From The Sun:
A much-debated idea – mobility-pricing – is moving forward for consideration in this region:
Mobility pricing, which includes road-use fees, has been proposed as a way to help fund the upcoming second and third phases of the mayors’ 10-year Vision for Metro Vancouver Transportation.
Last November, a joint mobility pricing steering committee was formed to develop regional objectives for mobility pricing and oversee the preparatory work to establish a mobility pricing independent commission. …
The steering committee has met four times and come up with a definition of mobility pricing, objectives for mobility pricing, the scope of the independent commission and the composition of the independent commission. It will deliver a final proposal for the establishment of the independent commission this spring. The commission will then submit its recommendations and findings by early 2018.
Richmond Mayor Malcolm Brodie said he’s uncomfortable embarking on the process without provincial support.
“We’ve seen this scenario before at least twice in the last two provincial elections, where the province basically kicks the can down the road so there’s no controversy before an election about a hopeless situation, only to pull the rug out from under the mayors’ and TransLink’s feet after the election,” Brodie said.
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Or to put it another way:
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Here’s the only comment provincial minister Fassbender seems prepared to make:
“The province is interested in the work that the mayors are undertaking on this issue and we look forward to hearing about their findings,” he said
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So, another bait-and-switch, or the only way to move forward?
“Mobility pricing strategy” Strategy! Doesn’t that sound like someone is about to pull wool over the road users eyes?
Gas prices have come down; whoopee! But that’s the least of the costs facing the urban shopper/commuter.
http://www.theyorkshirelad.ca/1yorkshirelad/vancouver.re-boot/Vancouver.re-boot.html
Metro Vancouver was conceived as a collection of coastal villages, why not advance the original concept?
If we do not do it willingly and orderly circumstance will do it for us, sooner than later and it will be messy!
Mobility pricing makes total sense if coupled with lower taxes (say gasoline taxes or income taxes) elsewhere.
Where is the related debate about excess spending and associated excess wages of city and provincial employees as 70%+ of spending goes to benefits and wages ?http://www.cfib-fcei.ca/english/article/7290-public-sector-workers-oped.html
I like your concept of reducing other taxes. Mobility pricing could replace the TransLink portion of the gas tax. Note that there is already a 6 cent/litre reduction in the provincial portion of the gas tax for Metro Residents.
And yes, I would like to see a balancing of wages re public and private sector but this should come in the form of higher private sector wages. How about a minimum wage of $20/hour? Henry Ford had it right many years ago when he encouraged his colleagues to raise wages arguing that no one would buy their products if wages were too low. Thomas, perhaps you could lead the charge this century?
Private sector wages are set by competition. Why pay $70,000/yr if enough capable folks for $55,000 show up ? Feel free to open your own construction firm, restaurant, clothing store or manufacturing firm and pay above market wages. Let’s see how long you’d last.
$20/h minimum wages will kill jobs and in fact, would hurt the most vulnerable people the most: the disabled, the part-time single mother, the struggling senior trying to make and extra buck or the recovering drug addict. All these marginal jobs would be cut first, as McDonald, Walmart, 7/11 or all the other stores or restaurants would cut marginal shifts, say the midnight to 6 am shift or reduce opening hours or shut down marginal stores. All this would lead to job losses. So, if any of these firms trim operations from 2000 employees to 1800 the weakest workers will get laid of first ! Minimum wage advocates are essentially lobbying for higher unemployment and further marginalization of already vulnerable groups of people !
Taxes in Canada are already very high as are fees for monopoly or quasi monopoly services like airports, ferries, electricity, cell phones, banking transaction fees or car insurance.
Reducing congestion by upping usage fees is fine if other fees or taxes are lowered in lieu. Will they ?
Sounds like unsubstantiated fear to me. There is no proof that higher minimum wages reduce jobs and it’s laughable that local service jobs would be the first to go. They’d be the last.
Suddenly there’d be way more people with money to spend on local shops, casual restaurants and services.
The Swiss economy does very well on the basis of high wages for everyone. Try vacationing in Switzerland – few can afford it. But they all can.
Switzerland had no wars, has a massive chemical, mechanical and banking industry, has a highly educated populace and almost no immigration.
Here’s what happened in Seattle, namely ” But they climbed less in areas where the minimum wage was raised than they did in areas where it was not. The difference between those two is the employment lost to the higher minimum wage.” : https://www.forbes.com/sites/timworstall/2016/07/26/seattles-minimum-wage-rise-is-reducing-employment-in-seattle-i-was-right-in-predicting-this
Same in NY, which cost 65,000 jobs: https://www.forbes.com/sites/timworstall/2016/03/11/new-yorks-15-minimum-wage-will-cost-65000-jobs
Why would Canad be any different ?
Do you own or have ever owned a business ?
But I thought wars are good for the economy!
I do own my own business and have always paid my employees well.
Just as I predicted, there will be those who write articles saying “just as I predicted.”
Sounds like Seattle’s economy is booming. Did a few jobs drift outside of the $15 zone? It would work better if it applied everywhere. Some jurisdictions will always favour a race to the bottom.
Thomas and Ron have a good point with regard to war. War is such a wasteful enterprise since it causes huge suffering although it does provide employment and wealth for some. Why not divert some of this towards the creation of a Ministry of Peace and use the rest to provide a living wage for everyone. People could have more leisure time and this would be a huge boost the economy The incessant race to the bottom as advocated by Thomas will not end well. With a guaranteed living wage for everyone, I am sure that even Thomas would be better off.
Private sector wages are set by competition.
Only when there is a labour shortage are the wages high. E.g. In the years before the 2010 Olympics private contractors had to pay their workers more to keep them from being raided by the competition. Contracts therein saw 25%-35% escalators every year from 2004 to the end of 2009, and inflation soared. When times are lean, job availability / security and wages collapse and there is absolutely no competition to pay ever less.
That is a sure way to conceive volatility and instability. Skilled labour markets may be the only place where competition is high. The tech sector does demonstrate this. It’s also jurisdictional, as Silicon Valley has proven, but there it’s also pricing itself out of local cost of living affordability. Canada does have a pretty strong tech sector, but not as big as the US with 10X the economic punch.
Unionized public and private sector wages are negotiated. Negotiated … in case you missed it again, Thomas. That is, two parties come to an agreement and then put it into a contract for a limited period of time, then start the process all over again. Unions have been greatly eroded over the last generation to the point safety is often compromised, notably in the private sector.
Just read about CP Rail in the Globe’s Report on Business last Saturday where office workers have been forced to run oil trains on occasion as top management harass and fire train crews over exceedingly minor or unjustified infractions in order to lean down the organization and jack the share price. Stress and insecurity amongst the workers are not conducive to long-term shareholder happiness as accidents and attrition in the workforce increase.
Who advocates a race to the bottom ?
Public sector contracts are NOT freely negotiated. They are forced upon taxpayers i.e. a monopoly employer with a gun to its head as strikes are legal in Canada and replacement workers illegal in the public sector. That is the very cause of far too much in expenditures and debt in Canada and other jurisdictions. The BC Ferries toll both operator at 50-66% above market wages at $70,000 (incl benefits), the BC Hydro worker at $100,000+ or TransLink bus driver at $80,000 (incl all benefits) are just some of too many too mention of those many MANY grotesque examples of monopoly inefficiencies. Jobs with lwo risk of layoffs, huge benefits & shorter life time hours ought to be be paid less than more risky comparable private sector jobs – bit ain’t ! The result: crowding out of new investments for the homeless, for affordable housing or for public transit BY THE BILLIONS !
Raising private sector wages will just make life more expensive for everyone, and gains from those wages are lost to the increased cost of goods.
Your math is highly suspect. The labour cost of a good is only a small part of the total cost. If somebody selling widgets gets paid more the cost of the widget will go up less than their ability to buy it with their increased pay.
Those at the bottom end of the wage scale tend to spend their money locally because they can’t afford anything else. The $multi-million a year CEO spends all over the world and much, if not most, of their wealth leaves the area..
A higher minimum wage improves the local economy.
Well yes of course, they always want more of our money
Everyone loves when technocrats send out trial balloons suggesting that one group of people should pay for things for another group.
If they have enough meetings will committees and studies and experts this bolsters their case, they think.
They want all the drivers to pay for the transit.
Walking is so virtuous. How about all the bus and train passengers paying for the shoes of all those that walk? Buy me some Nike runners!