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If municipalities merge, will costs increase?

Times Colonist,
November 24, 2014


Re: “Don’t rush down the amalgamation aisle,” Nov. 23.

First, Jordan Bateman of the Canadian Taxpayers Federation says amalgamation leads to a more expensive menu of services, presumably the highest available among the amalgamated entities.

However, that is not inevitable and depends on whether more people are now using these services. If there is a more fair distribution of costs of services, previously supplied by one entity, but used by residents of others, that is good and might lower the cost.

Then, Bateman claims that labour costs will rise. He appears to believe that lowering labour costs by contracting out is good. I dispute that claim, because lower wages also means lower spending in the community.

Lower wages also leads to higher costs for services such as housing, needed by the working poor. It also leads to health problems. Many studies have shown that the working poor fail to spend for needed services such as prescriptions and dental care.

Bateman goes on to attack unions implying without evidence that they are the main drivers for amalgamation.

Finally, Bateman cites tax competitiveness. Lower taxes, no matter the level of services, is the mantra of all those who would like to have government offer few or no services.

Most of us realize that the things that make for great communities and great countries are the services they provide for their people. Consider the United States, where health care is costly. We could lower taxes by eliminating Canadian medicare. I would fight strongly against that, as would most Canadians.

Edwin E. Daniel
Victoria


© Copyright Times Colonist


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