Former Mayor Larry Di Ianni and Mr. Ecklund's daughter Erika

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LARRY'S CORNER- Hamilton's Former Mayor Speaks

former Mayor of Hamilton, Larry Di Ianni

A Fine Finesse or a Fine Mess? The Opening of the Financial Floodgates

By Larry Di Ianni
(posted July 31, 2009)

The emergency meeting to decide what compensation to give flood victims was reportedly a spectacle of significant proportions.  On one side were the councillors who wanted to pay the entire ‘compensation’ for flood victims not covered by insurance.  On the other side were the councillors who fretted about writing a ‘blank cheque’.  And then there were the smattering of absent councillors away for one reason or another.  The fate of city residents rests with these three groups.

In a show of force and control, Councillor Chad Collins, who some say has the most clout when it comes to city business, had accumulated the votes to support his motion of full compensation.  Against him were some councillors, including the Mayor, who were bystanders to the real agenda being played out under the watchful and self-interested eyes of beleaguered flood victims as well as incredulous staff.  The dye was cast and the decision to open up the city’s treasury was imminent.  Until?

Whether by design or happenstance, three councillors left the meeting.   They did so after a strategically called ten minute break from the dramatic proceedings.  Their departure stopped the legality of the meeting because quorum was lost.  This move was a fine finesse to stop allegedly (according to some) reckless councillors from jumping over a financial cliff; or it was a foolish delaying strategy which will not do any good, because at some point the meeting will have to reconvene. 

Regardless, now is the time for some sober second thought and hard lobbying.  The first group to be contacted are the absent councillors.  They need to be made aware of the dynamics at play and the importance of their votes.  With the exception of Councillor McHattie, the others have usually voted to be financially prudent when it comes to spending recklessly.  And to give Councillor McHattie his due, it isn’t that he has been imprudent on spending, but he too is from the city and his ward has had problems with flooding, so he might show more sympathy for victims than for the city’s finances.

The next thing already being done, I’m sure, is for Chris Murray to organize a meeting of senior staff and try to put a real number on the ‘full compensation’ motion.  Councillor Collins quoted a $10 to $20M expenditure.  Others said the real number might be much higher than that, in fact akin to writing a ‘blank cheque’. A legal opinion should also be sought on the exposure the city is assuming by agreeing to compensate fully, therefore admitting culpability.  This would be more expensive because of ensuing lawsuits than even the infrastructure or flooding fix. 

Finally, some real leadership needs to be exercised in finding a political compromise out of this mess.  The focus should be on compassionate assistance for victims, not on city hall power plays.  The emphasis should also be on a long-term solution to any infrastructure deficits.  Another front of operation should be on holding insurance companies feet to the ‘water’ in this case, as they walk away from their raison d’etre, the insuring of risks.  Isn’t that what insurance is for, to insure risks rather than to only collect premiums from safe bets?  Provincial and Federal help is needed on this front?  Where are their voices?  And the final priority should be on safeguarding the city’s fragile financial situation within a supportive and compassionate system of compensation. 

What are the chances that all of this will unfold without histrionics?  C’mon, this is Hamilton!



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