I agree with Tom Brodbeck. There, I said it out loud. Well, on this issue anywho...By TOM BRODBECK
What a belly laugh it was last week when we heard Manitoba Public Insurance say it refuses to open up all its books to the province's rate regulator because that might compromise its competitive position.
What competition?
MPI is a friggin' government monopoly in every sense of the word. It doesn't have competitors. Even the extra coverage it sells is largely shielded from competition. And the driver's licensing function it now handles for the province is a government operation.
Last time I checked, I couldn't get my driver's licence from anybody else but the government. I'm pretty sure it's not available at my local 7-Eleven.
Manitoba's Public Utilities Board reported last week that it can no longer properly assess MPI's financial situation. That's because the Crown corporation refuses to hand over financial information that it argues isn't part of its core service, including the driver's licensing function it took over from the province and the extension policies it sells to motorists.
It also means the PUB can't order any rebates for 2009.
"The board is experiencing increased difficulty in assuring itself of the corporation's overall financial situation and prospects," the PUB wrote. "This is largely because the board's mandate is limited to the basic compulsory program, while an increasing percentage of the corporation's retained earnings and operations remain outside the board's purview."
It's bad enough Manitobans are forced to buy their vehicle insurance from a government agency run by politically appointed board members.
It's even worse that the Crown corporation is refusing to open certain aspects of its books.
What are they afraid of, that we'll find out their executives are pocketing juicy bonuses again, like we exposed in 2000?
MPI says the PUB should only be allowed to see the books that relate to the basic insurance it sells.
It says the PUB has no business analyzing the financials that cover drivers' licensing or the extended premiums it sells.
Nonsense. MPI is the sole provider of drivers' licensing and has almost no competition at all in extended coverage. And because we are forced to buy our insurance from them, we must have strong regulation in place to ensure we're not getting gouged.
"What exists with MPI's extension operations is a virtual monopoly, and monopolies are usually accompanied by regulation," the PUB wrote. "This (is) to provide the public assurance that rates, terms and conditions are fair and reasonable."
Exactly. Besides, driver's licences also contain an insurance premium, which must be regulated.
MPI Minister Dave Chomiak says he'll leave it up to the Crown corporation and the PUB to work out on their own.
So he's going to allow the fox to mind the henhouse? That's no good.
MPI is a one-pony show, shoved down our collective throats whether we like it or not.
They should be forced immediately to open all aspects of their books to the PUB.
If they don't want to do that, then allow vehicle insurance to be sold on the open market and stop forcing people to buy their premiums from government.
You can't have it both ways.
the winnipeg sandbox
