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Diane Francis

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It's Immigration, Stupid

Posted: 03/ 5/2012 4:11 pm

It would be refreshing to have political leaders who connected the dots. This is important because if governments don't understand the causes of their troubles, then they cannot fix them.

Which brings me to Dalton McGuinty and Jean Charest. Much ink has been spilled on the fact that they want compensation because the dollar's too high due to the fact that Alberta and Saskatchewan are exporting too much and are destroying the other province's manufacturing bases.

They also want compensation because their health care bills outpace inflation and then, in addition, want compensation for building jails after a tougher crime bill comes into effect.

Unbundling these pleas and policy prescriptions provides an insight into their lack of understanding.

Both occupy parallel universes. This is predictable among people who don't read the business pages and/or vote Liberal.

Both became premiers in 2003. That's an important factoid because that is the year the Canadian dollar was last at 62 cents and the world's commodity super-cycle began.

People in mining and energy and even on Bay Street perceived this. The cause was that the slack in the world's commodities inventories had been taken up by China and others. This meant prices would increase in tandem with their increasing growth and demand.

At that point, or a year or two later, it would have been prudent for the CEOs of large operations like Ontario and Quebec to undertake what's known as a sensitivity analysis of their operations.

These assess the impact of increasingly higher commodity prices on costs, on taxpayers, companies, tourism, the tax base, government overheads, and the negative impact on export markets.

The result would have dictated which enterprises must trim their sails, substitute, and innovate. Instead both damned the torpedoes. They were the subnational equivalent of subprime borrowers, outspending the rate of economic growth and borrowing to do so.

Now, like tapped out homeowners, they want to be bailed out by Alberta and Saskatchewan who both trimmed their sails after 2003 and have paid down debt then parked money in savings with the surpluses.

It's embarrassing and distressing that McGuinty and Charest are unable to identify valid causes and solutions.

But that aside, these two do have one valid bone to pick with Ottawa which, to be as churlish as they are, both should have complained about years ago.

It's the immigration mess that Ottawa has perpetuated since 1986. More than six million people (50 per cent to Ontario and Quebec) and their dependents have arrived here irrespective of job conditions in the country. They still come in at the rate of 250,000 or more, not including "temporary" unskilled workers and their dependents.

The burden of providing healthcare, education, and other social services for them has added more costs to their budgets than interest on their debts, the Detroit bailout, and all-day junior kindergarten in Ontario or $7-a-day daycare in Quebec combined.

Arguments that they are a net benefit, in taxes collected, fall short of the mark but, true to form, the Ontario and Quebec Premiers have never commissioned a cost-benefit analysis of these massive immigration flows. Neither has Ottawa of course.

Before 1986, immigrants were selected to fill jobs because Immigration and Manpower worked hand in glove. Since then, a quota of 250,000 was imposed and most would never have qualified to get into Canada before 1986.

High immigrant unemployment, underemployment, and low incomes have contributed as much as anything to the fact that health, education costs, and social expenditures have dramatically outpaced economic growth.

And nobody wants to talk about that.

But the facts shout. In 2010, reports revealed that 19.7 per cent of recent immigrants to Ontario were unemployed, more than the 13 per cent the year before and three times higher than the jobless rate for Canadian-born residents.

After the 2008-09 recession, a moratorium should have been imposed in Canada on all immigration and only skilled workers with jobs should have been given work permits.

But nothing changed.

In 2010, Canada admitted 118,116 who came to Ontario. In 2008, 66,634 temporary foreign workers arrived which was 3.5 times more than the 18,757 skilled worker permanent immigrants allowed in.

So Ontario and Quebec should stop badmouthing the west and demand immigration reform. That would actually be helpful in speeding up change. And it would also connect the dots.

 

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11:53 AM on 03/12/2012
As soon as times are desperate enough that people born in Canada will be willing to take the unskilled jobs that the immigrants come for, then Diane can complain about immigrants. If we don't like seeing people come in, then Canadians have to start filling these positions themselves. If we don't want to force our own unemployed to take these jobs, then we have to accept the tertiary costs that our reliance on immigrants includes. If you look around at the service industry, or at high-density livestock operations and food processing, you'd think that there wasn't a Canadian born citizen looking for work. If these jobs are beneath us, or pay too low, then we have to either change our perspective or make these jobs more attractive to Canadians.
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05:42 PM on 03/10/2012
I am a true Canadian born in this country. I have worked all of my adult life (40 years or more) and have always paid my taxes and contributed to society. Now I find myself unemployed and cannot or do not qualify for any type of assistance when it is most needed. I am told I don't qualify for any sort of temporary assistance and to qualify I need employment confirmation and then they might be able to help me with my rent etc. which seems so ridiculous. If I had a job to go to why would I then need assistance. It just doesn't make sense. I can understand that the Alberta government needs to enable unemployed people from staying on the "dole", I understand that, but must a person who is unemployed from reasons beyond their control become homeless first before they can get any help. When people who immigrate to this country without any job waiting for them can expect the government to pay their rent, food and education for the first two years they are living here, how is that right? I am not the only person who feels this way. It seems the Canadian government cares more about new immigrants than their own people.
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DidiM
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05:01 PM on 03/06/2012
Being an immigrant child of the 50's - with an - unskilled father (who learned a trade after arrival) I find your article a tad too anti immigrant Diane. I understand that you mean (I believe) that both Provinces would be better off allowing skilled immigrants to the front of the line. But then - we have to ask ourselves - "How many highly skilled immigrants; like: doctors, engineers etc.. have we forced into driving taxi's for a living - (perhaps more so in la belle province) instead of taking advantage of their talents and skills? As for (career politicians) Charest and McGuinty: they should be put out to pasture - pronto - for pretending to be speaking on "behalf of Quebeckers and Ontarians. We all know they do nothing of the sort - in spite of their, 'job descriptions".
02:23 PM on 03/06/2012
So the loss of the manufacturing base in Ontario was caused by immigrants? The reason they aren't making as much money selling their stuff, is because they are paying more to give immigrants health care?

I suggest she read the paper more herself and not just the articles from the right wing talking heads.

How about we charge these companies who mine our resources to pay more than they do now? Are they going to take their business elsewhere?
07:13 AM on 03/06/2012
this(understanding) from an author who claimed to be a republican because the democrats started all the wars -
05:15 PM on 03/05/2012
Oh, this tired old argument that the negatives of the economy are due to immigration....there is no evidence to support this ideology.....
08:36 PM on 03/05/2012
There is lots of evidence to support the fact that the costs of having them here have escalated.
I don't usually agree with Francis on most issues but on this one she has a valid point.
02:27 AM on 03/06/2012
No,she does not...the evidence is not there
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05:04 PM on 03/05/2012
Wow . I never agree with anyone but that was excellent to the point. If there is a time to correct immigration it is now. Now if only the political cowards would stand up for Canada maybe something will be done. The liberals are complaining they need more money from immigration when they really need is smarter immigration. How about a total stoppage of refugees for a generation?
02:16 PM on 03/06/2012
lol
03:18 PM on 03/06/2012
You do understand this is just thinly veiled racism posing as a fiscally responsible solution to the problems in the economy? And a ridiculous deflection from teh fact that coporations are the ones to blame for the current state of our economy.

Record profits, every year, this is supposed to be responsible normal sustainable growth?
04:37 PM on 03/06/2012
- And a ridiculous deflection from teh fact that coporations are the ones to blame for the current state of our economy

Well them and the idiot politicians (not the smart ones though)