Saturday, February 22, 2014

Economic Un-Development


"Other jurisdictions could be far more attractive," Maria Besso, Coldstream councillor, stated in response to yet another round of water rate increases.  Base fee increases of 24 per cent and consumption increases of 30 per cent to be exact (for my category.)  Her comment would lead readers to believe that water plan screw-ups are synonymous with only the North Okanagan.
Perhaps that's true.

But no matter the topic, it seems we can always rely on director Mike Mcnabb for a pie in the sky comment, and he didn't disappoint on his agricultural rate (last year's increase was a paltry 3 per cent) comment:  "We have to protect agriculture because it's economic development."

Huh?
Oh, for heaven's sake, agriculture is NOT economic development!
Never has been.
(We know of which we speak, because we farmed for ~18 years).

Economic development is a segment--any segment--of society that pays its way, or that of others.
Farming does neither.

Then there's Vernon councillor Juliette Cunningham's comment, as reported in the Morning Star February 21st:  "When you compare the cost of tap water to bottled water, tap water is a lot less."  That nonsensical ebullience doesn't even deserve a comment here.

Ya right!
Back to the non-farming economy...you know...the economy that needs no-one else in any other category to pay their way for them.

As business overhead increases, undevelopment occurs, albeit slowly at the beginning because there is (presumably) profit to dig into.  Ultimately, P&Ls show decreased profit and business owners have to make tough decisions. 


Overhead is a business expense--a cost category--that can't be decreased by working harder.
Overhead is fixed costs like hydro to keep the lights on and the food refrigerated.
Overhead is employee wages so that customers receive service that matches the need of their visit.
Overhead is maintaining and repairing equipment and facility amenities that customers expect a business to offer.
Overhead is being able to pay back the bank that helped you set up your business in 2 months versus 14 years if you had to save money to start up (thank God we no longer have those bank costs).
Overhead is property taxes, and numerous other "must pays".



Overhead is all those things.
And when overhead costs spike in a water-dependent business like a farm or a golf course, the results can be uber dramatic.

You could actually say that farming is the result of undevelopment years ago.
Yup.
Farming, for years, hasn't been able to pay the true cost of their property taxes, so residential and commercial and institutional customers pay it for them.
Farming, for years, hasn't been able to pay the true cost of their water consumption, so residential and commercial and institutional customers pay it for them.
Farming, for years, hasn't been able to produce consumable products without legislation intended to keep them viable, including the Right to Farm Act in conjunction with the Agricultural Land Reserve.  And with all that, most farmers have given up.  Farmers, feeling over-regulated, state the only power left to them is to quit farming.

Is that the definition of juxtaposition?
Cynicism?
Irony?

I'm reminded of this blog's January 14th post entitled "Tom Dick and Harry", in which water treatment in Mexico is referred to:  "Even Mexico, of all places, only chlorinates water intended for consumption, not water for car washes and nurseries and golf courses, which is the American model.  But we chlorinate it all.

Chlorinating water that lands on the ground.
And now we're going to filter it all.

Even the 90 per cent of Duteau Creek water that goes onto agriculture and outdoor commercial and institutional uses.

Oh yeah...remember to remove agriculture from the true cost of water because they're subsidized.

"I'll reduce overhead by using dry shampoo," offers Kia.

So...we wonder which as-yet-unbuilt-here category will soon subsidize commercial, or residential, or institutional. 
 
Because of the undevelopment of the North Okanagan.

Any takers?

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