Payment industry has fair regulation
Re: Credit card fee problem needs a voluntary solution (Oct. 15): MasterCard president Betty Devita asserts that there "are those that cling to simplistic assertions that credit and debit should cost the same." I actually am not aware of who is making that claim, but perhaps the best illustration of the gap that needs to be closed to a significant degree is from a retail store in the Toronto area, where the percentage of transactions paid for by credit card and by debit are equal. The retailer in this case hands over a hefty $210,000 in credit card fees, compared with $6,000 in debit fees. How Ms. Devita can argue that this is sustainable and does not require significant corrective action is beyond comprehension. A voluntary "solution" is nothing less than a myopic Band-Aid remedy. Voluntary regimes favour those with leverage and the ability to negotiate more favourable rates. A regulatory context does not level the playing field between small and big business. The playing field will never be equal and we know that, but regulatory oversight in the payments industry does provide a framework for those without the clout of a Costco to know that the payment industry in Canada, while a near monopoly, has the regulatory reins in place to ensure a more balanced outcome for all. The government took action because of its concerns with respect to dominance by a few in the wireless industry. The dominance is more pronounced in the payments industry. It's time for a solution that meets the needs of Main Street, not Bay Street.
Gary Sands, vice-president, Canadian Federation of Independent Grocers and chairman of the Small Business Matters Coalition
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More wood, more problems
Re Forestry industry set to gain from update to building codes (Oct. 6): Bertrand Marotte's article on how proposed changes to the National Building Code to allow mid-rise wood-frame construction will benefit the forestry industry leaves two important issues unaddressed. The health and safety of occupants and neighbours of these buildings will rely on active fire-safety systems, including sprinklers which, according to the U.S. National Fire Protection Association, are only effective 87 per cent of the time. Clearly, wood construction is inherently higher risk. Taller wood buildings also risk eroding the quality of our building stock. While good construction exceeds the minimum acceptable building code standards, many projects do not. Common problems – burst pipes, malfunctioning sprinkler systems, heavy rain penetration – will be much more consequential in taller structures made of moisture-susceptible material like wood. Remember B.C.'s $3-billion plus leaky condo problem in the 1990s?
Michael McSweeney, president and CEO, Cement Association of Canada
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Vancouver home prices not beneficial
Re The rising price of 'heaven' (Oct. 11): Only a real estate salesperson or developer could maintain a straight face while suggesting that "offshore investment" in real estate has been beneficial for Vancouver. Sure, a few boomers are able to cash out and move elsewhere or check-in to Shady Acres, but what about their children and grandchildren? Some will take on onerous, life-long debt trying to compete in the world's most expensive housing market, more will accept a lifetime as renters and many will simply move elsewhere, taking their education and abilities with them. Employers in Vancouver will have increasing difficulty hiring and retaining the employees they need to keep their businesses viable. Many other countries have taken action to protect their residents and their economies from similar problems. Ironically, even China has implemented measures to curb real estate speculation. Yet through both action and inaction our government has made the situation worse.
Ronald G. McCaig, Port Alberni, B.C.
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Comparing real estate prices in various towns and countries is like comparing contestants in beauty pageants, or professional players in various sports. Ask 10 judges or fans and you will get 100 different answers. The Demographia report has been quoted many times in Vancouver media, but like yearly liveability indexes, no one has ever bothered to actually read all the fine print. Different liveability indexes place Vancouver from close to the top to all the way down to 19 or more and are not done for permanent residents but to help international companies set the level of the hardship allowance they pay to the employees they send to a foreign country.
JL Brussac, Coquitlam, B.C.
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Oil industry ignores shift to electric cars
Re Falling markets – and Canada's suddenly vulnerable energy sector (Oct. 15): I get the impression that the oil industry and their analysts do not listen to what is happening to their big customer, the auto industry. ACE vehicles (automated, connected and electric) are coming, starting later this decade. They will provide much lower cost transportation, especially as Transportation-as-a-Service becomes popular. Electric vehicles will work fine in urban environments, which is where most of us drive most of the time. Morgan Stanley was right when they recently predicted the "end of the auto industry as we know it." The winners will be consumers, the natural gas industry (for fuelling power stations), solar power, the environment, and companies that make technology for ACE vehicles. The big loser will be the oil industry as the use of gas for vehicles goes into a prolonged decline.
Barrie Kirk, Kanata, Ont.
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