I1-Debilitating Effects of Provincial Legislation

proposed by S McRae

Topic:  As a 37-year-old 4th generation farmer, my financial security and business viability are directly linked to my land use freedom.  How can I manage the debilitating effects of Provincial Legislation and regulations that are designed to limit productive land use?

Discussion Notes:  Land ownership was discussed and described as a "bundle of rights & freedoms" being attached to property as part of a contract between a private citizen and the State or "Crown".  As opposed to land expropriation where the Crown exercises its rights under eminent domain, and the property owner is fully compensated for the taking, regulatory takings or "injurious affection" due to imposition of land use restrictions, are considered partial takings, and compensation is considered by the Province to be unnecessary.  Property value, being a function of utility, is damaged, sometimes dramatically, and property owners are denied compensation.

One opinion expressed an appreciation for regulation as a means of controlling irresponsible people.  It was agreed by all that regulations can increase and accumulate to a point where state restrictions upon human freedoms will become economically and socially destructive.  The failure of Soviet Communism was used as an example.

An additional discussion talked about the Provincial Endangered Species Act and its abdication of the traditional Ministerial oversight over decision-making by regulators (COSSARO, MNR).  This has left "stakeholders", property owners, industry, and inevitably, the voting public, without an ability to "reign in" excessive regulation of human activity.

A point was made, that when a land-use restriction is imposed (ie. municipal plan amendment), and property value drops as a consequence, it threatens the security on a bank loan.  By limiting the ability of a farmer to achieve competitive revenues through productive land use (crop/livestock production, silviculture), conversion flexibility (drainage improvement), construction/infrastructure improvements, etc. while simultaneously threatening a mortgage, a financial collapse can be precipitated.  There is currently no legislation in Ontario that would force the government or its agents to pay compensation for damages exacted as a consequence of its land-use regulations.  The related effect upon the general productivity of the overall rural economic landscape is much more insidious and difficult to measure, but is nonetheless real.

A real-life example of $1M+ devaluation of a single farm property in Eastern Ontario has been documented by accredited land appraisers, precipitated by Provincially Significant Coastal Wetland designation and creation of Conservation Land Status on Private Land.  This land was artificially flooded by damming of the St. Lawrence River, but no compensation for the devaluation effect of restrictive zoning is forthcoming.  The owners must absorb the losses.  On the same property, it is predicted that new initiatives through a regional & Provincial Natural Heritage Strategy will have the same effect upon private forest lands which are currently used for silviculture (selective cutting for lumber, pulp & fuel wood) revenues.