The HOUSING Crisis - a discussion with political candidates
Four political candidates discussed the complex factors that have aggravated the availability of new home and rental properties in Haliburton-Kawartha Lakes-Brock
Last nite, May 25, I participated in an“All Candidates” political discussion in Lindsay. The sole topic was HOUSING in Haliburton-Kawartha Lakes-Brock electoral riding. It was a public event hosted by executives from the local real estate and builders’ associations who possess strong incentives to find ways to resolve this problem.
Six questions were asked of the 4 participating political candidates; these are listed at the end of this essay. The Conservative, Green and New Blue Party candidates were invited but declined the invitation.
The participating candidates were:
Barbara Doyle - NDP
Don McBey - Liberal
Dr. Kirsten Kelly - Ontario Party
Gene Balfour - Libertarian Less Government Advocate.
Highlights of the discussion
True to expectations, the LIB (Liberal) and NDP candidates promoted policies that would serve to increase government intervention in the Housing sector. Their proposals would aggravate the problem by incurring higher taxes, more regulations, additional subsidies and new departments (task forces, boards, etc) to track information for central planning purposes. Their proposals generally sound reasonable until a voter asks simple questions such as:
Who will pay the costs of these policies if implemented? (Answer: the taxpayer)
How will the addition of new government regulatory responsibilities reduce the administrative delays and bottlenecks that currently exist under Municipal management? (Answer: they will only add more overheads, not less)
Considering the current bureaucratic costs and the long delays in builders’ receiving government permissions to proceed with projects, how will the new LIB/NDP proposed policies serve to motivate and incentivize municipal employees to increase their productivity? Should streamlining public processes and decision-making in order to reduce permit backlogs from months to days or even hours not be a key objective? (Issue; public sector employees, especially unionized staff, have little incentive to perform effectively or efficiently in order to meet the needs and expectations of “customers”. In addition, hierarchical organization structures in public institutions would greatly benefit from more modern and dynamic operating models to better serve every property and housing stakeholder). These factors were not addressed by LIB and NDP candidates.
If governments’s interventions and underperforming administrations are a major part of the problem, what makes any voter think that NDP/LIB promises to further expand government authority will lead to a solution? Especially when they have failed to deliver on promises so often in the past!
New ideas and innovative approaches
The proposals of Dr. Kerstin Kelly, with Mr. Balfour often in agreement, were in stark contrast to the ‘tried and failed” old school LIB and NDP approaches. As one man in the audience said enthusiastically after the event: “Your proposals make so much sense!”
Here’s a sample of their insights and proposed approaches to the Housing crisis:
The root causes of this crisis have originated and grown from the steady growth of government interventions. The proof: 53% of the average Canadian’s annual earnings goes to coerced payments (taxes, permits, fees, licences, etc) to all levels of government compared to 38% in 1961. That additional 15% in tax haul has reduced the after-tax disposable incomes of home buyers so much that it may possibly be the single most important contributor to the current housing affordability crisis. Add rising public debt levels, which now measures in the $trillions, and this leaves no doubt that the size, cost and scope of government authority is the “elephant in the room” when one considers how much its burdens bleed into the housing sector. The “elephant” is an apt symbol when one considers the fact that the number of Ontario regulations under enforcement doubled to 380,000 between 1995 and 2018.
The government-imposed pandemic lockdown policies and mandates were the single most significant cause of the supply chain crisis that plagues builders and home buyers who are desperate to supply and buy homes. These have crippled the productive capacity of producers, jacked up the energy costs of producers and distributors, and crushed the earning abilities of millions of private citizens and their employers. If the federal Liberal and Ontario Conservative government had adopted the Focussed Protection approach of the Great Barrington Declaration released on October 4, 2020, or followed the example of Sweden to protect its citizens while respecting the Constitutional rights of its citizens, our current situation would have been much different and certainly a lot better.
Dr. Kelly deftly addressed the pro-tenant regulations advocated by the LIB and NDP which would continue to assign all rental risks to property owners. She correctly stated that these misguided government policies are the major reason why rental properties are scarce and rental prices are rising. Rental rates will only fall after supply increases by repealing the government policies that have handcuffed landlords with no reasonable recourse to evict deadbeat or destructive tenants.
Federal Monetary policies have flooded the economy with liquidity in the form of cheap loans and lax bank reserve requirements under our inflationary Fractional Reserve Banking System. Much of this flood of money has led to inflated asset values (“inflationary bubbles”) particularly in the investment markets of land-based properties and financial securities. As famed Economist Milton Friedman said often: “Inflation is always and everywhere a monetary phenomenon”. Most contemporary Economics now recognize that inflation comes from a three levels of government albeit Monetary policy is the most significant culprit.
Dr. Kelly offered so many examples of the unintended consequences to existing governments’ policies and bureaucratic baggage that the event organizers had to ask her to curtail her response so that others could speak. She really did her homework: it was 100% accurate and supported by facts!
Mr. Balfour did not pretend to be an expert in the topic of local Housing challenges. Instead, he advised an informed and methodical approach to address this complex issue. He hopes the next MPP will: First- investigate, analyze and gain a more granular understanding of the many contributing factors to this problem; Next- evaluate all possible options that could feasibly come from either/or/both the public and private sectors; Finally - choose the best option and execute with a competent team of people who can supply the needed expertise to accomplish the desired results in a team setting. As a former professional recruiter who has interviewed over 10,000 candidates for thousands of jobs over a 36 year timespan, he understands that the best team is one that possesses the most qualified people ( aka subject matter experts) who will supply the needed expertise and judgment to perform their tasks well under a highly competent leader. The Hollywood movie-making model was referenced as a viable approach to consider for some of the work to be done. Dr. Kelly concurred with this common sense approach.
The scarcity of skilled labour is, to some extent, a recruiting problem. Mr. Balfour offered his expertise to local businesses to “up their game” in attracting and hiring new staff and freelance workers with the needed skillsets and knowledge. He also expressed an interest in being a spokesperson on university and college campuses to sell the merits of work in our businesses. In that role, he could promote local employers, their employment/career prospects for potential workers, and the lifestyle opportunities that exist in our local communities.
The builders clearly understand that their ability to supply the number of new homes expected by the Government’s Affordability Task Force will not be achievable so long as public policies at the provincial and municipal levels continue to create unnecessary obstacles, delays and detours. Central planners can plan all they like because they will never be expected to lift a shovel or operate a drill to build anything more than a Digital report. Until the Task Force addresses the issues in the Governments’ own back yard, their goals are stuff of dreams in which they are almost certain to miss their own targets. Both the Ontario Party and the Libertarians agree emphatically that reducing the size, cost and scope of legislated authority is where the real effort must be focused regarding affordable housing.
Unfortunately, a representative from the Ontario Landowners Association was not represent at the meeting last night. In their absence, I am invoking the words of Tom Black who explained what the OLA meant by a phrase which has become part of Ontario’s rural folklore. “Back off Government!”
https://ontariolandowners.ca/news/what-back-off-government-really-means-by-tom-black/
THE QUESTIONS
One of The Ontario Housing Affordability Task Force’s objectives is to build 1.5 million new homes within the next 10 years, how will the Province confirm the available land supply NOW to accomplish this objective? How will you ensure that 1,000 new residential units are built each year in Haliburton-Kawartha Lakes-Brock to accommodate required growth?
What will you do specifically to ensure there are enough skilled trades people in the labour force to build the homes needed.
How will the Province enhance building in the City of Kawartha Lakes?
If elected what would you do to address the housing crisis in our community?
Do you support making it easier for First Time Home buyers to get into the market?
Would you consider accelerating the conversion of underused/unused commercial properties to create more homes?
