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Monsanto’s Harvest of Fear

http://www.vanityfair.com/politics/features/2008/05/monsanto200805

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Investigation

Monsanto’s Harvest of Fear
Monsanto already dominates America’s food chain with its genetically modified seeds. Now it has targeted milk production. Just as frightening as the corporation’s tactics–ruthless legal battles against small farmers–is its decades-long history of toxic contamination.
by Donald L. Barlett and James B. Steele May 2008

Gary Rinehart clearly remembers the summer day in 2002 when the stranger walked in and issued his threat. Rinehart was behind the counter of the Square Deal, his “old-time country store,” as he calls it, on the fading town square of Eagleville, Missouri, a tiny farm community 100 miles north of Kansas City.

The Square Deal is a fixture in Eagleville, a place where farmers and townspeople can go for lightbulbs, greeting cards, hunting gear, ice cream, aspirin, and dozens of other small items without having to drive to a big-box store in Bethany, the county seat, 15 miles down Interstate 35.

Everyone knows Rinehart, who was born and raised in the area and runs one of Eagleville’s few surviving businesses. The stranger came up to the counter and asked for him by name.

“Well, that’s me,” said Rinehart.

As Rinehart would recall, the man began verbally attacking him, saying he had proof that Rinehart had planted Monsanto’s genetically modified (G.M.) soybeans in violation of the company’s patent. Better come clean and settle with Monsanto, Rinehart says the man told him—or face the consequences.

Rinehart was incredulous, listening to the words as puzzled customers and employees looked on. Like many others in rural America, Rinehart knew of Monsanto’s fierce reputation for enforcing its patents and suing anyone who allegedly violated them. But Rinehart wasn’t a farmer. He wasn’t a seed dealer. He hadn’t planted any seeds or sold any seeds. He owned a small—a really small—country store in a town of 350 people. He was angry that somebody could just barge into the store and embarrass him in front of everyone. “It made me and my business look bad,” he says. Rinehart says he told the intruder, “You got the wrong guy.”

When the stranger persisted, Rinehart showed him the door. On the way out the man kept making threats. Rinehart says he can’t remember the exact words, but they were to the effect of: “Monsanto is big. You can’t win. We will get you. You will pay.”

Scenes like this are playing out in many parts of rural America these days as Monsanto goes after farmers, farmers’ co-ops, seed dealers—anyone it suspects may have infringed its patents of genetically modified seeds. As interviews and reams of court documents reveal, Monsanto relies on a shadowy army of private investigators and agents in the American heartland to strike fear into farm country. They fan out into fields and farm towns, where they secretly videotape and photograph farmers, store owners, and co-ops; infiltrate community meetings; and gather information from informants about farming activities. Farmers say that some Monsanto agents pretend to be surveyors. Others confront farmers on their land and try to pressure them to sign papers giving Monsanto access to their private records. Farmers call them the “seed police” and use words such as “Gestapo” and “Mafia” to describe their tactics.

When asked about these practices, Monsanto declined to comment specifically, other than to say that the company is simply protecting its patents. “Monsanto spends more than $2 million a day in research to identify, test, develop and bring to market innovative new seeds and technologies that benefit farmers,” Monsanto spokesman Darren Wallis wrote in an e-mailed letter to Vanity Fair. “One tool in protecting this investment is patenting our discoveries and, if necessary, legally defending those patents against those who might choose to infringe upon them.” Wallis said that, while the vast majority of farmers and seed dealers follow the licensing agreements, “a tiny fraction” do not, and that Monsanto is obligated to those who do abide by its rules to enforce its patent rights on those who “reap the benefits of the technology without paying for its use.” He said only a small number of cases ever go to trial.

Some compare Monsanto’s hard-line approach to Microsoft’s zealous efforts to protect its software from pirates. At least with Microsoft the buyer of a program can use it over and over again. But farmers who buy Monsanto’s seeds can’t even do that.
The Control of Nature

For centuries—millennia—farmers have saved seeds from season to season: they planted in the spring, harvested in the fall, then reclaimed and cleaned the seeds over the winter for re-planting the next spring. Monsanto has turned this ancient practice on its head.

Monsanto developed G.M. seeds that would resist its own herbicide, Roundup, offering farmers a convenient way to spray fields with weed killer without affecting crops. Monsanto then patented the seeds. For nearly all of its history the United States Patent and Trademark Office had refused to grant patents on seeds, viewing them as life-forms with too many variables to be patented. “It’s not like describing a widget,” says Joseph Mendelson III, the legal director of the Center for Food Safety, which has tracked Monsanto’s activities in rural America for years.

Indeed not. But in 1980 the U.S. Supreme Court, in a five-to-four decision, turned seeds into widgets, laying the groundwork for a handful of corporations to begin taking control of the world’s food supply. In its decision, the court extended patent law to cover “a live human-made microorganism.” In this case, the organism wasn’t even a seed. Rather, it was a Pseudomonas bacterium developed by a General Electric scientist to clean up oil spills. But the precedent was set, and Monsanto took advantage of it. Since the 1980s, Monsanto has become the world leader in genetic modification of seeds and has won 674 biotechnology patents, more than any other company, according to U.S. Department of Agriculture data.

Farmers who buy Monsanto’s patented Roundup Ready seeds are required to sign an agreement promising not to save the seed produced after each harvest for re-planting, or to sell the seed to other farmers. This means that farmers must buy new seed every year. Those increased sales, coupled with ballooning sales of its Roundup weed killer, have been a bonanza for Monsanto.

This radical departure from age-old practice has created turmoil in farm country. Some farmers don’t fully understand that they aren’t supposed to save Monsanto’s seeds for next year’s planting. Others do, but ignore the stipulation rather than throw away a perfectly usable product. Still others say that they don’t use Monsanto’s genetically modified seeds, but seeds have been blown into their fields by wind or deposited by birds. It’s certainly easy for G.M. seeds to get mixed in with traditional varieties when seeds are cleaned by commercial dealers for re-planting. The seeds look identical; only a laboratory analysis can show the difference. Even if a farmer doesn’t buy G.M. seeds and doesn’t want them on his land, it’s a safe bet he’ll get a visit from Monsanto’s seed police if crops grown from G.M. seeds are discovered in his fields.

Most Americans know Monsanto because of what it sells to put on our lawns— the ubiquitous weed killer Roundup. What they may not know is that the company now profoundly influences—and one day may virtually control—what we put on our tables. For most of its history Monsanto was a chemical giant, producing some of the most toxic substances ever created, residues from which have left us with some of the most polluted sites on earth. Yet in a little more than a decade, the company has sought to shed its polluted past and morph into something much different and more far-reaching—an “agricultural company” dedicated to making the world “a better place for future generations.” Still, more than one Web log claims to see similarities between Monsanto and the fictional company “U-North” in the movie Michael Clayton, an agribusiness giant accused in a multibillion-dollar lawsuit of selling an herbicide that causes cancer.

Monsanto’s genetically modified seeds have transformed the company and are radically altering global agriculture. So far, the company has produced G.M. seeds for soybeans, corn, canola, and cotton. Many more products have been developed or are in the pipeline, including seeds for sugar beets and alfalfa. The company is also seeking to extend its reach into milk production by marketing an artificial growth hormone for cows that increases their output, and it is taking aggressive steps to put those who don’t want to use growth hormone at a commercial disadvantage.

Even as the company is pushing its G.M. agenda, Monsanto is buying up conventional-seed companies. In 2005, Monsanto paid $1.4 billion for Seminis, which controlled 40 percent of the U.S. market for lettuce, tomatoes, and other vegetable and fruit seeds. Two weeks later it announced the acquisition of the country’s third-largest cottonseed company, Emergent Genetics, for $300 million. It’s estimated that Monsanto seeds now account for 90 percent of the U.S. production of soybeans, which are used in food products beyond counting. Monsanto’s acquisitions have fueled explosive growth, transforming the St. Louis–based corporation into the largest seed company in the world.

In Iraq, the groundwork has been laid to protect the patents of Monsanto and other G.M.-seed companies. One of L. Paul Bremer’s last acts as head of the Coalition Provisional Authority was an order stipulating that “farmers shall be prohibited from re-using seeds of protected varieties.” Monsanto has said that it has no interest in doing business in Iraq, but should the company change its mind, the American-style law is in place.

To be sure, more and more agricultural corporations and individual farmers are using Monsanto’s G.M. seeds. As recently as 1980, no genetically modified crops were grown in the U.S. In 2007, the total was 142 million acres planted. Worldwide, the figure was 282 million acres. Many farmers believe that G.M. seeds increase crop yields and save money. Another reason for their attraction is convenience. By using Roundup Ready soybean seeds, a farmer can spend less time tending to his fields. With Monsanto seeds, a farmer plants his crop, then treats it later with Roundup to kill weeds. That takes the place of labor-intensive weed control and plowing.

Monsanto portrays its move into G.M. seeds as a giant leap for mankind. But out in the American countryside, Monsanto’s no-holds-barred tactics have made it feared and loathed. Like it or not, farmers say, they have fewer and fewer choices in buying seeds.

And controlling the seeds is not some abstraction. Whoever provides the world’s seeds controls the world’s food supply.
Under Surveillance

After Monsanto’s investigator confronted Gary Rinehart, Monsanto filed a federal lawsuit alleging that Rinehart “knowingly, intentionally, and willfully” planted seeds “in violation of Monsanto’s patent rights.” The company’s complaint made it sound as if Monsanto had Rinehart dead to rights:

During the 2002 growing season, Investigator Jeffery Moore, through surveillance of Mr. Rinehart’s farm facility and farming operations, observed Defendant planting brown bag soybean seed. Mr. Moore observed the Defendant take the brown bag soybeans to a field, which was subsequently loaded into a grain drill and planted. Mr. Moore located two empty bags in the ditch in the public road right-of-way beside one of the fields planted by Rinehart, which contained some soybeans. Mr. Moore collected a small amount of soybeans left in the bags which Defendant had tossed into the public right-of way. These samples tested positive for Monsanto’s Roundup Ready technology.

Faced with a federal lawsuit, Rinehart had to hire a lawyer. Monsanto eventually realized that “Investigator Jeffery Moore” had targeted the wrong man, and dropped the suit. Rinehart later learned that the company had been secretly investigating farmers in his area. Rinehart never heard from Monsanto again: no letter of apology, no public concession that the company had made a terrible mistake, no offer to pay his attorney’s fees. “I don’t know how they get away with it,” he says. “If I tried to do something like that it would be bad news. I felt like I was in another country.”

Gary Rinehart is actually one of Monsanto’s luckier targets. Ever since commercial introduction of its G.M. seeds, in 1996, Monsanto has launched thousands of investigations and filed lawsuits against hundreds of farmers and seed dealers. In a 2007 report, the Center for Food Safety, in Washington, D.C., documented 112 such lawsuits, in 27 states.

Even more significant, in the Center’s opinion, are the numbers of farmers who settle because they don’t have the money or the time to fight Monsanto. “The number of cases filed is only the tip of the iceberg,” says Bill Freese, the Center’s science-policy analyst. Freese says he has been told of many cases in which Monsanto investigators showed up at a farmer’s house or confronted him in his fields, claiming he had violated the technology agreement and demanding to see his records. According to Freese, investigators will say, “Monsanto knows that you are saving Roundup Ready seeds, and if you don’t sign these information-release forms, Monsanto is going to come after you and take your farm or take you for all you’re worth.” Investigators will sometimes show a farmer a photo of himself coming out of a store, to let him know he is being followed.

Lawyers who have represented farmers sued by Monsanto say that intimidating actions like these are commonplace. Most give in and pay Monsanto some amount in damages; those who resist face the full force of Monsanto’s legal wrath.
Scorched-Earth Tactics

Pilot Grove, Missouri, population 750, sits in rolling farmland 150 miles west of St. Louis. The town has a grocery store, a bank, a bar, a nursing home, a funeral parlor, and a few other small businesses. There are no stoplights, but the town doesn’t need any. The little traffic it has comes from trucks on their way to and from the grain elevator on the edge of town. The elevator is owned by a local co-op, the Pilot Grove Cooperative Elevator, which buys soybeans and corn from farmers in the fall, then ships out the grain over the winter. The co-op has seven full-time employees and four computers.

In the fall of 2006, Monsanto trained its legal guns on Pilot Grove; ever since, its farmers have been drawn into a costly, disruptive legal battle against an opponent with limitless resources. Neither Pilot Grove nor Monsanto will discuss the case, but it is possible to piece together much of the story from documents filed as part of the litigation.

Monsanto began investigating soybean farmers in and around Pilot Grove several years ago. There is no indication as to what sparked the probe, but Monsanto periodically investigates farmers in soybean-growing regions such as this one in central Missouri. The company has a staff devoted to enforcing patents and litigating against farmers. To gather leads, the company maintains an 800 number and encourages farmers to inform on other farmers they think may be engaging in “seed piracy.”

Once Pilot Grove had been targeted, Monsanto sent private investigators into the area. Over a period of months, Monsanto’s investigators surreptitiously followed the co-op’s employees and customers and videotaped them in fields and going about other activities. At least 17 such surveillance videos were made, according to court records. The investigative work was outsourced to a St. Louis agency, McDowell & Associates. It was a McDowell investigator who erroneously fingered Gary Rinehart. In Pilot Grove, at least 11 McDowell investigators have worked the case, and Monsanto makes no bones about the extent of this effort: “Surveillance was conducted throughout the year by various investigators in the field,” according to court records. McDowell, like Monsanto, will not comment on the case.

Not long after investigators showed up in Pilot Grove, Monsanto subpoenaed the co-op’s records concerning seed and herbicide purchases and seed-cleaning operations. The co-op provided more than 800 pages of documents pertaining to dozens of farmers. Monsanto sued two farmers and negotiated settlements with more than 25 others it accused of seed piracy. But Monsanto’s legal assault had only begun. Although the co-op had provided voluminous records, Monsanto then sued it in federal court for patent infringement. Monsanto contended that by cleaning seeds—a service which it had provided for decades—the co-op was inducing farmers to violate Monsanto’s patents. In effect, Monsanto wanted the co-op to police its own customers.

In the majority of cases where Monsanto sues, or threatens to sue, farmers settle before going to trial. The cost and stress of litigating against a global corporation are just too great. But Pilot Grove wouldn’t cave—and ever since, Monsanto has been turning up the heat. The more the co-op has resisted, the more legal firepower Monsanto has aimed at it. Pilot Grove’s lawyer, Steven H. Schwartz, described Monsanto in a court filing as pursuing a “scorched earth tactic,” intent on “trying to drive the co-op into the ground.”

Even after Pilot Grove turned over thousands more pages of sales records going back five years, and covering virtually every one of its farmer customers, Monsanto wanted more—the right to inspect the co-op’s hard drives. When the co-op offered to provide an electronic version of any record, Monsanto demanded hands-on access to Pilot Grove’s in-house computers.

Monsanto next petitioned to make potential damages punitive—tripling the amount that Pilot Grove might have to pay if found guilty. After a judge denied that request, Monsanto expanded the scope of the pre-trial investigation by seeking to quadruple the number of depositions. “Monsanto is doing its best to make this case so expensive to defend that the Co-op will have no choice but to relent,” Pilot Grove’s lawyer said in a court filing.

With Pilot Grove still holding out for a trial, Monsanto now subpoenaed the records of more than 100 of the co-op’s customers. In a “You are Commanded … ” notice, the farmers were ordered to gather up five years of invoices, receipts, and all other papers relating to their soybean and herbicide purchases, and to have the documents delivered to a law office in St. Louis. Monsanto gave them two weeks to comply.

Whether Pilot Grove can continue to wage its legal battle remains to be seen. Whatever the outcome, the case shows why Monsanto is so detested in farm country, even by those who buy its products. “I don’t know of a company that chooses to sue its own customer base,” says Joseph Mendelson, of the Center for Food Safety. “It’s a very bizarre business strategy.” But it’s one that Monsanto manages to get away with, because increasingly it’s the dominant vendor in town.
Chemicals? What Chemicals?

The Monsanto Company has never been one of America’s friendliest corporate citizens. Given Monsanto’s current dominance in the field of bioengineering, it’s worth looking at the company’s own DNA. The future of the company may lie in seeds, but the seeds of the company lie in chemicals. Communities around the world are still reaping the environmental consequences of Monsanto’s origins.

Monsanto was founded in 1901 by John Francis Queeny, a tough, cigar-smoking Irishman with a sixth-grade education. A buyer for a wholesale drug company, Queeny had an idea. But like a lot of employees with ideas, he found that his boss wouldn’t listen to him. So he went into business for himself on the side. Queeny was convinced there was money to be made manufacturing a substance called saccharin, an artificial sweetener then imported from Germany. He took $1,500 of his savings, borrowed another $3,500, and set up shop in a dingy warehouse near the St. Louis waterfront. With borrowed equipment and secondhand machines, he began producing saccharin for the U.S. market. He called the company the Monsanto Chemical Works, Monsanto being his wife’s maiden name.

The German cartel that controlled the market for saccharin wasn’t pleased, and cut the price from $4.50 to $1 a pound to try to force Queeny out of business. The young company faced other challenges. Questions arose about the safety of saccharin, and the U.S. Department of Agriculture even tried to ban it. Fortunately for Queeny, he wasn’t up against opponents as aggressive and litigious as the Monsanto of today. His persistence and the loyalty of one steady customer kept the company afloat. That steady customer was a new company in Georgia named Coca-Cola.

Monsanto added more and more products—vanillin, caffeine, and drugs used as sedatives and laxatives. In 1917, Monsanto began making aspirin, and soon became the largest maker worldwide. During World War I, cut off from imported European chemicals, Monsanto was forced to manufacture its own, and its position as a leading force in the chemical industry was assured.

After Queeny was diagnosed with cancer, in the late 1920s, his only son, Edgar, became president. Where the father had been a classic entrepreneur, Edgar Monsanto Queeny was an empire builder with a grand vision. It was Edgar—shrewd, daring, and intuitive (“He can see around the next corner,” his secretary once said)—who built Monsanto into a global powerhouse. Under Edgar Queeny and his successors, Monsanto extended its reach into a phenomenal number of products: plastics, resins, rubber goods, fuel additives, artificial caffeine, industrial fluids, vinyl siding, dishwasher detergent, anti-freeze, fertilizers, herbicides, pesticides. Its safety glass protects the U.S. Constitution and the Mona Lisa. Its synthetic fibers are the basis of Astroturf.

During the 1970s, the company shifted more and more resources into biotechnology. In 1981 it created a molecular-biology group for research in plant genetics. The next year, Monsanto scientists hit gold: they became the first to genetically modify a plant cell. “It will now be possible to introduce virtually any gene into plant cells with the ultimate goal of improving crop productivity,” said Ernest Jaworski, director of Monsanto’s Biological Sciences Program.

Over the next few years, scientists working mainly in the company’s vast new Life Sciences Research Center, 25 miles west of St. Louis, developed one genetically modified product after another—cotton, soybeans, corn, canola. From the start, G.M. seeds were controversial with the public as well as with some farmers and European consumers. Monsanto has sought to portray G.M. seeds as a panacea, a way to alleviate poverty and feed the hungry. Robert Shapiro, Monsanto’s president during the 1990s, once called G.M. seeds “the single most successful introduction of technology in the history of agriculture, including the plow.”

By the late 1990s, Monsanto, having rebranded itself into a “life sciences” company, had spun off its chemical and fibers operations into a new company called Solutia. After an additional reorganization, Monsanto re-incorporated in 2002 and officially declared itself an “agricultural company.”

In its company literature, Monsanto now refers to itself disingenuously as a “relatively new company” whose primary goal is helping “farmers around the world in their mission to feed, clothe, and fuel” a growing planet. In its list of corporate milestones, all but a handful are from the recent era. As for the company’s early history, the decades when it grew into an industrial powerhouse now held potentially responsible for more than 50 Environmental Protection Agency Superfund sites—none of that is mentioned. It’s as though the original Monsanto, the company that long had the word “chemical” as part of its name, never existed. One of the benefits of doing this, as the company does not point out, was to channel the bulk of the growing backlog of chemical lawsuits and liabilities onto Solutia, keeping the Monsanto brand pure.

But Monsanto’s past, especially its environmental legacy, is very much with us. For many years Monsanto produced two of the most toxic substances ever known— polychlorinated biphenyls, better known as PCBs, and dioxin. Monsanto no longer produces either, but the places where it did are still struggling with the aftermath, and probably always will be.
“Systemic Intoxication”

Twelve miles downriver from Charleston, West Virginia, is the town of Nitro, where Monsanto operated a chemical plant from 1929 to 1995. In 1948 the plant began to make a powerful herbicide known as 2,4,5-T, called “weed bug” by the workers. A by-product of the process was the creation of a chemical that would later be known as dioxin.

The name dioxin refers to a group of highly toxic chemicals that have been linked to heart disease, liver disease, human reproductive disorders, and developmental problems. Even in small amounts, dioxin persists in the environment and accumulates in the body. In 1997 the International Agency for Research on Cancer, a branch of the World Health Organization, classified the most powerful form of dioxin as a substance that causes cancer in humans. In 2001 the U.S. government listed the chemical as a “known human carcinogen.”

On March 8, 1949, a massive explosion rocked Monsanto’s Nitro plant when a pressure valve blew on a container cooking up a batch of herbicide. The noise from the release was a scream so loud that it drowned out the emergency steam whistle for five minutes. A plume of vapor and white smoke drifted across the plant and out over town.Residue from the explosion coated the interior of the building and those inside with what workers described as “a fine black powder.” Many felt their skin prickle and were told to scrub down.

Within days, workers experienced skin eruptions. Many were soon diagnosed with chloracne, a condition similar to common acne but more severe, longer lasting, and potentially disfiguring. Others felt intense pains in their legs, chest, and trunk. A confidential medical report at the time said the explosion “caused a systemic intoxication in the workers involving most major organ systems.” Doctors who examined four of the most seriously injured men detected a strong odor coming from them when they were all together in a closed room. “We believe these men are excreting a foreign chemical through their skins,” the confidential report to Monsanto noted. Court records indicate that 226 plant workers became ill.

According to court documents that have surfaced in a West Virginia court case, Monsanto downplayed the impact, stating that the contaminant affecting workers was “fairly slow acting” and caused “only an irritation of the skin.”

In the meantime, the Nitro plant continued to produce herbicides, rubber products, and other chemicals. In the 1960s, the factory manufactured Agent Orange, the powerful herbicide which the U.S. military used to defoliate jungles during the Vietnam War, and which later was the focus of lawsuits by veterans contending that they had been harmed by exposure. As with Monsanto’s older herbicides, the manufacturing of Agent Orange created dioxin as a by-product.

As for the Nitro plant’s waste, some was burned in incinerators, some dumped in landfills or storm drains, some allowed to run into streams. As Stuart Calwell, a lawyer who has represented both workers and residents in Nitro, put it, “Dioxin went wherever the product went, down the sewer, shipped in bags, and when the waste was burned, out in the air.”

In 1981 several former Nitro employees filed lawsuits in federal court, charging that Monsanto had knowingly exposed them to chemicals that caused long-term health problems, including cancer and heart disease. They alleged that Monsanto knew that many chemicals used at Nitro were potentially harmful, but had kept that information from them. On the eve of a trial, in 1988, Monsanto agreed to settle most of the cases by making a single lump payment of $1.5 million. Monsanto also agreed to drop its claim to collect $305,000 in court costs from six retired Monsanto workers who had unsuccessfully charged in another lawsuit that Monsanto had recklessly exposed them to dioxin. Monsanto had attached liens to the retirees’ homes to guarantee collection of the debt.

Monsanto stopped producing dioxin in Nitro in 1969, but the toxic chemical can still be found well beyond the Nitro plant site. Repeated studies have found elevated levels of dioxin in nearby rivers, streams, and fish. Residents have sued to seek damages from Monsanto and Solutia. Earlier this year, a West Virginia judge merged those lawsuits into a class-action suit. A Monsanto spokesman said, “We believe the allegations are without merit and we’ll defend ourselves vigorously.” The suit will no doubt take years to play out. Time is one thing that Monsanto always has, and that the plaintiffs usually don’t.
Poisoned Lawns

Five hundred miles to the south, the people of Anniston, Alabama, know all about what the people of Nitro are going through. They’ve been there. In fact, you could say, they’re still there.

From 1929 to 1971, Monsanto’s Anniston works produced PCBs as industrial coolants and insulating fluids for transformers and other electrical equipment. One of the wonder chemicals of the 20th century, PCBs were exceptionally versatile and fire-resistant, and became central to many American industries as lubricants, hydraulic fluids, and sealants. But PCBs are toxic. A member of a family of chemicals that mimic hormones, PCBs have been linked to damage in the liver and in the neurological, immune, endocrine, and reproductive systems. The Environmental Protection Agency (E.P.A.) and the Agency for Toxic Substances and Disease Registry, part of the Department of Health and Human Services, now classify PCBs as “probable carcinogens.”

Today, 37 years after PCB production ceased in Anniston, and after tons of contaminated soil have been removed to try to reclaim the site, the area around the old Monsanto plant remains one of the most polluted spots in the U.S.

People in Anniston find themselves in this fix today largely because of the way Monsanto disposed of PCB waste for decades. Excess PCBs were dumped in a nearby open-pit landfill or allowed to flow off the property with storm water. Some waste was poured directly into Snow Creek, which runs alongside the plant and empties into a larger stream, Choccolocco Creek. PCBs also turned up in private lawns after the company invited Anniston residents to use soil from the plant for their lawns, according to The Anniston Star.

So for decades the people of Anniston breathed air, planted gardens, drank from wells, fished in rivers, and swam in creeks contaminated with PCBs—without knowing anything about the danger. It wasn’t until the 1990s—20 years after Monsanto stopped making PCBs in Anniston—that widespread public awareness of the problem there took hold.

Studies by health authorities consistently found elevated levels of PCBs in houses, yards, streams, fields, fish, and other wildlife—and in people. In 2003, Monsanto and Solutia entered into a consent decree with the E.P.A. to clean up Anniston. Scores of houses and small businesses were to be razed, tons of contaminated soil dug up and carted off, and streambeds scooped of toxic residue. The cleanup is under way, and it will take years, but some doubt it will ever be completed—the job is massive. To settle residents’ claims, Monsanto has also paid $550 million to 21,000 Anniston residents exposed to PCBs, but many of them continue to live with PCBs in their bodies. Once PCB is absorbed into human tissue, there it forever remains.

Monsanto shut down PCB production in Anniston in 1971, and the company ended all its American PCB operations in 1977. Also in 1977, Monsanto closed a PCB plant in Wales. In recent years, residents near the village of Groesfaen, in southern Wales, have noticed vile odors emanating from an old quarry outside the village. As it turns out, Monsanto had dumped thousands of tons of waste from its nearby PCB plant into the quarry. British authorities are struggling to decide what to do with what they have now identified as among the most contaminated places in Britain.
“No Cause for Public Alarm”

What had Monsanto known—or what should it have known—about the potential dangers of the chemicals it was manufacturing? There’s considerable documentation lurking in court records from many lawsuits indicating that Monsanto knew quite a lot. Let’s look just at the example of PCBs.

The evidence that Monsanto refused to face questions about their toxicity is quite clear. In 1956 the company tried to sell the navy a hydraulic fluid for its submarines called Pydraul 150, which contained PCBs. Monsanto supplied the navy with test results for the product. But the navy decided to run its own tests. Afterward, navy officials informed Monsanto that they wouldn’t be buying the product. “Applications of Pydraul 150 caused death in all of the rabbits tested” and indicated “definite liver damage,” navy officials told Monsanto, according to an internal Monsanto memo divulged in the course of a court proceeding. “No matter how we discussed the situation,” complained Monsanto’s medical director, R. Emmet Kelly, “it was impossible to change their thinking that Pydraul 150 is just too toxic for use in submarines.”

Ten years later, a biologist conducting studies for Monsanto in streams near the Anniston plant got quick results when he submerged his test fish. As he reported to Monsanto, according to The Washington Post, “All 25 fish lost equilibrium and turned on their sides in 10 seconds and all were dead in 3½ minutes.”

When the Food and Drug Administration (F.D.A.) turned up high levels of PCBs in fish near the Anniston plant in 1970, the company swung into action to limit the P.R. damage. An internal memo entitled “confidential—f.y.i. and destroy” from Monsanto official Paul B. Hodges reviewed steps under way to limit disclosure of the information. One element of the strategy was to get public officials to fight Monsanto’s battle: “Joe Crockett, Secretary of the Alabama Water Improvement Commission, will try to handle the problem quietly without release of the information to the public at this time,” according to the memo.

Despite Monsanto’s efforts, the information did get out, but the company was able to blunt its impact. Monsanto’s Anniston plant manager “convinced” a reporter for The Anniston Star that there was really nothing to worry about, and an internal memo from Monsanto’s headquarters in St. Louis summarized the story that subsequently appeared in the newspaper: “Quoting both plant management and the Alabama Water Improvement Commission, the feature emphasized the PCB problem was relatively new, was being solved by Monsanto and, at this point, was no cause for public alarm.”

In truth, there was enormous cause for public alarm. But that harm was done by the “Original Monsanto Company,” not “Today’s Monsanto Company” (the words and the distinction are Monsanto’s). The Monsanto of today says that it can be trusted—that its biotech crops are “as wholesome, nutritious and safe as conventional crops,” and that milk from cows injected with its artificial growth hormone is the same as, and as safe as, milk from any other cow.
The Milk Wars

Jeff Kleinpeter takes very good care of his dairy cows. In the winter he turns on heaters to warm their barns. In the summer, fans blow gentle breezes to cool them, and on especially hot days, a fine mist floats down to take the edge off Louisiana’s heat. The dairy has gone “to the ultimate end of the earth for cow comfort,” says Kleinpeter, a fourth-generation dairy farmer in Baton Rouge. He says visitors marvel at what he does: “I’ve had many of them say, ‘When I die, I want to come back as a Kleinpeter cow.’ ”

Monsanto would like to change the way Jeff Kleinpeter and his family do business. Specifically, Monsanto doesn’t like the label on Kleinpeter Dairy’s milk cartons: “From Cows Not Treated with rBGH.” To consumers, that means the milk comes from cows that were not given artificial bovine growth hormone, a supplement developed by Monsanto that can be injected into dairy cows to increase their milk output.

No one knows what effect, if any, the hormone has on milk or the people who drink it. Studies have not detected any difference in the quality of milk produced by cows that receive rBGH, or rBST, a term by which it is also known. But Jeff Kleinpeter—like millions of consumers—wants no part of rBGH. Whatever its effect on humans, if any, Kleinpeter feels certain it’s harmful to cows because it speeds up their metabolism and increases the chances that they’ll contract a painful illness that can shorten their lives. “It’s like putting a Volkswagen car in with the Indianapolis 500 racers,” he says. “You gotta keep the pedal to the metal the whole way through, and pretty soon that poor little Volkswagen engine’s going to burn up.”

Kleinpeter Dairy has never used Monsanto’s artificial hormone, and the dairy requires other dairy farmers from whom it buys milk to attest that they don’t use it, either. At the suggestion of a marketing consultant, the dairy began advertising its milk as coming from rBGH-free cows in 2005, and the label began appearing on Kleinpeter milk cartons and in company literature, including a new Web site of Kleinpeter products that proclaims, “We treat our cows with love … not rBGH.”

The dairy’s sales soared. For Kleinpeter, it was simply a matter of giving consumers more information about their product.

But giving consumers that information has stirred the ire of Monsanto. The company contends that advertising by Kleinpeter and other dairies touting their “no rBGH” milk reflects adversely on Monsanto’s product. In a letter to the Federal Trade Commission in February 2007, Monsanto said that, notwithstanding the overwhelming evidence that there is no difference in the milk from cows treated with its product, “milk processors persist in claiming on their labels and in advertisements that the use of rBST is somehow harmful, either to cows or to the people who consume milk from rBST-supplemented cows.”

Monsanto called on the commission to investigate what it called the “deceptive advertising and labeling practices” of milk processors such as Kleinpeter, accusing them of misleading consumers “by falsely claiming that there are health and safety risks associated with milk from rBST-supplemented cows.” As noted, Kleinpeter does not make any such claims—he simply states that his milk comes from cows not injected with rBGH.

Monsanto’s attempt to get the F.T.C. to force dairies to change their advertising was just one more step in the corporation’s efforts to extend its reach into agriculture. After years of scientific debate and public controversy, the F.D.A. in 1993 approved commercial use of rBST, basing its decision in part on studies submitted by Monsanto. That decision allowed the company to market the artificial hormone. The effect of the hormone is to increase milk production, not exactly something the nation needed then—or needs now. The U.S. was actually awash in milk, with the government buying up the surplus to prevent a collapse in prices.

Monsanto began selling the supplement in 1994 under the name Posilac. Monsanto acknowledges that the possible side effects of rBST for cows include lameness, disorders of the uterus, increased body temperature, digestive problems, and birthing difficulties. Veterinary drug reports note that “cows injected with Posilac are at an increased risk for mastitis,” an udder infection in which bacteria and pus may be pumped out with the milk. What’s the effect on humans? The F.D.A. has consistently said that the milk produced by cows that receive rBGH is the same as milk from cows that aren’t injected: “The public can be confident that milk and meat from BST-treated cows is safe to consume.” Nevertheless, some scientists are concerned by the lack of long-term studies to test the additive’s impact, especially on children. A Wisconsin geneticist, William von Meyer, observed that when rBGH was approved the longest study on which the F.D.A.’s approval was based covered only a 90-day laboratory test with small animals. “But people drink milk for a lifetime,” he noted. Canada and the European Union have never approved the commercial sale of the artificial hormone. Today, nearly 15 years after the F.D.A. approved rBGH, there have still been no long-term studies “to determine the safety of milk from cows that receive artificial growth hormone,” says Michael Hansen, senior staff scientist for Consumers Union. Not only have there been no studies, he adds, but the data that does exist all comes from Monsanto. “There is no scientific consensus about the safety,” he says.

However F.D.A. approval came about, Monsanto has long been wired into Washington. Michael R. Taylor was a staff attorney and executive assistant to the F.D.A. commissioner before joining a law firm in Washington in 1981, where he worked to secure F.D.A. approval of Monsanto’s artificial growth hormone before returning to the F.D.A. as deputy commissioner in 1991. Dr. Michael A. Friedman, formerly the F.D.A.’s deputy commissioner for operations, joined Monsanto in 1999 as a senior vice president. Linda J. Fisher was an assistant administrator at the E.P.A. when she left the agency in 1993. She became a vice president of Monsanto, from 1995 to 2000, only to return to the E.P.A. as deputy administrator the next year. William D. Ruckelshaus, former E.P.A. administrator, and Mickey Kantor, former U.S. trade representative, each served on Monsanto’s board after leaving government. Supreme Court justice Clarence Thomas was an attorney in Monsanto’s corporate-law department in the 1970s. He wrote the Supreme Court opinion in a crucial G.M.-seed patent-rights case in 2001 that benefited Monsanto and all G.M.-seed companies. Donald Rumsfeld never served on the board or held any office at Monsanto, but Monsanto must occupy a soft spot in the heart of the former defense secretary. Rumsfeld was chairman and C.E.O. of the pharmaceutical maker G. D. Searle & Co. when Monsanto acquired Searle in 1985, after Searle had experienced difficulty in finding a buyer. Rumsfeld’s stock and options in Searle were valued at $12 million at the time of the sale.

From the beginning some consumers have consistently been hesitant to drink milk from cows treated with artificial hormones. This is one reason Monsanto has waged so many battles with dairies and regulators over the wording of labels on milk cartons. It has sued at least two dairies and one co-op over labeling.

Critics of the artificial hormone have pushed for mandatory labeling on all milk products, but the F.D.A. has resisted and even taken action against some dairies that labeled their milk “BST-free.” Since BST is a natural hormone found in all cows, including those not injected with Monsanto’s artificial version, the F.D.A. argued that no dairy could claim that its milk is BST-free. The F.D.A. later issued guidelines allowing dairies to use labels saying their milk comes from “non-supplemented cows,” as long as the carton has a disclaimer saying that the artificial supplement does not in any way change the milk. So the milk cartons from Kleinpeter Dairy, for example, carry a label on the front stating that the milk is from cows not treated with rBGH, and the rear panel says, “Government studies have shown no significant difference between milk derived from rBGH-treated and non-rBGH-treated cows.” That’s not good enough for Monsanto.
The Next Battleground

As more and more dairies have chosen to advertise their milk as “No rBGH,” Monsanto has gone on the offensive. Its attempt to force the F.T.C. to look into what Monsanto called “deceptive practices” by dairies trying to distance themselves from the company’s artificial hormone was the most recent national salvo. But after reviewing Monsanto’s claims, the F.T.C.’s Division of Advertising Practices decided in August 2007 that a “formal investigation and enforcement action is not warranted at this time.” The agency found some instances where dairies had made “unfounded health and safety claims,” but these were mostly on Web sites, not on milk cartons. And the F.T.C. determined that the dairies Monsanto had singled out all carried disclaimers that the F.D.A. had found no significant differences in milk from cows treated with the artificial hormone.

Blocked at the federal level, Monsanto is pushing for action by the states. In the fall of 2007, Pennsylvania’s agriculture secretary, Dennis Wolff, issued an edict prohibiting dairies from stamping milk containers with labels stating their products were made without the use of the artificial hormone. Wolff said such a label implies that competitors’ milk is not safe, and noted that non-supplemented milk comes at an unjustified higher price, arguments that Monsanto has frequently made. The ban was to take effect February 1, 2008.

Wolff’s action created a firestorm in Pennsylvania (and beyond) from angry consumers. So intense was the outpouring of e-mails, letters, and calls that Pennsylvania governor Edward Rendell stepped in and reversed his agriculture secretary, saying, “The public has a right to complete information about how the milk they buy is produced.”

On this issue, the tide may be shifting against Monsanto. Organic dairy products, which don’t involve rBGH, are soaring in popularity. Supermarket chains such as Kroger, Publix, and Safeway are embracing them. Some other companies have turned away from rBGH products, including Starbucks, which has banned all milk products from cows treated with rBGH. Although Monsanto once claimed that an estimated 30 percent of the nation’s dairy cows were injected with rBST, it’s widely believed that today the number is much lower.

But don’t count Monsanto out. Efforts similar to the one in Pennsylvania have been launched in other states, including New Jersey, Ohio, Indiana, Kansas, Utah, and Missouri. A Monsanto-backed group called afact—American Farmers for the Advancement and Conservation of Technology—has been spearheading efforts in many of these states. afact describes itself as a “producer organization” that decries “questionable labeling tactics and activism” by marketers who have convinced some consumers to “shy away from foods using new technology.” afact reportedly uses the same St. Louis public-relations firm, Osborn & Barr, employed by Monsanto. An Osborn & Barr spokesman told The Kansas City Star that the company was doing work for afact on a pro bono basis.

Even if Monsanto’s efforts to secure across-the-board labeling changes should fall short, there’s nothing to stop state agriculture departments from restricting labeling on a dairy-by-dairy basis. Beyond that, Monsanto also has allies whose foot soldiers will almost certainly keep up the pressure on dairies that don’t use Monsanto’s artificial hormone. Jeff Kleinpeter knows about them, too.

He got a call one day from the man who prints the labels for his milk cartons, asking if he had seen the attack on Kleinpeter Dairy that had been posted on the Internet. Kleinpeter went online to a site called StopLabelingLies, which claims to “help consumers by publicizing examples of false and misleading food and other product labels.” There, sure enough, Kleinpeter and other dairies that didn’t use Monsanto’s product were being accused of making misleading claims to sell their milk.

There was no address or phone number on the Web site, only a list of groups that apparently contribute to the site and whose issues range from disparaging organic farming to downplaying the impact of global warming. “They were criticizing people like me for doing what we had a right to do, had gone through a government agency to do,” says Kleinpeter. “We never could get to the bottom of that Web site to get that corrected.”

As it turns out, the Web site counts among its contributors Steven Milloy, the “junk science” commentator for FoxNews.com and operator of junkscience.com, which claims to debunk “faulty scientific data and analysis.” It may come as no surprise that earlier in his career, Milloy, who calls himself the “junkman,” was a registered lobbyist for Monsanto.

Dion touts carbon tax, billions in tax cuts

http://www.theglobeandmail.com/servlet/story/RTGAM.20080508.wcarbon08/BNStory/National/home

Dion touts carbon tax, billions in tax cuts
Proposal making some Liberals nervous as gas prices soar

JANE TABER AND BRIAN LAGHI

From Thursday’s Globe and Mail

May 8, 2008 at 3:30 AM EDT

OTTAWA — Stéphane Dion is poised to unveil a carbon-tax scheme and attempt to neutralize any political damage by offering corresponding personal income tax cuts of between $10-billion and $13-billion to working Canadians, senior Liberal sources say.

The Liberal Leader wants this major environmental policy to be the centrepiece of the party’s election campaign platform, according to the sources, and is anxious to reveal it this summer to give Canadians a chance to digest the idea before a federal election.

The plan, according to sources, would shift the 10-cent federal excise tax on a litre of fuel at the pumps into a broad-based carbon tax that would also apply to other fuels, such as for home heating. Sources say that the plan would not add more taxes to gasoline.

But the key is that the money raised – estimated as much as $17-billion – would be returned to middle-class and working Canadians in personal income tax cuts, making it revenue neutral. There could be corporate tax cuts as well.

The policy of a broadly based fuel tax is making some Liberals nervous, because gasoline prices are rising at warp speed and Canadians are being punished at the pumps.

“Just in the short time Dion has mused about a carbon tax, the Conservatives have already preframed the issue negatively in the media,” said a veteran Liberal strategist who opposes releasing the plan now.

“Imagine what they will do with the actual material in a sinking economy,” he says.

“The issue is Stephen Harper and there is a wealth of material to take him down. Instead, we pass that up to launch a summer of Dion. No wonder Liberal morale is so low.”

But without risk there are no rewards, supporters of the initiative say. And in announcing his plan now, Mr. Dion is attempting to grab the “green” ground and attract NDP and Green Party voters.

Senior Liberal sources say he will try to frame the carbon plan as a “revenue shift” or “tax shift,” not a tax.

Those who are close to Mr. Dion say he wants to make a daring move because he believes it is right.

“I know Stéphane well enough; contrary to rumour, he’s got a really strong spirit, strong will, he’s not a coward,” says Peter Russell, professor emeritus in political science at the University of Toronto, who has encouraged Mr. Dion to adopt a carbon-tax policy.

“And he may have a sense that boldness at this time is what the country is maybe looking for.”

A senior Liberal strategist concurs: “I think he is going to run on it and make it the platform of his campaign. He’s a man who believes in what is right. The political side doesn’t really interest him.”

And that’s the problem, according to the insider: The only way to implement ideas in politics is to get elected. Carbon pricing is a complicated issue that the Harper Conservatives will likely portray as just a tax grab.

However, a Canadian Press-Harris-Decima survey released yesterday suggests 61 per cent of Canadians support the idea of a carbon tax on businesses and people, even though an overwhelming majority also favour using taxes to punish or reward green behaviour.

The Tories have repeatedly rejected a carbon tax. They prefer stricter carbon-emission controls for big polluters. The Liberals want to get the issue to the public well before a federal vote to ensure Mr. Dion doesn’t get tripped up trying to explain a complicated scheme during the hurly-burly of an election campaign.

Mr. Dion’s plan follows closely a proposal laid out recently by Jack Mintz, the former president of the C.D. Howe Institute, who recently moved to the University of Calgary.

Mr. Dion and his supporters repeatedly mention the model, created by Prof. Mintz and Nancy Olewiler of Simon Fraser University, when talking about how to deal with the environment.

The Mintz model would shift the federal fuel excise tax to a broad-based carbon tax, which would raise about $17-billion.

“It’s a lot of money and you can cut corporate and personal taxes about 8 to 10 per cent,” Prof. Mintz said.

Meanwhile, a well-placed Liberal source says that Liberal finance critic John McCallum and several former Department of Finance officials have worked on the tax-savings portion of the plan.

The carbon tax and other environmental proposals have been tested by focus groups, insiders say.

The Dion Liberals are also looking at the B.C. Liberal government’s graduated carbon tax, which is to be returned to British Columbians in tax breaks.

Some federal Liberals who are nervous about the carbon-tax initiative have noted that the Gordon Campbell Liberals did not campaign on their plan.

On July 1, when British Columbians will begin their summer holidays, gasoline prices will rise an additional 2.4 cents a litre. However, other Liberals believe that the relatively positive reception given to Mr. Campbell’s ideas will insulate them from future criticism.

And although Prof. Mintz believes in a carbon tax as a way to improve the environment, he doesn’t want it to become a campaign debate.

“I wish it didn’t become an election campaign issue,” he said. “… Right now people don’t know which direction to go in … it’s like a horse race right now amongst the governments and they are all jumping out of the starting gate but they are running in different directions.”

Dion weak, uninspiring but still more likeable than PM Harper: poll

http://www.theglobeandmail.com/servlet/story/RTGAM.20080508.wdionpoll0508/BNStory/National/home

Dion weak, uninspiring but still more likeable than PM: poll

The Canadian Press

May 8, 2008 at 2:52 PM EDT

OTTAWA — A new poll suggests most Canadians think Stéphane Dion is weak, uninspiring and unintelligible.

But, for all his flaws, they still find the Liberal leader somewhat more likable than Prime Minister Stephen Harper.

The Canadian Press-Harris/Decima survey explores why Mr. Dion’s Liberals have not been able capitalize on lingering reservations about Harper’s Conservatives.

It suggests that Mr. Dion’s biggest problem is his inability to communicate; 58 per cent of respondents said he seems to have trouble communicating effectively.

Fifty-three per cent said Mr. Dion doesn’t offer much optimism or inspiration while an equal percentage said he seems like a weak leader.

Forty-seven per cent said there’s something about Mr. Dion they don’t like, compared to 55 per cent who said the same thing about Mr. Harper.

The telephone poll of just over 1,000 Canadians was conducted May 1-4 and is considered accurate to within 3.1 percentage points, 19 times in 20.

Conservatives spend $1.1-million ad campaign to sell controversial immigration reforms not yet passed

http://www.theglobeandmail.com/servlet/story/RTGAM.20080508.wimmigration08/BNStory/National/home

$1.1-million ad campaign sells reforms not yet passed

CAMPBELL CLARK

From Thursday’s Globe and Mail

May 8, 2008 at 4:59 AM EDT

OTTAWA — The Conservative government plans to spend more than $1-million on an ad campaign in ethnic newspapers to sell controversial immigration changes that are not yet law.

The taxpayer-funded ads taken out in more than 100 ethnic community newspapers in a variety of languages have sparked criticism because the changes have not yet been passed into law, and they were included in a budget bill that, if defeated by the opposition, would trigger an election.

Now, Immigration Department spokeswoman Karen Shadd says the estimated cost for the controversial four-week ad campaign tops $1.1-million.

“$1.1-million? It’s huge,” NDP immigration critic Olivia Chow said.

“It’s not legislation yet, and they should not use taxpayers’ money to promote Conservative propaganda.

“I think they are afraid of the reaction of the immigrant communities.”

Ms. Shadd said in an e-mail that all the ads will run in ethnic or third-language publications or on radio programs, with the exception of one magazine, Canadian Immigrant.

The president of the National Ethnic Press and Media Council, Tom Saras, estimated that the ads have run in about 140 papers so far, and said most ethnic newspapers charge $600 to $800 for a full-page ad.

The print versions of the ads say they are a “public notice,” the label given to advertising supposedly aimed at providing utilitarian information about a policy change.

But critics such as Ms. Chow noted that the new ads contain little or no detail on the nature of the changes, and instead tout the benefits the government says they will bring, like “faster processing times” for immigration applications and “better employment opportunities.”

Ms. Shadd said that the government chose to run the ads to counter what it says is false information about the planned changes.

“Statements have been made that the proposed changes will allow the minister to give instructions on individual cases and that the proposed legislation will negatively impact on family class and refugees - this is not the case, and the public notice campaign seeks to correct that,” she said.

An English-language copy of the ad provided by the government makes no mention of refugees, however.

The planned changes to Canada’s immigration law would give the minister the power to pick classes of immigrants whose applications would be processed first and to send back applications that don’t make the cut.

That represents a major change from the current system, where any immigrant who meets the qualifications can expect to be allowed into Canada eventually, even if it takes years for their application to be processed.

But it will not affect anyone who has already applied to come to Canada, and Immigration Minister Diane Finley has not said which categories will be high or low priorities - raising questions from critics such as Ms. Chow about the point of a campaign now.

Ms. Finley has said the changes will allow her department to whittle down the backlog of more than 900,000 applications.

That will allow them to reduce waiting times, which now can be several years, to a few months, she said.

However, senior officials in her department have conceded that for some applicants the new system could mean longer waits.

While high-priority categories will be processed more quickly, those in lower-priority categories could have their applications returned untouched year after year.

Green groups urge upholding U.S. tar sands fuel ban

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Green groups urge upholding U.S. tar sands fuel ban
Letter to Congress pleads with Senate to reject Canadian movement to remove fuel-purchase measures

MARTIN MITTELSTAEDT

From Thursday’s Globe and Mail

May 8, 2008 at 4:58 AM EDT

A who’s who of major U.S. and Canadian environmental organizations is urging the U.S. Senate to keep in place a rule banning the United States government from buying fuel from Alberta’s tar sands on the grounds that it is too environmentally tainted.

Yesterday, the groups released a letter sent to all members of the U.S. Congress, urging them to reject efforts to revoke the fuel measure through amendments to other legislation, arguing that taxpayer dollars shouldn’t be spent “to develop alternative fuel sources that make global warming worse.”

It said the government “will make the job of reducing global warming emissions even more difficult if it chooses to subsidize the development of high-carbon fuels through long term contracts.”

The letter was written by the Natural Resources Defense Council, an influential New-York-based environmental group, and endorsed by 26 other organizations, including Greenpeace Canada, Friends of the Earth and the Sierra Club.

The fuel ban has drawn the ire of Canada and has caused both the Harper government and Alberta to engage in intense lobbying in Washington to have the measure rescinded.

Last week, Ron Stevens, Alberta’s deputy premier, was in the U.S. capital arguing that the province is committed to environmentally sustainable development of the tar sands, and in February, Canadian Ambassador Michael Wilson wrote to U.S. Defence Secretary Robert Gates, formally complaining about the ban.

Alberta and Ottawa have taken these high profile actions even though the U.S. government is not currently a large purchaser of oil products from refineries that process crude from the oil sands, according to assessments by environmentalists.

Under the U.S. measure, the government, the largest purchaser of energy in the country, can’t sign contracts to buy gasoline and other fuels whose production releases more global warming pollution than conventional petroleum.

The restriction was adopted late last year and also designates as environmentally unfriendly fuels derived from U.S. shale oil projects and coal-to-liquid plants.

“The tar sands oil is very dirty,” said Susan Casey-Lefkowitz, an NRDC spokeswoman, pointing to both the large amount of energy needed to process sticky bitumen from which petroleum is extracted and the dangers these massive mining projects pose to wildlife, such as the recent deaths of hundreds of migratory ducks in an industry tailings pond.

Ms. Casey-Lefkowitz said the letter was issued yesterday because environmental groups expect attempts this week and next in Congress to have the fuel ban rescinded.

One of the Canadian groups that signed the letter, the Pembina Institute, said Canadian government efforts to protect the oil sands are misguided. Dan Woynillowicz, a spokesman, said that Ottawa should be taking stronger action against emissions responsible for global warming rather than lobbying for continued use of the synthetic crude.

“The ducks are emblematic of much deeper environmental problems associated with oil sands development,” he said.

Housing is only partial answer to panhandling

http://www.thestar.com/GTA/Columnist/article/422810

May 08, 2008 04:30 AM
Royson James

When a city council committee asked staff to report on the “root causes of street begging” some thought the finger would be pointed at mental illness, alcohol abuse, laziness even.

While those are factors – 46 per cent use the money to buy alcohol, 44 per cent to buy drugs – it turns out that homelessness may be the primary indicator.

Only half of homeless people panhandle. But three in four beggars are homeless.

Of the 400 panhandlers contacted and surveyed in the central business district last year, 75 per cent of them were homeless while begging. The rest were not far from roosting on the streets: Almost nine in 10 had been homeless in the past.

That explains why city staff is looking to housing solutions as the key to the short-term and long-term solution to persistent street begging.

While city hall is prepared to throw more money at the problem – it’ll cost $5 million a year to hire the equivalent of 48 full-time social workers and social advocates to help street people navigate the various systems and bureaucracies – success is not guaranteed.

Setting up a pilot project, city staff pulled out all the stops to reclaim, house, serve and assist the panhandlers to get off the street and into real homes. And see if they would stay off the streets.

Two-thirds stopped panhandling during the 12-week pilot study. And it took three visits or fewer from the community workers for half of them to stop begging. However, an interesting statistic sounds a warning.

City staff identified 110 of the panhandlers who were housed and who were begging legally on the streets – that is, not on the roadway or on exit ramps or near ATM machines or banks or transit stops. Of these, 37 per cent, or more than one in three, did not stop panhandling during the study period, even with the help of city workers.

Why? Because begging serves their needs.

City staff conducted a focus group with 12 of these persistent panhandlers to probe their reasons for begging. The street people said that after they pay rent, they still need $600 to $700 to meet living expenses; they must panhandle to find that money.

Six out of 10 were not looking for employment and, on average, had been unemployed for at least three years. Almost half figured they were eligible for disability payments but only one in five had ever applied.

Secondly, they want additional “income” they don’t have to declare, which would reduce their social assistance.

Begging on the street is a positive social exercise, despite the accompanying abuse and sense of low self-esteem some say they experience. Any programs designed to get them off the streets must have a strong socialization component.

Finally, while they may know of shelters and drop-in centres and other places where they can get food, money from panhandling gives them the choice to eat what they want and where they want.

There’s another reason. A good number have what the director of housing and support services calls “concurrent disorders (mental health and addiction) that require a bit more work than they could have provided in12 weeks.”

For example, the city has one multidisciplinary street outreach team (nurse, psychiatrist, outreach worker and concurrent disorder specialist) now. The new funding will allow a second one.

These workers identify the panhandlers, assess their needs, accompanying them on appointments and help navigate the system.

It’s labour-intensive but essential work.

“These are complex issues and you must use non-traditional ways to approach them,” said city spokesperson Katherine Chislett.

Royson James usually appears Tuesday, Thursday and Saturday.

Email: rjames@thestar.ca

Toronto Catholic school trustees’ fat perks blasted

http://parentcentral.ca/parent/article/422817

Toronto Catholic school trustees’ fat perks blasted
May 8, 2008

Kerry Gillespie and Kristin Rushowy
STAFF REPORTERS

A culture of entitlement among Toronto Catholic trustees saw them hire relatives, double dip on restaurant bills and approve car allowances and health benefits, despite being told by board staff and lawyers such perks weren’t allowed, says a scathing report.

Trustee expenses have ballooned since 2003 and are now among the highest in the province – $100,000 per elected trustee compared with $67,000 in the Toronto public board and just $27,000 in the Dufferin-Peel Catholic board – because of the extra benefits and services trustees gave themselves, says provincial adviser Norbert Hartmann in his report Enhancing Public Trust and Confidence, released yesterday.

“I have no tolerance and the government has no tolerance for public dollars being used in inappropriate ways,” Education Minister Kathleen Wynne said. “Where there are inappropriate expenses, inappropriate reimbursements, public money that’s being used for private benefit, all of those things have to change.”

The report is expected to have ramifications province-wide, as some of the spending practices questioned are in place in other boards.

“I really believe the vast majority of trustees are spending the public dollars wisely, they’re making good decisions, but absolutely we’re going to look at the implications of this report for the rest of the province,” said Wynne.

The Toronto Catholic District School Board’s 12 elected trustees are paid $18,671 per year, but cost another $80,000 in other services and benefits, including an $18,000 discretionary fund, $8,600 car allowance, $3,800 in technology expenses such as cellphone, Internet and printers.

One trustee position is currently vacant, after Christine Nunziata was removed for missing too many meetings and amid allegations she misspent thousands of taxpayer dollars on vacations and clothing.

Oliver Carroll, former chair and now budget chief, said the Hartmann report “sums up exactly what went wrong” and agrees there is a culture of entitlement.

“Basically the board, and I’ll include me in that, set up a process that left it up to individual trustees to sort out whatever they considered appropriate spending. The majority did the right thing, but three or four – a sizeable majority – effectively helped themselves.

“The board needs to issue an apology, a very public apology for all of this and then we need to be, collectively, so clean … so there are no (expense) issues.”

Chair Catherine LeBlanc-Miller said she’s “not pleased with what (the report) demonstrates in terms of our policies and practices” and that the board will follow the recommendations to restore public confidence.

When asked how trustees became among the biggest spenders in the province, she said “policies evolved over time. And I think for that very reason, perhaps people lost sight of the scope of the impact of the changes.”

Hartmann was appointed to probe trustee spending from 2003 to 2007, and his 20 recommendations direct the board to:

End their medical, dental and life insurance coverage.

Adopt a code of conduct similar to the city of Toronto’s prohibiting trustees from hiring relatives.

Revoke the $8,600 annual car allowance, which is not allowed, and only pay actual, out-of-pocket transportation expenses.

Force trustees to return all equipment – including computers, cellphones and office furniture – at the end of their term instead of keeping them as personal property.

Eliminate trustees’ ability to transfer discretionary funds to community, school and charitable groups, which he said gives the appearance of a “political slush fund.”

There were rules to prevent many of these abuses from occurring but they weren’t enforced, Hartmann states. In every spending category, “there are trustees who make no claims, while others incur fairly significant expenditures.”

“Most acknowledged that the emergence of a culture of entitlement and the politicization of the approval process, prevented the operation of normal control processes,” Hartmann’s report states.

“This allowed such inappropriate expenses as dry cleaning, shoe repairs, personal software, MTO license fees, mini-bar fees …to be claimed and reimbursed.”

Hartman said in his report that when staff tried to enforce the expense policies, “some trustees phoned clerks directly and `browbeat them into submission.’”

As one trustee quoted in the report put it: “If a trustee said it was an expense, it was an expense.”

Annual hospitality expenses ranged from $15,000 to $27,000 per trustee.

The board has until June 30 to submit amended policies to the education ministry.

The government has retained the auditing firm Ernst & Young to work with trustees to settle “questionable reimbursements brought to light by the review,” according to a letter Wynne sent to the board chair yesterday, which could mean trustees repaying inappropriate expenses.

This wouldn’t be the first time a board trustee has had to give money back. LeBlanc-Miller had to repay $4,700 in taxi, TTC and parking expenses because she was also receiving the monthly car allowance. She said she didn’t realize she was breaking the rules, and the board didn’t notice her mistake.

Carroll said he and fellow Trustee John Del Grande have posted their expenses online since 2006, a move fellow trustees refused, although all will have to do so this month.
Toronto Star

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

THE MONEY TRAIL

Abuses found in a probe of expenses for Toronto Catholic school trustees from 2003-2007:

• Trustees paid themselves rent for use of office space in their own homes.

• One trustee expensed $7,577 tuition for a masters of education degree.

• Trustees gave themselves an annual car allowance of $8,600.

• Since 2003, trustees have transferred $200,000 of taxpayer money from discretionary funds into school causes of their choice, creating the appearance of a “political slush fund.”

• They approved a policy allowing them to keep BlackBerrys, computers, shredders, digital cameras and office furniture when they leave office.

• Research and consulting contracts were given to relatives of trustees, people living at the same address and to murky numbered companies.

• Annual hospitality expenses were $15,000 to $27,000. Documents rarely noted the purpose.

• One trustee got 10 duplicate payments in a year by submitting restaurant and credit card receipts separately.

• Approved expenses included multiple meals in one day and alcohol and mini-bar bills.

COMPARISONS

Trustee expenses as a cost per pupil at selected school boards for 2007-08:

$14.94 Toronto Catholic

$8.99 York Region Catholic

$6.04 Toronto public

$5.74 Ottawa-Carleton public

$5.42 Ottawa-Carleton Catholic

$3.66 York Region public

$4.02 Thames Valley public

$3.72 Peel public

$3.62 Dufferin-Peel Catholic

Source: Enhancing Public Trust and Confidence report

Anti-poverty arsenal lacks key weapon

http://www.thestar.com/comment/article/422233

May 07, 2008 04:30 AM
Jim Coyle

In its war on poverty, the Ontario government is beginning to sound a little like Saddam Hussein’s old spokesman Comical Ali, who rhapsodized about glorious Iraqi victories even as American troops rolled into Baghdad.

“We’ve set out to take poverty on,” Premier Dalton McGuinty boasted again yesterday.

But like Ali, the Liberal government sometimes seems bigger on grand talk than performance.

Two things should give anti-poverty activists cause for alarm in recent days about the government’s stomach for the fight.

The first was the start this week of ballyhooed public consultations on poverty reduction and the decision to hold them behind closed doors, ejecting the uninvited with a vigour that made Mike Harris’s Common Sense revolutionaries seem like tie-dyed peaceniks.

The only thing worse than hearing Children and Youth Services Minister Deb Matthews defend that embarrassing show – let the excluded use websites! she sniffed – was that last week she was among Liberal MPPs who voted down a private member’s bill that offered one of the best anti-poverty tools available.

NDP Leader Howard Hampton’s bill would have rolled back a Harris-era crackdown on unions and restored the right of card-membership to Ontario workers as it existed from 1950 to 1996.

True, unions aren’t perfect, any more than are corporations. Over the decades, there have been lots of abuses by unions. But it remains true that unionization helped build the postwar middle-class on a solid foundation of good wages, benefits and job security – none of which are easily had by workers in the new millennium.

Statistics Canada data made clear last week that over the last quarter-century the rich have got richer, the poor poorer and the middle-class has shrunk or stagnated.

As New York Times reporter Steven Greenhouse says in his new book, The Big Squeeze: Tough Times for the American Worker, labour unions, more than any other institution in society, “work to improve the lives of low-wage workers and to reduce inequality.”

The labour movement, for all its faults, is the one force “that created some semblance of balance between workers and management during the second half of the 20th century.”

Political leaders serious about helping low-income workers, and reducing widening inequality, would make it easier for workers to join unions, he said.

“Labour unions once were, and could be again, the most effective tool to improve the lot” of workers,” he said. And card-membership such as that proposed by Hampton “would be the single biggest step to enable unions to grow again.”

As Hampton said, the people who benefit most are the lowest-paid workers – women, students, younger workers, new Canadians.

“Does it mean that overnight they get huge, whopping pay increases? No. What it means is that they can get, through collective bargaining, a decent wage” and some benefits for their families, he said.

Telling a story common to his generation, New Democrat Peter Kormos said his father was an immigrant from Slovakia with a Grade 8 education, a steelworker able to reach the middle class and send his five kids to university on the strength of a union wage.

For his part, McGuinty noted again yesterday that making good on his poverty reduction promises isn’t easy in “challenging” economic times.

But a premier branding himself progressive, and looking for inspiration on leading through difficult times, could do worse than consult the inaugural addresses of Franklin Roosevelt made during the Great Depression.

“The test of our progress is not whether we add more to the abundance of those who have much,” he said.

“It is whether we provide enough for those who have too little.”

Jim Coyle’s provincial affairs column appears Monday, Wednesday and Friday.

Raise immigration target to solve backlog, Ottawa told - not unfair legislation

http://www.thestar.com/News/Canada/article/422949

Proposed reforms would create ‘unfair, arbitrary’ system, committee hears
May 08, 2008 10:59 AM
BRUCE CAMPION-SMITH
Ottawa Bureau Chief

OTTAWA–Letting more immigrants into the country – not a controversial overhaul of the country’s immigration rules – is the real solution to tackle a growing backlog bogging down the system, a Commons committee has heard.

The federal government should aim to accept between 300,000 and 333,000 new immigrants a year – roughly 1 per cent of the Canadian population – up from the current target of between 240,000 and 265,000 now, said Victor Wong, of the Chinese Canadian National Council.

“We cannot reduce the backlog unless we increase the immigration target range,” he told the Commons’ finance committee yesterday.

That call was echoed by Sima Sahar Zerehi, of Status Now — Campaign in Defence of Undocumented Immigrants. Last year, the government issued 251,000 permanent resident visas.

“It becomes evident that the real issue at stake is not the application processing times but the low annual targets we have set for permanent residents,” she said.

Both witnesses condemned the Conservative’s proposals to reform the immigration system to give the immigration minister new powers to decide the categories of newcomers that will be processed. It’s billed as an attempt to tackle a backlog of applicants that has stretched to more than 900,000.

But Sahar Zerehi said the changes would create an immigration system that is “unfair, arbitrary and open to abuse.”

“The proposed changes will give the minister . . . unfettered power to decide what category of immigrants will be allowed to enter the country each year,” she said.

“These new powers are dangerous. With no set criteria, there is far too much room for arbitrary or discriminatory decision-making,” she said.

“It is true that our current immigration system is broken but if these amendments go through, the immigration system will no longer be broken but shattered beyond repair,” Sahar Zerehi said.

She also raised concerns with the government’s strategy to let in more temporary workers to fill pressing labour needs, saying that Canada was treating immigrants “as cheap and exploitable labour.”

Wong urged the government to withdraw the immigration reforms from the budget bill and instead issue a “proper discussion paper and organize national consultations.”

“These changes shouldn’t even be in the budget implementation bill,” he said.

That request was quickly shot down by the Tories on the committee. “That’s not going to happen,” said Conservative MP Mike Wallace (Burlington).

Tax cuts increase economic gap, study finds

http://www.thestar.com/News/Canada/article/422967

May 08, 2008 12:39 PM
THE CANADIAN PRESS

OTTAWA – A think tank has criticized the Conservative government’s corporate tax-cut regime, saying it will only exacerbate existing inequalities in Canada’s economy.

But Finance Minister Jim Flaherty doesn’t buy it.

A study released Thursday by the Canadian Centre for Policy Alternatives said the big winners from the Conservative cuts will be the oil-producing provinces, and the oil and finance sectors.

The study, by an economist from the Canadian Auto Workers union, said struggling industries and regions will glean little benefit from the new tax measures.

“Despite what Finance Minister Flaherty says, corporate tax cuts are an especially uneven policy tool,” author Jim Stanford wrote. “These corporate tax cuts constitute a significant net fiscal shift in favour of Alberta, and away from Ontario and every other non-oil-producing province.”

In a statement to The Canadian Press, Flaherty said the study is wrong to suggest that reducing taxes will not in some way stimulate the entire Canadian economy.

“Since taking office we have provided relief in every way the government collects taxes: personal taxes, consumption taxes, excise taxes and business taxes,” Flaherty said.

The government is providing $21 billion in accumulated tax relief to Canadians and businesses this year – equivalent to 1.4 per cent of Canada’s GDP.

“As a share of the economy, this is significantly greater than the stimulus package just now reaching U.S. households,” the minister said. “It is also different in that it is sustainable – backed by a track record of balanced budgets – and permanent.”

Stanford’s study analyzed the distribution of corporate profits throughout the provinces and across 16 major industries.

It found Canada’s three oil-producing provinces account for just 15 per cent of the population but generate 36 per cent of corporate profits. It said they can expect to reap a similarly large share of benefits from the corporate tax reductions.

Per capita, companies in oil-producing provinces can expect to receive three times as much benefit from the tax cuts as companies in the rest of the country, the study said.

Flaherty is “picking winners,” Stanford said, but he added the winners Flaherty is picking are the provinces and industries that are already doing well.

“Corporate tax cuts, as expensive as they have been and will continue to be, have had no visible impact on the broad pattern of business investment at all,” he said

“In addition to asking whether the regional and sectoral impacts of the Harper government’s $15 billion annual corporate tax cuts are fair and acceptable to the majority of Canadians, we should also ask whether they will have any beneficial impact on Canada’s economy at all.”