An edited version of the following article appeared in the Winter 2009 edition of The Taxpayer. Since this article’s publishing, Parliament has taken steps to limit the practice of “10 percenters.”

What is another word for ‘free money’ on Parliament Hill?  ‘Taxpayer money’, ‘your money’, ‘not my money’ are all fair synonyms.  It’s therefore not surprising when MPs vote themselves all sorts of perks, but many are little understood or even known about by the public.

One perk that has become somewhat more public as of late are “10 percenters.”  In addition to the “right” to free postage that MPs enjoy, these are essentially literature pieces meant to “keep constituents informed on parliamentary issues.”  They are called “10 percenters” because each flyer can only be sent to 10 percent of an MP’s riding, be it theirs or someone else’s.  There is nearly no limit on how many can be sent in total in practical terms.

For example: if an MP wishes to send one of these to every household in a given riding, all he or she must do is have their staff create 10, slightly different pieces of text with different pictures.  Often, these are even centrally coordinated by each party’s respective bureaus and distributed into ridings that they do not hold, obviously to win votes there.  Other times, MPs just blanket their own ridings with smiling pictures of themselves cutting ribbons, kissing babies and milking cows.  Almost as often, these flyers have pictures of other party leaders looking chummy with George W. Bush, kicking puppies, or not holding the door for elderly ladies (maybe I’m exaggerating about Bush).

Those who might think that fighting this practice is not worth the bother and simply wish to unsubscribe from (un)parliamentary junk-mail are unfortunately out of luck, as these flyers are unaddressed mail that blanket entire postal codes.  Unimpressed yet?  It’s worth noting that when MPs of all parties suspect an election will be called, they have these little bundles of joy mailed right before the writ is dropped so that they land on your doorstep as close as possible to election day.

As Rick Mercer said on ‘10 percenters’ this November, “they [MPs] would rather die than waste our money or disrespect their office, or is it the other way around?”

Not surprisingly, this privilege is terribly abused.  And why not?  Its “free” to MPs and can be used to tout their own party line, or to attack their opponents.  Giving politicians a perk like this and expecting them not to take advantage of it is akin to leaving a prime steak in front of a dog and going to work.

That is not to say that there is anything wrong with promoting one’s own party or even attacking opponents (so long as it is honest and genuine), but doing so on the public dime should not be tolerated.

Last year, MPs wasted $10-million of taxpayers’ money on these perks, of which $6-million was from the Conservatives.  In reality, the Conservatives spent more money on these because as most people inside the Queensway know, they are simply better organized.  That however is cold comfort to taxpayers on the hook for these petty perks.

The offensive nature of some recent ‘10 percenters’ has prompted several opposition MPs to call for limits on what can be published in these mail-outs, but such calls completely miss the mark.  Allowing bureaucrats to sift through the thousands of proposed pieces would inevitably require editorial decisions to be made that no free country should allow.  In short, the only way to make sure taxpayers are not paying for material that they may find offensive is to cancel it.

If parties or MPs wish to send out a partisan or attack message – offensive or not – the only fair way to do so is to pay for it with funds donated to them by their supporters, not taxpayers.  Unfortunately, this is only 10 percent of the problem, as the Conservatives, Liberals, Bloc, NDP and Greens all received subsidies from taxpayers in the form of political welfare, costing many more millions every year than ‘10 percenters’.

The Tories have promised to end these welfare subsidies if they win a majority in the next election.  This is an excellent start to be sure, but they can set a clear example right now and end these undeserved perks for all parties.

cross-posted at taxpayer.com/blog

The following article that appeared in the Fall 2009 edition of The Taxpayer.

Published in The Taxpayer ~ On the Job: Internship program benefits students & CTF

The research branch of the Canadian Taxpayers Federation (CTF) received a boost this past summer as two interns joined us in the fight for lower taxes, less waste and accountable government.

Amber Ruddy (Schomberg, Ontario) and Lisa Anthony (Toronto, Ontario) worked out of the CTF’s Ottawa office and helped research various federal, provincial and municipal matters. The pair increased our capacity to engage in in-depth and groundbreaking research that will ultimately help our advocacy efforts. They even ended up spearheading a few of their own ideas.

In return, Amber and Lisa were provided with a rare opportunity to work on the frontlines of the taxpayers’ movement and gain valuable research, communication and advocacy skills from the vantage point of the nation’s capital.

Here is a summary of their experiences in their own words.

Amber’s experience

“Having worked with the Canadian Taxpayers Federation for the summer, I learned firsthand how to research and investigate stories of government waste.  For example: I was responsible for filing Access to Information requests, which are used to update reports and articles written by CTF spokespeople. As well, I helped create a database of the most ridiculous government handouts and grants in recent years. Collecting entries was not the hard part, deciding which ones made the cut was the challenge!

I also learned how to effectively write press releases and ensure they successfully reached the media. I drafted the initial version of the CTF’s press release which called on MPPs in Ontario to return to the legislature and order Toronto city workers back to work. Building on this, I created and conducted a survey with media outlets that receive the CTF’s Let’s Talk Taxes commentaries. The survey provided feedback to all directors on how to make their bi-weekly commentaries more effective.

One of the most interesting projects I undertook was compiling a list of MPP and MLA pension plans across the country.  This chart (see the TaxFacts section at taxpayer.com) will be used as a reference tool by media, researchers, CTF staff and the taxpaying public at large. The CTF plays an important watchdog role.

I look forward to being able to apply the advocacy and research skills that I have learned at the CTF to a number of issue-based campaigns that I will be leading when I return to university in September.  Campuses in Canada are dominated by radical groups disconnected from reality. They routinely call for more government intrusion into our lives and more government confiscation from our wallets. Armed with what I have learned from working with the CTF, I will be leading the charge against these groups on campus.”

Lisa’s experience

“As I complete my Master’s Degree and consider future career opportunities, interning at the CTF gave me excellent practical experience as well as networking opportunities. Researching was a major component of my work at the CTF, which has provided me with extensive knowledge regarding specific and current government issues such as the debate surrounding Employment Insurance reform.

Further to this, I had the opportunity to explore issues that are not at the forefront of public and media attention, such as analysing the growing divide between private and public sector pension plans. These issues are significant to all Canadian taxpayers and I was pleased to help the CTF in its efforts.

The work experience and knowledge that I have gained from interning with the CTF has been invaluable in my professional and political life. Every day we see examples of government waste and misspending. Digging deeper into current issues and exploring the extent of government spending has motivated me to want to continue working on behalf of Canadian taxpayers in some form in the future.”

Applications

The CTF is accepting applications from students for internship positions that can be filled in Edmonton, Winnipeg, Ottawa and Halifax.V

*Cross-Posted at taxpayer.com/blog

An edited version of the following article appears in the Fall 2009 edition of The Taxpayer.

On September 4^th, 2009, an unnamed man near Windsor, Ontario (let’s call him, George) scratched his lottery ticket and won $1,000 a week guaranteed for the rest of his life. The ticket was part of the Ontario Lottery and Gaming Corporation’s popular “Cash for Life” contest.

However, as popular as the scratch game is, few Canadians realize that a different type of scratching – political back scratching that is – can actually be far more lucrative. You see, just a few weeks prior to George’s windfall, nine Canadians were appointed by Prime Minister Harper to Canada’s Senate; one of the most lucrative and relaxing government bodies in the country.

While the Ontario Cash for Life contest is quite popular, its winnings pale in comparison to the benefits of being a Senator.

Consider that while George’s weekly cheques add up to $52,000 each year, Canadian senators collect a minimum salary of $132,000 annually. In addition, while George’s weekly winnings remain constant at $1,000 per week for the rest of his life, a Senator’s earnings increases annually. In fact, a senator’s pay is tied to a complex civil service formula which has averaged 3.3% increases over the last 3 years. Beyond a Senator’s minimum salary, he or she can also qualify for additional pay based on added responsibilities. Not to mention, senators also enjoy expense accounts, free air travel and yes, even a pension plan.

If we stand back and look at the big picture, the numbers are mind numbing. If George and a Senate appointee both “won” their windfalls on their 30^th birthdays, and lived as long as the average Canadian (80 years), the senator would win by a country mile. According to CTF calculations, while George would bring in a not so insignificant sum of just over $2 million during his lifetime, the senate appointee would end up with a grand total of over $16 million.

While Canada has never seen a senator serve for 45 years, there is nothing under the current rules to prevent someone from doing so. The only rule that caps the amount of time one can serve in the Senate is the provision which requires a senator to retire by the age of 75. Assuming someone entered the senate today at the age of 30, his or her pay would rise to a whopping $570,000 by the age of 75; at which time an annual pension of $414,470 would kick in.

Alternatively, if a Senator wished to retire at the ripe age of 54, he or she would walk away with an annual pension of more than $202,900, growing every year for the rest of his or her own “Cash for Life” prize.

But what will the lucky nine new senators cost taxpayers? All nine appointees have publicly promised to resign their leather seats eight years from now and either retire or run for “re-election” – that is, if elections are allowed in their respective provinces by that time. If this is the case, the bill will come to a bare minimum of over $17 million for salaries and pensions alone. Again, that includes no additional compensation, perks, or the other office costs; let alone the Senate itself.

A gambler would be hard pressed to bet on their resignations in eight years. One can consider the excuses that would come forward:

• Continued failure to pass Senate reform legislation in either house, due either to continued minorities or a change in government,
• A future Liberal or coalition prime minister that refuses to ‘appoint’ senators from those elected by the provinces, even if reform legislation is passed, and
• The imbalance that would be created if only Conservative senators resigned to run for election, while all Liberals remained in their places.

One may then wish to hedge their bets and consider putting money on their staying right where they are until the mandatory retirement age of 75. If that is the case, the cost in salaries and pensions soars to $35 million.

While even the Roman Senate of more than 2000 year ago was more democratic than Canada’s in the 21^st Century, at least it didn’t cost the taxpayers of the empire quite so dearly.