire, a mining exploration area in the James Bay Lowlands of Northern Ontario.

 

He questioned why there are no safeguards in the merger proposal that explicitly protect Canada's interests, and provocatively suggested that perhaps the TSX Group should take over the London exchange, even though the Canadian exchange is smaller than its proposed partner.

 

"There is fear over the long run that we could become second fiddle in our own backyard," Mr. Bisson said.

 

The TMX and LSE executives pitched a simplified version of their message at the politicians, dropping much of the industry jargon that has made it tough for some to understand the merger's implications, and taking direct aim at concerns that have been raised by politicians, notably Ontario Finance Minister Dwight Duncan.

 

They addressed the misconception that the Toronto and London exchanges would be merged into one big stock market, saying it would only be the holding company that would be combined while the local markets are "here to stay," and reiterated that Canadian markets would continue to be supervised by regulators in this country.

 

Mr. Kloet said that he believed the deal would add to employment in Toronto for bankers, lawyers and other workers who support listed companies.

 

And the TMX chief executive officer repeated the pitch that the merger would enable Toronto-listed companies to reach investors in London more easily. In a message perhaps tailored to the committee, Mr. Kloet argued that "if a mining company in Northern Ontario lists on one of your Canadian exchanges, we expect to be able to offer them a more seamless access to investors from Europe and other markets at listing fees that are competitive."

 

That appeared to resonate with the junior mining executive who appeared at the committee after the TMX-LSE delegation. Frank Smeenk, president of mineral exploration company KWG Resources Inc., said he believed the deal could be the "single best thing that has ever happened" for Canadian junior mining companies.

 

However, another speaker, venture capitalist Mark McQueen of Wellington Financial, called the idea that the merger would enable companies to raise capital more cheaply "the triumph of hope over experience."

 

Both Mr. Kloet and Mr. Rolet told reporters after the hearing that they thought the committee members asked excellent questions.

 

"We don't see this as politics," Mr. Rolet said. "We see this as a legitimate process."

 

Senior executives from TMX Group Inc. and the London Stock Exchange were forced to defend the influence Canada will have following the “merger of equals” between the two exchange groups as the first round of public hearings got under way in Toronto on Wednesday.

 

At issue during an all-party committee of Ontario politicians was the possibility that Canada could have as few as three members on the 15-member board within four years of the transaction closing.

 

Peter Shurman, Conservative MPP for the Toronto suburb of Thornhill, expressed concern that Canada could become a branch plant if the transaction is allowed to proceed. He challenged what appears to be a diminished role for Canadians on the board of directors four years into operations as a combined company.

 

Seven guaranteed seats drop to three at that point, he said.

 

But Xavier Rolet, chief executive of the LSE who is poised to become CEO of the combined exchange groups, said that characterization is not completely accurate because the promise of three seats represent a guarantee for Canada “come what may.”

 

In unknown scenarios that could include further exchange amalgamations, Canada receives a “protection” that is not extended to any other partner nation, Mr. Rolet said.

 

Meanwhile, TMX’s biggest rival told the hearing that the Toronto Stock Exchange owner should be forced to sell assets “strategic” to the proper functioning of Canadian financial markets because its influence will inevitably be diminished.

 

Jos Schmitt, the chief executive of TMX rival Alpha Group Trading Systems who also appeared before the committee, told the politicians that loss of influence is inevitable in a consolidating industry.

 

“The centre of gravity is going to move from Toronto to London,” Mr. Schmitt said of the TMX-LSE tie-up, adding that inevitable add-on mergers, most likely in Asia, ‘will further diminish the influence of Canada.”

 

Mr. Schmitt said his rival should be forced to divest or face revised regulations for “strategic” assets such as derivatives and securities clearing and accounting — which he called the core plumbing of financial markets — and benchmark indices.

 

These functions “which cannot be easily replaced and are core to the proper functioning of the Canadian financial markets need to remain under full Canadian control,” he said.

 

In the event of another financial crisis, “who’s going to call the shots?” if they are not, he said.

 

Mr. Schmitt acknowledged that the changes he advocates would help create an environment for Alpha to become “the new generation Canadian exchange.” Alpha, which operates an alternative trading platform, hopes to secure its bid to become a listing exchange by September, Mr. Schmitt told the government committee members.

 

Gilles Bisson, an MPP from Northern Ontario, said he sees benefits of the proposed transaction, such as giving companies access to global capital. But past experience with foreign takeovers of Canadian mining companies has made him wary.

 

“There’s some skepticism when we hear people come to us and say, ‘This is to your benefit,’” Mr. Bisson told Mr. Rolet and Tom Kloet, chief executive of TMX Group.

 

Mr. Bisson pushed for more guarantees to be written into the transaction agreement so the board of directors continues to make decisions that are in the interests of Canada and Toronto.

 

Failing that, he said, “what guarantee do we have that the expertise we built up here ... doesn’t end up in London?”

 

Mr. Rolet and Mr. Kloet said “change of control” provisions built into the deal should address concerns beyond the balanced structure they have negotiated. The provisions require any further large mergers to be vetted by Canadian regulatory authorities.

 

Following a two-hour appearance in front of the committee, Mr. Rolet said he thought the exchange executives were given a “fair” hearing by politicians who had legitimate questions.

 

The hearings are to continue Thursday and next week.

 

Committee chair Gerry Phillips said he hopes to hear from officials at the Ontario Securities Commission. The regulator has the power to block the proposed transaction and will hold independent public hearings after the committee releases its report in April.

 

Financial Post

March 02, 2011

John Spears

 

The merger of the Toronto and London stock exchanges is driven by a shared passion for helping small and medium-sized companies get financing, the chief executives of the two exchanges insist.

 

But Toronto financier Mark McQueen told a Legislature committee Tuesday that bitter experience shows foreign capital markets just aren’t interested in smaller Canadian firms.

 

“There is no bucket of gold over in Europe and there is no liquid market for small caps, and there is no horde of research analysts dying to publish research on their companies,” said McQueen, chief executive of Wellington Financial LP.

 

“As with Elizabeth Taylor’s eighth marriage, think of the ‘improved access to capital’ argument as the triumph of hope over experience.”

 

McQueen pointed to a string of Canadian companies that had hopefully taken the plunge into the London exchange’s AIM market — the counterpart of the TSX Venture Exchange — since 2006, but have since walked away.

 

“Firms from around the world recognize that companies have a natural investor following,” he said. “And it’s rarely overseas.”

 

Waterloo’s Research in Motion would not likely have succeeded in the mid-1990s had it tried to raise capital in London when it was developing the BlackBerry, he said.

 

That wasn’t the message delivered by Tom Kloet of the TMX Group and Xavier Rolet of the London Stock Exchange Group, who professed a mutual passion for helping small and medium-sized companies raise capital.

 

“Small-cap companies are the lifeblood of the Canadian market, are where we build the future strength of our market and where we expect to see continued growth and success,” Kloet told the committee.

 

“If a mining company in northern Ontario lists on one of our Canadian exchanges, we expect to be able to offer them a more seamless access to investors from Europe and other markets.”

 

He added that the merger will allow the exchange to offer more competitive fees.

 

“We will work with these companies to facilitate their growth and expansion by bringing new investors to their doorstep,” he said.

 

Rolet also insisted the Toronto exchange will benefit from the merger.

 

“We expect to leverage this partnership to attract more, not less, activity on Canadian markets,” Rolet said.

 

That will create “a deeper and more international capital pool for Canadian public companies of all sizes,” he said.

 

But McQueen said the rosy view of the exchanges hasn’t been proven in real life, and advised the Legislature to build in some safeguards if the merger proceeds.

 

He said the TSX should draft a memorandum of understanding with listed companies, regulators and provincial governments, to guarantee measures such as a minimum numbers of seats for Canadians on the merged board and a minimum number of Canadians in executive positions.

 

Ontario should also hold a “golden share” that would give the province the power to force a demerger if the conditions in the memorandum aren’t met, he said.

 

Some of the politicians shared McQueen’s skepticism toward the merger.

 

“You view is extremely positive. My view is extremely neutral,” Conservative Peter Shurman told the chief executives.

 

Gilles Bisson of the New Democrats said he’s worried by the prospect of Canadian influence diminishing over time.

 

Initially, the board of the holding company resulting from the merger will have seven Canadian directors, five Britons and three Italians.

 

But after four years, the guarantee of seven Canadians ends, and the only stipulation will be a minimum of three Canadians.

 

Kloet noted that there’s nothing to prevent the owners of the exchange from electing more than three Canadians.

 

Conservative Frank Klees at one point said he was frustrated with the long-winded answers Kloet and Rolet gave:

 

“These people speak longer than politicians,” he said.

 

No money, no problem.

 

Mayor Rob Ford’s office shrugged off Premier Dalton McGuinty closing Ontario’s wallet to a request for more cash.

 

Ford’s press secretary Adrienne Batra said the mayor sent the letter asking for $350 million in provincial cash for the city as part of the province’s pre-budget consultation process.

 

“The city provided the province with a list of projects where provincial funding would be beneficial,” Batra said, after McGuinty turned down the request when speaking with reporters earlier Monday. “Fortunately the 2011 budget is balanced, so we weren’t relying on this funding which has been the practice in the past.”

 

McGuinty seemed to have taken to heart Ford’s oft-repeated campaign quip that Toronto has a spending problem, not a revenue problem.

 

“It’s up to them to chart their own course,” McGuinty said. “I understand and can sympathize with their financial challenges, but I ask the folks at City Hall to recognize that we have financial challenges as well.”

 

The refusal was underlined by McGuinty’s finance minister Dwight Duncan.

 

“All governments have difficult choices to make,” Duncan said. “They don’t lend themselves to eight-second sound bites. There’s a big difference between talking about something and then actually dealing with it.”

 

Ford’s request came in a letter to Duncan dated Jan. 25, in which he lays out what the city would like to see in the upcoming provincial budget.

 

The wish list includes $48.3 million for road work, $89 million in capital projects for the Toronto Transit Commission, $5 million for the Fort York visitor centre and $11.5 million in childcare money.

 

He also asks for 50% of the TTC’s annual operating subsidy.

 

The fact Ford’s letter leaked out is a sign of bad blood between the province and the city, Tory MPP Peter Shurman said.

 

“I’d say there is no love lost between the two,” Shurman said, promising a Progressive Conservative government would review the funding relationship between Ontario and its municipalities.

 

“We’ll see to it that the various levels of government are properly funded,” Shurman said.

By: John Spears - Guelph Mercury

 

TORONTO — Forty new green energy projects — mostly solar and wind power — have been given the go-ahead by the Ontario government.

 

Energy minister Brad Duguid said Thursday that four large wind projects, totalling 615 megawatts of power have been approved, along with 35 solar projects totalling 257 megawatts, and one 500-kilowatt water project.

 

But the announcement may upset hundreds of proponents of smaller solar projects, who have been told that their projects have been put on hold because they can’t be connected to the electricity system.

 

Duguid told reporters that the projects announced today, which are large scale projects, have all been analyzed, and connections are available.

 

He said the smaller projects are being approved as quickly as possible, but couldn’t give a deadline by which time all the small operators would be connected.

 

“Their enthusiasm for the program has outpaced the ability to get the transmission and distribution lines upgraded,” Duguid said.

 

That didn’t sit well with Brian Wilson, who’s waiting for a connection for his small project near Belleville.

 

“It’s amazing what they can do with the big ones, and the little guy gets kicked to the curb,” he said. “You’re just a voice in no-where-land.”

 

The new wind projects will get 13.5 cents a kilowatt hour for their power, while the solar operators will receive 44.3 cents a kilowatt hour.

 

Duguid hailed the new projects as continuing evidence of the Liberal government’s decision to go with clean renewable energy, while it shuts down coal-burning generators.

 

That won the support of Greenpeace Canada, which compared the clean energy policy with the decision a century ago to develop Niagara Falls rather than building coal plants.

 

“Wind and solar energy are the new Niagara Falls, as they can do a similar job of replacing polluting power from coal or nuclear plants to power a prosperous Ontario in the twenty-first century,” said Keith Stewart of Greenpeace.

 

But Conservative MPP Peter Shurman criticized the announcement, saying it’s unclear what the new contracts will cost.

 

“What we’re going to have to do when we take over government is review all of these contracts, because we don’t even know what they cost,” he told reporters.

 

When asked whether “reviewing” the contracts might mean tearing them up, Shurman backtracked: “You don’t tear up contracts.”

 

Conservative leader Tim Hudak, called for a moratorium on “industrial” wind farms, and said local communities should have a say on whether to allow them.

 

Duguid didn’t provide an overall cost figure for the newly approved projects, but Bruce Sharp of Aegent Energy Advisors estimated the new contracts will push up the cost of power by about $23 a year for a household using 800 megawatt hours a month.

 

The Liberals have been under fire for electricity price increases, and have tried to soften the criticism by introducing the Ontario Clean Energy Benefit, which gives householders and small businesses a 10 per cent rebate on hydro bills for the next five years.

 

Ontario’s expanding wind sector has led to some days where strong winds and moderate temperatures have produced awkward power surpluses. Duguid would only say that the Independent Electricity System Operator is working on the issue.

 

Robert Hornung, president of the Canadian Wind Energy Association, said the new projects will help make Ontario “a leader in green energy production.”

 

“This is an important announcement in terms of maintaining the momentum and demonstrating an ongoing commitment” to green energy policies, he said.

 

 

The wind, solar and hydroelectric projects will provide enough electricity for about 200,000 households, enough to power a city the size of Burlington, Ont.

 

The projects will produce more than 872 megawatts of electricity from solar, wind and hydroelectric sources and create about 7,000 direct and indirect jobs. Last year, the government inked more than $8-billion in renewable-energy projects capable of producing 2,400 megawatts of power.

 

Mr. Duguid said the McGuinty government’s push to replace the province’s aging, pollution-spewing coal-fired electricity plants with clean energy is consistent with initiatives in the United States under the leadership of President Barack Obama.

 

“There’s no doubt Ontario has stepped up to Obama’s challenge, and together we’ve become a global clean-energy powerhouse,” Mr. Duguid said.

 

The McGuinty government is counting on clean-energy projects to create jobs in the province’s battered manufacturing heartland. Mr. McGuinty is vowing to create 50,000 new jobs through his Green Energy Act by luring investors with the promise of generous long-term contracts that include a guaranteed revenue stream.

 

The companies will receive a fixed price over 20 years for the electricity they produce – 13.5 cents a kilowatt hour for onshore wind farms and up to 80.2 cents for solar power. These contracts with green energy producers are well above the market price of 3.5 cents a kilowatt hour for electricity in Ontario and are one reason consumers’ hydro bills are climbing.

 

The latest announcement comes amid criticism by opposition members over the government’s recent policy reversals and snafus that have led to uncertainty in the green-energy sector.

 

The government halted development of offshore wind turbines earlier this month for further study. The government was caught off guard by the vehemence of opposition in lakeside communities. In the hopes of making the issue go away in an election year, it ruled out offshore entirely.

 

As well, companies seeking contracts for small solar projects recently had their plans stalled because there is not enough capacity on the electricity grid. Roughly 20,000 farmers were awarded contracts to place solar panels on their property. But this month, about 1,000 of them were informed that the province currently lacks the transmission capacity to move forward with their projects.

 

Mr. Duguid said the government has made some changes on how it communicates with small solar providers. But it was not clear whether he thought the onus was on the government to ensure these players could get access to the grid or the companies themselves.

 

On the large-scale projects unveiled on Thursday, there is enough capacity on the grid, he said, adding that unlike small projects they connect directly to the transmission system.

 

“These contracts are not awarded until the capacity is identified in the system,” he said.

 

Progressive Conservative MPP Peter Shurman said there is uncertainty surrounding all of the government’s energy announcements.

 

“This is characteristic Brad Duguid,” he told reporters. “They make announcements like this and then they move away from them, leaving people in the lurch.”

By ANTONELLA ARTUSO, QUEEN'S PARK BUREAU CHIEF

 

The TTC may be legislated to keep rolling during labour disputes. (ERNEST DOROSZUK, Toronto Sun file photo)

Ontario is moving on Rob Ford's request that the TTC be designated an essential service.

 

The Dalton McGuinty government will introduce legislation later Tuesday that will keep the TTC rolling through labour disputes.

 

Labour Minister Charles Sousa will unveil details when he introduces the bill in the House later Tuesday.

 

"We have received a proposal from Toronto City Council," McGuinty said. "We have listened to them. We have talked to representatives of the workers as well. And, of course, we've heard from many Torontonians."

 

NDP MPP Peter Kormos said his party will be going over any such bill carefully, and warned that arbitrated settlements for TTC workers could end up costing taxpayers more than negotiated agreements.

 

Tory MPP Peter Shurman said his party would be inclined to look favourably on this type of request from the Mayor Rob Ford, but said his party had yet to debate the issue internally.

By: Maria Babbage, The Canadian Press

 

TORONTO - Draft regulations aimed at improving conditions in hundreds of Ontario retirement homes are actually creating a false sense of security for seniors and their families, critics warned Tuesday.

 

The proposed rules essentially leave the regulation of retirement homes — and the care of an estimated 40,000 seniors — up to the industry, not the government, said NDP health critic France Gelinas.

 

"It gives this false sense of government oversight when this couldn't be further from the truth," she said.

 

"We have set up an agency self-regulation model in an industry where you have this captive audience of very frail, elderly people who cannot advocate for themselves in many cases. And as we know, it makes for fertile ground for people with bad intentions."

 

The governing Liberals released the first set of draft rules on Tuesday, which follow legislation passed last June over the objections of the New Democrats.

 

The proposed rules would set care and safety standards, and allow for inspections and police background checks for new staff and volunteers by the Retirement Homes Regulatory Authority.
 

The regulations would also establish residents' rights, including the right to know the true cost of care, and require that homes have written policies promoting zero tolerance of abuse and neglect.

 

Sophia Aggelonitis, the minister responsible for seniors, said she welcomes public comment on the draft rules — which were published on a government website — over the next 45 days.
 

"They are an important part of our plan to provide strong protections for seniors who are living in retirement homes," she said.

 

"The proposed regulations, in fact, cover a range of very important areas including care and safety standards, licensing and inspections, as well as enforcement of retirement homes."

 

About 40,000 seniors currently live in more than 700 retirement homes in Ontario, according to government estimates. That number is expected to grow as the population ages.

 

But the government took far too long to draft rules for retirement homes, said the Progressive Conservatives, who supported the legislation.

 

"All Ontarians — especially in an aging population, which we are — are looking for security for their loved ones," said Tory critic Peter Shurman.

 

"This is way overdue and the government should be ashamed for having taken this long."
 

Retirement homes are different from nursing homes, or long-term care, which are licensed and funded by the Ministry of Health and Long-Term Care.

 

Local health officials determine which seniors are eligible for admittance to a nursing home, whereas seniors who wish to live in a retirement home are tenants and decide which services they're willing to pay for.

 

Ontario's ombudsman started a probe into whether the government is doing enough to ensure safety in nursing homes following a 2008 investigation by The Canadian Press.

 

It found that more than three quarters of long-term care homes in the province had been cited for failing to meet some government standards.

 

Watchdog Andre Marin released his findings in December, saying there are "serious, systemic problems" with the Ontario government's oversight of long-term care facilities, which house 75,000 people in the province.

 

The provincial watchdog said he was "guardedly optimistic" new legislation and changes at the Ministry of Health would address the concerns.