August 15, 2002
Howard Hampton, MPP
Leader, Ontario New Democrats
200 North Wing, Legislative Building
Queen’s Park, Toronto, ON
M7A 1A5
Dear Mr. Hampton:
As you know, OPSEU is very concerned about the impending privatization of yet another key provincial government function, the Province of Ontario Savings Office, (POSO).
POSO provides an opportunity for Ontarians to invest directly in our public services. It pays higher interest and charges fewer service fees than many banks. It also allows seniors and small-town residents access to personalized banking services.
As well, POSO does something a bank cannot do; it guarantees all Canadian and US funds on deposit. Federal deposit insurance guarantees $60,000 per bank, but US funds are not insured. For seniors with more than $60,000 in savings, for individuals or businesses holding US funds, and for law firms with estate money in
trust, the provincial guarantee is irreplaceable.
The proposed sale of POSO will reduce consumer choice, and our citizens will lose the ability to make investments in their own province. The province will lose access to $2.8 billion in deposits - money it otherwise must borrow abroad - and will forfeit $11.2 million in net income.
With these facts in mind, we ask that the NDP Caucus commit to join us in the fight against POSO privatization, and that you also commit to expanded and modernized Province of Ontario Savings Office service available across Ontario. There are 100,000 depositors, and 100,000 OPSEU members, all voters, who would welcome
your personal intervention and assistance in this campaign.
Sincerely,
Leah Casselman, President
Cc: David Christopherson, MPP, Finance Critic, 200 North Wing, Legislative Building, Queen’s Park M7A 1A5
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August 15, 2002
Dalton McGuinty, MPP
Leader, Official Opposition
381 Main Legislative Building
Queen’s Park
M7A 1A4
Dear Mr. McGuinty:
As you know, OPSEU is very concerned about the impending privatization of yet another key provincial government function, the Province of Ontario Savings Office, (POSO).
POSO provides an opportunity for Ontarians to invest directly in our public services. It pays higher interest and charges fewer service fees than many banks. It also allows seniors and small-town residents access to personalized banking services.
As well, POSO does something a bank cannot do; it guarantees all Canadian and US funds on deposit. Federal deposit insurance guarantees $60,000 per bank, but US funds are not insured. For seniors with more than $60,000 in savings, for individuals or businesses holding US funds, and for law firms with estate money in
trust, the provincial guarantee is irreplaceable.
The proposed sale of POSO will reduce consumer choice, and our citizens will lose the ability to make investments in their own province. The province will lose access to $2.8 billion in deposits - money it otherwise must borrow abroad - and will forfeit $11.2 million in net income.
With these facts in mind, we ask that the Liberal Caucus commit to join us in the fight against POSO privatization, and that you also commit to expanded and modernized Province of Ontario Savings Office service available across Ontario. There are 100,000 depositors, and 100,000 OPSEU members, all voters, who would
welcome your personal intervention and assistance in this campaign.
Sincerely,
Leah Casselman, President
Cc: George Smitherman, MPP, Financial Services Critic, Rm. 447 MLB, Queen’s Park, Toronto, ON M7A 1A4
