Tony Clement: You Want to Sell What?

From his days as a young radical at the University of Toronto, Tony Panayi (Clement) was on a mission to sell our sovereignty to the highest bidder. He was helped in his endeavours by other young neocons, like Tom Long and Leslie Noble.

They took over the campus PC's and later the provincial PCs with the help of Preston Manning and the Reform Party*, the American Republicans who created the concept of the Common Sense Revolution, the National Citizens Coalition and the Fraser Institute, to name just a few.

"Mike Harris's Common Sense Revolution was designed primarily to remake government in the image of big business ... Fortified by corporate "think tanks" like the C.D. Howe and Fraser Institutes, and citizen front groups like the National Citizens Coalition and the Canadian Taxpayers Association." (1)

And in fact, once elected, lobbyists like Guy Giorno and Leslie Noble, had far more power than elected officials.

One pipeline Noble has to influence government decision-makers is the unelected cadre of political aides in the offices of the Premier and his top ministers. These aides, many of whom report to Noble during the election campaign, wield tremendous power in government, a reality acknowledged by some Tory MPPs.

Tory backbencher Bill Murdoch says they openly flaunt their power. ``They say, `Hey Murdoch, we didn't even have to go through an election and we're running the place.' '' Queen's Park Speaker Chris Stockwell, a Tory MPP, calls them a ``cabal'' and says they make decisions without input from elected politicians.

Noble's own correspondence to clients demonstrates a familiar, routine relationship with this unelected cadre. To a client, Noble explains she is contacting Giorno (Harris' director of policy), Hutton (Harris' director of issues management), Lindsay (Harris' chief of staff until last year), Brian Patterson (former economic development minister Bill Saunderson's executive assistant, now assistant to Transportation Minister Tony Clement), Peter Clute (Finance Minister Eves' executive assistant), and John Guthrie (he was Consumer Minister David Tsubouchi's executive assistant). In her correspondence, Noble also describes how she contacts members of ``P and P'' - Priorities and Planning - the inner cabinet that makes most government decisions. (2)

And yet it's interesting to hear her defend Mike Harris as a man of the people in the video at the bottom of this page.

Tony Clement's Fire Sale

In 1997, after too many gaffes and a scandal, Al Palledini was demoted and Tony Clement moved from the backroom and the backbench to the transportation portfolio. At the time Harris was in a bit of trouble. He had carried through with Republican strategist Mike Murphy's 30% tax decrease, and with massive cuts and the implementation of user fees, he was still not able to balance the books. With an election looming, he needed to find some cash and find it fast.

And despite what was said in the video I mentioned, claiming that Harris did not have a privatization agenda, he actually had a privatization minister. And it was he and Tony Clement who decided that the best way to not only generate cash but ensure that no additional revenue could be obtained by the province, they sold a highway. Yep. Highway 407, that has become a veritable cash cow for SNC-Lavalin**, was sold for peanuts. (about 1% of it's value with a 99 year lease)

Rob Sampson, Minister without Portfolio with Responsibility for Privatization, today announced the sale of Highway 407 for dlrs 3.1 billion, making it the largest privatization in Canadian history. Highway 407 will be sold to a consortium of Grupo Ferrovial and its subsidiary Cintra Concesiones de Infraestructuras de Transporte, SNC-Lavalin, and Capital d'Amerique CDPQ, a subsidiary of the Caisse de depot et placement du Quebec. The consortium will purchase from the province the right to own and operate Highway 407, along with the obligation to finance, design and build west and east-partial extensions to the highway.

"Completion of the highway is important to Ontario's continued economic growth. It will stimulate new economic activity in communities across the Greater Toronto Area and throughout the province," said Tony Clement, Transportation Minister. "The extensions will also enhance our transportation infrastructure by reducing congestion on Highways 401, 403, and the QEW." ... The province's decision to pursue the sale of the highway was announced February 20, 1998. The transaction is expected to close on May 5, 1999. The terms of the sale will also include an innovative method of regulating tolls and linking toll revenue to congestion relief. "The travelling public will be happy to know that we have struck this deal with their time and pocketbooks in mind," added Sampson. (3)

Except that our pocketbooks were emptied with this deal. As James Bow suggests, it was:

"... the worst decision the Harris government made, which remains a large and lasting legacy: the sale of Highway 407. This flawed decision illustrates the mistaken belief that Harris seemed to have that government was easy, and cuts could be made without consequences ... . provincial taxpayers were short-changed on the deal.

... The big problem was what the Harris government did with the funds raised. As the sale took place, a few months before the 1999 provincial election, the money raised ($3.1 billion) was placed into general revenues. As a result, the Harris government was able to claim that they had balanced the budget after just four years in power, and after inheriting a “massive fiscal mess” from the previous Rae administration. Unfortunately it is a simple fact of accounting that you should not use the funds raised through the sale of capital investments as operating revenue. That’s a very bad credit move, as such revenues simply aren’t sustainable. Many politicians likened this to selling the refrigerator to pay for food. The reduction in the deficit was a phantom, and Ontario’s fiscal situation deteriorated as the economy slowed ... " (4)

Now with the federal government, Clement's selling off of our assets is still his top priority. An example of this was Stelco to Vale from Brazil. Negotiators with Vale now say that they were surprised how easy it was for them. Usually when they invest in foreign companies, governments want assurances that the workers and communities will be protected. But they state that the Harper government and Tony Clement wanted nothing, and as a result we got nothing.

Federal Industry Minister Tony Clement should resign in "disgrace" for refusing to intervene in mining job losses in Sudbury, says a senior official with the United Steelworkers union. "I think (Clement) should step down," said Wayne Fraser, director of Steelworkers District 6 which represents thousands of union members in Ontario and Atlantic Canada."I think he is a disgrace to the government and to the people of Canada," Fraser said. He was reacting to Clement's statement Tuesday that the Conservative government will not take any action against Vale Inco over cutbacks at its Sudbury mining operations. (5)

This is what happens when ideology trumps common decency. They completely ignore the human and humane elements.

Social Darwinism 101.

Two-Tier Tony Clement and the Gutting of Healthcare

Footnotes:

*On August 29, 1995, Mike Harris met again with Preston Manning to discuss the possibility of forming an alliance. It would not officially take place until 2000. (Open for Business, 1997, Pg. 21)

**SNC-Lavalin was also given a large contract by Stephen Harper to help with the rebuilding efforts in Afghanistan.

Sources:

1. Open for Business, Closed to People, The Transnational Corporate Agenda, By Tony Clarke, Fernwood, 1997, ISBN: 1895686733, Pg. 33

2. Queen of the Park: She's the Premier's adviser and Ontario's leading lobbyist. Should taxpayers be concerned? By Kevin Donovan and Moira Welsh, 1999

3. PROVINCE SELLS HIGHWAY 407 FOR 3.1 BILLION US DOLLARS, UK Guardian, April 13, 1999

4. Harris Flawed Legacy. By James Bow, July 13, 2007

5. Clement Should Step Down: Steelworkers, The Sault Star, June 2009

Tony Clement Takes on the Reform Party

A CULTURE OF DEFIANCE: History of the Reform-Conservative Party of Canada

After the 1990 election, the Ontario neoconservatives had five years to build up their party. They had hired Republican strategist, Mike Murphy, to create the "Common Sense" campaign, fashioned after one he ran for New Jersey Governor, Christine Todd Whitman, right down to the 30% reduction in income taxes.

Anthony Panayi, now Tony Clement, was president of the party and acting as secretary for Harris, as they travelled the province and networked with right-wing organizations, in preparation for the next election.

But they had one stumbling block that could lead to their downfall: The Reform Party. There were several members who wanted Reform to run in provincial elections, and began making preparations for an Ontario party. Kimble F. Ainslie, who had been PC leader in Southwestern Ontario, left to form the Reform Association of Ontario, which left Clement and others worried that they could split the vote.

In their research on the 1990 election, the Tories discovered that the presence of fourth parties meant a difference between a minority and a majority government for the NDP. If the Tories had picked up two-thirds of the fourth-party vote that went to groups such as the Family Coalition Party, they would have won 10 extra seats in the legislature. Instead of only 20 seats, they would have had a far more respectable 30, leaving the NDP to form a minority government.
　
It fell to former party president ... Tony Clement to staunch the flow of votes from the Conservatives to fourth parties. The biggest fourth-party headache for the Tories was the threat of Reform running in Ontario. The federal Tories obviously had failed to respect Reform. Ontario Tories didn't want to make the same colossal blunder. Clement, son of former Ontario attorney general John Clement, gave himself the task of learning everything about the western-based party that had wreaked such havoc with his federal counterparts.

"I wanted to learn not only about them, but to allow them to learn about us," Clement recalled. "We were absolutely convinced that if they were to look at us, and look at where we were coming from, we might not be able to satisfy them on 100 percent of the stuff, but we could satisfy them on 80 percent of it. And maybe that would be enough to reduce or eliminate the threat of splitting the vote and allowing 130 Liberals to get in, just as we'd seen 98 out of 99 Liberals federally in the province of Ontario." (1)

But Clement did not have to fight this himself. A group led by Craig Chandler, Focus Federally For Reform (FFFR) (2), came to the rescue, as he would many times for the neoconservative movement. Chandler had provided input for the Common Sense Revolution and wasn't about to throw it all away now.

The Tories took a two-pronged approach. They planned to make connections with the grass roots as well as the elite of the Reform Party. Concerning the grass roots, Clement hit pay dirt when he acquired a fairly comprehensive list of every Reform member in Ontario, some 25,000 names. The Tories sent out mailings incessantly to every Reform member on that list, with letters that went a little like this.

"Hi, my name's Mike Harris. You don't know a lot about me but here's some policy. Here's where we stand as a provincial party. You might be interested in it." The plan was always to lead with policy. Grass-roots people talk about policy. There was no point telling people to vote Conservative to avoid splitting the vote. Voters have no stake in strategic voting. They simply don't care. Main Street Ontarians care deeply about issues. Reformers hate the old top-down style of politics and like discussions on policy. The Tories caught the wave. In mailing after mailing, they asked the Reformers for their opinions — on education, crime, and the deficit. They sent out questionnaires and were amazed at the number that were returned.

Kindred souls with shared goals. Besides, the Reform Party was already in trouble when it was discovered that they had neo-Nazis operating within their ranks.

"We were very, very clear though, in our dealings with them that we weren't going to change who we were for them. Mike was very clear on this. We would share information with them. We should share who we were. If they felt comfortable with us, that was their choice, come on board. We're an open party. You can join up, you can get involved in the riding associations, etc."If you do not feel comfortable with us, this is who we are, we are not going to change who we are for you, but we understand," Clement said. He stressed that there was never any intention to "out reform Reform."

"We never said, 'How can we change ourselves to make our-selves more acceptable to you?"' Clement recalled. That would have been as much an affront to Reform followers as it would have been to mainstream Conservatives. The Tories kept it simple: they shared policy statements, introduced their leader Mike Harris, and told Reformers that they were welcome to climb aboard. A lot of Reform members took up the invitation and easily integrated themselves with the Tories at the riding level. In Cambridge, the federal Reform Party candidate headed up the candidate search committee for the Tories' provincial candidate. In Durham West and in Al Palladini's riding of York Centre, Reformers were members of the executive.

In addition to courting grass-roots Reformers, the Ontario Tories set out to create a working relationship with the movers and shakers within the federal Reform Party. Mike Harris met three times with Reform Party leader Preston Manning, the first meeting taking place in December 1993. They met again on 3 May 1994. At that time, Harris and Clement talked to Manning, his campaign manager Rick Anderson, and Ed Harper, the only Reformer from Ontario, prior to the release of the Common Sense Revolution. They shared with Manning and his people their ideas on welfare reform, tax cuts, and deficit reduction, and they asked the Reformers if they had any ideas which they wanted to share with them. The provincial Tories needed Manning and Reform on side. More specifically, they needed to spell out to Manning that there was no room on the right for a fourth party in the Ontario election. (Before the Tories left Ottawa, they discussed their radical plan with Tory leader Jean Charest, his policy gurus, and Conservative senators.)

The third phase of the campaign to deal with the Reform threat took place the day after the launch of the Common Sense Revolution in the spring of 1994. Harris met with Manning and his people and then the Tory caucus. They invited Jean Chretien and the Liberals, but they were too busy. Ah, well. Essentially, said Clement, they were treating the federal Reform Party with respect, while not trying to pretend to be something they were not. As a result, Manning decided not to branch into provincial politics. In October 1994, Tory efforts paid off. In an official vote at the Reform General Assembly, close to 70 percent of the members from Ontario and two-thirds of the Canada-wide membership voted against running candidates in
provincial elections.

Clement attributed the higher vote in Ontario to the massive effort which the Tories had made to get their message out to Reform members in that province. There were no deals struck, no high-powered strategic discussions. It was a matter of each leader setting out policy and forging informal links. Formal ties were far less important than getting to know each other. And it worked. Reform stayed home during the 1995 election. (1)

Ainslee was not happy, and accused the Harris team of sabotaging him. The results of the election were 82 seats for Tories, 30 for the Liberals, and the NDP were reduced to 17.

Mike Harris and Ontario Under Corporate Rule

Sources:

1. Right Turn: How the Tories Took Ontario, By Christina Blizzard, Dundern Press, 1995, ISBN 1550022547, Pg. 64-67

2. What are People Saying About PGIB, PGIB Website, Accessed July 23, 2010

Mike Harris and Ontario Under Corporate Rule

Almost immediately after Mike Harris and his team, with the help of Preston Manning and the Reform Party; won the election in 1995, they put their agenda into high throttle.

Where Stephen Harper suggested that he must move incrementally to avoid scaring people off, Harris and his young radicals, had no such inclinations.

They made it clear that Ontario would be changing the way it did business and priorities were about to shift.

Though they claimed to have consulted ordinary Ontarians to draft their Common Sense Revolution, that was absolutely false. The Common Sense Revolution was created by a Republican strategist, Mike Murphy, and promoted by the National Citizens Coalition, and policy input came from right-wing organizations with ties to multi-national corporations. And Ontarians didn't know what hit them.

It was no longer the prime role of government to intervene in the marketplace on behalf of the public interest to stimulate job creation, redistribute wealth through social programs, or ensure that the industrial sector met environmental standards. Instead, the prime role of the Harris government was to serve the interests of big business by providing a favourable climate for investment through lower corporate taxes, lower wages, lower social spending, and lower environmental standards. The democratic rights of citizens—to adequate food, clothing, and shelter, or education, employment, and health care, or a safe environment, social equality, and decent public services—were hijacked by transnational corporations. (1)

And Harris and his team knew full well what they were doing:

Mike Harris is not only aware of this transnational corporate agenda but is anxious to ensure that Ontario accommodates to the new economic and political order. Indeed, this may have been what the architects of the Common Sense Revolution really had in mind when they drafted their platform for Ontario's future. After all, the main theme behind the Common Sense Revolution is the call to re-invent the role and responsibility of government in Ontario. While the idea of a "limited" and "downsized" government, along with a 30 percent slice in personal income tax, was sold to Ontario voters during the election, there was a lot more to the Harris agenda for "reinventing" government. Simply put, the government was getting out of the business of ensuring that the basic rights of Ontario citizens were met regarding employment, housing, education, health care, environmental safeguards, and social equality. Instead, the government's prime responsibility is to secure the kind of economic and social conditions required to make Ontario an attractive place for profitable transnational investment. Under the Common Sense Revolution, therefore, the role of government is being re-invented and re-engineered to serve the interests of transnational capital. (1)

But if this wasn't exactly what voters had in mind, Guy Giorno's Omnibus Bill * was a kick to the groin.

Yet, the cornerstone of the Common Sense Revolution, namely, the model of corporate government which Mike Harris has in store for Ontario, was largely unveiled through the infamous Omnibus Bill. Introduced as the Savings and Restructuring Bill, it called for amendments to some forty three separate pieces of legislation on the Ontario statute books. As Toronto Star columnist Thomas Walkom observed, the Harris government's Omnibus Bill served to centralize power in the hands of the cabinet to an unprecedented degree while, at the same time, transferring power into the hands of corporations through extensive forms of
deregulation and privatization.

In other words, the Harris agenda is not to eliminate government, as many of its critics initially charged, but to re-engineer government to serve the interests of transnational capital. As Walkom describes it:Harris is getting government out of the business of helping the poor. He is getting government out of the business of environmental and business regulation. But where Harris figures state action is needed to promote private enterprise, government power is being strengthened." (1)

This was of grave concern to the opposition, as MPP James Bradley pointed out at the time:

"I notice one provision of this bill; it's the only new provision, and this is dangerous. Some of you who have been around this House for a while will know this, and some in the cabinet must be concerned. The new provision eliminates the policy and priorities board of cabinet, effectively giving more control of government decision-making to the Premier's office. Well, we know who that means. That means Guy Giorno's got more power**..." (2)

And with the Harris government, lobbyists had more power than the elected MPPS. Though Leslie Noble moved back to the corporate sector after the election, she was in contact with the premier's office on a daily basis and was directly involved in much of the decision making.

When Mike Harris was elected Premier, Leslie Noble became the hottest power broker in Ontario. The 37-year-old is one of Harris' closest advisers and runs the leading lobbying firm dealing with the Ontario government. No other lobbyist has Noble's access to Harris. And no other top political adviser to Harris is a lobbyist. Noble helped write the Common Sense Revolution, ran Harris' successful 1995 election campaign and will run the Tories' next campaign, expected later this year. Noble has no official job with government but regularly briefs Harris, his cabinet ministers and Tory MPPs on what needs to be done politically to stay in power. In corporate circles, Noble is the lobbyist Ontario business executives hire when they want the Harris government's ear. (3)

These young radicals who met at the University of Toronto, including Tony Clement, Tom Long and Leslie Noble, did very well under a corporate run government. But they were only getting started.

A Clever Distraction: "Any Palladini is a Pal of Mine"

Notes:

*Much like the disastrous Omnibus Bill he wrote recently for Stephen Harper.

**Since becoming Stephen Harper's chief of staff, Guy Giorno has also centralized power to the PMO, where he has more say over what is going to happen than the prime minister.

Sources:

1. Mike Harris's Ontario: Open for Business, Closed to People, The Transnational Corporate Agenda Behind the Harris Regime, By Tony Clarke, Fernwood, 1997, ISBN: 1895686733, Pg. 28-36

2. Official Records for June 23, 1998, Legislative Assembly of Ontario, Discussion Bill 25

3. Queen of the Park: She's the Premier's adviser and Ontario's leading lobbyist. Should taxpayers be concerned? By Kevin Donovan and Moira Welsh, 1999