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.

Weekly Roundup: Vancouver Views | Capital Budget | Vision Vancouver Nominations

VANCOUVER VIEWS |

Later today at City Hall there will be a discussion and vote on “Vancouver Views,” a policy that would see increased heights Downtown, especially in the West End.

The Vancouver Views policy has attracted quite a bit of controversy. The policy will mean serious changes to the urban environment downtown, and some have begun directly criticizing planning staff and making accusations of misleading the public with their reports. They argue that not only have the public not had enough consultation or time to absorb what the changes will mean, but also that Council could not have had enough time to “do their homework” around the policy.

The Vancouver Views policy is only one part of a ‘divide and conquer’ strategy surrounding planning within the city. This past month has seen several attempts at blanket rezonings of areas dominated by renters. There has been a serious community based, grassroots resistance to wide-sweeping changes that would increase opportunities for real-estate developers. Community organizations argue that the social effects of these policies require more discussion and consideration. Council passed an emergency motion to hold off public consultations on a similar policy, the Historical Area Height Review, last week. Dozens of speakers had signed up to speak not only against the policy but also against City Council itself.

CAPITAL BUDGET |

Also at Council will be the discussion and vote on its capital budget. The capital budget includes the construction of infrastructure, City-owned building renovations and public works projects. The staff administrative report is 117 pages, and includes everything from summaries of revenue from Developmental Cost Levies to the wide variety of proposed projects for 2011.

In spite of the huge support shown throughout the city for affordable housing, the city plans to spend only $22 million of the $337 million budget on new land, construction and renovations for affordable housing. This is not enough. Instead, the report shows a continuance of Vision’s pro-police policies. On top of an unnecessary increase in the police budget of $5.7 million approved in last month’s operating budget, the Vancouver Police Department will receive an additional $11 million to relocate to a new central station. A significant amount is also being spent on Vision’s “Greenest City” initiative. Particular spending for greener public works is difficult to decode; there are no cost comparisons provided but in general this will mean retrofitting existing city infrastructure to pass higher environmental standards. The city plans to spend another $16 million on information technology projects for city hall.

If City Council truly wants to act on the wishes of its citizens, more must be spent on ensuring all classes of people can afford to live in Vancouver. The police and upgrades to city hall should not be prioritized over housing affordability.

VISION NOMINATIONS |

Vision Vancouver has announced it will hold open nominations for all its elected positions, except the mayor. Members of council and the park and school boards will be up for grabs in the next few months.

Vision party members will decided whether or not Gregor Robertson stays as mayoral candidate in the 2011 election by referendum. The party is calling the vote a “leadership review.” Vision members will decide a question either ‘yes’ or ‘no’ with a simple majority deciding. NPA Councillor Suzanne Anton said of the review that, “they don’t want to talk about his flaws.” COPE Councillor Elen Woodsworth called Robertson the “trademark” of Vision Vancouver.

Gregor has repeatedly come under fire, especially recently, about his failings on his campaign promises, especially surrounding his promise to end homelessness by 2015.

City attempts to rely on enforcement

This past Thursday, the Vancouver Police Department published a press release about a series of arrests made in the Downtown Eastside. It describes eight suspected drug traffickers who used violence, torture, and fear to cruelly control residents involved in the drug trade. Some of the conditions the victims of these criminals had been put through include being stabbed, beaten, and held in cages. As the press release states, this is the first case of Criminal Organization charges in Vancouver police history.

It took community protests to pressure police to investigate exploitation of Downtown Eastside residents. The two police initiatives leading to the arrests were part of an umbrella program called “Sister Watch,” which was designed to curb violence against women in the Downtown Eastside in response to grassroots protest.

Although it would be an improvement for the police to begin protecting residents from exploitation, it must be said that the strong-arm approach of both the VPD is a significant part of the problem of violence in the Downtown Eastside. The “war on drugs” diverts resources away from social services into policing. It simply has not been the case that police use these resources to protect residents from exploitation. On the contrary, the police impose added violence onto the poor, who are unfairly shuffled through the revolving door of “justice.”

Councilor Reimer tries to ‘divide & conquer’ the DTES at 4am

Last Thursday, grassroots pressure forced Vancouver City Council to halt plans for two condo towers, as well as halting overall plans for height upzoning in the Downtown Eastside. Over 80 speakers were signed up to speak at City Hall, most against the City’s gentrification plan. But rather than listen to the delegations, Vision Vancouver introduced a so-called “emergency” motion. The motion agreed to grassroots demands to conduct a community plan and social impact study before rezoning.

It is time to take stock of what happened that day. Or rather, the night before, at 4am!

The first thing that stands out is this: why didn’t Vision Vancouver agree to these demands last year? Or last month, when The Mainlander published the arguments clearly. Or the day before the public hearing, so that 80 people wouldn’t have to take the day off work, school and life to come all the way down to City Hall? Apparently, Vision Councilor Andrea Reimer wrote the emergency motion at “4am” the night before. What made Vision change its mind at the last minute, after literally years of pressure from grassroots low-income organizations? Was it the letter signed by dozens of professors? Was it this dialogue between Mike Harcourt and Councilor Andrea Reimer on Jan 19? Was it our pull-no-punches editorial (we wish)? Was it the prospect of having to listen to 80 public speakers?