BLOGexclusive: Stats Can Kills DRIC Bridge Need

It is no wonder that Prime Minister Stephen Harper issued his secret mandate letter over Xmas to buy the Ambassador Bridge. The data below may not have been released publicly yet although it is publicly available.

A devastating Government of Canada Report makes mockery of the need to build a DRIC bridge. It makes clear that the information about border problems--capacity, thickening--was nothing more than misinformation spread by the Government and its followers and lapdogs to accomplish other purposes including probably perimeter security and the purchase of the Ambassador Bridge!

The problem with the border is the Government itself: its paperwork and regulations NOT border infrastructure!

It makes me sick to see the waste of taxpayer money so far on the DRIC project. However, it is a mere drop in the bucket of the wasteful extravagance that is yet to come. For what reasons are billions going to be spent other than to make a few private investment banks very, very rich at taxpayer expense.

I trust someone is pleased with this obscene taxpayer rip-off and boondoggle. I am not and I trust, dear reader, neither are you. Wait until you see the real cost of the DRIC road, plazas and bridge! No wonder that MDOT has not yet released publicly the Wilbur Smith financing numbers for Michigan Legislators to review.

Statistics Canada undertook a very interesting study on the Canada-US border

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  "The Canada-U.S. Border Survey aims to measure the number of manufacturing businesses operating in Canada experiencing barriers to exporting and importing goods to and from the United States via the Canada-United States border and the extent to which these barriers affect strategic decisions. As well, the survey will provide data on mitigating strategies used by these businesses to overcome theses impediments. It is a cost recovery survey funded by the Security and Prosperity Partnership Research Fund and led by the Policy and Sector Services Branch of Industry Canada.
  
  The results of this survey will be used to enhance government decision-making by providing data for developing programs and policies to promote efficient border crossings between Canada and the United States...
  
  The target population for CUBS is all establishments operating in 2008 within selected manufacturing industries with at least 5 million dollars in revenues for 2008."

It is a huge survey with over 5,000 businesses contacted. The results of the survey just came out recently and the results should be a shock for DRIC supporters. As study after study has demonstrated, although the authors throw in a gratuitous reference to our border crossing, capacity is NOT the issue and never has been except as a phony justification to destroy the Bridge Company business.

The problem is the paperwork and rules that are destroying our border.

If we have billions to spend, spend it on what is really causing our industry problems and not on some bureaucratic hidden agenda that will involve us all in lawsuits for a decade.

Let me give a short summary of some of the relevant questions and answers

Q28 Factors which would most likely cause a business to start or increase importing across the Canada - U.S. border in the next three years

What this means in the words of a Stats Can economist is:

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  "4% of all companies who responded are saying that "Improved border infrastructure and/or increased staff at border crossings" would most likely cause their business to start or increase importing across the Canada - U.S. border in the next three years."

It is hardly the crossings that are the problem. Rather it is the Governements themselves that are the cause of border problems and yet the Governments want to throw billions on a non-issue.

"Border thickening" will NOT be improved one iota by a DRIC Bridge. The paperwork logjam will remain and continue to cause problems.

Q9 In 2008, were shipments late because of Canada - U.S. border issues or processes?
Only 49% said YES

Too bad it was not broken down further.

Q13 Which of the following would most likely cause your business to start or increase exporting across the Canada - U.S. border in the next three years

Virtually the same percentages as above for importing. Our exporters do not see the border infrastrucutre as the problem but Governments themselves

Q23. In 2008, what percentage of imports from the U.S. arrived on-time?

60-89%---32%
90-99%---45%
100%-----19%

Section 5: Border Thickness

Border thickness is a term used to measure perception of how difficult it is to import or export. Border thickness includes the following items that could affect the time and expense related to importing or exporting.

Q31. Over the last 3 years, have Canada – U.S. border delays…
01 Decreased---14
02 Stayed the same---51
03 Increased---35

Q 32. Over the last 3 years, has overall paperwork related to using the Canada - U.S. border
01 Decreased---10
02 Stayed the same---41
03 Increased---48

An interesting co-relation. Increases in delay matched by a much bigger increase in paperwork.

What is really fascinating is that Stats Canada identified other border problems eg NAFTA rules of origin or Canadian or U.S. requirements for product standards, health and safety but did NOT mention border infrastructure or capacity issues at all.

IT WAS THAT UNIMPORTANT TO ASK RESPONDENTS!

Q38 In 2008, please indicate how Canada - U.S. border thickness in 2008 when importing, compared to border thickness, when exporting.

01 Border thickness was greater for importing---18%
02 Border thickness was greater for exporting---38%
03 Border thickness was the same for importing and exporting---45%

Clearly Governments need to clean up their acts first!

Q 44 Canada - U.S. border thickness
01 Not a challenge at all---24%
02 A small challenge---30%
03 Somewhat of a challenge---34%
04 A significant challenge---11%
05 An extreme challenge---2%

Unbelievable...Canada has built a border issue of thickening over nothing...only 13% of companies have a major issue. And we want to spend billions on this. Incredible.

Section 7: Border Challenges

Now I am going to ask questions specifically related to challenges your business may have faced in 2008 due to the Canada - U.S. border. Please rate the following factors as not a challenge at all, a small challenge, somewhat of a challenge, a significant challenge, or an extreme challenge.

Q 47. Border delays?
01 Not a challenge at all---31%
02 A small challenge---34%
03 Somewhat of a challenge---26%
04 A significant challenge---9%
05 An extreme challenge---1%

Almost the same percentages as border thickness. Only 10% have major problems.

Q 48. Overall paperwork related to using the Canada - U.S. border?

01 Not a challenge at all---22
02 A small challenge---28
03 Somewhat of a challenge---32
04 A significant challenge---16
05 An extreme challenge---2

Q 49. Uncertainty related to the extent of border delays?

01 Not a challenge at all---32
02 A small challenge---21
03 Somewhat of a challenge---37
04 A significant challenge---10
05 An extreme challenge---1

Billions for 11%?

53. The number of hours and timing of when inspectors are on duty at the border?
01 Not a challenge at all---46
02 A small challenge---27
03 Somewhat of a challenge---19
04 A significant challenge---7
05 An extreme challenge---2

Again, as above, what is really fascinating is that Stats Canada identified other border problems but did NOT mention border infrastructure or capacity issues at all.

Q 57 In 2008, which of the following was the most important border issue when exporting to the U.S.?

01 Border delays---8%
02 Overall paperwork---34%
03 Uncertainty related to the extent of border delays---8%
04 Costs including freight transport and insurance related to using the Canada - U.S. border---16%
05 NAFTA rules of origin regulation---8%
06 Tariffs or fees payable at the border---3%
07 The number of hours and timing of when inspectors are on duty at the border---2%
08 Canadian requirements including product standards, health and safety and border-related regulations---too unreliable a number
09 U.S. requirements including product standards, health and safety and border-related
regulations---12%
10 The differences between Canadian and U.S. requirements including product standards,
health and safety and border-related regulations---9%

Government paperwork and rules are the biggest factors!

Q 58 In 2008, which of the following was the most important border issue when exporting to the U.S.?

01 Border delays---11%
02 Overall paperwork---34%
03 Uncertainty related to the extent of border delays---8%
04 Costs including freight transport and insurance related to using the Canada - U.S. border---18%
05 NAFTA rules of origin regulation---8%
06 Tariffs or fees payable at the border---2%
07 The number of hours and timing of when inspectors are on duty at the border---3%
08 All Canadian requirements including product standards, health and safety and border-related regulations---5%
09 All U.S. requirements including product standards, health and safety and border-related regulations---2%
10 The differences between Canadian and U.S. requirements including product standards,
health and safety and border-related regulations---9%

Government paperwork and rules are the biggest factors, again!

Q70. In the last three years, did your business change which border crossing to use or change the mode of transportation due to border thickness?

Only 13% said YES.

Is there a major media outlet or a politician who will finally scream that enough is enough? Will taxpayers demand that the waste be stopped? When will the Auditor-General act? Who is going to make the unreasonable and unjustifiable profits? Who will investigate this?

Does anyone care?