Sunday, September 7, 2008

Jim Flaherty's worst nightmare

Posted: September 07, 2008, 2:47 PM by Diane Francis
Income Trust Debacle, Greed, Canadian Politics

Canada's Finance Minister, Jim Flaherty, has made a number of foolish policy decisions during his tenure and his nemesis, investment banker Brent Fullard, is taking a run at him in this Oct. 14 election. The sparks will fly and Mr. Flaherty had better bone up on his debating skills and go to school on the economics, taxation, forex, stock market and investor implications which he obvious did not do before making two egregious errors:

1. First and foremost, the income trust fiasco (which wasn't necessary and damaged 2.5 million Canadians Conservatives who invest in the stock market; damaged the junior oil sector by eliminating an important player and damaged Canada's taxpayers by sparking a leveraged buyout mania of income trusts. Damage will be long-lasting because the buyers are private equity and foreigners which have borrowed heavily and will write off all the cash flow against debt service costs, thus avoiding taxes for decades.

2. Scrapping withholding taxes to foreigners who are using Canadian-generated cash flow to service their foreign debts. This is a made-in-Goldman-Sachs policy which enhances the hollowing out of Canadian corporations.

Rumors are also that Buzz Hargrove will run against Flaherty in the car-heavy riding, but massive grants to GM may forestall that. Besides, his candidacy might split the vote which would otherwise go to the angry Mr. Fullard.

Here is Brent's press release and contact information:

WHITBY-OSHAWA, Sept. 7 /CNW/ - The Whitby-Oshawa Federal Liberal Riding Association today announces that Brent Fullard will be the candidate for theriding of Whitby-Oshawa, subject to confirmation at a candidates meeting scheduled for Tuesday September, 9, 2008.

Known for his tireless enthusiasm and dedication, Brent Fullard has devoted considerable time on a strictly volunteer basis as the CEO of Canadian Association of Income Trust Investors / Taxpayers, a group he founded to advocate for accountability and transparency from the Harper government and to reveal the government's lies about so-called tax leakage.

In 1979, immediately upon graduation from Queen's University, Brent began work at the General Motors Car Assembly Plant in Oshawa.

Thereafter, he spent over 20 years in Canadian capital markets, recently as Executive Managing Director and Head of Equity Capital Markets for BMO Nesbitt Burns and presently as the Head of Catalyst Asset Management, who were active in their opposition to the junk bond leveraged buyout of BCE before the CRTC and the Supreme Court of Canada.

Brent's experience also covers the Canadian oil and gas industry in the time he worked at Dome Petroleum in the early 80's.

Brent Fullard stated today: "I look forward to campaigning in Whitby-Oshawa against the practices and policies of the Stephen Harper government and outline why I believe Ontario is a great place to live, work and invest, and how we can make it even better."

Brent has been married to Christina for 20 years, and together they have three teenaged children.

For further information:
(647) 505-2224

Jim Flaherty challenge: debate income trusts - Diane Francis