Council must tighten its belt in wake of pandemic

President of E.S. Fox Ltd. said big tax hikes are on the way

Spencer Fox, the president of E.S. Fox Ltd., didn’t mince words in telling regional council there is no time to lose when it comes to restructuring and downsizing government in Niagara.

Fox, the president of Niagara Fallsbased E.S. Fox Ltd., said at last Thursday’s council meeting the private sector is in crisis due to the fallout from the COVID-19 pandemic.

“While local governments such as yourself are trying to get money from the feds and the province, that’s a false panacea, so to speak. Eventually, we will be taxed for that as well.”

Lincoln Coun. Rob Foster made a motion to refer Fox’s presentation and the open letter to the budget review committee of the whole for a response. Motions to refer are non-debatable.

“This isn’t on our agenda this evening, and we need to take a good look at your information and deal with it accordingly,” Foster said.

Fox said the private sector — and the people that the private sector employ — had adjusted on the fly to the pandemic before adding it appears to him the public sector thinks that it is immune to the upheaval.

“Unfortunately, it is not,” he said. “As businesses contract, and in many cases cease to exist, tax revenue will decrease. My firm contracted to 30 per cent, and some firms contracted to zero and are still at zero.”

An open letter signed by some of Niagara’s most prominent business leaders accompanied Fox’s presentation.

Together the businesses employ more than 2,000 people collectively and have operated on average for more than 60 years.

The group includes Steve Cohen of Myer Salit Ltd., Daniel Trabucco of Artcraft Kitchens, Stephen Park of Flexo Products, Alex Digenis of Henley Honda, Greg Pinder of Pinder Security, Rob Fostinger of FBT Inc., John Nitsopoulos of Best Western Holiday Inns, Shawn Rapone of CMI Heavy Industries and Sunil Bahadoorsingh of Pennterra.

St. Catharines Coun. George Darte, who owns and operates Darte Funeral Homes, also signed the letter. Darte declared his conflict of interest as the meeting began.

Fox said the business leaders are offering to meet with council or committees to discuss their ideas.

“Use us as your business consultants.” In the latest report from staff, dated June 25, Niagara Region estimated its total gross cost, directly related to the pandemic, is $56 million. On top of that, the 12 lower-tier municipalities spent an extra $84 million due to the pandemic.

Staff ’s rough estimate is the Region will face a deficit of $7.5 million at the end of the fiscal year. When the area municipalities’ deficits are included, the figure climbs to $15.4 million.

“The central issue we want to raise as a group is that the private sector has to match reduced revenue with reduced expenses,” Fox said. “Unfortunately, the public sector will have to do that as well.”

The Region, however, must provide a wide array of mandated services where the ability to manoeuvre and save money is minimal. Those services include big-budget items such as policing, Ontario Works and ODSP, public health, public housing, ambulance services, water and wastewater plants, and a long-termcare home.

The open letter said government’s role in supporting pandemic recovery and protecting the essential social safety net is as important as ever.

“It is now time for local government to do their part,” the letter said. “The success of your efforts will directly relate to how well we recover. All levels of government must, like private business, jettison outdated policies, eliminate waste and reduce unnecessary spending. Many past procedures are no longer viable.” Bill Sawchuk is a St. Catharines-based reporter with the Standard. Reach him via email: william.sawchuk@niagaradailies.com