Thursday, November 23, 2023

Nine times the U.S. Army Corps of Engineers miscalculated badly at expense of taxpayers, wildlife



by ProPublica for Daily Kos
Sunday, November 19, 2023 
Kevin Hecht takes a picture of the New Orleans skyline from the top of a levee in the Holy Cross neighborhood as rain from the outer bands of Hurricane Barry moves into the area on July 12, 2019 in New Orleans, Louisiana.


by Tony Schick
ProPublica and Oregon Public Broadcasting

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.


Since it was founded in 1802, the U.S. Army Corps of Engineers has taken on some of the nation’s most ambitious attempts to manipulate nature for the benefit of human beings. The agency’s motto — “Essayons!” — translates from French to “Let Us Try!” And try it does.

The Corps has plunged ahead time and again with billion-dollar construction projects based on assumptions that don’t exactly pan out. In some cases, the agency goes on to spend billions more restoring the natural environment it manipulated.

We reported in late October on the Corps’ $1.9 billion proposal to remedy the fact that its 13 dams on the Willamette River in Oregon have helped drive iconic salmon to the brink of extinction.

Trouble is, that recovery plan is also based on assumptions that might not match reality. Central to what the Corps proposes is a pair of fish collectors, which the agency describes as essentially giant fish vacuums. Salmon the size of baby carrots would be whooshed into it, trapped in tanks and trucked around dams on their migration to the sea. The devices are to be built on a massive scale never before tested, and the Corps estimates a single collector could cost up to $450 million. A recent scientific review concluded that the kind of approach the Corps is pitching in Oregon won’t save salmon but “only prolong their decline to extinction.”

The Corps says it’s the best option for helping salmon while keeping dams operational for hydropower customers, boaters and other users of the Willamette systems — although many of those users say they would be fine with lowering reservoirs and curtailing hydropower if it helped fish.

The Oregon story is one example in a long line of Corps projects that have drawn criticism over the years.

In 1971, the New York Times editorial board declared “the American people are becoming increasingly fed up with the expensive, boondoggling, make‐work, environmentally destructive projects that to a large degree characterize the civilian activities of the Army’s Corps of Engineers.”

Three decades later, a Washington Post investigation found the Corps pursued “billions of dollars’ worth of taxpayer-funded water projects, many with significant environmental costs and minimal economic benefits.”

The Government Accountability Office concluded in 2006 that the Corps’ work was “fraught with errors, mistakes, and miscalculations, and used invalid assumptions and outdated data.”

ProPublica, with its partner Reveal from the Center for Investigative Reporting, has reported that the Corps knew since 1852 that levees force rivers to run higher and faster and yet persisted in using them for flood control.

When asked for a response to critics, the Corps this week issued a statement in which it acknowledged that over its long history, “there have been challenges associated with some of our projects. As an organization, we are always striving to be better.”

The agency said lessons learned from past projects have prompted changes to planning processes and the incorporation of “independent peer review.” The Corps said it’s working to modernize business methods, materials and designs while evolving in its approach to environmental and social concerns. Corps leaders are committed, the statement said, “to safely deliver projects, on time and within budget.”

Here are some examples of Corps projects that didn’t go as expected.
New Orleans Levee System

Year begun: 1965

Location: New Orleans

The plan: Prevent flooding during coastal storms by building a series of levees around Greater New Orleans.

What actually happened: In 2005, design flaws allowed a storm surge from Hurricane Katrina to breach the walls of the $738 million levee system that the Corps had built over the preceding four decades. The storm and flooding killed 1,392 people and caused damage totaling an inflation-adjusted $190 billion. The American Society of Civil Engineers called the levee failures “the worst engineering catastrophe in US History,” and the Corps later acknowledged its levees were “a system in name only.”
Tennessee-Tombigbee Waterway

Year begun: 1971

Location: Tennessee, Mississippi, Alabama

The plan: Build a 234-mile artificial waterway connecting the Tennessee River to the Tombigbee River in Alabama, creating a new channel to the Gulf of Mexico and an estimated 208,000 new jobs in economically depressed areas of Alabama, Mississippi and Tennessee.

What actually happened:The Associated Press reported in 2019 that the Tenn-Tom, as it’s known, “has never come close to traffic projections used to sell it to the public, and poverty rates have increased in most of the counties it flows through in Mississippi and Alabama.” New jobs totaled 29,000, a study by Troy University found — or 179,000 less than early projections. The project cost $2 billion.
St. John’s Bayou-New Madrid Floodway

Year begun: 1986

Location: Missouri Bootheel

The plan: Control flooding in southeast Missouri with a construction project that would include levees and two giant rainwater pumps and cost $165 million.

What actually happened: The project was never completed. The Corps’ own lobbyist described the idea as an “economic dud with huge environmental consequences,” The Washington Post reported in 2006. According to earlier reporting by the Post, the Corps’ efforts were expected to drain 36,000 acres of wetlands and deliver virtually no actual flood protection.
Olmsted Locks and Dam

Year begun: 1988

Location: Olmsted, Illinois

The plan: Build a lock and dam system on the Ohio River to reduce delays on one of the most commercially trafficked water routes in the country, near the meeting of the Mississippi, Ohio, Tennessee and Cumberland rivers. The project was scheduled to be finished in 1998 at a cost of $700 million. The Corps projected the locks and dam would generate $920 million in economic benefits annually.

What actually happened: The project wasn’t completed until 2018 — 20 years later than expected. The cost, $3 billion, was four times what the Corps said it would be, and the economic benefits were $236 million, or about one-fourth the original estimate. In 2021, a collection of farmers along the river sued the federal government, claiming the project had increased the frequency and severity of flooding. The Corps sought to dismiss the suit, arguing the river’s flood pattern had not been severely altered. The case is pending.
Savannah Harbor Dredging

Year begun: 1999

Location: Savannah, Georgia

The plan: Dredge Savannah’s harbor to increase commercial shipping. When approved in 1999, the cost was pegged at $459 million.

What actually happened: The Corps was sued by environmental groups and state environmental regulators in South Carolina, where Corps officials were planning to dump potentially toxic dredge spoils. The Corps tried to get the lawsuit dismissed but eventually reached a settlement that included additional pollution controls. The effort took two decades thanks to repeated delays. Meanwhile, the cost more than doubled, to $973 million.
Florida Everglades Restoration

Year begun: 2000

Location: Florida Everglades

The plan: Undo the damage done by engineering projects that degraded the famed ecosystem to half its original size. This damage occurred decades earlier, when the Corps was authorized to build levees around the Everglades and drain the wetlands. Key components of the restoration effort were to include building a massive reservoir the size of Manhattan and a series of artificial marshes meant to funnel clean water into the Everglades. The work would cost $8 billion and take 30 years to complete.

What actually happened: The Corps’ subsequent estimates put the project at $23 billion and 50 years to complete. Two decades passed before the Corps and state officials finally broke ground on the reservoir. According to the Miami Herald: “Even the Army Corps, which is building the reservoir, has signaled it’s worried about whether the finished project will meet the water quality standards it’s supposed to. If the new project missed the mark, it’s possible the ‘crown jewel’ of Everglades restoration might not work.”
Controlling Columbia River Salmon Predators

Year begun: 2015

Location: Mouth of the Columbia River, Oregon-Washington border

The plan: A colony of double-crested cormorants had settled on a set of islands that the Corps built up with soil it dredged from the riverbed, and the birds were feasting on endangered juvenile salmon as they tried to make their way to the ocean. To save endangered fish, the Corps decided to shoot the birds and put oil on their eggs to prevent them from hatching.

What actually happened: Killing the birds drove the colony to a bridge several miles upriver, where the cormorants ate even more salmon than before. Then the birds inundated the bridge with their droppings, causing an estimated $1 million in damage each year.
Coast Fortification in New Jersey

Year begun: 2016

Location: Margate, New Jersey

The plan: Construct sand dunes as part of a statewide effort to fortify the coast after Hurricane Sandy in 2012, at an estimated cost of $63 million.

What actually happened: Margate residents had resisted the project, arguing that an existing retaining wall was sufficient and that dune construction would cause drainage problems for the seaside town. Their fears bore out in 2017, when water pooled behind newly constructed dunes. The town sued. During the trial, according to The Philadelphia Inquirer, a Corps official acknowledged the standing water had surpassed agency predictions and that the agency wanted to continue building, despite being at a loss for solutions. Margate Mayor Michael Becker told the Inquirer the emotional toll of the beach construction was “worse than Hurricane Sandy.” After finding that the town’s concerns were “understandable and cry out for help,” a judge ruled construction could continue if the Corps fenced off ponds and built raised walkways for residents.
Dredging the Mississippi

Year begun: 2018

Location: Mississippi River near New Orleans

The plan: Dredge the Mississippi, deepening the 45-foot-deep channel to 50 feet at the river’s mouth to allow for more shipping.

What actually happened: After the $250 million dredging was completed in 2022, saltwater from the Gulf of Mexico started entering the river. The Corps had known for decades that its continued efforts to deepen the river channel would trigger an intrusion of saltwater, according to The New Orleans Advocate. The agency predicted an underwater dam could contain the invading saltwater, but, according to Bloomberg, this year it failed to do so. To fix the drinking water problem, New Orleans is now building a pipe to pull freshwater from farther upriver, which Bloomberg reports could cost $100 million to $250 million.
I AM UNDERWHELMED
IDF Acknowledges Discrepancy Between Videos Showing Hamas Weapons Inside al-Shifa Hospital, Denies ‘Manipulating’ Media

A news report from the hospital showed two rifles behind an MRI machine. An earlier Israel Defense Forces video showed just one

Published 11/18/23
Aaron Feis


The Israel Defense Forces responded Saturday to a report that shows a discrepancy between two videos of the same weapons found inside the al-Shifa hospital, which the IDF has been saying for weeks is a Hamas stronghold.

Comparing an IDF video of the location with a later Fox News report from the same facility, CNN noted in a Saturday report that just one rifle was visible in the former, while two were visible in the latter.

In a statement to CNN, the IDF said that the discrepancy was due to the addition of “more weaponry and terrorist assets [that] were discovered throughout the day.”
An aerial view shows the compound of Al-Shifa hospital in Gaza City on November 7, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas.
BASHAR TALEB/AFP via Getty Images

“Suggestions that the IDF is manipulating the media are incorrect,” the statement continued. “We are acting with full transparency whilst maintaining the safety of our troops and operational readiness.”

Israeli troops took al-Shifa earlier this week after a military operation that drew international scrutiny. The IDF has asserted that al-Shifa served as a base of operations for the Hamas terrorists who launched a brutal attack on Israel on October 7, indiscriminately killing over 1,200 people and taking an estimated 240 more back to Gaza as hostages. Palestinian officials have denied this characterization, saying that the only people at the hospital were medical workers, patients and some 60,000 displaced civilians seeking shelter.

After Israeli troops pushed into the hospital complex on Wednesday, IDF spokesperson Lt. Col. Jonathan Conricus guided a video tour of its MRI building using “one shot, no editing” to present what he called evidence of Hamas’ prior presence there.



About two minutes into the video, Conricus led the cameraperson to the rear of an MRI machine and gestured to a “grab bag” he said was intended for a Hamas combatant to “grab and go” at a moment’s notice.

Conricus partially opens the bag to clearly reveal part of one AK-47 rifle.
IDF spokesperson Lt. Col. Jonathan Conricus shows one AK-47 rifle behind an MRI machine at Gaza's al-Shifa hospital complex.Israel Defense Forces/X


“There is an AK-47. There are cartridges, ammo. There are grenades in here. Of course uniforms,” he said. “All of this was hidden very conveniently, secretly, behind the MRI machine.”

Conricus’ video was shot during daylight hours and posted to X — formerly Twitter — on Wednesday. At one point in the video, his watch can be seen indicating it was 1:18 p.m.

Hours later, the IDF led Fox News foreign correspondent Trey Yingst through the same facility.



In his report, posted to X early Thursday, Yingst described the walkthrough as being held “in the dark of night.”

Yingst and his cameraperson were led to the rear of what appeared to be the same MRI machine, where two rifles were now visible.
Two rifles are seen behind an MRI machine at the al-Shifa hospital complex in Gaza.Fox News/X

When a BBC journalist was guided through the same room on Thursday, two guns were still visible in the same spot, according to CNN.

Israeli troops continued to operate at al-Shifa on Saturday, another IDF spokesperson, Rear Adm. Daniel Hagari, told the Times of Israel.

Hagari — who, according to a recent poll, is now seen by Israelis as significantly more trustworthy than Prime Minister Benjamin Netanyahu — told the outlet that the IDF had four goals at the hospital: gathering information on Hamas-held hostages, finding Hamas weapons and command rooms, locating Hamas operatives in the area, and to destroying the subterranean Hamas tunnels that the IDF says sit below al-Shifa.


Hagari said Saturday that the IDF would “publish material soon” on its efforts.

The ongoing war began on October 7 with Hamas terrorists’ brutal invasion of Israel, which saw approximately 1,200 people killed, over 200 more believed kidnapped and atrocities committed on unarmed civilians.

Since, Israel has responded with a tight blockade around Gaza, and a series of airstrikes and ground incursions. According to Gaza’s Hamas-run health ministry, over 12,300 people have been killed in Gaza, most of them also civilians. The United Nations’ chief on human rights last week accused both Hamas and Israel of committing war crimes.

Video Shows Israeli Soldier Tossing Stun Grenade into West Bank Mosque During Call to Prayers

The 18-second video was shared by a Hamas-affiliated Palestinian news outlet and quickly fueled anti-Israel sentiments online

Published 11/18/23 
Christopher Gavin

An Israeli soldier caught on video tossing a stun grenade into a West Bank mosque during a daily call to prayers has been suspended by the Israel Defense Forces, as footage shared by a Hamas-affiliated Palestinian news outlet circulated online.

The suspension of the reservist over the incident, which took place approximately two weeks ago, was confirmed by the IDF to Israeli outlet Ynetnews on Saturday.

"This is a serious incident that goes against the values ​​of the IDF," a statement issued to the outlet read. "Upon learning of the incident, the soldier was suspended from his post. He will be thoroughly investigated and [disciplined] accordingly."

The video footage was posted on social media by the Quds News Network, which reported the soldier asked a friend to film the clip as he threw the flash bang grenade.

The 18-second video was reportedly taken in the village of Budrus in the Israeli-occupied West Bank territory during what appears to be an early-morning call to prayers. Ynetnews reported Saturday that the incident took place approximately two weeks ago

In the clip, the soldier can be seen looking back towards the camera before he activates the stun grenade and jogs toward the door of the mosque.

The soldier is then seen tossing the grenade, which goes off as he casually walks back toward the person holding the camera.

Lights inside the mosque appeared to be on, but it was not immediately clear if anyone was inside.

After the grenade goes off, there seems to be no reaction, from the soldier or anyone else, as the area is quiet in the remaining few seconds of the clip. No apparent damage to the building can be seen.



The short clip quickly spurred a new wave of anti-Israel sentiments online, as the original post amassed more than 2 million views within the first four hours after it was posted.

The video will likely only further escalate the tense and fraught relationship between Palestinians and Israeli setters in the West Bank, which has suffered its worst outbreaks of violence in years since the Israel-Hamas war began last month.

According to the United Nations, 186 Palestinians, including 51 children, have been killed by Israeli forces and another eight have been killed by Israeli settlers in the West Bank.

Meanwhile, four Israelis have been killed in attacks by Palestinians, the UN reported.

Most of the fatalities since Oct. 7 happened during confrontations after Israeli search-and-arrest operations, though others happened in demonstrations expressing solidarity with Gaza and during alleged attacks on Israeli troops or settlers, the UN said.

On Thursday, three gunmen reportedly with ties to Hamas were killed after they opened fire at a checkpoint between Jerusalem and the West Bank's Bethlehem, killing an Israeli security officer and wounding five others.

Earlier this month, the IDF said it opened an investigation into videos allegedly recorded by Israeli soldiers showing themselves abusing and mistreating Palestinian detainees in the West Bank.

The clips show men wearing handcuffs and blindfolds as soldiers kick or stomp on some of them.

Amid the rising reports of violence, President Joe Biden condemned "extremist settlers" last month for "pouring gasoline" on the conflict, which he's repeatedly said should be resolved through a negotiated "two-state solution."

CRIMINAL CAPITALI$M
‘Silicon Valley’s Party Animal’ Convicted on Fraud and Money Laundering Charges

A federal jury found his schemes resulted in approximately $18.8 million in 'missing money'

Published 11/18/23 
The 39-year-old Michael Rothenberg was known for extravagant parties and his mixing of business and pleasure as spoofed in HBO’s “Silicon Valley.”LinkedIn

Aformer San Francisco venture capitalist dubbed “Silicon Valley’s Party Animal” was convicted earlier this week on several charges, including wire and bank fraud, and money laundering.

Michael Rothenberg, 39, known for extravagant parties and his mixing of business and pleasure as spoofed in HBO's Silicon Valley, was convicted by a federal jury of committing wire and bank fraud totaling nearly $19 million in “missing money,” according to the U.S. Department of Justice.

Rothenberg committed wire fraud with millions of dollars of investments into his venture capital funds, and later committed money laundering by transferring those funds through several bank accounts, the jury found.


He was also found to have defrauded Silicon Valley Bank, which was acquired by First Citizens Bank in March after its collapse, deceptively obtaining a $4 million line of credit to pay back a shortfall at one of his funds.

He founded Rothenberg Ventures Management in 2012, a venture capital management company, which for six years managed his four venture capital funds aimed at investing in Silicon Valley start-ups, specifically in virtual reality technologies. In 2015, however, Rothenberg started his own company, River Studios, to produce content used in virtual reality headsets.

While he told employees and investors that the studio had been “self-funded” and that no venture capital funds were used to get the company off the ground, Rothenberg used venture capital fund money to pay for the studio’s operations, according to evidence at the trial.

A 2015 Bloomberg report, which first gave Rothenberg the "party animal" title, described the lavish culture at the then three-year-old firm, including hot-air balloons rides on wine tours of Napa Valley, visits to San Francisco's Samovar Tea Lounge and free seats to Giants and Golden State Warriors games in Rothenberg’s luxury boxes

In 2018, Rothenberg settled civil charges with the Securities and Exchange Commission and agreed to a five-year ban from the brokerage and investment advisory business, without admitting or denying the charges. The SEC said Rothenberg and his firm misappropriated millions of dollars in funds, including an estimated $7 million of excess fees, over three years.

Rothenberg allegedly used the funds to finance a racing car and crew and threw private parties and events at high-end resorts, among other extravagant expenses, using the misappropriated funds, according to the SEC complaint.

Rothenberg’s sentencing is scheduled for March 1 and he remains out of custody on pre-trial bail. He could face a maximum of 60 years in prison and about $1.5 million in fines across all charges.

CRIMINAL CAPITALI$M BUSINESS AS USUAL
 UK
Gas boilers poised to become largest nitrous oxide emitters by 2025

A HOMEOWNER TURNING DOWN THE TEMPERATURE OF A GAS BOILER
PA WIRE
5 DAYS AGO

Gas boilers are on track to become the largest nitrous oxide emitters in the capital by 2025, experts have warned.

Boilers currently account for around 21 per cent of nitrous oxide emissions across London and environmentalists warn it could be come an even bigger source of local pollution in the near future.

The post-pandemic shift to remote working is believed to be one of the factors that has driven an increase in emission forecasts.

Experts have called for the Government to phase out gas boilers and switch to alternative measures such as heat pumps.

It comes after a cold snap sent demand for gas surging to a peak of 135 million cubic metres last month - the most since February this year and the largest in an October since 2021.

The National Infrastructure Commission (NIC) says heat pumps are the only viable alternative to heat homes en masse and that millions of households should receive subsidies worth more than £6bn to encourage their adoption.

It has called for £1.3bn a year to be spent on heat pumps for poorer homes and £1.9bn on grants of £7,000 each for other homeowners to buy them. A further £3.2bn a year should be spent on energy efficiency and heat pump installations for social housing, the NIC said.


Mark Maslin, a Professor of Earth System Science at UCL, said: “Our world is changing and it is changing for the better - but it means we must be critical of old technology and embrace newer cleaner and am safer technology.

“For example gas boilers are not only a significant cause of greenhouse gas emissions, they are also a risk to public health. In fact, by 2025, they will be the largest contributor to NOx emissions, overtaking car

“There is compelling environmental and public health arguments in favour of legislative action to help homes transition away from gas boilers and converting to options such as thermal storage boilers and heat pumps.

“It is a double win; better for our air in London, and better from our greenhouse gas emissions. If we combine this with switching from gas cooking to electric cooking we will greatly improve indoor air quality for millions of people.”

Cleantech company tepeo has called for the removal of gas boilers and increased adoption of low-carbon heating solutions.

tepeo Founder and CEO Johan Du Plessis said: “A technology-agnostic approach to low-carbon heating is essential if we are to accelerate the UK’s transition to Net Zero, while also eliminating these harmful emissions. We must remember that ensuring we’re all breathing in clean air is about far more than cars.”
This tiny Greek island now has zero waste – leading the way for the rest of the world

On Tilos, there’s no landfill site at all. So how have they done it, and how can this zero-waste model be replicated around the world?

MELANIE GOLDBERG
18 Nov 2023

View from the mountain of Livadia, Tilos island.
 Nicolas Economou/NurPhoto/Shutterstock

Located about 90km east of Rhodes lies the world’s first zero-waste island. Picturesque Tilos boasts white sandy beaches, scenic rolling hills, historic architecture and no bins.

In the 1980s, the island of around 800 people voted to become a conservation zone for wildlife. By 2018, they generated all their energy via renewables. This summer, Tilos was certified as Greece’s first zero-waste community.

The most modern measures have been implemented to solve an age-old problem. Specially designed and trademarked blue bags have a QR code that measures volume and content. A nifty ‘Just Go Zero’ app allows every household to monitor and track the circular management of waste materials as they are recycled.

Change a Big Issue vendor’s life this Christmas by purchasing a Winter Support Kit. You’ll receive four copies of the magazine and create a brighter future for our vendors through Christmas and beyond.

Only a few years ago, 87% of waste was being sent to landfill; now the island doesn’t have one. The old landfill site is now home to the Centre for Circular Innovation where rubbish is sorted, the organic waste converted to fertiliser. There’s also a Centre for Creative Upcycling for furniture or clothes no longer needed.

If successful, the island could serve as a zero-waste blueprint for the rest of the world to follow. That’s certainly the intention of environmental company Polygreen, who have pushed forward the initiative and hope to bring it next to the fossil fuel-enriched United Arab Emirates.

Founded in 2018 by Greek-Cypriot Athanasios Polychronopoulos, Polygreen already operates across several continents and specialise in treating oil spills and hazardous waste management.

Polychronopoulos has “a mission to make Abu Dhabi the first zero-waste Emirate”. And by 2030 too. The petrostate is already home to a zero-carbon city, Masdar City, located within Abu Dhabi, with features such as wind towers, solar power plants and magnetically controlled cars. During its construction, the city welcomed numerous international dignitaries such as Hillary Clinton, George W Bush, and the then UN secretary general, Ban Ki-moon.

While the scheme has been a success on a small island with a population of less than 1,000 – much less outside of holiday season – can the success transfer over to a region of almost three million? Not to mention that the UAE will need a significant amount of carbon offsetting to make up for its oil and gas industry.

Your guide to the zero waste movement – and how you can get started
Here’s how you can waste less food and help save the planet
UK sends thousands of tonnes of plastic to Turkey to be burned every year

This month, COP28 kicks off along the road from Abu Dhabi, in Dubai. It has already proved controversial, led by Sultan Ahmed Al Jaber, CEO of the United Arab Emirates’ state oil company – though if he did happen to be serious about saving the planet, he’ll certainly know all the ways we’re going wrong at the moment.

But is it realistic or just a try for some positive PR for an oil-rich nation that relies on constant air conditioning and private car ownership to go zero waste?

Last year Abu Dhabi launched its Mission to Zero initiative, with the catchy tagline: “No excuse for single-use!” Plastic bags have already been banned, with the aim to do the same with plastic bottles. From individuals to shops, restaurants and government departments, there’s a toolkit to show people how they can make a difference. But the mission does seem almost impossible.

Meanwhile, in the UK with less than half of our waste recycled we definitely have lessons to learn from Tilos.

Melanie Goldberg is part of The Big Issue’s Breakthrough programme
UK
Reading fire: Hero crane driver describes 'close call' saving worker from high-rise

Connor Parker
Thu, 23 November 2023 

Glen Edwards operated the crane during the rescue. (Reach)

A crane driver who has been called "heroic" after saving a worker trapped by a fire on a building site said the rescue was a close call.

More than 50 firefighters were dispatched to battle the blaze at the Station Hill development in Reading town centre at 11.30am on Thursday.

Hundreds of construction workers and office staff from surrounding buildings were evacuated as fire crews worked to contain the fire, which appeared to have spread to the top of a high-rise tower under construction near Reading train station.

Watch: Hero crane operator says Reading fire rescue was 'very close call'


The fire service has confirmed that two people were rescued by crane and taken for medical treatment.

Videos shared on social media showed a man being rescued as a cage was directed onto a platform by a the crane driver.

Once the worker was on board he was lifted to safety.

Glen Edwards, 65, said: "I was no more than 20 metres up in the air and I looked out my left-hand window and saw a guy standing on the corner of the building.

"I’d only just seen him and someone said ‘can you get the cage on’, so that was it, I got the cage on and got it over to him the best I could. It was quite windy conditions.

"I would say it was a very close call, if you look at the video at the way the wind was swirling around there.

"I tried to put the cage down between him and the flames, but I was hampered by the wind swirling around there.

The scene at the Station Hill development site in Reading where the fire broke. (PA) (PA)

"But I got the cage down and I managed to get him in there."

Edwards, a crane operator of 30 years, said it had "not been your average day at work".
Witnesses praise crane driver

Another construction worker, who asked not to be named, said Edwards was "a bit of hero" for his actions under pressure.

The worker said: "If he had been any longer, it would have been a very different ending."

Another witness who did not want to be named said: "He was coughing [when he came down], from the smoke, you know what I mean.

Two men were rescued by crane and taken to hospital for treatment for smoke inhalation after the large fire broke out at the Station Hill development site in Reading. (Reach)

Damage done to the site. (PA)

"When he got inside the crane and the crane put him down everyone was clapping.

"The crane driver was very fast. He was still in the crane while the building was on fire."

A spokesperson for South Central Ambulance Service said two people had been taken to hospital for treatment for smoke inhalation.

A spokesman for Lincoln MGT, the join venture company responsible for delivering the Station Hill development, said: "We can confirm that a fire took place on the Station Hill construction site this morning.

"We activated our fire emergency plans immediately, the emergency services were notified and are currently on site.

"The safety of those on site and the wider public is always our first priority and the site has been evacuated as a result.

"As soon as we have more information we will provide an update."

Construction company Sir Robert McAlpine, which is the lead contractor on the development, has been contacted for further information as well.
How many construction workers die a year in the UK?

In the fiscal year ending in April 2023, the UK recorded 45 fatal injuries on construction sites, up more than 50% from the previous year.

It is the most lethal profession in the UK by a wide margin, with the second most dangerous being agriculture, forestry and fishing which recorded 21 deaths.

Fire deaths are far more rare, with the most common causes of death on construction sites being falling from height, struck by moving objects or struck by vehicles.
#METOO
A law that launched 2,500 sex abuse suits is expiring. It's left a trail of claims vs. celebs, jails

A year-long suspension of the legal time limit to sue over sexual assaults against adults in New York

By Michael Hill • AP

Alexandria Johnson, 35, stands for a photo, Thursday, Nov. 2, 2023, in Oneonta, N.Y. Johnson filed separate lawsuits against New York City and the state corrections department under the Adult Survivors Act, alleging repeated sexual assaults while she was incarcerated at Rikers Island, as well as at the state’s Bedford Hills facility that led to the termination of her pregnancy. “I had to take a chance that there would be justice,” said Johnson, of her decision to file the law suits. 
(AP Photo/Heather Ainsworth)

What to Know
A year-long suspension of the legal time limit to sue over sexual assaults against adults in New York has led to a tidal wave of claims on behalf of women who were incarcerated.

Headline-grabbing lawsuits filed under the Adult Survivors Act name famous people like former President Donald Trump and music mogul Sean “Diddy” Combs.

But of the more than 2,500 filings in the past year, the large majority involve allegations of abuse at New York prisons and local jails.

For a year, a special New York law has cleared the way for a wave of headline-grabbing lawsuits against famous men accused of sexual misconduct, including former President Donald Trump, hip hop mogul Sean “Diddy” Combs and the comedian and actor Russell Brand.

But when the Adult Survivors Act expires after Thanksgiving, it also will have led to a multitude of legal claims by women who say they were sexually abused while serving time in New York's prisons and jails.

More than 2,500 lawsuits have been filed so far under the law, which created a year-long suspension of the usual time limit to sue over an alleged sexual assault.

Some of those lawsuits have targeted employers, or institutions such as hospitals, accused of failing to do enough to stop abuse by doctors or other workers. The large majority, though, have been filed against the state, New York City and local counties and involve allegations of abuse at state prisons and local jail systems.

Survivors called it an opportunity to finally be heard.

“For so long, I didn’t have a voice. And it didn't matter, I thought. Like, who was I?” said Alexandria Johnson, who says she was raped multiple times while incarcerated in state prison and a New York City jail. “I have to keep going forward with this because it matters. ... There’s so many stories, so many, not just mine.”

After Thursday, people will once again be barred from suing over abuse that happened many years ago.

New York was one of several states to revisit laws in recent years that set time limits for civil legal claims stemming from sexual assaults, though usually for people abused as children. Advocates say New York's current window gives traumatized adults a chance to seek accountability from big institutions and powerful men who can use their wealth and position to shield themselves.

“The reason we fought so hard for this bill is because trauma takes time,” Safe Horizon CEO Liz Roberts said.

Precise counts for Adult Survivor Act filings were not yet available this week, but there were at least 2,587 electronic filings in state courts, with some lawsuits filed on behalf of multiple people. More than half those filings were prison-related claims against the state. Hundreds of additional filings named New York City's corrections department.

The act was modeled after a previous New York law offering people abused as children a temporary window to file claims. By the time the Child Victims Act's two-year window closed in August 2021, almost 11,000 people filed lawsuits, many involving the Roman Catholic Church.





NEWSNOV 17
Sean Combs, Cassie settle her bombshell rape, sex trafficking lawsuit day after filing

LAWSUITNOV 3
Second woman sues Steven Tyler, alleging he sexually assaulted her when she was a teen

Gov. Kathy Hochul said the initial law “ forgot ” people who suffered the same type of abuse as adults. She signed a new law opening a one-year window for adult survivors on Nov. 24, 2022.

A series of high-profile lawsuits followed.

One of the first filed after the window opened was against Trump. A jury in May found the former president liable for sexually abusing writer E. Jean Carroll in 1996 and awarded her $5 million. Trump has denied the allegation.

Harvey Weinstein was sued last month by actress Julia Ormond, who accused the former film producer of sexually assaulting her in 1995 and then hindering her career. Weinstein, who has been convicted of rape in New York and California, denied the allegations through his lawyer.

Grammy-winning music executive Antonio “L.A.” Reid was sued by Drew Dixon, who worked for Reid when he was chief executive of Arista Records. She says Reid sexually assaulted her twice in 2001, including an incident on a private plane. No attorney for Reid was listed in electronic filings.

Combs was accused in a lawsuit by R&B singer Cassie last week of subjecting her to a long-term relationship that included beatings and rape. The two artists announced a settlement a day after the filing. Combs denied the allegations.

Brand was accused in a lawsuit of sexually assaulting a film extra during the making of “Arthur” in 2010. British media outlets in September published claims by four women who said they were sexually assaulted by Brand, who says his relationships were “always consensual.”

Bill Cosby was accused in a lawsuit of sexually assaulting a young comedy writer more than 50 years ago. Joan Tarshis initially made the allegations against Cosby in 2014 that are in the new lawsuit. A Cosby spokesperson did not address the specifics of Tarshis’s claims, but asked of the recent lawsuits against famous men: “When is it going to stop?”

The Associated Press does not typically name people who say they were sexually assaulted unless they consent to being identified or decide to tell their stories publicly, as Carroll, Ormond, Dixon, Tarshis and Cassie have done.

Many more lawsuits allege assaults by relatively unknown people at everyday locations. One woman claimed in a lawsuit against a spa that she was fondled by a masseuse. Another woman who checked in airline passengers sued her employer over abuse by a manager.

The surge of lawsuits alleging assaults behind bars illustrates what attorney Adam Slater called a “widespread and systemic” issue of assaults on inmates. His firm said it made more than 1,200 filings alleging abuse in state prisons and more than 470 alleging abuse at New York City's Rikers Island complex.

Anna Kull, who represents Johnson, expects to file up to 600 cases related to assaults in prisons and jails.

"Just a staggering amount of cases where male correctional officers were sexually assaulting female inmates,” Kull said.

Johnson's lawsuit against New York City says she was raped in her Rikers Island cell by four corrections officers in 2014 while being held for a parole violation on a drug charge. A separate claim against the state said she was raped several times by a guard in 2015 at a state prison north of the city while she was pregnant. The lawsuit says the last assault caused her water to break prematurely and led to the loss of her baby.

Johnson said she still struggles with the trauma.

“I had big dreams, hopes of us going to the nursery and me getting out and raising my son and getting my life together,” she said. “They took that from me."

Attorneys representing the state and city have denied the allegations in court filings and have sought dismissal of the two lawsuits. The city and state corrections departments separately said they have a zero-tolerance policy for sexual abuse.

Dozens more people have sued medical providers over abusive doctors in the past year.

Attorney Mallory Allen is representing more than 100 men who say they were sexually assaulted by Dr. Darius Paduch, a New York-area urologist who specialized in male reproductive health. Paduch also faces criminal charges accusing him of abusing patients.

One former patient, James O'Connell, said he sued a hospital system over alleged abuse by Paduch after glimpsing a law firm's early morning TV ad seeking potential plaintiffs. He hopes his action helps bring change.

“I have nephews. I have a son. If I can do something to make sure that there’s a far lesser chance of anything like this ever happening to them, then I’ll do whatever I need,” O'Connell said.

Copyright AP - Associated Press
U$A
OxyContin maker's settlement plan divides victims of opioid crisis. Now it's up to the Supreme Court

Thu, November 23, 2023 



WASHINGTON (AP) — The agreement by the maker of OxyContin to settle thousands of lawsuits over the harm done by opioids could help combat the overdose epidemic that the painkiller helped spark. But that does not mean all the victims are satisfied.

In exchange for giving up ownership of drug manufacturer Purdue Pharma and for contributing up to $6 billion to fight the crisis, members of the wealthy Sackler family would be exempt from any civil lawsuits. At the same time, they could potentially keep billions of dollars from their profits on OxyContin sales.

The Supreme Court is set to hear arguments Dec. 4 over whether the agreement, part of the resolution of Purdue Pharma's bankruptcy, violates federal law.

The issue for the justices is whether the legal shield that bankruptcy provides can be extended to people such as the Sacklers, who have not declared bankruptcy themselves. The legal question has resulted in conflicting lower court decisions. It also has implications for other major product liability lawsuits settled through the bankruptcy system.

But the agreement, even with billions of dollars set aside for opioid abatement and treatment programs, also poses a moral conundrum that has divided people who lost loved ones or lost years of their own lives to opioids.

Ellen Isaacs’ 33-year-old son, Ryan Wroblewski, died in Florida in 2018, about 17 years after he was first prescribed OxyContin for a back injury. When she first heard about a potential settlement that would include some money for people like her, she signed up. But she has changed her mind.

Money might not bring closure, she said. And by allowing the deal, it could lead to more problems.

“Anybody in the future would be able to do the exact same thing that the Sacklers are now able to do,” she said in an interview.

Her lawyer, Mike Quinn, put it this way in a court filing: “The Sackler releases are special protection for billionaires.”

Lynn Wencus, of Wrentham, Massachusetts, also lost a 33-year-old son, Jeff, to overdose in 2017.

She initially opposed the deal with Purdue Pharma but has come around. Even though she does not expect a payout, she wants the settlement to be finalized in hopes it would help her stop thinking about Purdue Pharma and Sackler family members, whom she blames for the opioid crisis.

“I feel like I can’t really move on while this is all hanging out in the court,” Wencus said.

Purdue Pharma’s aggressive marketing of OxyContin, a powerful prescription painkiller that hit the market in 1996, is often cited as a catalyst of a nationwide opioid epidemic, persuading doctors to prescribe painkillers with less regard for addiction dangers.

The company pleaded guilty to misbranding the drug in 2007 and paid more than $600 million in fines and penalties.

The drug and the Stamford, Connecticut-based company became synonymous with the crisis, even though the majority of pills being prescribed and used were generic drugs. Opioid-related overdose deaths have continued to climb, hitting 80,000 in recent years. That’s partly because people with substance abuse disorder found pills harder to get and turned to heroin and, more recently, fentanyl, an even more potent synthetic opioid.

Drug companies, wholesalers and pharmacies have agreed to pay a total of more than $50 billion to settle lawsuits filed by state, local and Native American tribal governments and others that claimed the companies’ marketing, sales and monitoring practices spurred the epidemic. The Purdue Pharma settlement would be among the largest. It's also one of only two so far with provisions for victims of the crisis to be compensated directly, with payouts from a $750 million pool expected to range from about $3,500 to $48,000.

Lawyers for more than 60,000 victims who support the settlement called it “a watershed moment in the opioid crisis,” while recognizing that “no amount of money could fully compensate” victims for the damage caused by the misleading marketing of OxyContin.

In the fallout, parts of the Sackler family story has been told in multiple books and documentaries and in fictionalized versions in the streaming series “Dopesick” and “Painkiller.”

Museums and universities around the world have removed the family’s name from galleries and buildings.

Family members have remained mostly out of the public eye, and they have stepped off the board of their company and have not received payouts from it since before the company entered bankruptcy. But in the decade before that, they were paid more than $10 billion, about half of which family members said went to pay taxes.

Some testified in a 2021 bankruptcy hearing, telling a judge that the family would not contribute to the proposed legal settlement without being shielded from lawsuits.

Two family members appeared by video and one listened by audio to a 2022 court hearing in which more than two dozen people impacted by opioids told their stories publicly. One told them: “You poisoned our lives and had the audacity to blame us for dying.”

Purdue Pharma reached the deal with the governments suing it — including with some states that initially rejected the plan.

But the U.S. Bankruptcy Trustee, an arm of the Justice Department responsible for promoting the integrity of the bankruptcy system, has objected to the legal protections for Sackler family members. Attorney General Merrick Garland also has criticized the plan.

The opposition marked an about-face for the Justice Department, which supported the settlement during the presidency of Donald Trump, a Republican. The department and Purdue Pharma forged a plea bargain in a criminal and civil case. The deal included $8.3 billion in penalties and forfeitures, but the company would pay the federal government only $225 million so long as it executed the settlement plan.

A federal trial court judge in 2021 ruled the settlement should not be allowed. This year, a federal appeals panel ruled the other way in a unanimous decision in which one judge still expressed major concerns about the deal. The Supreme Court quickly agreed to take the case, at the urging of the administration of President Joe Biden, a Democrat.

Purdue Pharma’s is not the first bankruptcy to include this sort of third-party release, even when not everyone in the case agrees to it. It was specifically allowed by Congress in 1994 for asbestos cases.

They have been used elsewhere, too, including in settlements of sexual abuse claims against the Boy Scouts of America, where groups like regional Boy Scout councils and churches that sponsor troops helped pay, and against Catholic dioceses, where parishes and schools contributed cash.

Proponents of Purdue Pharma’s settlement plan often assert that federal law does not prohibit third-party releases and that they can be necessary to create a settlement that parties will agree to.

“Third-party releases are a recurring feature of bankruptcy practice," lawyers for one branch of the Sackler family said in a court filing, “and not because anyone is trying to do the released third parties a favor.”

___

Mulvihill reported from Cherry Hill, New Jersey.

___

This story has been corrected to show that the appeals court ruling was unanimous, not 2-1.

Geoff Mulvihill And Mark Sherman, The Associated Press
Billions at stake as Doug Ford government prepares to change booze retailing in Ontario


CBC
Wed, November 22, 2023 

During the 2018 election campaign, PC leader Doug Ford promised to allow Ontario convenience stores to sell beer and wine. He has been unable to make that happen since becoming premier, in large part because of a contractual agreement between the province and the Beer Store that runs until the end of 2025.
 (Cole Burston/Canadian Press - image credit)

Premier Doug Ford's government is preparing to change the rules on how beer, wine, cider and spirits are sold in Ontario, and there's plenty at stake — well beyond whether you'll be able to pick up a case at the corner store.

Industry officials expect the government's moves will affect how all types of alcohol are retailed.

The looming reforms also pit a range of interests against each other, as big supermarket companies, convenience store chains, the giant beer and wine producers, craft brewers and small wineries all vie for the best deal possible when Ontario's almost $10-billion-a-year retail landscape shifts.

As the negotiations proceed, the Ford government faces its own internal dilemma between its competing desires of giving the free market more control of booze sales vs. keeping LCBO revenues flowing into the provincial treasury.

The government has for months been engaged in closed-door consultations with industry players on what it calls "modernizing" the alcohol sales regime in Ontario.

For Ford's Progressive Conservatives, the chief goal is meeting a yet-to-be-fulfilled 2018 campaign promise to allow convenience stores to sell beer and wine. But multiple sources in various parts of the alcohol and retail industry say much more than that is on the table.


The LCBO turned a profit of nearly $2.5 billion in the 2022-23 fiscal year, off $7.4 billion in gross revenue. (David Donnelly/CBC)

CBC News did lengthy interviews with eight people from across the beer, wine, spirits and retail sectors. All of them agreed to speak only on condition of anonymity, because the government required everyone involved in the consultations to sign non-disclosure agreements.

Here's what they say are the issues at stake:

Will the government shrink the LCBO's profit margins, including its take from products that other retailers sell?


Will retailers such as grocery and convenience stores be required to devote a certain amount of shelf space to Ontario-made beer and wine, or will they have total control over the inventory they stock?


Will small Ontario vineyards get any help in competing against big Ontario wineries whose products can contain as much as 75 per cent imported wine?


How big of a presence will the Beer Store maintain, and will it remain the only place Ontarians can bring back their empties for a deposit refund?


Will craft breweries be allowed to open more retail outlets, and will they get the tax cuts they're seeking?


Will spirits be part of the retail reform, including the sale of ready-to-drink products such as vodka coolers or hard seltzers in grocery and convenience stores?

Profit margins, markups, taxes

At its most fundamental level, much of the negotiations boils down to who gets the opportunity to make money off the various points of the alcohol supply chain, and how much.

"It's a lot of money at stake," said a source in the wine industry. "We're talking billions."

A person walks past an LCBO in Ottawa, Thursday March 19, 2020.

The LCBO operates 669 retail stores across Ontario. (Adrian Wyld/The Canadian Press)

From $7.4 billion in sales in the 2022-23 fiscal year, the LCBO turned a profit of nearly $2.5 billion. Retailers, wineries and breweries are all hoping for a piece of that.

On a typical bottle of Ontario wine for instance, the producer currently gets roughly 30 to 45 per cent of the sticker price, according to industry officials.

The LCBO's own price calculators show it puts a 114 per cent retail markup on Ontario wine. One example shows wine supplied by a producer at $8.33 per bottle retailing for $22.30, once the markup, government levies and HST are added in.

Wine producers say the LCBO could afford to give a little on that markup, or the government could allow winemakers more opportunities to sell from their own retail outlets, so they get to keep the markup.

Craft brewers' biggest pricing concern is the impact of taxes. They say Ontario has the highest tax on craft beer of any province, a rate that is eight times higher than what's in effect in Quebec.

They also want the government to scrap the 9 cent environmental fee the province levies on each can of beer, which is different from the 10 cent deposit that consumers pay on a can.

Beer products are on display at a Beer Store outlet in Toronto.

Big brewery companies and small craft brewers want the Ontario government to reduce the province's beer taxes. (Chris Young/The Canadian Press)

Terminating Beer Store agreement

All sources expect the government to give notice by the end of December that it intends to terminate the contract that sets out the rules for beer sales in the province, known as the Master Framework Agreement (MFA), as also reported by The Toronto Star.

The latest version of the agreement, signed in 2015 between the then-Liberal government and the Beer Store, opened the door to beer and wine in Ontario supermarkets.

But it limits the number of grocery locations to 450, precludes them from selling anything larger than a six pack, and bars convenience stores from selling beer (although 7-Eleven has been approved for liquor licences for on-site consumption with food at nearly all of its Ontario stores).

The agreement will remain in effect until the end of 2025, so the termination notice "is just the starting gun" for a two-year transition to a more wide open retail market, says a source in the craft beer industry.

While sources are certain the government will terminate the agreement, they're uncertain about what will replace it.

"The MFA has never been about choice, convenience or prices for customers, it has always been about serving the interests of the big brewing conglomerates, and that's what needs to be addressed," said Michelle Wasylyshen, spokesperson for the Retail Council of Canada, whose board of directors includes members from Loblaw, Sobeys, Metro, Walmart and Costco.

People line up in a parking lot for a long wait to return empties or buy beer at a Beer Store in downtown Toronto on April 16, 2020.

Industry sources expect the government will give notice by the end of December that it intends to terminate the Master Framework Agreement between the province and the Beer Store. The current version of the agreement, signed in 2015, allows 450 supermarkets in the province to sell beer but precludes them from selling any formats larger than a six pack. (Colin Perkel/The Canadian Press)

More retail outlets

While Ontario's current regulations limit who can sell alcohol as a retailer, and in what formats, the limits on the biggest players in the industry are far less strict than what small breweries and wineries face.

Wine Rack has 164 locations. It is part of Arterra Wines Canada, the company that owns such wineries as Jackson-Triggs, Inniskillin and Sandbanks.


The Wine Shop (100 locations) is part of Andrew Peller Ltd., the company that owns such wineries as Peller Estates, Trius and Wayne Gretzky Estates.

By contrast, each craft brewery can only have two retail outlets, and both must be attached to a production facility. Each small winery can only have one retail outlet, located where it grows grapes and makes wine.

Both the craft beer and small winery sectors want those restrictions scrapped.

"If anybody thinks the government is politically hurt by picking fights with large corporations, they're very wrong," said a source in the wine industry.

A sign over the wine aisle at Save-On-Foods grocery store in Richmond, British Columbia pictured on Thursday July 11, 2019.

Ontario wineries are looking to supermarkets to do more to promote local wineries, like this grocery store does in Richmond, B.C. (Ben Nelms/CBC)

Rules for supermarkets

Those same regulations governing retail outlets also set down the rules for the 450 grocery store locations that are permitted to sell beer, wine or cider.

Sources say the big supermarket chains are pushing the government to lift some of the restrictions that dictate how they can and can't sell products.

"I think the biggest concern is, what is 'big grocery' going to get at the table?" said another wine industry source. "The industry just wants to make sure there are programs and supports in place if they're going to compete in an open market."

Under the current rules, supermarkets must ensure that at least 20 per cent of beer and cider on display and 10 per cent of wine comes from small producers. Local producers would like to see assurances of more shelf space devoted to "made in Ontario" products.

The rules also prohibit supermarkets from charging brewers and wineries any listing or stocking fees to put their products on the shelves (as is the practice with many ordinary grocery items). Craft brewers and small wineries want that ban kept in place.

The current rules ban the supermarket chains from selling any brands of beer or wine in which they have "direct or indirect financial interest."

That stops Costco, for instance, from selling its own private-label Kirkland Signature wine in Ontario, and would prevent other supermarket chains from launching their own beer or wine products. Industry insiders are wondering if the government will scrap that rule.

Malivoire winery, in Beamsville, Ont., on June 29, 2020.

Under Ontario's current rules, at least 10 per cent of the wine on display in supermarkets must be produced by small wineries. (Evan Mitsui/CBC)

Big wine versus small wine

If the new retail landscape allows the supermarket chains free rein over their inventory, Ontario wineries are worried they'll get pushed off the store shelves by imports.

"Retail expansion must be done right or else it threatens the future of Ontario wine and further supports heavily subsidized, foreign wineries," said a joint report issued in May by Wine Growers Ontario (big producers) and Ontario Craft Wineries (small producers).

Those two groups don't always see eye to eye on the issues, in part because a significant portion of the wine sold by Ontario's biggest wine producers isn't actually made in Ontario. These "international domestic blends" contain up to 75 per cent imported wine and are sold under the label of some of Ontario's best known vineyards.

"The market is dominated by big companies," says a source who runs a small winery. "It's David and Goliath."

The source says it's challenging for small wineries to have much presence in LCBO locations, which means the major brands become the biggest sellers, and in turn grocery stores are reluctant to stock wines that don't already have big brand recognition.

"This should be a political no-brainer to be on our side," said the source. "We've got to hope the premier sees it that way, that we are the little guys and he has the opportunity to help a domestic industry."

7-Eleven has been approved for licences to serve alcohol for on-site consumption at nearly all of its stores in Ontario. So far, licences have actually been issued and sales commenced at only two of the convenience store chain's locations, in Leamington and Niagara Falls, pictured here.

7-Eleven has been approved for licences to serve alcohol for on-site consumption at nearly all of its stores in Ontario. As of July 2023, sales had commenced at only two of the convenience store chain's locations, in Leamington and Niagara Falls. (Pelin Sidki/CBC)

Convenience stores

When Ford made his campaign promise to allow corner stores to sell beer and wine, he ignored the fact that doing so would have put the province on the hook to the big brewers for hundreds of millions of dollars, under the terms of the Master Framework Agreement.

That's why the government backed away from the plan, and waited until that contract with the Beer Store got closer to its expiration date. The timing actually works out to be politically convenient for Ford's PCs: it sets the stage for beer and wine in the corner stores in early 2026, just before the next election, scheduled for June that year.

Convenience stores are confident the government will make good on the promise, but they have some concerns about the price structure they will face.

"Margins are going to be the biggest factor," says a convenience store industry source. "The LCBO is the biggest barrier right now. The LCBO handling fee is just so high."

In Quebec, where stores negotiate directly with brewers, the source says the profit margin on beer in convenience stores averages 18 per cent, far more than what Ontario grocery stores currently take in.


The companies that produce pre-mixed alcoholic beverages, such as coolers and hard seltzers, want their products to be available for purchase in Ontario grocery and convenience stores. (Newfoundland Labrador Liquor Corp.)

Spirits and ready-to-drink beverages

Much of the debate in Ontario about liquor retailing centres on how beer and wine are sold, often leaving spirits out of the equation.

While distillers aren't necessarily looking to sell bottles of vodka, whisky and rum from convenience stores, they are seeking more equitable treatment as the province reforms its alcohol retail laws.

"It's a big job, 100 years of Prohibition-era regulations that need to be untangled," says a source in the spirits industry.

Distillers are seeing growth in the sales of pre-mixed alcoholic beverages, such as hard seltzers and coolers. Their position is that these ready-to-drink items are similar to beer and cider in size, packaging and alcohol content, so should be treated no differently at the retail level.

Right now, the only retailer where you can buy these products is the LCBO. The industry wants them made available in grocery and convenience stores.

"In a place where you can buy beer, wine and cannabis in privately run stores, it's kind of weird that you can only buy spirits in a government-run store," said the source.


The alcohol retail market in Ontario totalled $9.8 billion in 2021-22, according to Statistics Canada. (Evan Mitsui/CBC)

Wholesaling and distribution

While the average consumer is aware that the producer and the retailer of booze get a share of the sticker price, there's also money to be made in wholesaling and distribution.

The LCBO and the Beer Store have a stranglehold on distribution right now. Both the supermarket chains and the convenience store industry want that loosened.

"Preventing a monopoly on distribution is in the best interest of Ontarians and convenience retailers across the province," says the Convenience Industry Council of Canada in a statement.

"All of the major wholesale distributors in Ontario should be allowed to distribute alcohol from manufacturers to convenience store locations."

A source with one of the major breweries counters that the Beer Store has distribution down to a fine art.

"It's really difficult to see how any other entity would do it and not increase the price of beer," said the source.
Federal housing plan not the 'immediate, urgent response' needed, says researcher


CBC
Thu, November 23, 2023 


Governments need to bring in programs that will work now, says housing researcher Steve Pomeroy. (Submitted by Steve Pomeroy - image credit)

Canada needs to move more quickly in response to the housing crisis, says housing researcher Steve Pomeroy.

Pomeroy, a senior research fellow for the Centre for Urban Research and Education at Carleton University and a member of the Canadian Housing Evidence Collaborative, was responding to Finance Minister Chrystia Freeland's fall economic statement, in which she laid out measures accelerating housing construction.

"In a crisis you need an immediate, urgent response," said Pomeroy.

He described Freeland's plan as "$15 billion for new construction and another billion for affordable housing, but that money's not going to flow until 2025. And then it takes two or three years at least for units to be built. So they're basically coming up with a solution that creates a solution four years from now for a problem that exists today."

P.E.I. losing cheaper apartments

Pomeroy's research uncovered a massive change in P.E.I.'s rental market from 2011 to 2021.

Combing through census data for affordable rental units, defined as costing under $750 a month, Pomeroy found 3,150 of those apartments disappeared in the decade between the two censuses.

Over that timespan, only 73 affordable units were built.

Minister of Finance and Deputy Prime Minister Chrystia Freeland tabled the 2023-24 federal budget Tuesday.

The federal government is adding money to housing programs that are already working, says Finance Minister Chrystia Freeland. (Nick Iwanyshyn/The Canadian Press)

A quicker solution for people desperate to afford housing, Pomeroy suggested, would be direct assistance.

"If you really wanted to help people in the short term, [add] things like the Canada Housing Benefit, which gives people a few hundred dollars a month to help them manage their rents," he said.

Making a difference 'right away'

In an interview with Island Morning on Wednesday, Freeland rejected the notion that the government is moving too slowly.

"I absolutely understand that housing is an urgent priority on P.E.I.," the federal finance minister said. "The new measures that we announced yesterday are going to make a difference right away."

The new money is for existing programs, she said, programs that are getting housing built on P.E.I. right now, and that increase in supply is essential with the Island's rapidly growing population.

Pomeroy was more positive about an announced plan to crack down on short-term rentals, with the goal of seeing more of those accommodations converted into rented homes.

Airbnb is one of the main services facilitating short-term rentals in the North American market, and one favoured by many Prince Edward Island owners.

Research has found hundreds of short-term rental units in Charlottetown. (CBC)

The initiative would prevent short-term rental owners from claiming expenses on income tax unless they were officially registered and working inside the rules of their municipal jurisdiction.

That would make it less viable for people to work outside of rules such as those that recently came into force in Charlottetown. In addition, a new fund would help cities enforce those rules.

"It could have an effect in some markets," said Pomeroy, and in particular in places like P.E.I.

Researchers at McGill have found short-term rentals in Canada involve a significant number of units that could otherwise be long-term rentals, particularly in tourist areas, Pomeroy said.

In 2019, McGill researchers found 331 short-term rentals in Charlottetown, which at the time would have represented about 5.7 per cent of all units available for rent.