Lowest corporate taxes in the world at heart of Vancouver’s housing crisis

The City of Vancouver currently has the lowest business taxes in the world. A report published by the global financial auditor KPMG places Vancouver first out a list of 41 global cities. The main finding of the report, called “Competitive Alternatives 2010 Special Report: Focus on Tax,” is that Vancouver has a tax system more favorable to corporations and the wealthy than anywhere else in the world.

Although the report was released last May, including a press release, it has not received attention in Vancouver’s corporate and alternative press. Instead, local media have placed the international rankings spotlight on Vancouver’s real-estate market, with wide reports that people living in Vancouver currently experience one of the most unaffordable housing markets in the world. It is becoming common knowledge that through high-profile events like the Olympics – which the real-estate executives termed a “$6b ad campaign” for Vancouver – the municipal government has been making an effort to attract global financial investment to Vancouver, with direct effects on the cost of housing. The important background of this policy, however, has been the creation of a corporate sanctuary – the national and global elites are being drawn to Vancouver for its low levels of taxation.

City council sends public home at Height Review hearing

Instead of hearing 80 speakers from the public, City Council voted today to defer hearings until a later consulation. Fifty of those speakers were at council to speak against a motion to build condos in the downtown eastside under the Height Review plan (see yesterday’s Editorial).

According to the Mayor’s website, council decided not to hear from the public and voted instead to create a “community committee, chaired by one member of the Building Communities Society and one member of the Downtown Eastside Neighbourhood Council. The committee [will] engage with local residents and provide a report to council by December 31, 2011 on community priorities for planning and development in the neighbourhood. As well, the City would commit to completing the social impacts study by December 31, 2011.”

According to the Straight, “the motion called for the report, which proposes building height changes to some sites in Chinatown and the Downtown Eastside, to be referred to public hearing and for city staff to conduct a social impact study on low-income residents of the Downtown Eastside.” However, it is not clear if this is actually true, because according the mayor’s website, “Mayor Robertson is recommending that until the social impacts study and the community committee’s report are complete, that council respect existing plans and policies for the Downtown Eastside.”

This means that instead of delaying all plans until public consultation is completed in December 2011, the City is trying to defer public input while rushing ahead with existing plans under the Height Review. According to a Carnegie Community Action Project press release, “five of the condo sites in Chinatown may be going to public hearing in February and could still go ahead.” City policy recognizes that Chinatown is inside the downtown eastside, but now they are treating Chinatown as a separate entity in order to avoid criticism and input. According to Harold Lavender of CCAP, “I live in Chinatown and they just broke the DTES into artificial pieces based on the priorities of developers. If I had a say, I could have influenced their decision. This process is a travesty.” If the City is actually serious about hearing from the downtown eastside, they will stop condo plans for Chinatown until at least December 31, 2011.

The Myth of the Fourteen Sites

In addition to rent increases caused by the upscaling and renovation of dozens of low-income buildings around the city, Vancouver is losing affordable housing through the outright demolition of buildings. Last month, City Council approved the demolition of the Cecil Hotel. Two months ago, Vancouver City Council approved the loss of almost all low-income housing at the American Hotel, whose tenants were illegally evicted in 2006. Last year saw a drastic loss of housing, with City Council allowing for the closure of low-income hotels surrounding Woodward’s while granting the demolition permit for the 224 housing units at Little Mountain.

Today, however, the provincial and municipal governments jointly proclaim a “partnership of excellence” in the fight against homelessness. Some journalists have written of the “tight bond” between the Province and City under Mayor Gregor Robertson, and it has recently been reported that many Vision councilors were favorable towards Rich Coleman’s leadership bid for the BC Liberal Party because of “all the progress he has been able to make with the City of Vancouver on social housing during this Vision Vancouver term.”[i]

More than anything else, the proclaimed successes of the “partnership” revolve around the construction of fourteen sites of social housing in Vancouver, known as the ‘Vancouver sites.’ The myth of these fourteen sites can be traced to the destruction of housing at Little Mountain.