This Has To Warm The Cockles Of Your Heart

Democracy in action, even if the stakeholders have to pay to express themselves, but from past experience we have learned that Comrade Miller and the Politboro have made it a one way street......

Lone man raises his hand as Toronto's chief financial officer struggles to restore order at raucous public consultation
May 08, 2007
Jim Byers
City Hall Bureau Chief

Tempers flared at an emotional hearing last night to discuss proposed new taxes in Toronto.

Business people and ordinary citizens became angry at the city's format for last night's session and tried to shout down the city's chief financial officer before order was restored.

Instead of the usual introductory talk from staff, then opportunities to address the audience, a crowd of more than 100 at The Harbourfront Centre were divided into tables of 10 and told there wouldn't be a general discussion. Attendees insisted they be allowed to ask questions directly of city staff.

"I'm a citizen of this city and I don't like this process, and I'm not alone," one man shouted. "You forgot who pays your bills."

Faced with a barrage of angry faces, deputy city manager and chief financial officer Joe Pennachetti agreed to take 20 minutes of questions after staff talked about the city's financial distress. He also said he'd stay all night and talk to anyone who wished to chat.

Tony Dickins, a 49-year-old who ran for city council last fall in North York but lost, stood up early and asked if anyone wanted a new tax.

One man raised his hand. Pennachetti ultimately restored order. He patiently went through the city's case, explaining Toronto desperately needs new revenue sources to balance its budget. Toronto has traditionally been limited to property taxes to generat revenue, but the Ontario government last year passed a new law, the City of Toronto Act, that gives council widespread powers to enact a series of new taxes.

A March report laid out a series of potential new income sources, including:

# A $40 tax on vehicle registrations, which would raise $42 million;

# A 5 per cent alcohol sales tax ($67.2 million);

# A 5 per cent tax on cigarettes ($25.3 million);

# A 0.5 per cent added tax on land transfers ($102.7 million).

The report talked about road tolls on the Gardiner Expressway and Don Valley Parkway, but Mayor David Miller has so far rejected the concept.

Last night's session was the first of four public hearings on the tax issue. Council's executive committee will deal with the matter early next month, then it will go to council as a whole. New taxes could come into effect later this year.

Speaking after Pennachetti's fiscal briefing, Dickins said new taxes would have a "horrendous" impact on Torontonians.

"You're making it very difficult to raise a family," he said.

Several members of the audience were upset that Mayor Miller wasn't on hand to hear what Torontonians think.

"I'm not surprised at all that he's not here," said Kevin Gaudet of the Canadian Taxpayers Federation. "He wants to ram taxes down our throat."

He said council wants to deal with the tax issue in summer when people are on holidays.

"I'll come back and pay a road toll tax and go to a ball game and pay extra taxes and go home and get lucky with my wife and have to pay more tax on the home I buy," Gaudet said.

Groups such as the Canadian Restaurant and Foodservices Association and the Toronto Real Estate Board handed out pamphlets criticizing proposed new taxes.

Councillor and city budget chief Shelley Carroll sat at one of the tables and chatted with members of the audience. Asked why she or other elected politicians didn't take the stage, Carroll said council asked staff to provide the consultation.

Some observers were angry that the meetings weren't made public until late last week.

"The process is faulty," said Catherine Swift, president of the Canadian Federation of Independent Business, adding that businesses are "fleeing the city" because of high taxes.

Carroll said there was "difficulty getting dates and difficulty getting things booked."

Pennachetti said he expected emotion but was surprised at the intensity of the meeting. "It's very controversial," he said.

Despite the outcries, Carroll insisted the group was far from unanimous. "I had one person at my table say to me, `If you introduce new revenue tools,this is how I want you to spend it.'"

One audience member suggested Canadian cities band together and sue Ottawa for a share of income taxes.

Carroll said council wants to consult with taxpayers, but conceded the city will have to bring in some taxes regardless.

Several speakers were still angry at council's refusal last month to give up special perks, including free golf at city-owned courses. "I don't mind paying extra taxes ... but I want to know what's being done to cut back on these things," said retiree Pat LeBlanc.

The next tax session is slated for May 15 at Etobicoke Collegiate Institute from 7 to 9 p.m.