WhatFinger

Having to Promote Government Monopolies

Free Government Knives


By Canadian Taxpayers Federation ——--September 6, 2008

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By Colin Craig Although Manitoba has a major crime problem, provincial government agencies have been busy handing out knives. Yes, knives were among the long list of items handed out as "promotional material" by arms-length government agencies.

Lip balm, manicure sets, golf balls, BBQ sets, "flying discs", clocks, fleece jackets, golf shirts, bouncy balls, coolers on wheels, stress balls and laser engraved stainless steel soap dispensers are some of the other items that provincial agencies are busy handing out, all in the name of "promotion". Unfortunately for taxpayers and ratepayers, their adventures in trinket purchasing have not been cheap. According to documents obtained by the Canadian Taxpayers Federation (CTF) through freedom of information requests, government agencies have spent over $4.1 million on promo items in the past four years alone. Surprisingly, that figure doesn't even include provincial departments or the MLCC. While some agencies have suggested the "need" to promote their operations with such trinkets, it cannot be ignored that most agencies and crown corporations operate as monopolies. Like it or not, Manitobans can only buy car insurance from MPI. Similarly, regional health authorities have a virtual lock on health care services. Given their "captive" audiences, it begs the question why ratepayer and taxpayer dollars are being used in this manner. Any first year economics or marketing student can tell you that reduced advertising and promotional costs are a major benefit of operating as a government-legislated monopoly. If you received an MPI stress ball, would that really encourage you to go out and buy more car insurance? Would a golf shirt from the Manitoba Gaming Control Commission encourage you to keep on complying with their rules? Not likely. Consider the Workers Compensation Board. Thousands of businesses in Manitoba are required by law to pay fees to the Workers Compensation Board for their services. Given their lock on these "customers", why did the WCB need to spend almost $200,000 on promotional items. This included over $8,000 worth of golf balls and manicure sets. It's a stretch to suggest that handing out golf balls and manicure sets is somehow promoting safe workplaces. Certainly their recent "Safe Work" explanatory brochures are more informative and helpful. It's not a stretch to assume that most Manitobans would rather pay less in rates and taxes than have the off chance of receiving a sleeve of government golf balls. After all, isn't that why the government has granted these agencies monopolies in the first place - to provide services at low rates? While most of the $4.1 million appears to be unnecessary, it should be noted that not all of it appears to have been "wasted". Within the mix of promo items were some safety-type products and even some educational products for children. Further, few Manitobans would object to buying 'dime a dozen' pens and placing an agency's logo on it. Unfortunately for taxpayers and ratepayers, BBQ sets and golf t-shirts appear to have trumped the more legitimate purchases. If ratepayer and taxpayer dollars are being used for these products, it's easy to imagine what else is being purchased. Certainly it's time to use those government promo knives to begin cutting away waste. Colin Craig Provincial Director, Canadian Taxpayers Federation

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