Photos by Aspi Wadiwalla |
May 19, 2011
Hon. Dalton McGuinty, Premier
Legislative Building
Queen’s Park, Toronto, Ontario
M7A 1A1
Dear Premier McGuinty,
We on behalf of National Forum of Civic Action (NFCA) are constrained to approach you regarding the ever increasing cost of auto insurance premiums as well as ever spiraling price of gas that is practically hitting the common Canadians hard.
NFCA is a non-profit, non-political, non-sectarian organization recently constituted by community members affected by diverse issues in the Canadian economy which have serious impact on the lives of Canadians. The mission of NFCA is to identify and highlight issues, which have not been given attention to by the political bodies in Canada, and to seek to redress them with one voice of the Canadian public. NFCA represents the common Canadian citizens.
Auto-Insurance:
The Forum wishes to bring to your attention a major concern of the public, namely iniquitous auto-insurance premiums, which the inhabitants of the Province of Ontario are forced to pay. We wish to lodge a strong protest with the Government of Ontario against outrageous and well nigh punitive rates of insurance premiums imposed by the insurance companies. The insurance rates have kept rising in recent years without any rational basis.
It may be pointed out that the average insurance premium paid by the inhabitants of the Province of Quebec is around $50 per month. In contrast, the average rate of premium imposed by insurance companies in the Province of Ontario is around $250 to $300 per month. This shocking differential of insurance premium between the two provinces is hurting the public and the gap needs to be bridged.
During the regime of Mike Harris, in the Province of Ontario, a cap was put on the insurance premiums. This cap was wrongfully removed with the advent of the Liberal government. This has worked considerable hardship on the people of Ontario. We strongly recommend re-introduction of the cap on the prices. We further recommend that a watchdog committee be set-up to monitor the rates of premium across the board.
Gas Prices:
Regarding the gas prices, we had approached earlier as well on April 28. The Forum wishes to bring to your attention that the current top most priority of its members and that is to control the spiraling gas prices. The gas prices have been rising exponentially over the last year and a half, which has had an adverse effect on the standard of living of Canadians, causing extreme hardship. As mentioned earlier, it has been observed that the prices of crude oil have steadied, and in fact, are going down and cannot be the reason and basis for the rising gas prices.
The fact that as after we made the submission on April 28, there has been marginal decrease in gas prices does not negate the fact that public is being gouged. The public, as a first step to making the changes, appeals to you to drop the prices to below $1.00 a liter. Incidentally, 37.5% of the gas price consists of tax, which is a major component thereof. The government needs to seriously consider scaling down the tax portion.
Your response that since it is a federal subject, you can not take action is not acceptable. You can take some action at your level and also take up the issue with other Premiers and Prime Minister.
The reposted rip off in different cities is almost criminal in nature and needs proactive action. The public had observed that in the past when prices of crude oil were rising, the gas prices were being increased proportionately. Subsequently, the international crude prices dropped considerably, and there was no proportionate drop in the gas prices. The public needs the answer as to why the prices of gasoline are being manipulated solely to profit the oil companies.
As Canada has itself large resource of crude oil, there is apparently no loci standi for the gas prices to be dependant on international prices. We can follow the example of Saudi Arabia in this respect, where the domestic gas prices have no relevance to international prices.
Canada has two major natural resources- water and crude If it has banned the export of water, why can it not ban the export of crude till the domestic needs arte met at a reasonable price? The logic of market economy and international prices is not acceptable as prices are lower just across the border.
OUR DEMANDS:
We request that:
We request that:
1. There be an immediate across the table cut back on insurance premiums by 25%
2. That the Government. orders immediately caps the premiums and directs the insurance companies not to increase the premiums, which are economically stifling.
3. That a watch dog organization be set up to advice the increase, if any in future. This committee should have equal representation from the Insurance companies, Government and public.
4. That the HST on Gas is removed immediately
5. Immediate control prices by delinking them from international prices, and by making the gas companies absorb some costs.
6. Bring down the prices to Nov. 2010 level
In case the Government fails to act within the next 15 days, we shall be forced to adopt further measures. We would initiate our further course action by undertaking a FAST UNTO DEATH from June 6. In case of any eventuality, it shall be the entire responsibility of the Government, as ample notice has been given so that government can take action to meet our just demands.
Please try to understand the issue that is today afflicting the masses and take action on lines suggested above to avoid unseemly situations. We are releasing the letter to media for public awareness.
Yours,
Dr. Bikram Lamba Ranbir Chauhan
Chairman Executive Director National Forum for Civic Action of Canada
Forum National Pour l'action Civique du Canada
300 Webb Drive, Suite 715, Mississauga, ON L5B 3W3
Ph. 416 910 2000; Email: nfca2011@gmail.com
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