Post by IAMCAPER on Jun 25, 2004 15:34:12 GMT -4
Pulled from the Cape Breton post:
SYDNEY - Mayor John Morgan wants Canada’s auditor general to examine spending at Enterprise Cape Breton Corp. and the Atlantic Canada Opportunities Agency.
In a letter sent Thursday to auditor general Sheila Fraser, Morgan asks for a managerial audit of the functioning of the corporation and agency.
“I am writing to request that both of these economic development mechanisms be analysed by your office to ensure the significant amounts of federal funding being used to address the problem of regional economic disparity are being deployed in an effective manner,” the letter states.
Morgan targeted a $500,000 loan given to developer Lawrence MacPherson for a 4-star country inn constructed in Ben Eoin that provides full-time work for two individuals.
“The loan is symbolic of much that I have observed during the three and one-half years that I have been mayor of the Cape Breton Regional Municipality.
“Objective forms of analysis, such as net job creation, population stabilization and dependency rates are ignored in favour of anecdotal claims of success,” said Morgan. “Neither ECBC nor ACOA set objective standards for the above variables or other important macro-economic indicators of a successful economic development strategy.”
Rick Beaton, vice-president of ECBC, said that as of late Thursday he hadn’t personally received the letter. He also deferred all comments to the auditor general’s office. However, he said he would likely speak on the issue next week.
Morgan said a lack of targets for the region and the absence of an objective third party creates a system vulnerable to ineffectiveness and abuse.
“In such an environment, where people are often extremely dependent upon the federal government for help, federal discretionary programs can be used to abuse and intimidate individuals, organizations, and local government officials and my experience has been that this is precisely what has been happening in Cape Breton.”
Morgan said he does support the use of resources to alleviate regional economic disparity, however, there are other ways to achieve that goal.
“It’s a critical time,” said Morgan. “What you need is an improved system – you need a depoliticized system. But, that’s not the same as eliminating the agencies. I think that would be a big mistake and it would hurt the region.”
Morgan said there are no allegations of impropriety, just a question as to whether or not the money is being spent efficiently and if there are proper controls in place to ensure the objectives of the agencies are met.
“The key objective is to reduce the amount of economic disparity,” said Morgan.
In the letter, the mayor also delved into federal equalization payments.
“While the federal government, for example, transfers in excess of $1.2 billion annually to the province of Nova Scotia for the purpose of providing to all citizens of the province a reasonably comparable level of public service at a reasonably comparable tax burden, there is significant evidence which shows that the funding is not being allocated to achieve this stated goal.”
SYDNEY - Mayor John Morgan wants Canada’s auditor general to examine spending at Enterprise Cape Breton Corp. and the Atlantic Canada Opportunities Agency.
In a letter sent Thursday to auditor general Sheila Fraser, Morgan asks for a managerial audit of the functioning of the corporation and agency.
“I am writing to request that both of these economic development mechanisms be analysed by your office to ensure the significant amounts of federal funding being used to address the problem of regional economic disparity are being deployed in an effective manner,” the letter states.
Morgan targeted a $500,000 loan given to developer Lawrence MacPherson for a 4-star country inn constructed in Ben Eoin that provides full-time work for two individuals.
“The loan is symbolic of much that I have observed during the three and one-half years that I have been mayor of the Cape Breton Regional Municipality.
“Objective forms of analysis, such as net job creation, population stabilization and dependency rates are ignored in favour of anecdotal claims of success,” said Morgan. “Neither ECBC nor ACOA set objective standards for the above variables or other important macro-economic indicators of a successful economic development strategy.”
Rick Beaton, vice-president of ECBC, said that as of late Thursday he hadn’t personally received the letter. He also deferred all comments to the auditor general’s office. However, he said he would likely speak on the issue next week.
Morgan said a lack of targets for the region and the absence of an objective third party creates a system vulnerable to ineffectiveness and abuse.
“In such an environment, where people are often extremely dependent upon the federal government for help, federal discretionary programs can be used to abuse and intimidate individuals, organizations, and local government officials and my experience has been that this is precisely what has been happening in Cape Breton.”
Morgan said he does support the use of resources to alleviate regional economic disparity, however, there are other ways to achieve that goal.
“It’s a critical time,” said Morgan. “What you need is an improved system – you need a depoliticized system. But, that’s not the same as eliminating the agencies. I think that would be a big mistake and it would hurt the region.”
Morgan said there are no allegations of impropriety, just a question as to whether or not the money is being spent efficiently and if there are proper controls in place to ensure the objectives of the agencies are met.
“The key objective is to reduce the amount of economic disparity,” said Morgan.
In the letter, the mayor also delved into federal equalization payments.
“While the federal government, for example, transfers in excess of $1.2 billion annually to the province of Nova Scotia for the purpose of providing to all citizens of the province a reasonably comparable level of public service at a reasonably comparable tax burden, there is significant evidence which shows that the funding is not being allocated to achieve this stated goal.”