Monday, June 11, 2012

Thanks Scott Brison

Thanks Scott for your email concerning income disparity in Canada.

As for the issue of income disparity, the killing of income trusts by this government was a clear and deliberate act of exacerbating the income disparity that exists in this country. Income trusts allowed the average Canadian (ie the 99%) to earn a decent income from their investments for retirement income or other purposes, as opposed to being forced to speculate with common shares whose only return is the one tied to the vagaries of the marketplace.

The killing of income trusts was also clearly done at the behest of corporate CEOs and other members of the 1%, who felt threatened by the existence of the income trust model and the pressure that their true owners (ie shareholders) were exerting upon them to convert to the trust model. Conversion to the trust model would however have meant an end to the abusive CEO compensation practices of the corporate model (ie stock options, abusive pay practices not tied to business performance and no accountability to shareholders). That much was obvious from day one as follows. It only took someone as gullible and inexperienced as Jim Flaherty to fall for this line of self interested BS:

Income-trust crackdown: The inside story
Globe and Mail
November 2, 2006

High-profile directors and CEOs, meanwhile, had approached Mr. Flaherty personally to express their concerns: Many felt they were being pressed into trusts because of their duty to maximize shareholder value, despite their misgivings about the structure. Paul Desmarais Jr., the well-connected chairman of Power Corp. of Canada, even railed against trusts in a conversation with Prime Minister Stephen Harper during a trip to Mexico, and told him he should act quickly to stop the raft of conversions, according to sources.

From: Scott Brison
To: Brent Fullard
Sent: Monday, June 11, 2012 3:50:08 PM
Subject: House of Commons vote on Wednesday

Dear Brent,
The National Post newspaper published an article today that I wrote about a private members motion I introduced in the House of Commons that is expected to come to a vote this Wednesday.
The motion (M-315) simply asks that the finance committee undertake a study on income disparity and the growing inequality of opportunity in the country.
I believe the social costs of the problem are more costly than any of the measures that might address it.
I am also concerned that if people lose faith in the market-based economy that they could be drawn to politicians offering anti-market policies, which could be really bad for business.
You will find the article by clicking HERE.
A short five-minute video of my speech last week that concluded debate on the motion can be viewed HERE.
Warm regards,

Scott Brison, M.P.


Anonymous said...

Income disparity issue yes.....but while Jim Flaherty was using the USA as a proof to why he made the 2006 decision to kill income trusts.
The USA today is allowing the REIT rules to broaden into non-real estate sectors. The USA seem to understand the importance of access to efficient capital for small to midsize companies and supporting pension incomes for their citizens.


Anonymous said...

Economists always say that small & midsize companies create jobs and income growth ! This Globe and Mail article
titled "Vanishing Act : where did our midsize companies go " failed to mention anything about the 2006 income trust decision was a key reason why since 2007 to 2010 the vanishing act of our midsize companies gathered traction !!.

Dr Mike said...

Bravo Brent.

If my Con MP Joe Preston (Elgin-Middlesex-London) was any indication of the knowledge base of those that voted to kill trusts then he could have been replaced with about 2 kilos of sawdust.

Stay on them

Dr Mike Popovich

Anonymous said...

It just goes to show that incompetence is not limited to the Conservatives although they seemed to have corned the market on it.

While executives get fat and happy off of shareholders the government shuts down one of the best ways to hold CEOs accoutable and provide an appropriate return to investors. The Canadian Council of CEO obviously got their way.


Brent Fullard said...

Yes Railhound. And this piece of great news for the 1% just in:

Big-bank CEOs see stock options recover