Winnipeg Free Press

Winnipeg Free Press (Newspaper) - February 03, 2015, Winnipeg, Manitoba C M Y K PAGE A7 T HERE is some talk these days of our cities and how they may be making us sick. It is said better urban design could add years to our lives and that our Canadian cities built for cars, need to be more walkable. I agree. In simpler days gone by, there was a green grassy field and a stretch of woods where trees grew in wild abandon just behind our house. A wooden burger stand where people lined up daily was just a hop, skip and a jump through the woods. As kids, we walked most places, or ran, sometimes barefoot, through fields and pathways where kids often played baseball or other games. We ran through the woods dodging trap doors leading to underground forts built by neighbourhood boys. At the burger stand we exchanged our coins for treats and if we were lucky we'd be stuck outdoors playing until dusk. Now there is a strip mall where the stand used to be and there are condos, a car dealership and lots of concrete where the trees and grass once grew and where we used to play. It seems our green spaces, for that is what they are called now, are in greater danger of disappearing. In our cities, there are more condos going up and high rises and our suburban developments are spreading ever outwards. Our cities are constantly growing. But I often try to go for walks today for exercise and am narrowly missed by some driver or another who fails to either stop at a red light or yield to pedestrians. It is not easy to walk in this city or to cross many lanes of traffic where there are few crosswalks or lights that indicate you have, perhaps, a few seconds to make it across the five lanes of traffic. My heart goes out to older people with walkers, or those unable to negotiate these barely walkable roads. It's our green spaces in cities throughout the world that are immortalized in word and song, poetry and fiction. Not parking lots, freeways or lane after lane of traffic. And it's our green places that we remember nostalgically, when our thoughts wander during the long, cold months of winter. When Wordsworth penned Upon Westminster Bridge in 1802 he wasn't just writing about the man- made beauty of the city of London, England. He wrote of the beauty of the morning, the fields, the river and the sun. And when the iconic Canadian singer and songwriter, Joni Mitchell, wrote " they paved paradise to put up a parking lot... they took all the trees and put them in a tree museum," it was a bold commentary on the 1970s, which still rings true. They " charged the people a dollar and a half just to see ' em." When folks who can afford it leave the city in the summer to go to their cottages or go to the beach, they are not leaving in search of more concrete. It is greener pastures they seek. But not all are so fortunate. And so it seems that as more condos and high rises are built and more housing developments spread outwards, our green places, our parks and gardens and trees, do not simply just add to our enjoyment of life, to many they are necessary and vital as is the oxygen they provide. Cancer is now the leading cause of death; heart disease and stroke follow close behind. This was not always the case. Perhaps we should pay heed to making our cities more walkable. A balancing act is required where people can walk, ride their bikes and do so safely. We would do well to cherish our cities' green spaces. The profit we gain should we dispose of them is nothing compared to the price that we may pay should they ever disappear. Cheryl Girard is a Winnipeg writer. T HUNDER BAY - Despite high consumer debt and housing prices, Canada went into the 2009 global downturn with several advantages that allowed it to economically outperform the other G- 7 countries over the ensuing period. However, the erosion of some of these advantages means the current slowdown will be more difficult. First, Canada went into the financial crisis with the good fortune of a banking system that was strengthened in the wake of a series of failures in the 1980s. Second, the federal government eliminated its deficit in the 1990s and had driven its net debt position down, giving it fiscal room to manoeuver. Third, Canada was lucky that resourceproducing western provinces could take up the slack when the manufacturing heartland slowed as the U. S. export market withered. The icing on the cake, however, was the expert and reassuring policy presence provided by then federal finance minister Jim Flaherty and Bank of Canada Governor Mark Carney. As Canada's economy slows in 2015, its consumer debt remains high as a share of GDP and its house prices are still considered overvalued by organizations such as The Economist and the International Monetary Fund. While households are getting some breathing room from the cash being freed up by the drop in gasoline prices, the continued presence of these old issues is accompanied by additional negative factors. Deficits have accumulated at both the federal and provincial level and eroded the improvements in the public debt position that occurred prior to the 2009 recession. Ontario and Quebec as well as the federal government could head into recession with the highest net debt levels in recent memory. Then there is the fall in oil prices, which means the investment spending and employment boom led by Alberta and Saskatchewan is taking a pause. Next, compare Flaherty and Carney with the current duo in place - Finance Minister Joe Oliver and Governor Stephen Poloz. Both have taken actions that have surprised and perhaps unsettled the public and the business community. The postponement of the federal budget to April has generated uncertainty about both the federal finances and the future course of the economy. Meanwhile, the Bank's rate " surprise" - a fall in the bank rate - has led to speculation that perhaps the Canadian economy is doing even worse than feared. Central bankers do best when they avoid sudden emergency manoeuvers. The perceived abruptness of the recent fall in the bank rate may have been an additional factor in the plummeting value of our currency. Of course, the depreciating dollar and a more robust American economy are factors that may stimulate our export industries. However, the anticipation that the falling dollar will turn around the Canadian manufacturing sector may be overly optimistic, even with the U. S. upturn underway. The central Canadian manufacturing sector has shed plants and infrastructure and hundreds of thousands of jobs, particularly in Ontario. Think of the GM plant closure in Windsor, Heinz in Leamington, Kellogg's in London, Sterling Truck in St. Thomas or the many northern Ontario pulp mills that have closed. There will be a substantial lag in getting new production started up again, given that many plants have shut their doors for good. Moreover, the great benefit to central Canadian manufacturing and employment from servicing the western resource sector has been underestimated. The slowdown in the oil and gas industry will have an impact on thousands of workers who currently commute west from central and Atlantic Canada. As for a drop in interest rates stimulating the economy, one wonders how much more effective low interest rates can be given that they have been at historically low levels for years now. Low interest rates may undermine the economy's long run health if they merely encourage governments and households to take on even more debt. Since 2010, the household debt to GDP ratio for the hard hit U. S. has dropped to 80 per cent while more prosperous Canada's has remained above 90 per cent. We have not used the last few years of prosperity to put our economic house in order, preferring instead to coast on debt and the bounty of a resource boom. When comparing our current slowdown with the last recession, the indications are we may be in for a much bumpier ride. Troy Media contributor Livio Di Matteo is Professor of Economics at Lakehead University. - troymedia. com LIVIO DI MATTEO IDEAS �o ISSUES �o INSIGHTS THINK- TANK A 7 Winnipeg Free Press Tuesday, February 3, 2015 Canada not ready for next recession We need a healthy, walkable Winnipeg M AYOR Brian Bowman and city councillors need to remember, in their budget planning this month, that reversing decades of neglect in Winnipeg's infrastructure must be a top priority. Further, Winnipeg's $ 8- billion infrastructure deficit requires negotiating a new fiscal deal for Manitoba's municipalities. Winnipeggers made it clear in last fall's election campaign that addressing this deficit was their top priority. Now almost four months after the election, a new poll conducted by Probe Research shows concern about the condition of our infrastructure remains the public's No. 1 priority. Virtually all Winnipeg adults ( 96 per cent) say it is important to continue investing in infrastructure including streets, sewers and water mains. Three- quarters of those surveyed ( 74 per cent) think investing in infrastructure should be a " high priority," bolstered by 22 per cent that indicate it is a " medium priority," according to Probe Research. So the support for the " Fix My Infrastructure" message during the civic election has not changed. Winnipeggers believe the condition of infrastructure is the single- biggest challenge facing the city - surpassing crime, jobs and the economy, taxes and health care, in that order. Infrastructure has consistently been ranked as the No. 1 issue facing Winnipeg for the past two years, significantly higher than crime, ranked second highest at 28 per cent. So what can be done? Our municipal leaders must first demonstrate an understanding that sustained and strategic investment in infrastructure fuels economic growth, generating revenues necessary to fund our social programs, therefore quality of life. This is our economic and social well- being program. They must therefore commit to linking infrastructure investment to principles. Focusing infrastructure investment on economic growth, for example, will not only help address the condition of our infrastructure, it pays back handsomely in terms of economic return. The Conference Board of Canada conservatively estimates that for every $ 1 invested in infrastructure, the return to the economy is $ 1.16. Canadian and American studies show for every $ 1 billion invested in infrastructure between 8,000 and 36,000 jobs are created. That economic link is further well- established in a series of reports released in the last two years by the Canada West Foundation. And, premiers at their January meetings in Charlottetown heard this same message from Kevin Lynch, vice- president of the BMO Financial Group and former clerk of the federal privy council. The mayor and council, therefore, should commit to core infrastructure investment planning that is built upon six principles: a permanent plan; focused on economic growth; embracing innovation; harnessing partnerships with the private sector; transparently funded by dedicated revenue streams; with regular public reviews for results and adjustments. Further, the mayor and council should build upon the existing dedicated regional and residential streets reserve accounts strategy, which transparently and predictably set revenue streams, to begin incrementally addressing Winnipeg's infrastructure investment. Most importantly, Manitoba's municipalities, even with found efficiencies, clearly do not have the revenue streams sufficient to address the $ 14- billion infrastructure deficit in this province. That is why it is most important, finally, for Mayor Bowman to lead a campaign to push the premier to negotiate a fair, balanced and responsibly shared new fiscal deal for municipalities, specially to address the province- wide infrastructure deficit. Such a new fiscal deal is in our collective economic and social well- being interests. Chris Lorenc is president of the Manitoba Heavy Construction Association A new deal from BROADWAY Bowman must champion new revenue streams for infrastructure CHRIS LORENC Ontario, Quebec and the federal government could head into recession with the highest net debt levels in recent memory PHIL HOSSACK / WINNIPEG FREE PRESS City council, with an $ 8- billion infrastructure deficit, bumped up spending on roads last year. CHERYL GIRARD A_ 07_ Feb- 03- 15_ FP_ 01. indd A7 2/ 2/ 15 8: 01: 00 PM ;