Thursday, October 20, 2011

Letter to the Editor: PT 2 “Attack the debt. Pay tolls, pay more for gas”

[“Here in Canada... we (now) have time to talk to one another, and many serious-minded people are talking about the severity of our provincial and national debt.” G.Harrison, Oct. 19, It Strikes Me Funny]

In a recent letter to the editor of the London Free Press, R.S.M. Eberhard shared a few ideas about how to reduce debt in our province.

I commented briefly re his first idea yesterday. (A link will be provided below).

RSM’s second idea relates to major highways in Ontario.

“Make the 400-series highways toll roads. Why should those who never use the 401 pay for those who use it daily? Most of the highway infrastructure... will soon need to be upgraded or replaced.”

I understand that the maintenance of our highways is very expensive.

I agree that tolls might be considered soon to assist with maintenance costs and encourage conservation of non-renewable fuels.

I don’t, however, agree with RSM's selfish attitude.


["RSM wants to attack the gorilla of debt."]

I could be wrong, but RSM sounds like he doesn’t like sitting at home, having to pay for infrastructure costs, while daily drivers are getting off without paying. Aren’t there a few flaws in his thinking?

If RSM eats, drinks, buys clothes, hardware, daily necessities and the occasional Tim Horton’s donut, his purchases are directly and indirectly linked to the 400-series of highways. For example, barrelling down the 401 right now, in a transport truck the size of a small nation and at about 110 km. per hour - to be “just in time” at an unloading dock in London - is some product RSM has ordered or will use some time this week.

As well, those who use it daily likely pay for fuel several times per week and, thanks to taxes on fuel, pay for infrastructure costs already - on a regular basis.

RSM might call for tolls for the sake of fairness (“Why should I pay? I never use the 401!”) but he shouldn’t be let off the hook. He still needs to pay for highway upkeep - to maintain his access to many goods and services he enjoys - along with everyone else.

I would suggest, in place if toll collecting and its accompanying expensive infrastructure, another 1 - 2 % hike in the HST, a consumption tax. More HST (its infrastructure is already in place) would equal less consumption, fewer transport trucks on the highway, and reductions in maintenance costs and carbon emissions at the same time.

Later, RSM recommends that water, electricity and gasoline costs should be increased (e.g., gas to $1.50 per liter) because “we will never conserve if it doesn’t hurt not to.”

Part of me says, “I agree with RSM. Many will move along the path of conservation faster if their wallet comes under pressure.”

And another part of me says, “Is our province helping those who are already stretched financially to the limits? Are we prepared to help the less fortunate if their numbers swell under RSM’s recommendations?”

In my humble opinion, I don’t think we’re ready yet to attack debt in such rapid and rigid fashion. No doubt, many in our province, even in North America, are going to have to reduce lifestyle expectations now and in the near future. Attacking debt in many of its forms is a priority but many will need assistance to transition away from the culture of big.


["Until we get it sorted, reduce spending, pay off debt and save money."]

RSM sounds ready to shift right now. But I think he/she is in the minority.

And RSM has a few other flaws in his thinking as well.

More to come.

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Please click here to read Letter to the Editor: PT 1 “Attack the debt. Here’s how”

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