Madhunt Publishing Company
Alliston, Ontario

Madhunt Publishing Company
founded March 22, 1999.

New Tecumseth Free Press Online
First Posted April 30, 1999

To email: Tony Veltri .

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'Future DCs depend entirely on future housing growth'

to the editor,

Reading mayor Mike MacEachern defend the Town debt as not really debt, reminds me of the old George Burns and Gracie Allen skit where he suggests to Gracie that there is "no more money in our bank account because you are spending too much money." Gracie replies, "how can there be no more money, I still have cheques."

On one hand the mayor is correct that the majority of debt will be financed by future development charges. What the mayor does not say is that future development charges depend entirely on future housing growth.

To pay off the amount of debt associated with future development charges will probably require annual growth between 3.5 to five per cent. Current growth in Ontario is around 1.8 per cent.

Europe is in a state of financial free fall. The United States is marginally better, China/India is just now beginning to realize that their past growth rate is not sustainable. Brazil's economy is stalling. The major world economies are in for a lengthy period of little or no growth. Spain, Ireland, Greece, Portugal, Hungary, Italy, will go through a long period of negative growth.

Here in Canada the federal Minister of Finance and the chair of the Bank of Canada have constantly repeated that Canadians are carrying too much personal debt. Accordingly they have altered the terms for mortgage lending, and altered the terms for loans given by the Canadian Mortgage and Housing Corporation. These acts will make it more difficult for future home buyers to negotiate mortgages.

What it all comes down to is who has the most financial credibility, Ward 3 councillor Paul Whiteside or Mayor Mike MacEachern and which of them would you go to for financial advice?

Wayne Hutchinson,
Alliston