I received a letter from the central region of your ministry while I had expected an answer regarding my complaint against Kinark directly from your office. Part of this complaint was to raise policy concerns to your office directly regarding the lack accountability of AIPs while your office further and directly investigated my complaint against Kinark. From the September 22nd Ministry letter underwritten by Ms. Cantkier:
“The Ministry is committed to monitoring the Autism Intervention Program (AIP to ensure that the program achieves its goals and objectives and makes efficient use of public resources).”
Had your office directly followed up on my complaint it would have discovered that the system to apply for AIP’s is deeply flawed. My son Matthew received a diagnosis of Autism in which it was recommended that we as parents contact Kinark directly and verbally to be put on the IBI wait list only to find for years after we did just that, multiple times Kinark refused to do so. I’ve also provided the Ministry with documentation from another family that has gone through a similar situation with Kinark.
In an electronic age, recommendations from family support network professionals to AIP programs should be done by those professionals and submitted to Kinark electronically. I have to question even in 2010 why that wasn’t done in our case. It should be an automatic electronic process. It should NOT be left for families to connect with AIPs verbally to apply. That should be handled on the back end, and allows the possibility of the AIP to manipulate the process, with little to no evidence of a verbal request to be put on wait lists often pitting the care givers word against the AIP. This policy doesn’t have any common sense in this day and age whatsoever.
I don’t understand why under these circumstances the ministry is refusing to find a viable solution for my son who has been waiting 6 ½ years for IBI (while others on the wait list who have been waiting far less than my son are entitled to support now) and why the ministry hasn’t taken the initiative to work with Kinark upon my complaint to find a solution, nor properly and fully investigated which would have revealed the policy flaws outlined above that need to be corrected in order for the Ministry too fulfill the mandate to accurately monitor the AIPs ahead of the new program.
Back to the September 22nd letter, in the same paragraph the Ministry stated:
“In situations where families have concerns with transfer payment agencies, including regional autism providers, the ministry encourages families to raise their concerns directly with these organizations and follow their complaint resolution process. This process may include the senior management, and if necessary, the board of directors to resolve differences.”
Ultimate responsibility for ensuring compliance with policy and legislation regarding transfer payments falls directly under the Ministers portfolio. There seems to be a lack of enforcement audits by the ministry to ensure AIPs are actually monitored for compliance to ensure AIP goals and objectives are properly met and use of public resources (such as transfer payments and administered programs) are actually reaching eligible families under these circumstances. The fact that this Ministry didn’t do proper follow up on my family’s situation now TWICE is representative of that. Where there is a lack of accountability and compliance audits, one could reasonably without a doubt expect abuse and manipulation of the system as a result.
Instead of this ministry periodically questioning users of this system (parents and caregivers) electronically to ensure legislative and policy enforcement of regional AIPs on a regular basis, it is the Ministry’s position from the statements provided above that compliance with legislation, mandates, and policy, is left to the AIP’s board of directors and complaint resolution officers to self-police. I find that interesting considering it is well within the legislative scope and jurisdiction of this Ministry to ensure compliance with such upon complaint to this office.
I also find it very interesting that parents who are receiving ACSD support are subjected to compliance audits every few years, yet under the nose of this Ministry Kinark’s administration budget has ballooned yet again, while advocates list this agency as being one of the worst in Ontario regarding the treatment of eligible children and families, and providing the proper care, and following ministerial guidelines under their own mandates. The Minister even acknowledged recently to some degree that there are problems being reported to this office regarding the conduct of AIPs, and yet I’m referred back to a complaints procedure at Kinark, when it’s this ministry who has direct oversight of this organizations compliance with ministerial guidelines.
This self-policing approach to AIPs is leaving families such as mine without services (while we qualify) at great expense to the province and tax payer. As a result of the lack of compliance audits and self-policing of AIPs, this Ministry cannot at all guarantee that families in the new Ontario Autism Program (OAP) in June 2017 will meet any sort of mandate, while currently several parents are left battling out who said what because the first point of contact with AIPs is left to one that is verbal rather than professional electronic and traceable referrals to the program!
Politely, it is this ministers legal responsibility to follow up properly with Kinark’s board of directors to get this matter resolved since it is entirely a complaint based on mandates, policy, legislation and this agency’s conduct in which the minister has direct oversight. It should not be the job of the caregiver or parent upon complaint into the ministry to be chasing a moving target, adding to the frustration, stress, mistrust, and anxiety over a transition to the new autism program which should be seamless and transparent if the government at all was listening to parents concerns over the past few months.
Finally from the Ministry’s letter dated September 22nd 2016:
“The ministry funds a range of supports and services that may be of assistance to your family. I suggest that you contact with Kerry’s Place Autism Services who provide ASD consultations and respite and Applied Behavior Analysis (ABA) program. I encourage you to re-refer Matthew to the ABA program at which time service length and intensity will be determined”
Also from the September 22nd letter:
“The Ministry of Children and Youth Services is investing in ABA services to increase their capacity, intensity and length. In 2017 the ministry will start implementing the new Ontario Autism Program that will adjust the intensity of services to correspond with the children’s needs and will offer a single access point to autism services in each region”
I’ve been in contact with Children’s Treatment Network (CTN) who diagnosed my son and referred us to Kinark for IBI. There is currently NO community supports that are in place that are even close to the intensity he needs (as a result of the government’s policy decisions since March 2016) in which CTN is in full agreement of, along with descending views of your own expert panel your government is trying to keep quite through non-disclosure agreements.
We’ve placed my son on the ABA wait list in which the ministry acknowledged was a total of 2 – 4 hours/week as a supplementary which was sold to the people of Ontario as a transition program to the new OAP, even though he would not benefit from this program. The current wait list for that in York region is 1 ½ years which extends past the date of the new OAP which is supposed to replace this ABA program. This leaves many in “transition” with NO services while the new program is put into place. It’s been over 6 months since the announcement of this program and investments into ABA “transitional” services seem to be nonexistent. In fact the last time we applied for this useless block of ABA was in 2013, and the wait list back then was 1 year. It’s now grown to 1 ½ years wait with the government investing 6 months ago to “increase” capacity.
In conclusion Minister Coteau, your office has direct responsibility under its mandate to ensure AIPs are being compliant with legislation, transfer payments, and ministry guidelines. As outlined and acknowledged by the Ministry in its September 22nd, 2016 letter, the ministry doesn’t have the proper enforcement regime in place, nor does it investigate compliance issues properly with AIPs, all the while you directly acknowledged to parents recently you are aware of concerns regarding AIPs yet have done nothing to date to resolve those accountability concerns, nor has the ministry added any acknowledgement of that in response to my complaint against Kinark.
This ministry is refusing to work with parents upon complaint, and is refusing get involved in finding a solution for my 11 year old boy who has been eligible for IBI for 6 ½ years.
When is the ministry under your leadership Mr. Coteau, going to start following its mandate to the people of Ontario, and understand that neglect in doing so has severely impacted many families and the futures of our kids. I believe this Ministry’s responses to date regarding my sons issues and unwillingness to get involved to find solutions to those caught up in an imperfect system closely align to that in which was reported by the Ombudsman in August regarding adult services with a different Ministry which launched a multiyear systemic investigation. The culture in your office needs to change Mr. Coteau if you are expected to put forth viable solid solutions to a crisis your ministry is directly responsible for creating due to lack of enforcement and accountability mechanisms on AIPs. Do parents have to go through yet another round of protests, fights, and complaints before your office does the right thing?
We shouldn’t be fighting for services at all Mr. Coteau. I don’t think your government quite understands that point yet. We have enough on our plates, than to be dealing with this mess in which the people of Ontario pay you handsomely for. I would like a resolution to my sons situation please.
This question was asked by Ontario Progressive Conservative leader Patrick Brown in question period twice today, only to be asked by the speaker of the legislature to withdrawal the questions. Question I would like to pose; why is the speaker of the Ontario legislature shutting down completely legitimate questions to the government?
This latest bought in the heart wrenching autism policy war for parents, comes a day after the Toronto Star released an investigative piece on a letter of dismay written by experts tasked to revamp the new autism program shortly after Wynne’s government announced the changes. In the letter the panel of 6 experts expressed concerns regarding the government’s position on removing kids over 5 from intensive therapy; a move in which the government has not back tracked on to date. In the letter addressed to Tracy McCharles the Minister of Children and Youth Services at the time the panel stated:
The new program, as it has been described, treats children five and up as if their needs and capacities are qualitatively different from those younger than five years of age. There is no evidence to support this view.
The letter also expressed concerns regarding how the new program is being rolled out:
The autism program was “initiated prematurely, without sufficient consultation” with families, schools, professionals and the committee and should have been developed and tested first, perhaps as a pilot project.
The committee’s report cited by the ministry did not propose imposing an age cut-off. Instead, it envisioned an IBI program refocused on children ages two to four only if there were ample supports for older children provided in schools and through an enhanced version of the Ontario’s applied behaviour analysis (ABA) program.
What the Ontario Government has done is essentially stopped all treatment, and only paid some support for families that were on the wait list prior to April 1st, 2016. Others while waiting for the new program to be put in place (there is still no details as to what exactly this new autism program will look like in June 2017) are left with no support at all. A sentiment echoed by Brown today in his question to the deputy premier, in which he was not provided an answer. It was also echoed by the panel in the statement above that this transition was not properly planned. As a result, kids like my son who are over the age of 5 are falling through the cracks.
What’s more troubling is the fact that the speaker of the legislature quite obviously wants to shut down questions regarding the new autism program, and problems with this “transition”, and misleading statements by government. I find that extremely interesting, and possibly an abuse of power. The panel of experts has had their tongues cut out in the form of confidentiality agreements, and refuse to speak on the matter even though they have an ethical and moral duty to do so. I’m a Liberal, and this doesn’t represent the Liberal ideology of transparency in democracy.
I’m getting so sick of having to question Wynne as a Liberal at every turn, and getting sick and tired of seeing this woman play politics with not just my son’s future, but the future of many kids in Ontario. She has done nothing but pile on enormous amounts of stress on the backs of parents at the expense of a failed approach to spin problems that are in crisis, rather than actually show true leadership. To get this Liberal government to even acknowledge a crisis in policy is like slow Chinese water torture, while pulling your finger and toe nails out, and getting castrated all at the same time. As such this is a government that has significantly lost touch with the people they represent since Wynne has taken over, and is obsessed with narcissistic behaviors rather than concrete viable policy. It’s time for the Liberal Party of Ontario to re-boot its leader, and clean out the desks of the kids in short pants.
UPDATE: August 15th, 2016 10:45pm:
The Ontario Autism Coalition has just released a press release in which it is demanding an apology from the Minister of Children and Youth Services for misinforming parents, and will be holding protests outside the Minister’s office tomorrow. In my view this also raises very serious questions as to why the speaker of the legislature today shut down Patrick Brown on asking the government why they have misinformed parents. From the Ontario Autism Coalition press release:
“It’s about openness and transparency,” says OAC President Bruce McIntosh, “and it’s also about trust. What little trust that may have existed (between the Liberals and the autism community) has been seriously shaken … by the news that a non-disclosure agreement (NDA) was used to enable the government to promote and disseminate a false version of expert advice.”
I’ve had several parents come up too me with their stories since last week’s post on my son’s situation. There seems to be a large number of fights and battles with regional service providers like Kinark across the province that manage services for kids with autism too get kids the services they need. It’s important to note that these service providers fall within direct oversight of the Ministry of Children and Youth Services. The Ontario Autism Coalition has been fielding complaints from parents regarding these service providers as well. Too simply state that my son’s situation is an isolated incident would be to undermine the enormity and severity of some of the problems parents are reporting to advocates regarding regional service providers across the province. Kinark has been named one of the top three worst service providers in the province for parental complaints by the Ontario Autism Coalition.
In 2006, Ontario Premier Kathleen Wynne’s spouse Jane Rounthwaite worked as a consultant with Kinark. According to ontariosunshinelist.com there was a spike in 2004 where the total number of employees at Kinark that were paid $100,000 or more reached 29. Prior to when the Ontario Liberals took office in 2003, Kinark only had about 1 – 2 people making over $100,000. When Rounthwaite was hired by Kinark in 2006, the total number of people employed by Kinark making over $100,000 was around 8. In 2015 that number has ballooned to 22 people working for Kinark that are making over $100,000 (click image to enlarge):
There was quite obviously a problem with this organizations management back in 2004 with ballooning overhead costs, in which I would think was the primary reason why the organization was looking for a contractor to “fix” the issue. Somehow, Rounthwaite got the contract. It’s still not clear why Rounthwaite was given that contract. Wynne was the education minister at the time, and Rounthwaite was a principle stakeholder in the contracting company hired by Kinark. To date the public isn’t clear on what Rounthwaite’s involvement with Kinark was. Questions journalists had while investigating Rounthwaite’s involvement with Kinark have been repeatedly blocked by the government, and the issue hasn’t seen the light of day with the ethics commissioner for proper follow up either.
What we are seeing from an advocacy point of view; a steady increase in people employed by Kinark making over $100,000 since Rounthwaite’s involvement, with a lot of complaints coming in regarding the treatment of eligible families for services in which Kinark oversees (full disclosure my family is one of those).
What’s worse right now is that there seems to be a lack of enforcement by the Ministry of Children and Youth Services regarding their own “guidelines”. There seems to be a lack of legislation to hold these regional service providers in line with those guidelines and/or enforcement of these guidelines to ensure that families get the services they need. The most recent issue that has come up, is that those parents who received money for their kids for transitional services while they wait for the new autism program to be implemented are being misled by these service providers in thinking the best option for services is to spend that money with them, instead of properly informing parents of their choices and rights to seek treatment outside of these providers as per ministerial guidelines.
There is a huge push right now in the autism movement to provide all families with immediate funding for services to get the kids what they need now while they wait for the new program too roll out. By providing every family affected now with money to purchase services while they wait, it would be cheaper for the province in the long run, but also put the parents in charge of their kid’s therapies. However there is also a problem that has crept up with that as well outside of many not receiving the money.
The province during its announcement to give families the support they need, upped the amount of money they were giving families for DFO to $10,000 until the new autism program would be in place. It seems like kids over the age of 5 are not receiving the full amount (a proposal was sent to the Ministry of Children and Youth Services to fix the issue yesterday), and some due to administrative issues with regional providers are ineligible to receive anything. Allegations are also surfacing by those that have received the funding that the government is tying their hands on what type of support and intensity of therapy they can receive with this money.
So as we go further down the rabbit hole, there seems to be an upset in the balance of accountability and enforcement where these regional service providers are not providing the services to the kids that need them, misinforming parents, ignoring ministerial guidelines, and what looks to be quite the issue with overhead costs of these non-profit service providers, along with government tying the hands of parents who are looking outside these providers for services with money provided to these families by government until the new program rolls out.
Pile on the fact only a select few got this money to begin with in which that process for eligibility is in the hands of these providers; it becomes a sick and cruel joke on all families and kids affected by this “transition” that need support NOW! All this at the expense of Wynne trying to save a few bucks, while these regional providers run insane overhead with no accountability or enforcement under the Ministry of Children and Youth Services.
The plot thickens. Stay tuned…
I’ve received a follow up from the Ministry of Children and Youth Services in Ontario regarding my son’s position (who is severely non-verbal autistic) after insisting on it regarding what we were told during the last conversation. What I received back looked like a canned response. So here it is in full. I’ll dissect the response.
Dear Mr. Koblovsky:
Thank you for your email regarding autism services for your son. I appreciate the opportunity to respond and provide you with some information.
With a canned pre-made template but okay I’ll listen.
The new Ontario Autism Program, which will begin in June 2017, will deliver individualized autism treatment that provides the intensity and flexibility of service to meet the individual needs of each child, regardless of his or her age.
As of April 1, 2016, children five and over are no longer eligible to apply for IBI. These children can apply for ABA services and receive ABA when a space becomes available. The ministry is increasing the number of spaces available in ABA beginning this year, and doubling the maximum intensity available for each child in 2017. These changes mean that more children who are waiting for ABA will receive services sooner, they will receive more service, and for longer than they would have before these changes.
What’s being said here is that my son who is 11 is no longer eligible to apply for intensive therapy. The only therapy that is available for him is the ABA program. That program only allows for 1 hour per week slots, and most of it is training the parents on ABA rather than observing the child. The ministry is indicating it will “up” the program here to 2 hours per week? Still not effective, not even close to being enough. It’s a waste of money across the board. This amount of therapy from our experience as well as many others hasn’t produced any successes I am aware of in its history.
The wait time for this ineffective therapy is 1 1/2 years! This is being used as “transitional” services by the ministry for kids who are over the age of 5. Those that apply now for these services will not receive support until well after the new program takes place. The government promised that all kids affected by this transition to the new program would receive intensive therapy no matter the age until the new program is in place. Many parents were given upwards of $10K to purchase those supports, until the new program has been rolled out. That doesn’t seem to be the case for my son, largely due to his age.
Beginning in 2017, children of all ages will be eligible to apply to the new program, and will receive more flexible and individualized services based on their needs. There will also be a single access point for autism services in each region, so that families do not have to apply to two separate programs.
It better not be Kinark! What this is saying to me, is parents will not be eligible to apply for the new program until it is rolled out. Meaning there is no plan to have a wait list right now for that program. Those who were on the IBI wait list prior to April 1st, 2016 will keep their spot from what I understand, and those not on the wait list will have to wait for the new program in order to even get on this wait list and will be at the bottom of the barrel. It is unclear from this whether those who are on the ineffective ABA wait list will have their spot in line transferred to the new program, or will this be an automatic transition with priority given to those who were on the wait list prior to April 1st, 2016 (most of which were the ones protesting at queens park), and our place in line determined in 2017.
I’m getting the feeling from the way this has all been set up, the “backtrack” was to make those who were the majority of the autism protests happy, and screw everyone else in the process.
Your email to Sharon Gabison from the Ontario Autism Coalition regarding your family’s situation was forwarded to your local ministry regional office. I understand the program supervisor contacted you to provide information on what services are currently available to your family. If you have any written documentation regarding your son’s past application to IBI, please contact Kinark or your ministry regional office.
I had previously stated that we had documentation from Kinark regarding our placement on the wait list for IBI. Turns out that it was actually for the ineffective ABA program. To date Kinark hasn’t sent anything to my family regarding putting my severely autistic son on the IBI wait list after repeated attempts to get them to do so. I am aware and have forwarded another case to the minister directly where this has happened to another eligible family as well. I have filed a ministerial complaint against Kinark, which I will be posting it later on this week.
We know the transition to an improved autism program may be challenging for some families. Information is available online at http://www.ontario.ca/autism on how the changes may have an impact on your family while transitioning to the Ontario Autism Program. It includes the changes that will occur and the next steps a family can expect.
The problem with this statement is they used the word “challenging”. Parents of disabled kids have enough on our plates regarding “challenges”. This represents a lack of understanding and complete ignorance of the challenges we face as care givers on any given day. To add to these challenges intentionally is immoral, self serving, ignorant, and also representative of the fact that Kathleen Wynne was not listening to parents over the past few months that came to Queen’s Park looking for understanding from politicians on what we all have to go through on a day to day basis.
It seems to me, this “backtrack” on autism funding and age restrictions has been nothing more than smoke and mirrors, combined with an attempt to put lipstick on a pig.
If you have further questions or concerns about specific services in your community, you may find it helpful to contact Greg Ladyka, Program Supervisor, at 905-952-1907, or Brenda LeMoine, Community Program Manager, at 905-952-1901.
Thank you for bringing this matter to my attention.
Assistant Deputy Minister’s Office
Service Delivery Division
Ministry of Children and Youth Services
A very junior contact being provided to members of the Ontario Autism Coalition. Politically that states that autism services isn’t very high on the priority list anymore after the protests died out. In solidarity to the autism community on behalf of my son who has been waiting 6 1/2 years for intensive therapy:
(Ontario’s Minister Of Child and Youth Services Michael Coteau (above) And Premier Kathleen Wynne called out on false statements regarding Autism funding by Ministry staffer)
A few months ago, the Ontario Ministry of Children and Youth Services announced plans to “restore” autism funding for intensive therapy. On the Ministry’s own website and press releases during this announcement the Ministry told the public that “all children with autism regardless of age will get the services they need at the intensity they need.” According to sources within the Ministry I spoke with today regarding getting my own son the therapy he needs, the ministry staffer acknowledged that statement provided by the Ministry to the public is indeed false.
My son who is now 11 received a recommendation by several specialists (to which is documented) for Intensive Behavior Intervention (IBI) therapy. That was in 2010. I called Kinark who handles the wait lists for IBI shortly after this recommendation in 2010 (my son was 5 at the time), and during that call we were put on the wait list and told we would have an assessment 6 months prior to receiving IBI. We were told the wait list was about 2 1/2 years so we should get a call within the 2 year mark.
In 2012 we didn’t receive word regarding any assessments from Kinark. I called to follow up only to be told we were not on the wait list. We went through the intake process for IBI yet again. At the time we were experiencing major anxiety issues and self-injurious behaviors with my son along with toileting issues. I asked Kinark if we there was any immediate support available, they told me no and to apply for Applied Behavior Analysis (ABA) until we received IBI. Once IBI was involved it would take over the ABA therapy I was told.
Between 2012 – 2013 we received ABA. ABA was 1 hour per week for 8 weeks, most of which was done without my son being observed, and mostly done with my wife and I at home while my son was attending school. The goals set out in the training as a result were not successful. As a result both my wife and I decided to not follow through with another block of ABA since we were not seeing the results and my son needed to be properly observed through a more intensive process. We wanted to wait until IBI was involved. In late 2013 we connected with Kinark again, to find out once again my son was NOT put on the wait list. We were assured that would happen for the third time.
Fast forward to last week. We still hadn’t heard anything from Kinark. I followed up with them, only to be told that my son is now 11 and does not qualify for intensive therapy anymore as per the new ministerial guidelines released to the public in June. They told me to connect with the Children’s Treatment Network to get on the centralized ABA wait list for the one hour per week sessions we had done before and were not successful.
With the help of the Ontario Autism Coalition (OAC) I forwarded off the medical documents from 2010 recommending my son to IBI with Kinark and basically stated what I had just written above to the Ministry of Child and Youth Services for investigation and follow up. I got a follow up call today from the Ministry.
Right from the beginning of that conversation I got the impression that they were not going to help, and they were even questioning whether or not we got the recommendation from our doctors and specialists for IBI, all while the staffer had the paperwork I submitted into OAC from the doctors for just that in front of him. It took him 5 mins to look through 8 pages, and he still disagreed with me regarding the recommendation stating he couldn’t “find it”. I pointed him to the page # on where the recommendation was and had him read to me line by line.
Once he got to the recommendation, the ministry staffer stated that regardless of what was on the paper, that the only thing Kinark had a record of was my call in 2012 for ABA. There was no record of my son on the IBI wait list. Say what? I asked the staffer what our options were, again I was told to apply for the centralized ABA wait list. I brought up my concerns regarding the one hour per week ABA therapy, only to be told that was our ONLY option.
I asked: “Are you telling me that Kathleen Wynne’s promise to get autism kids the therapy they need at the intensity they need is false and misleading?”
He replied: “Yes as it stands right now.”
He then stated that any issues between Kinark and my family regarding the wait lists were a private matter and the ministry would not intervene.
So with my son now hitting puberty and the accelerated behavioral issues that come with that stage in life, we still don’t have the intensive therapy that has been recommended by at least 4 specialists 6 ½ years ago and from what the Ministry has told me today, that’s not on the horizon either. Kathleen Wynne needs to explain to the people of Ontario who were behind the parents of autistic kids, exactly what the heck is going on, and why parents and kids months after this announcement are still NOT getting the services they need at the intensity they need, and why she has mislead the public in believing that this therapy was restored?
Author’s Note: I want to make it clear, that I’ve heard of several stories from specialists and from parents that Kinark is notorious for “losing” paperwork. I’m not the first one with this problem and it extends to other regional providers as well. This needs to be immediately addressed.
What our family desperately needs right now is a commitment that my son will get the therapy he needs at the intensity he needs at some point in the future, in writing from the Ministry with a date on when to expect it, so we can develop a support plan with my sons school, and support network who have been waiting for 6 1/2 years for this support to be in place. I did not get that commitment from the Ministry today, nor was any attempt made at resolving the lack of intensive supports for my son, nor given any direction on which to take to ensure my son at some point would receive the intensive therapy he needs as directed by documents submitted to the ministry and promised by the Premier.
As it stands right now, and from my conversations with the ministry and Kinark, my son will not be getting the intensive treatment he needs as promised by Wynne regardless of the circumstances, due to his age, and he’s not alone.
It’s been no surprise that Canada has long been in a housing bubble. Foreign investors from China have been buying up property in Canadian cities for years, and reselling them to Canadians for way more than the property is worth. China seems to be intentionally creating a housing bubble in Canada. What Chinese investors are doing is buying up property, and immediately reselling the property to the highest bidder even before the closing date of the first sale. This cycle can repeat as much as 3 or 4 times prior to the closing date of the first buyer, artificially driving up the costs of real estate property. There are signs that the artificially created housing bubble is about to burst.
Last month the Office of the Superintendent of Financial Institutions (Canada’s financial watchdog) stated that Canadian banks need to be stress tested against a 30% drop in housing prices, echoing concerns from the Bank of Canada in June. Last week Chinese media has been warning investors in that country to pull out of the Canadian real estate market, and is expecting a housing crash one that could rival or even be worse than the US housing market crash of 2008.
In 2010 the director of CSIS Richard Fadden warned Canadians in an interview with the CBC that the biggest risk to Canadian security wasn’t from terror groups but from foreign powers that are infiltrating Canadian politics and influencing public servants, fueling a growing concern about economic espionage. Little was done to correct the housing bubble by the Conservatives when they were in power. Little has been done by the Liberals either since they have taken control of the House of Commons last year. Vancouver recently passed laws to increase taxes on foreign real estate investors to help curb the growing concern regarding this artificially created bubble, however there are a lot of doubts whether or not it will work.
Why hasn’t anything been done to completely correct this bubble and warn off concerns of economic espionage? Governments of all levels seem to be cashing in on the taxes of these sales, that’s one reason. The other is because any major correction in the housing market could see that bubble burst with fears of major economic instability. This leaves Canada’s economic future purely in the hands of China, in which it seems they are now moving to burst this bubble intentionally by warning off that country’s investors.
Canada shed 31,200 full time jobs last month. While our prime minister is running around the country shirtless, there has been no word on what our federal government is doing to curb the current housing crisis it inherited from the Conservatives. As result of the current series of warnings and years of inaction, we could be in for a very rough ride ahead. Ontario will be hit particularity hard. A large segment of our population, and many businesses here in Ontario can’t even afford to keep the lights on. Gas rates set to rise as well. There also has been absolutely no word from the Ontario government on what they plan on doing to also head this expected downfall in housing prices, and economic instability as a result.
The Trans-Pacific Partnership (TPP) is a trade agreement mostly negotiated in secret by quite a few governments bordering the pacific ocean. Canada has been a part of these negotiations and is committed to ratifying the treaty. Both US presidential candidates are now on the record against this treaty, while current US president Barack Obama has vowed to ratify the treaty in his lame duck session of his second term. So what exactly is the TPP?
I’ve come across a recently posted video on youtube that very clearly explains the TPP and concerns regarding the ratification of the treaty in the below video. Warning that this video is also NSFW and contains strong language:
For those of you who want an in-depth policy and law look at the concerns of ratifying the TPP; Canadian Internet law expert Michael Geist has an excellent in depth series of blogs on quite a few concerns with ratifying the TPP for those of you who like your policy research. I’ll be writing my own series of blogs on the TPP in the coming months as well.