June 30, 2004 ARCHIVE

Liberals maintain riding

by Cheryl Waugh

CANADA - Political pundits got it half right. While Canada will be led by a minority government for the tenth time in its history, it's the Liberals who will form the federal government, and not the Conservatives as had been predicted.

Predictions that the Liberals and the NDP weren't going to win enough seats combined to form a potential majority coalition also didn't bear fruition. The Liberals were closer to a majority win than most people expected. The Liberals needed 155 seats, and as of Monday night held 135. The NDP, meanwhile, increased their profile in the House of Commons by winning 21 seats, an increase from the 14 seats they held in the last session of parliament.

There is a strong history in Canada of NDP - Liberal cooperation at the federal government level. Three times, from 1963-1965, 1965-1968, and 1972-1974, the NDP helped prop up a Liberal government, with generally good results. Those Liberal governments were responsible for enshrining universal medicare in the Canada Health Act (a NDP accomplishment), and enacting the Canada Pension Plan.

Talk of a NDP - Liberal coalition is premature however. Algoma-Manitoulin-Kapuskasing MP Brent St. Denis, who was returned in Monday night's election, said he believes only a gentleman's agreement will be made between the Liberals and NDP.

"I doubt there will be a coalition," said Mr. St. Denis. "I think, instead, it will be a tacit agreement, going issue by issue. Obviously, the NDP will want to have some of their platform introduced. But, I don't think we'll make a deal."

Algoma-Manitoulin-Kapuskasing candidate Carol Hughes said she believes the NDP will ensure issues that matter to Canadians will be brought forward. "I think we've done well nationally," said Ms. Hughes, who added she was quite happy with her own riding results as well. "I thought my numbers were quite good for a first time candidate."

For the Conservatives, Monday night's election must have been bittersweet. The party finally broke through in Ontario, picking up 24 seats. They had only four seats prior to the election. They also increased their number of seats nationally to 97. But predictions of a Conservative victory with Stephen Harper as Prime Minister were obviously overly optimistic.

Blaine Armstrong, the Conservative candidate in Algoma Manitoulin Kapuskasing, said this election was impossible to call to begin with. "People said it would be close, and it was," he said.

"I never agreed with the pundits," said Mr. St. Denis on the overzealous predictions. "Canada is still middle-left and I felt that was the way they would vote."

In other words, Canada isn't yet ready for a Conservative government.

The question is, will Canada ever be ready? If there was any election that the Conservatives had a chance at winning, it was this one. The gun registry, the sponsorship scandal, the $2 billion HRDC scandal, the ill treatment of Maher Arar, it all must make a Conservative wonder what has to happen before Canadians will allow them to form a government.

The leadership ability of Conservative leader Stephen Harper will, necessarily, come under question because of this result. In the wake of the June 14-15 television debates, Mr. Harper had spoken openly and confidently about a Conservative majority government.

While the final results were not announced as of press time on Monday, the preliminary results of the election were as follows: Liberals 135, Conservatives 97, NDP 21, Bloc Quebecois, 54, and No Affiliation 1. Only 58.8 percent of eligible voters voted in this election. The Liberals led the popular vote with 36.8 percent, followed by the Conservatives at 29.6, and the NDP at 15. 5 percent.

The Conservatives fell far short of a majority government, not to mention far short of leading a minority government.  Many people will no doubt wonder if Mr. Harper can ever lead the Conservatives to victory considering he was unable to do it while the country was ripe for change.

A couple of circumstances mused about often in the media, including the Bloc Quebecois as possible king makers, and the Green party winning its first national seat, went the way of the much talked about Conservative minority...no where.

The Green party can claim a major victory though. The Greens won four percent of the popular vote, which means they qualify for annual funding of $1.75 per voter. With more than 560,000 voters, the Greens will get about $1 million in government funding. In 2000, they recorded only 1,100 votes.

Meanwhile, the Bloc won the 50-plus seats predicted from them, and they undoubtedly have a strong voice in parliament, but they also, for Canada's benefit, don't hold the balance of power. Any political agreements, gentleman's or otherwise, will likely be formed between the NDP and Liberals.

In the Manitoulin Expositor's last question to candidates (in the June 23 edition), Mr. St. Denis stated that a coalition with the Bloc Quebecois "would be virtually impossible."

"The Liberals have always championed Canadian unity," he wrote in his answer. "Would the Bloc be willing to not always put Quebec first and from time to time put Canada first? Would the Bloc accept that the Liberals will never abandon the Clarity Act and allow a confusing, unfair sovereignty referendum? Would the Bloc accept that Quebec should not receive more than their fair share?" he asked.

The answers to those questions have already been answered by Bloc leader Gilles Duceppe during his campaign. The Bloc, he said, will only do what they think is right for Quebec.

The NDP, as noted above by Ms. Hughes, can be expected to do what's best for Canada. Of course, the Conservatives can also help to prop up the Liberal minority government. It is likely the Conservatives will also take it issue by issue. It will be interesting to see what, if any, Private Members Bills end up being presented in the House of Commons. Without a majority government, bills presented by opposing parties can not be easily dismissed.

In any case, Prime Minister-elect Paul Martin has his work cut out for him managing this political juggling act.

So for the first time in 25 years, Canada will be led by a minority government. Joe Clark's Progressive Conservative party had the dubious honour of falling faster than any federal government in Canadian history. It held power for exactly six months between June and December 1979.

For several reasons, it seems unlikely that the Martin government could fall that quickly, including the fact all the major parties used up their financial resources and need some fundraising time before the next election. As well, a minority government will allow all parties an opportunity to have an impact on government policy. Considering that it's been 25 years between minority governments, it could be a long time before the Bloc Quebecois and NDP hold this kind of power again. It would be in their best interests to keep a minority government alive as long as it works to their advantage.

On average, a minority government in Canada lasts about 17 months. If that average holds true to form then opposition leader Stephen Harper has that long to convince Canadians, and his own party, that he should be the one to lead Canada. Meanwhile, Prime Minister-elect Paul Martin has to convince the nation, and his own party, that he can lead this country through these troubled times.

In truth, the results of this election may take months to be known, while part two, the next election, is already forming on the horizon.

MHC enjoyed good year, but bracing for tough times ahead

by Neil Zacharjewicz

LITTLE CURRENT - The message may have come from different people, but the funding situation that the Manitoulin Health Centre faces was a primary concern in both of the annual reports delivered by the Chief Executive Officer, James Van Camp, and the chair of the board of director, Ivan Edwards.

"Financially, the hospital sustained basically a balanced budget with a minor deficit of $40,000 on a $10 million budget. This balancing act was certainly accomplished in the final months of the year with an infusion of funds from the province," explained Mr. Van Camp, in his report to the board of directors. "Next year may in fact be a watershed year for the organization, in that if the ministry (of health) is determined to have balanced budgets with no deficits, and if the ministry is determined to not realistically fund the required level of our hospitals, there will indeed be a financial crisis."

For several years, the Manitoulin Health Centre (MHC) has been struggling with the Ontario government's refusal to recognize that, as a multi-site hospital, the MHC is effectively operating two hospitals. While the multi-site issue is one that the province has identified as a major priority on its list of funding inequities, Mr. Van Camp pointed out it has only become a major issue since a number of hospitals in larger centres found themselves faced with the same problem. He said it is interesting that the government makes a lot of political noise about the term "accountability."

Looking back at correspondence over the last year, he said, it is interesting to note that the provincial government has provided no response on any financial information provided by the hospital, including on the issues of the Third Party Hospital Review; the Roy Report, which is based on the MHC's request for a base funding increase in October of 2001; and the last three business planning briefs the MHC has submitted.

"There is no question that when we constructed our current Business Plan that the hospital would require approximately $1.2 million, or a 10 percent increase to sustain present operations. We are now almost one-third through the year and we do not know what our Ministry of Health and Long-Term Care (MOH) funding allocation is. Where is the accountability?" Mr. Van Camp asked. "I hope I am not being too cynical but this is where we are. We acknowledge it and we can only hope that the framework for performance agreements with the ministry is based on a realistic funding allocation and if not, the ministry may have to assume responsibility for the service provision in this community."

Mr. Edwards was no less concerned about the issue in his report.

"The MOH funding, or more aptly lack of funding, continues to be a major concern to our board and management. Our 2003-2004 fiscal year ended with a deficit of approximately $40,000. As of this date, no funding announcement has been made for the 2004-2005 fiscal year and already three months have elapsed. This lack of action on behalf of the MOH creates a high level of frustration among board members and management staff," he said. "It is very difficult, if not impossible, to plan for the short term, let along develop a three year plan without a financial commitment. The MOH, with the passage of Bill 8, the Commitment to the Future of Medicare Act, will be negotiating a performance contract with our board at a time of its choosing, to make us accountable for our level of service delivery and expenditure of MOH dollars."

Mr. Edwards did admit he was "cautiously optimistic" the MOH would rule in the hospital's favour on the multi-site issue, since it has now become a major issue across the province due to hospital mergers. He also noted that the concern about the base funding has been a recurring issue, pointing out he addressed the same topic in his report in 2002.

"We also have the (June 28th) federal election to contend with. Both the leading parties in the polls have made substantial promises when it comes to health care. However, we know that the dollars do not always follow the promises after being elected. This in turn could affect the level of funding for the MOH," Mr. Edwards noted.

Late frost wreaks garden havoc

by Michael Erskine

MANITOULIN---Many Island communities awoke to a gardener's nightmare last Friday morning, as a fine white dusting of frost had settled on rooftops and, with fatal results, on garden plants overnight.

"I got hit heavy," lamented Eleanor Lentir. "The tomatoes were droopy and my peppers are just gone. I knew we were in trouble the minute I looked out the window; everything was white."

Ms. Lentir lives a scant three miles from Carter Bay, and that might have been what cost her the garden, as a cool night with clear skies is often ameliorated by close proximity of water.

"It was very disappointing," agreed Susan Hoffman, who noted the frost extended all the way to her Tehkummah home. "There were a lot of people our way who got hit hard."

Reports of frost in Manitowaning were confirmed by George Rhijnsburger, of Rainbow Gardens and Greenhouse Nursery.

"It was very spotty," he said. "It wasn't what you call a hard frost, people right next to each other, one would get hit the other one wouldn't."

Still such a frost is very unusual this late in the year.

"I would say so," said Mr. Rhijnsburger. "I have been in business here for 27 years, and this is the first time I can remember it coming this late."

"It was certainly an abnormality," agreed AgRep Brian Bell, from the Ministry of Agriculture and Agri-food. Mr. Bell does a 30 year average on frost-free days and he said he was sure this was going to set the dates lower for this year. "I won't know for certain until I run the numbers," he added cautiously, "but normally people on the Island feel safe after the long weekend in May, maybe you are nervous up to the first week in June, but never the last week in June."

There are actions a gardener can take to stave off frost damage to their garden, said Mr. Rhijnsburger.

 "If you are up around 5:30 am and you see the temperature is hovering just below zero, you can set your water nozzle to mist, and spray a fine mist over the plants," he advised. "What you are doing really is creating a fine coat of ice on the plants, but nine times out of ten the plants are all right. But who is going to be up around 5:30 in the morning?"

Usually, people go out around 9 am and say 'I think we got a frost last night.'

"By that time it is too late," he said.

Someone whose livelihood depends on keeping a close eye on the weather can't afford to let Mother Nature play tricks on his crops, so early rising is a definite asset to the pros.

Rainbow Gardens remaining stock was largely outside during the danger period, but thanks to serendipity and a cautious hand on the faucet, everything came through fine.

Mr. Rhijnsburger said the temperature at his greenhouse operation actually hovered above zero, all of .3 degrees above zero, through the danger period, but he took evasive action anyway, and all of his stock came through fine.

Mr. Bell said there is evidence changes in global weather patterns have been affected by a phenomena called the polar vortex.

The polar vortex sets up a counter clockwise movement of air, drawing cold air out of the high arctic and sending it down into the central plains of North America. As this air mass moves east, it warms slightly and then crashes headlong into the warm moist air drawn by the vortex up from the Guf of Mexico. This has resulted in delayed planting in many parts of the province.

There are signs however, that the vortex has finally relented and is beginning its annual migration to the east and its traditional stomping grounds over Greenland.

In the meantime, cool temperatures on clear nights remain a warning sign for gardeners to set their alarm clocks a little earlier, and to keep the watering hose handy.

Gambling series  Part 1

 

EDITOR'S NOTE: This is the first installment of a three-part series on gambling in Ontario prepared for the Expositor by writer Michael Erskine. The first article examines what legal gambling venues exist and types of gambling offered, as well as what happens to the proceeds of gambling. The second part of the series will examine gambling from the viewpoint of the gamblers themselves and the third will examine the darker side of gambling and its social impact.

by Michael Erskine

ONTARIO---Bells, lights and sirens announce the latest slot machine winner at Sudbury Downs as an announcer follows the progress of horses and riders around the track, the methodical steady drone of letters and numbers in a First Nation bingo hall in Sheguiandah to the steady thock, thock, thock of an ink-filled dauber, the furrowed brow of concentration as a Pro-line player fills out his predictions for this week's sporting events or the slow scratching-to-win of a senior citizen at the drug store checkout counter, all these are the many faces of gambling in Ontario.

From the very public to the very private, the Province of Ontario has its fingers deep into nearly every form of gambling. The stuff of 1930s gangster movies, including the numbers racket (can you say Loto 649?) and high stakes poker games, are now the purvue of the government, regulated to protect and serve the public.

Gone are the Al Capones and Vito Corleones of fact and fiction, gun and sap-wielding enforcers have been replaced by men in neat suits wielding calculators and legislation authorizing the full force of the law.

Gaming, in its many forms and features is regulated under the Ontario Lottery and Gaming Corporation Act, 1999. The Act created and empowers a Crown Corporation that exercises the powers of 'Her Majesty' to develop, undertake, organize, conduct and manage lottery schemes. Under this legislation, the corporation provides for the operation of gaming premises, such as casinos and bingo parlours, and ensures that all is conducted within the parameters set out under the Gaming Control Act, 1992, and its regulations.

In addition, the Act provides for oversight of the operation of businesses that offer goods and services to gaming premises, or to any person who offers goods and services to the people playing such games of chance in a gaming premises, including opening the books at the request of the corporation.

Under this Act, no person under the age of 18 may buy a lottery ticket, unless they produce reasonable proof they are of age. The prohibition rises to 19 years of age for entry into a premises where gaming is going on, unless it is part of the underage person's job to be there, and no person under 19 is allowed to play any games of chance.

Fines are pretty hefty if the rules are broken, with liabilities of fines up to $50,000 for an individual, and a high of $250,000 in the case of a 'person' who is not an individual, legal-speak for a company or corporation.

As the chips, dollars and cents roll into the coffers, the Gaming corporation can cough it back up for three general draws on the gross revenue: paying out prizes; paying the operating expenses of the Corporation; and to meet obligations of agreements to support activities and programs that the government deemed of 'benefit' to the people of Ontario.

Any money left over from the sale of lottery tickets, charity casinos and the slots after disbursements of the above, is dumped into a 'Consolidated Revenue Fund.'

It is from this fund that the legislature can draw to promote and develop physical fitness programs, sports, recreational and cultural activities or facilities; fund the activities of the Ontario Trillium Fund; protect the environment; combat the health care issues associated with problem gambling; for the objects of charitable organizations and non-profit corporations; and for the funding of community activities and programs.

If there is any money left over from all these various activities at the end of the fiscal year, it goes to Ontario's hospitals.

Now casinos are treated a little differently than tickets and slots, after prizes winnings, operation expenses and contributions of a set amount into the Consolidated Revenue Fund (not to exceed 20 percent), money is paid out to the Alcohol and Gaming Commission of Ontario. Other disbursements, as in the case of revenue from Casino Rama, can be (and is) disbursed under a separate agreement, such as revenue sharing with member First Nations.

Again, any money left over goes into the Consolidated Revenue Fund.

The whole operation of the Corporation is over seen by a chair and vice-chair and board of directors appointed by the province. This six-member board includes many heavy hitters from the realm of the corporate board rooms, incuding Chair Timothy Reid, a founding member of XPV (Venture) Capital Corporation. He is also member of the Board of Directors of Via Rail Canada Corporation and serves as a member of the Corporate Governance and Human Resources Committees of that Board.

The other five members have equally strong corporate governance credentials.

Ontario casinos can be found in Brantford, Clinton, Gananoque, Niagara Falls, Orillia, Point Edward, Sarnia, Scugog, Sault Ste Marie, Thunder Bay and Windsor. In addition there are two horse race tracks and 15 racinos, combination race tracks and slot machine operations. The closest of which to the Island is located at Sudbury Downs, in Chelmsford.

Native Casinos include the major full-blown Casino Rama Resort, located at the Mnjikaning First Nation near Orillia, with a 95,000 square foot casino that features 2,100 slots and 120 table games. It is open 24 hours a day, and buses regularly truck gamblers in from major population centres as a destination location.

In July, 2003, Casino Rama brought in a gross revenue of $52 million. The average monthly gross revenue from the same period the year before was $45.2 million. Casino Rama's current license agreement with the province runs to 2011.

Thirty-five per cent of the net revenue goes to the Chippewas of Mnjikaning, and sixty-five per cent goes to the other 133 Ontario's First Nations. There was a sub-agreement entitled the Ontario First Nations-Mnjikaning Limited Partnership agreement that outlines the partnership between the Chippewas of Mnjikaning and Ontario's First Nations.  A portion of Mnjikaning's share is to be used to invest in the continued competitiveness of the Casino Rama complex.

The distribution formula was developed based on a resolution at the December 1998 All-Ontario Chiefs Conference. Fifty percent is distributed based on population data, 40 percent is distributed equally, and 10 percent is distributed on the basis of remoteness of the First Nation community. Provisions exist for the re-negotiation of the revenue splitting agreement.

The province's 20 percent off the top 'win tax' is a hotly contentious issue with Ontario's chiefs, who are incensed that their share comes at the other end of the revenue stream.

In the words of one chief, "We are the last to get paid, again." The First Nation's share comes after the expenses, prize payouts and of course, the off the top win tax.

There are also charitable casinos located at Golden Eagle Charitable Casino & Entertainment Centre, run by the Waushushk Onigum Foundation, near Kenora, Ontario. This facility includes a 7,500 square foot casino, including a 435-seat bingo hall, two roulette tables, four blackjack tables, two 'Let it Ride' tables, and Keno, as well as the Great Blue Heron Charity Casino, Mississauga Nation, Port Perry, where a 70,000 square foot casino features 452 slot machines, 50 table games, and pull tabs.

As scratch and win ticket options in Ontario there are five main games, Cash for Life, Ontario Instant Millions, Instant Bingo, Instant Crossword and Instant Keno, as well as a plethora of smaller $1, $2, and $3 games.

The Cash for Life Lottery promises $1,000 a week for 'life,' transferable for the balance of a 20 year period, should the winner die early. Winners can opt for a lump-sum payment of $675,000, the only option available to group winners or out-of-province winners.

Much of the draw of scratch tickets is an immediate indication of a win or loss.

Bingo operations in Ontario range from the large urban 'bingo halls' such as Sudbury's Bingo One, where charities line up to sponsor bingos utilizing the hall operators equipment and staff, to smaller church and First Nation bingos operating out of community centres, to television and newspaper bingos. Bingos form a critical part of the social and community financing options of service clubs and First Nations on the Island.

"It is certainly a major money generator for the club," said Little Current Lion Garry Elliott, of the Lions newspaper bingo. Both the Little Current and Central Manitoulin Lions Clubs operate a newspaper bingo through the pages of the Expositor.

Bingos can be operated by community non-profit and service clubs, through a license granted at municipal office, provided the prize amount does not exceed the $50,000. The cost of the license is three percent of the prize value, a stipulated fee that applies to other lotteries such as 50/50 draws and raffles.

Nevada (pull ticket) licenses can also be granted by a municipality, unless held in conjunction with a provincially administered bingo.

Horse racing, the so-called Sport of Kings, has been extended through technology far beyond the racetrack walls, with off-track betting venues operating in most mid-sized cities.

The numbers racket, where a randomly generated number delivers a huge payout to the person/persons who chooses the winning numbers had the greatest promise of return with a tiny investment, and such policy operations formed the base of much of the pre-prohibition revenue of organized crime.

Now the numbers are drawn from random generators overseen by major accounting firms, but they still hold out the greatest return for a minimum investment, with grand prizes often in the tens of millions. Numbers schemes select six or seven numbers from a set number from 0 to 49. These lotteries form the basis of group purchases at many workplaces. The Expositor staff themselves purchase a block of Super 7 tickets each week.

Proline, conversely, forces players to select winning, or tying sport teams in series of at least three games. The bookie's purview has also been invaded by the government on this flank as well.

Lottery sales in Ontario topped $2.2 billion in 2002/2003, and of that approximately $1.1 billion was returned to the players. The rest made its way into the Consolidated Revenue Fund and was used for the aforementioned purposes.

Hospitals, community social and service organizations, and a huge array of sports organizations are beneficiaries of the swag from gambling sources these days, and each change to the mix of regulations governing the play, changes which usually result in a greater share falling directly under government control, often brings howls of protest from those groups whose revenue takes the hit.

In next week's portion of this three-part series, the author explores the people who play lotteries, the players who bet on horses and make regular pilgrimages to the slots or casinos.