Premiership of Stephen Harper

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The Harper government‘s secrecy about the costs of its law-and-order legislation leaves it looking either incompetent or undemocratic.


And whatever the explanation, the failure betrays the basic conservative principles the party espoused in seeking office.

The crime legislation will mean higher costs. Mandatory minimum sentences and the elimination of two-forone credit for pre-trial jail time will mean more people will be locked up for longer periods.

Parliamentary budget officer Kevin Page, the independent officer who scrutinizes government’s financial plans, estimates that eliminating the two-for-one credit alone would mean an extra 4,200 people in jail at any given time, about a 12 per cent increase.

The cost -for prison construction and operations -would add about $2 billion to the federal budget and $3 billion to provincial expenditures.

The government disagrees. But it has also refused to release its estimates of the cost of the crime measures, claiming they are cabinet secrets.

That’s ridiculous. The public paid for the cost estimates to be prepared. Taxpayers will pay for the prisons. They have a right to know how much, so they can decide if the investment is worthwhile and communicate their views.

And MPs -including Conservative MPs -certainly have a right to know what the cost will be before they vote on the legislation. Keeping the information secret attacks the right of members of Parliament to do their basic job of deciding if legislation is in the public interest.

MPs might, after considering the costs of new prisons and more guards, still conclude the legislation was in the public interest. Or they might conclude that the U.S. has proven that locking up more and more citizens does nothing to reduce crime rates while costing taxpayers billions.

The government’s secrecy is an abuse of the public and Parliament -including Conservative MPs -that makes it impossible for elected representatives to do one of their most fundamental jobs: Ensuring the public’s money is spent wisely.

Stephen Harper promised accountability, openness, a functioning democracy and competent decision-making based on facts. His government is violating every one of those principles with this secrecy.

White collar crime reservation

I an Thow was convicted of stealing $8 million from people who trusted him. The total losses of victims might be more than $30 million. He destroyed lives and fled the country in an attempt to avoid prosecution.


And in May, 14 months after he was sentenced to nine years in prison, Thow will likely be out of jail and walking the same streets as the people whose lives he damaged.

The Thow case is a reminder of the government’s light treatment of white-collar crime.

People convicted of non-violent crimes -like fraud -can be released on accelerated day parole after serving one-sixth of their sentences and full parole after serving one-third. They are only held if the National Parole Board concludes they are likely to reoffend.

Thow served one year in custody awaiting trial and received two-for-one credit for the time. By May, he will have served one-sixth of the remaining seven years of his sentence.

The Bloc Québécois, responding to public anger over high-profile fraud cases in Quebec, has urged the Conservative government to eliminate accelerated parole in fraud cases since 2009. The Harper government has refused to separate the provision from its omnibus crime legislation, which has not won Parliament’s support.

That stubbornness has prevented progress, although the Bloc and the Conservatives are reported to be close to a deal this week.

But the parole provision is just one example of the systemic failure to treat white-collar crime seriously.

Thow’s nine-year sentence, for example, was imposed despite a joint submission from the Crown prosecutor and Thow’s lawyer for a seven-year term. The Crown’s willingness to support a sentence the judge found unreasonably low is alarming.

And the court was limited by Criminal Code provisions. A criminal who demands money from a store clerk, even without a weapon, and escapes with $20 faces a maximum sentence of life imprisonment.

But the maximum penalty for Thow’s crimes is 14 years -a signal to courts that Parliament considers them less serious.

Sentencing is supposed to accomplish several purposes, including expressing society’s denunciation of the offences and deterring the offender and others contemplating similar crimes.

But politicians have decided to treat white-collar crime less seriously than other offences. That’s especially troubling since a store robber -generally acting on impulse or addiction -is unlikely to ponder the consequences. But a fraud is deliberate and thoughtful; the threat of serious penalty could deter some potential criminals.

Governments have also failed to develop effective enforcement efforts. The RCMP‘s Integrated Market Enforcement Team in Vancouver is one of four across the country. It has received $18 million in funding since being established in 2003. Yet Thow is one of only two people charged as a result of its efforts. Vancouver continues to have an international reputation as a centre for financial swindles.

Thow -and others like him -do great damage. Governments are doing a dismal job of holding them accountable for their crimes.

OTTAWA — TheHarper government will overrule a recent decision by the Canadian Radio-television and Telecommunications Commission that effectively kills unlimited Internet-pricing packages — unless the telecommunications regulator backs down first, Postmedia News has learned.

“The CRTC should be under no illusion. The prime minister and the minister of industry will reverse this decision unless the CRTC does it itself,” a senior government source, speaking only on condition of anonymity, said Wednesday evening.

Industry Minister Tony Clement confirmed that the government will overrule the CRTC late Wednesday night on his Twitter account, saying that the CRTC must “go back to the drawing board.”

The ultimatum sets the stage for an awkward appearance before a parliamentary committee Thursday by Konrad von Finckenstein, chairman of the CRTC, who will now be making his public remarks with a threat hanging over his head.

Last week, the CRTC ruled that usage-based billing, the model used by large Internet providers such as Bell Canada and Rogers Communications to charge customers extra for exceeding monthly download limits, will apply to smaller providers too. Until now, those smaller providers could offer unlimited Internet packages; the ruling means they no longer can.

Clement had previously hinted that the federal government may quash the controversial ruling, and the prime minister has asked for a review of it. But the government’s blunt ultimatum to the CRTC suggests any review would be pro forma.

It’s also another slap to the face for von Finckenstein’s agency delivered by the Tory government. In 2009, the government decided to let Globalive Wireless Management Corp. set up cellphone service in Canada even the CRTC blocked the bid because of foreign-ownership rules.

Von Finckenstein and CRTC vice-chair Len Katz were slated to appear before the House of Commons industry committee Thursday to answer questions about the CRTC ruling.

Large companies that employ usage-based billing say customers who stream movies or games on the Internet use too much extra bandwidth and the billing model helps the companies “manage” this use.

Opponents of usage-based billing say preventing companies from offering unlimited access stifles competition and innovation.

Tony Clement

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The Harper government is stepping into a contentious debate over just how much Canadians should pay for Internet service, as Industry Minister Tony Clement says he will review a federal regulator’s decision that will raise prices for consumers and businesses.

As people access increasing numbers of documents, video, software and other large files through the Internet, major communications providers such as Shaw Communications Inc. and BCE Inc.’s Bell Canada unit have begun to regulate how much their customers can download – charging them extra when they exceed monthly limits. Many consumers have responded by turning to smaller Internet providers that lease space on networks such as Bell’s and offer popular “unlimited” plans without such caps.

But a decision last week from the federal telecommunications regulator that effectively kills unlimited plans has triggered widespread outrage from a variety of consumer and citizens’ groups. It has also prompted a backlash from small business owners who warn that the ruling will thwart their ability to use online services such as video and online teleconferencing.

In an interview, Mr. Clement acknowledged the strong reaction. “I am hearing from a lot of people who feel this will damage our economy,” he said. “I have to be fair on these things – but I am hearing from people that they are worried this will stifle innovation because the cost of using Internet services will be prohibitively high.”

The minister said he will study the Canadian Radio-television and Telecommunications Commission decision to see how it squares with the government’s commitment to encourage competition and consumer choice. He’ll then make a recommendation to cabinet on how to proceed.

The CRTC decision appears to put the government in a difficult spot. In telecommunications policy, it has tended to favour lighter regulation. But if it allows the ruling to stand, it will likely come in for sharp criticism by those who say the commission is protecting the interests of a few of Canada’s largest companies at the expense of consumers and small- and medium-sized businesses.

Mr. Clement, who referred to himself last year as the “consumer minister” in an interview with The Globe and Mail, has been involved in such decisions before. In 2009, the Harper cabinet overturned a CRTC ruling that had blocked Globalive Communications from launching wireless service in Canada because of foreign ownership rules. (Globalive’s major investor is an Egyptian company.)

In the Internet ruling, one option would be for cabinet to throw the decision back to the regulator. “We can refer it back to the commission and say ‘We’d like you to look further at this through government policy on competition, on innovation, on consumer choice,’ ” Mr. Clement said.

Monthly download limits have been in place since at least 2006. But most Internet users rarely found themselves exceeding the caps.

That is now changing as more people become comfortable with newer technologies, such as the video-streaming service Netflix, which uses up Internet usage quotas far faster. Online video use is rising sharply, and Canadians are among the heaviest users of online video in the world, according to data compiled recently by Bank of Nova Scotia’s investment research division.

Businesses have become more reliant on the Internet as well for functions such as serving customers, communicating with distant offices and purchasing downloadable software. Many business people object to the suggestion that those most affected by the CRTC decision are simply people using Internet connections to watch movies and other entertainment.

Large companies such as Bell, which argued for the right to levy an even more expensive charge to small providers, say their networks are expensive to maintain and that Internet service is a business with slow return on investment.

Liberal industry critic Marc Garneau, who said he will pressure Mr. Clement to throw the decision back to the regulator, said he doesn’t buy the large providers’ arguments about Internet network traffic and congestion.

“There’s more and more use,” Mr. Garneau said. “But to some extent, it’s also self-serving as well. And in this case, the ruling of the CRTC has gone too much in favour of the arguments presented by the big players.”

Mr. Clement was careful not to take sides, but said it is incumbent on the government to scrutinize whether the CRTC decision makes Canada less competitive.

Many small Internet providers, and one citizen who filed a last-ditch appeal to cabinet, have argued the decision is anti-competitive because it forces small providers to make their Internet plans conform to Bell’s.

Bill Sandiford, who runs a small Internet company in Oshawa Ont., and heads a consortium of small Canadian Internet providers, said the group is considering its options, including a formal appeal to cabinet, asking the CRTC to review the decision, or going to the federal court.

Netflix, the online movie service which launched its Canadian operations last year, has said that charging as much as $2.50 for each extra gigabyte of data makes no sense when the cost to transport that gigabyte, for telecom companies, is often less than a penny. “Consumers shouldn’t be paying extra for it,” Netflix spokesman Steve Swasey said. A high-definition movie consumes about 1.5 gigabytes, according to Rogers Communications Inc.

With a report from Susan Krashinsky

Ottawa enters dispute over higher Internet fees – The Globe and Mail.

From the stockbroker to the sandwich-maker, nearly all Canadian workers will pay more income and payroll taxes in 2011.

The Canadian Taxpayers Federation released its annual tax calculations Tuesday and projected an average increase of 2 per cent in 2011 over 2010. The federation said Ontario residents will see the sharpest payroll tax hike, with British Columbia and Nova Scotia right behind them.

While those three provinces will be particularly hard hit, the federation’s report said the working poor – regardless of region – will be seriously affected.

“In previous years, there has almost always been winners and losers depending on income levels, family scenarios and what province one lives in. This year everyone loses, although some more than others,” said Derek Fildebrandt, the federation’s national research director.

The federation’s annual study found that while virtually every worker in Canada will pay more, taxpayers in provinces with inflation rates above the national average will see a disproportionate increase. In the federation’s research scenarios, Ontario residents saw an average increase of 4.3 per cent. B.C. and Nova Scotia workers came in at 2.9 per cent.

Mr. Fildebrandt said much of the blame for the increase lies with the Employment Insurance and Canada Pension Plan programs.

“Nationally, the culprit is EI. The federal government has created new social programs that it’s decided will be funded through EI premiums, even though most of these things have little if anything to do with employment insurance as the words should actually mean.”

The federation – a non-profit group that advocates for lower taxes – pointed to a program that provides $246-million in EI funds as special benefits for fisheries.

Chisholm Pothier, a Department of Finance spokesman, defended Prime Minister Stephen Harper’s record on EI, though he did not address accusations its funds have been stretched too thin.

“[The] Harper government has not increased taxes, we believe in lower taxes and we have the record to prove it – cutting over 100 taxes and lowering taxes $3,000 for an average family,” Mr. Pothier wrote in an e-mail. He added the Conservative government has kept EI premiums low with rate freezes.

Minister of Finance Jim Flaherty released a statement Tuesday mentioning tax relief, though it only addressed a reduction in the corporate income tax rate.

B.C. has been in the midst of a tax uproar since 2009, when the Liberal government announced it would implement the harmonized sales tax. The fate of the tax – which has forced British Columbians to pay an extra 7 per cent on some goods and services – will be decided in a referendum next year.

Before he announced he was stepping down as leader, Premier Gordon Campbell promised a 15-per-cent personal income-tax cut. The Liberals scrapped the plan soon after.

Jim May, a Vancouver schoolteacher with three children and a wife who is a nurse, said more money coming out of their wallets is the last thing they need. “Two people working in the big city, we’re basically making it but we’re not going ahead drastically. Anything that erodes our earnings is a concern,” he said.

Mr. May, 50, said trying to live within his means can be a bit tricky at times. He noted a recent rise in gasoline prices in B.C. has been enough of a shock, let alone an increase in payroll tax. “It’s another burden we have to bear,” he said.

Mr. Fildebrandt said part of B.C.’s payroll tax increase can be attributed to a hike in health premiums. Nationally, he said increases in EI and CPP thresholds mean anyone earning more than $44,200 will pay an additional $76, while employers pay an additional $110 in payroll taxes.

He added increased payroll taxes disproportionately hurt the working poor, since they have less money to spare.

Tax man to hit Canadian workers harder in 2011 – The Globe and Mail.

A secret government report on cyberattacks says that 86 per cent of large Canadian corporations have been “hit” and that espionage hacking on the private sector has doubled in two years.

“Cyberespionage attacks are causing considerable economic damage,” says the 2010 “threat paper,” released to Postmedia News through access-to-information laws.

The heavily redacted report was prepared by the Public Safety Department with input from the Canadian Security Intelligence Service, the Defence Department, the RCMP and the Privy Council Office.

Cybersecurity expert Rafal Rohozinksi said that vast jump in businesses infiltrated by cyberhackers is “not surprising at all and, in fact, it’s highly worrisome.” He estimated that more than half of corporate espionage originates in China and involves tapping into intellectual property secrets.

The report details the cyberthreat facing Canada and asserts that it is not only an economic issue, but also a national security problem, in that government is also a key target of foreign espionage and when “some terrorist groups are developing an interest in mounting cyberattacks against state enemies and, most likely, the capabilities to do so.”

An accompanying memo to Public Safety Minister Vic Toews says the paper was distributed to deputy ministers involved in crafting a national cybersecurity strategy to “inform them of the cyberthreats facing government systems and to provide them with potential mitigation measures.”

The released sections of the report do not detail Canada’s economic losses, nor do they zero in on potential terrorist threats or other potential attacks against government. For instance, passages are blacked out on “key cyberthreat actors,” espionage, and much of the paper’s conclusions. Foreign intelligence services, however, are cited as a threat against governments.

The Harper government, after years of promising a cyberstrategy, announced last month that it would spend $90 million over five years to protect government systems from hackers, work with the provinces and businesses to ensure private information is properly encrypted, and to help educate Canadians about cybersafety.

Toews, in announcing his plan in early October, said he worries about the security of 130 government programs offered on the Internet.

The government threat paper focused on deliberate attacks. While most electronic hacking inflicts relatively minor damage, a growing number of attackers are able to cause damage of national significance, such as sabotaging national security operations and causing critical infrastructure to malfunction, such as energy, utilities, communications and transportation, said the report.

It also touched on the well-documented use of blogs, chat groups and websites to hatch terrorist plots and the explosion in online theft in the recent years.v
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Violent crime rates in Canada.

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OTTAWA — The Harper government‘s emphasis on cracking down on crime will inevitably be “tough on taxpayers” and may also be “lazy on crime,” says a new report.

The report provides a scathing analysis of the Conservatives‘ “tough on crime” agenda that, it says, is motivated by politics as opposed to a desire to pursue sound policy based on the facts.

The study was released Wednesday by the Canadian Centre for Policy Alternatives, a left-of-centre think-tank.

Author Paula Mallea, a criminal lawyer and research associate at the centre, says the government has used charged rhetoric and misinformation to advance a crime-and-punishment agenda that, she argues, may lead to more crime and cost taxpayers billions of dollars to house more prisoners.

“Tough on crime is actually lazy on crime. It certainly is tough on taxpayers,” Mallea wrote.

The report draws on academic studies, Statistics Canada numbers and a report by the parliamentary budget officer that says taxpayers will have to fork out $5 billion to finance one of the government’s new prison sentencing laws, which will require 13 new prisons.

Kevin Page said it will cost $1 billion a year for five years to implement the law that ended the practice of judges handing offenders time credits, on a two-for-one basis, to compensate for time spent in pre-sentence custody.

Public Safety Minister Vic Toews has disputed Page’s figures and put the cost at closer to $2 billion. Toews has refused to put a price tag on the total cost of the “tough on crime” agenda.

“The Conservative approach to crime will cost billions and will probably produce less rather than more public safety,” Mallea wrote.

Longer sentences, harsher prison conditions and incarcerating more people will spur more violence within prisons, and also increase the possibility of prisoners offending again after being released.

“Recidivism is more likely to occur when offenders have been locked away for long periods with few programs of rehabilitation,” she said.

The report says the Harper government has stoked public fear with its heated references to the war on “drugs, gangs and guns,” while ignoring its own statistics from Public Safety Canada that show police-reported crime rate has been deceasing since 1991.

For example, Mallea says, Public Safety statistics say the use of guns in robberies declined to 15 per cent in 2009 from 20 per cent in 1999; that violent crime decreased by 14 per cent to a rate of 932 per 100,000 in 2008, the lowest rate since 1989; that the rate of reported sexual assault has been declining since its peak in 1993; and that drug offences are showing a downward trend.

Mallea says the sheer volume of crime legislation since the Conservatives won power seems designed to suggest “crime in Canada is out of control” and the government needs to dedicate a large portion of taxpayers’ money to the cause.

The government has produced 54 bills in the current parliamentary session, of which 33 per cent — or 18 — are related to crime, the report says.

“Canadians have the right to expect public policy to be developed based upon expertise, hard evidence, and solid statistics, not upon the fiery rhetoric of individuals who are clearly misreading the facts,” Mallea concludes.

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