Law Times

Page 6 September 2, 2013 • Law timeS COMMENT u Editorial obitEr By Glenn Kauth Wireless auction Even the playing field I t's ironic that a federal government that's always so keen to tout its economic record doesn't seem interested in the arguments from the incumbent telecommunications firms about tilting the rules for the wireless spectrum auction in favour of Verizon Communications Inc. There's no doubt the Canadian telecom giants are in part merely trying to maintain their dominant status by challenging the rules that reserve two blocks of prime wireless spectrum for new entrants. They've continued to earn healthy profits from wireless services despite increased competition in recent years and are no doubt eager to hold onto their advantage. Canadians, of course, love to hate the telecommunications provider they get hefty bills from each month often for bundled phone, TV, and Internet services. If the spectrum auction does come down to Verizon — a less likely prospect given its deal last week with Vodaphone Group PLC — there's no reason for the Canadian government to offer it any added advantages. A new major provider would be welcome, but the incumbents are right in insisting it play on equal terms. While the rules may be necessary when it comes to small new entrants, they shouldn't apply to a U.S. giant like Verizon. It seems the government is taking the populist road by touting the advantages to consumers against the incumbents they love to hate. But this is the same government that says it wants to support Canadian jobs, and there's no doubt that handicapping our homegrown S companies that do employ lots of people during difficult times would likely come at a cost on that front. Verizon isn't likely to have a footprint in Canada as large as the existing providers. While potentially paying less for cellphone services through greater competition sounds great, is it worth losing more jobs here? It may be, but we shouldn't be achieving that through rules tilted in favour of a big U.S. company. Like many things, what should be a straightforward market-based process has become politicized. That's not surprising given the government's long record of intervention in the telecommunications sector, but it's clear it will be on the wrong path on this issue should it continue to maintain rules that would favour a company like Verizon. — Glenn Kauth Insurance issue leaves government exposed ummer vacation is over and it's back to work for the Ontario legislature next Monday morning. Or, at least, it will get back to what passes for work. Meanwhile, we can forgive drivers caught in those traffic jams heading to and from work if they're feeling a little more frustrated than usual. The government has just announced vehicle registration and driver's licence fees will increase over the next two years while backing down on that promise of a 15-per-cent drop in insurance premiums over the next year. The rate cut was one of the big concessions the NDP wrung from the Liberals in exchange for its support for the budget last spring. It was to take just a year, but now the government says it will work with the insurance industry to lower rates by eight per cent in the coming year and 15 per cent over two years because it will take that long to process the paperwork through the Financial Services Commission of Ontario. It all sounds great but it's an illusion. Rates may go down for perfect drivers, but you can probably say goodbye to any hope your insurer will waive minor tickets or forgive a first accident before it Law Times number far surpassing even bumps you to a less desirable rating bucket. Queen's the generous minimum return set by FSCO of 12 per Sousa had barely shuffled Park cent. Meanwhile, as NDP his speech papers before the transportation critic MPP Insurance Bureau of Canada Gilles Bisson notes, rates have also jumped in to put redefingone up five per cent a year. ing catastrophic injury back The OTLA has long aron the table as part of the gued that only about one per industry's must-have concescent of all cases fall into the sions to drive rates down. definition of catastrophic inCatastrophic injury is secjury and that the handful of ond only to the industry's asIan Harvey people affected by any change sertion that Ontario's fraud would face devastation while rate in health and collision claims are among the biggest factors for the insurance companies would realize why drivers in this province pay such meagre savings. "Things have shifted way too far in high rates. Barely two years ago in September 2010, changes to the Insurance favour of the insurance companies," says Act created the category of minor inju- Gluckstein. "And now the industry is ries and set a $3,500 cap for payout. At asking for more. How dare they? They're the same time, the changes cut the medi- making huge profits and the pendulum cal cost allowance for non-catastrophic has to swing back the other way. The limit now of $3,500 for soft-tissue injury claims in half to $50,000. Those changes alone, says Ontario is not enough to get most victims back Trial Lawyers Association president to health." He says that between the 2010 Charles Gluckstein, have given the insurance companies profits ranging from changes and Sousa's measures around $1.6 to $2 billion a year for the past two licensing health clinics serving accident years and will do so again over the next victims, there's more than enough money in the insurance companies' coffers to two years. One company, he said, racked up start reducing rates now. "Some companies have already started a 20-per-cent return on investment, a Thomson Reuters Canada Ltd. One Corporate Plaza, 2075 Kennedy Rd., Toronto, ON • M1T 3V4 • Tel: 416-298-5141 • Fax: 416-649-7870 www.lawtimesnews.com • clb.lteditor@thomsonreuters.com • @lawtimes Director/Group Publisher . . . . . . . . . . . . Karen Lorimer Editor in Chief. . . . . . . . . . . . . . . . . . . . . . Gail J. Cohen Editor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Glenn Kauth Staff Writer . . . . . . . . . . . . . . . . . . . . . . . .Yamri Taddese Staff Writer . . . . . . . . . . . . . . . . . . . . . . Charlotte Santry Copy Editor . . . . . . . . . . . . . . . . . . . . . . Mallory Hendry CaseLaw Editor . . . . . . . . . . . . . . . . . Adela Rodriguez Art Director . . . . . . . . . . . . . . . . . . . . . . Alicia Adamson Production Co-ordinator . . . . . . . . . . . . . Catherine Giles Electronic Production Specialist . . . . . . . Derek Welford Advertising Sales . . . . . . . . . . . . . . . Kimberlee Pascoe Advertising Sales . . . . . . . . . . . . . . . . Steffanie Munroe Advertising Sales . . . . . . . . . . . . . . . . . . . . . . . Grace So Advertising Sales . . . . . . . . . . . . . . . . . . . . Joseph Galea ©2013 Thomson Reuters Canada Ltd. All rights reserved. No part of this publication may be reprinted or stored in a retrieval system without written permission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Law Times disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. Publications Mail Agreement Number 40762529 • ISSN 0847-5083 Law Times is published 40 times a year by Thomson Reuters Canada Ltd., clb.lteditor@thomsonreuters.com CIRCULATIONS & SUBSCRIPTIONS $179.00 + HST per year in Canada for print and online (HST Reg. #R121351134), $145 + HST per year for online only. Single copies are $4.50. Circulation inquiries, postal returns and address changes should include a copy of the mailing www.lawtimesnews.com cutting rates," he notes. Sousa's announcement of healthclinic licensing and the $3,500 cap mean there's very little motivation or wiggle room for fraud. As a result, the government needs to restore some sanity for accident victims shut out by the new rules. The insurance industry's perennial bleat that catastrophic-accident claims are too high just don't add up and as the real numbers trickle out, it's clear the insurance industry has won everything it wanted. While it will always want more, it has spent its political capital. In the bigger picture, however, it's a populist issue that could come back to bite Premier Kathleen Wynne where it hurts most: the ballot box. With NDP Leader Andrea Horwath and her caucus feeling just a little cheated over what the government promised and is now delivering and Conservative Leader Tim Hudak eager for a fight, the issue might also deliver Wynne's exposed flank to the electorate sooner rather than later if the opposition gets its act together and brings down the government. LT uIan Harvey has been a journalist for 35 years writing about a diverse range of issues including legal and political affairs. His e-mail address is ianharvey@rogers.com. label(s) and should be sent to Law Times One Corporate Plaza, 2075 Kennedy Rd. Toronto ON, M1T 3V4. Return postage guaranteed. Contact Ellen Alstein at ............ 416-649-9926 or fax: 416-649-7870 ellen.alstein@thomsonreuters.com ADVERTISING Advertising inquiries and materials should be directed to Sales, Law Times, 2075 Kennedy Rd., Toronto, ON, M1T 3V4 or call: Kimberlee Pascoe ...............................416-649-8875 kimberlee.pascoe@thomsonreuters.com Grace So .............................................416-609-5838 grace.so@thomsonreuters.com Joseph Galea .......................................416-649-9919 joseph.galea@thomsonreuters.com Steffanie Munroe ................................416-298-5077 steffanie.munroe@thomsonreuters.com

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