Terry Glavin: Canada’s unhappy affair with China’s princeling millionaires

Terry Glavin on the set-for-abuse investor immigrant program, cancelled by the Conservatives and refashioned to address some of the abuse (not convinced that the new Immigrant Investor Venture Capital Pilot Program will completely address some of these issues):

To give you a sense of how absurdly the taboo had throttled Canadian debates it’s instructive to recall the rubbish that was uttered when Harper finally got around to shutting it all down last year with a resolve to start from scratch. Vancouver MP Don Davies, the New Democrats’ international trade critic, accused the government of “damaging Canada’s economy and trade relationships.” Then there was Liberal warhorse John McCallum (Markham—Unionville): “Are Conservatives inadvertently picking on Chinese people?”

China’s massive Operation Skynet fraud squad is now rummaging through Vancouver’s real estate industry. British Columbia’s police agencies won’t say whether they’re cooperating, but even if they were it wouldn’t be easy work. Over its final decade or so, the Immigrant Investor Program drew more than 30,000 Chinese millionaires to British Columbia.

Just one of the unseemly costs of Ottawa’s wheel-greasing for Beijing’s princelings is a sum that might well amount to billions of dollars in no-interest loans that should have gone to British Columbia’s provincial treasury. Instead, the money got spent on thousands of back-door keys the Canada-Quebec Accord made available with a wink and a nod to Chinese millionaires bound for Vancouver, in transit through Montreal.

It says something unflattering all round that what we know now about Canada’s immigrant-investor courtship of Beijing’s princelings is mainly due to the courage and persistence of a single reporter

Contrast that with the marquee billing given to the gluttonous wastrel Mike Duffy, a senator facing criminal charges that may or may not involve the prime minister’s former chief of staff having improperly repaid the federal treasury for travel and living expenses that Duffy may or may not have improperly billed the taxpayer, to the amount of $90,000. It’s a gripping yarn and dozens of journalists are on the story, but it says something unflattering all round that what we know now about Canada’s immigrant-investor courtship of Beijing’s princelings is mainly due to the courage and persistence of a single reporter.

Ian Young, Vancouver correspondent for the South China Morning Post, has been almost alone in chasing down the immigrant investor scandal. It was Young who recently ferreted out the data demonstrating that Canada’s investor class immigrants, about 80 per cent of whom are Chinese millionaires, appear to have contributed less to the federal treasury over the past quarter of a century in tax on earnings than the bedraggled refugees Canada admitted over that period.

Nobody seems to even know where all these bigshot investors have gone. Surveys by the China Merchants Bank show that nearly a quarter of Mainland China’s millionaires had already emigrated by 2013, but vacancy rates in Vancouver’s posh new condo districts are perhaps 30 per cent. The city doesn’t keep track, but University of British Columbia geography professor David Ley has been tracing the relationship between the rise in Vancouver residential property prices and the influx of immigrant investors over the years. The lines run in direct lockstep.

Terry Glavin: Canada’s unhappy affair with China’s princeling millionaires