"Normal Evolution..."

© 2004 Brian Martell

Over 4 years ago the Canadian Vending Industry went toe to toe with the Federal Government over the issue of compensation for the change in metal content in Canadian coins. If you’ll recall, at stake was the estimated 22 million dollars the industry was going to have to pay out for acceptor modifications, just to stay current. In contrast, the Mint was to realize a net cost savings of three quarters of a billion dollars over the life span of a coin (20 years) with this initiative. 

CAMA invested much time, money and effort in lobbying the government to recognize and act on the principle of just compensation for a government decision which disadvantaged one segment of the retail industry... vending. The argument was clear; all retailers dealing in change would see no increase in cost with the new coins, except the vending operators who would have to pay huge sums to validate the new coins. Initially, CAMA contacted the Royal Canadian Mint, the Minister of Finance and the ministry responsible for the Mint, the Department of Public Works. Delegates from CAMA visited Ottawa on several occasions and in several capacities, engaged in a letter writing campaign, hired a lawyer and didn’t give up when “no” was the answer on the first two attempts.

The Executive Assistant in the Ministry in Public Works, Jean-Marc Bard, repeatedly scoffed at our request to even speak with the Minister responsible, the now famous Alfonso Gagliano. It seamed that the honourable Mr. Gagliano was too busy to deal with such trifling events as the crippling burden his department was placing on the vending industry. Indeed, Mr. Bard was quick to note in a letter to CAMA that “The government appreciates the impact the changes to Canadian coins will have on business in the vending industry but considers them to be part of the normal evolution of the industry.” It appears that Mr. Bard’s comments, in the light of Auditor General Sheila Fraser's recent findings, are quite ironic. 

The “normal evolution” through the eyes of the Department of Public Works has more to do with gross neglect of duty, fraud and the wholesale theft of Canadian taxpayers' equity than the principled idea of compensating honest business people when the government expropriated a standard. Is it any wonder that, under these terms of engagement, CAMA’s bid to have the vending industry justly compensated was doomed to failure? The details of Ms. Fraser’s report are enough to make any Canadian, even the most partisan, tremble with rage (for the gruesome facts go to http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20031103ce.html). 

All Canadian taxpayers are shareholders in the organization we call CANADA . What do you think would happen to the CEO, the CFO, and the COO of any organization which reported at year end that the company and its stock holders were bilked out of $100 million? While the question is rhetorical, observe what happens to those in the private sector who commit these types of crimes. Moreover, outraged shareholders often divest themselves of scandal-ridden corporations whose ethical practices belong in the 18th chapter of Machiavelli’s The Prince. But what about Canadians; can we also, as a form of protest, stop our investment cheques to the National Organization? Not without the wrath of Revenue Canada bringing its full weight to bear on any who try. In essence, we are told, “Don’t worry, we’ll rout out the guilty parties, and bring back respectable government as a national standard.”  

The problem is, Canadians are more and more cynical about how their government works (or doesn’t), and are tending to see bureaucratic dysfunction, or worse, as the norm.  Observe how the current level of indignation will soon abate as it did during the gun registry scandal or the Federal Business Development Bank scandal, or the Federal Job Promotion scandal or the (fill in the blank) scandal.

Ironically, the vending industry has had shadows cast upon it by those whose media is hearsay and innuendo that operators engage in questionable accounting practices. True, there may be some who do not honestly account for all their earnings, but then again there are over 2,000 vending companies in Canada, most of which are run by decent honest business people. As Canadians, we only have one Federal Government; perhaps for that, we should be truly thankful.

Copyright 2004 by Brian Martell