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HomeMy WebLinkAboutClinton News Record, 2016-09-21, Page 5Wednesday, September 21, 2016 • News Record 5 Debts will sink many if interest rates rise Canadians have enjoyed cheap credit for so long it will be an immense shock when interest rates begin to rise, although that's not likely to happen anytime soon. On Wednesday, the Bank of Canada announced its key interest rate of 0.5 per cent would remain unchanged and would con- tinue as it has since mid - 2015. The key interest rate has remained at one per cent or less since 2009, an extraordinary seven-year stretch that has effectively punished savers and encouraged the accumula- tion of private and public debt. Interest rates have been suppressed to encourage economic growth, but there has been collateral dam- age. Today, a great number of Canadians are mired in debt while finding it diffi- cult to save. Indeed, a survey released Wednesday, the same day as the Bank of Canada announcement, says 39 per cent of its respondents (more than 5,600 employed Canadians who were polled earlier this summer) find themselves overwhelmed by their debt. Most of them cite mortgages, followed by credit card debt, car loans and debt from a line of credit. An incredible 11 per cent believe they'll never be debt -free. Of course, the survey, con- ducted on behalf of the Canadian Payroll Associa- tion, isn't entirely about debt. It's also about income, or rather a lack of income among respondents. Forty- eight per cent said they live paycheque to paycheque, and about 25 per cent said they wouldn't be able to find $2,000 to cover an emer- gency situation. About half of those polled said they are able to save five per cent or less of their income. But with increased debt (22 per cent admit to finding it difficult to pay off their credit card balance) it remains a struggle. Any incentive to save money within such an economic landscape is difficult to pinpoint, although there are Canadi- ans who save and some who save prodigiously. One of the legacies of the Ste- phen Harper government is the Tax Free Savings Account, a financial device that encourages the saving of money with the promise that it won't be subjected to taxation once placed into a TFSA. But again, the bank rates on a TFSA are tiny; meaningful growth comes only with the careful invest- ment of those same funds. The situation is a far cry from the early 1980s when borrowing charges were approaching 20 per cent. We'll never see a return to those rates, as they were the response to an era of historic inflation. But at some point, interest rates will be nudged upward, and the impact on those who now say they're over- whelmed by their debt will likely be catastrophic. - Peter Epp, Postmedia Network Postmedia Network Courtroom camera for verdict a good call PAMELA ROTH/EDMONTON SUN) Accused killer Travis Vader, 40, at Edson court May 15, 2012. A remarkable event unfolded in Alberta Thursday: For what is likely the first time in that province, the verdict in a Queen's Bench criminal trial was broadcast live. It's a win for the media (Postmedia, which owns this newspaper, was part of a group of news organi- zations that requested the live broadcast), but also a win for openness in the court system, although the decision by a judge to allow the live broadcast applies to this one case only. The cameras showed only Justice Denny Thomas of the Alberta Court of Queen's Bench presenting an overview of his verdict. The accused, Travis Vader, wasn't shown. The decision to let the cameras roll is the right one. The case was of intense interest to both Albertans and the rest of Canada for six years. Lyle and Marie McCann van- ished in July 2010 and their bodies have never been found. As the Edmonton Journal's Paula Simons noted last week, the case is about every- thing from the McCanns' disappearance to police competence to the speed of the justice system. "Vader is on trial here. But so is the rule of law itself," Simons wrote. Fundamentally, Cana- dian justice operates on the principle of open courts. Journalists can attend, and so can the public. The media can tweet the trial and sometimes reporters can record (though not broadcast) audio to ensure accuracy of their stories. There have been some experiments in video - streaming court proceed- ings. In 2007, Ontario broadcast online 21 cases but the pilot project went nowhere. Broadcast of court proceedings is forbid- den under the Courts of Justice Act, although judges have final authority over their courtrooms. With the exception of the Supreme Court of Canada, which broadcasts all pro- ceedings, other courts have infrequently allowed live broadcasts. The hesitation behind live broadcasts includes questions about the privacy of witnesses (or juries), the sensationaliza- tion of trials, and logistics such as cost and bandwidth. Back in 2014, the Justice Department studied Canadi- ans' perception of our justice system. They felt that the courts were too easy on criminals and that Canadi- ans didn't really understand how justice and corrections work. So, there's value in being able to witness live a judge's reasoning in a verdict. There's no good argu- ment against a further opening up of our courts in any province. There are common-sense ways to protect the integrity of the justice system at work, while respecting one of the most important values in a democracy: That justice can be seen happening. - Postmedia Network