Re: "ICBC needs competition," Aug. 21.
Anyone who thinks privatizing the Insurance Corp. of B.C. is the answer to higher rates must not have taken a look at comparable auto insurance coverage or the even more excessive executive salaries in the private sector.
Independent studies by Statistics Canada and the Consumers Association of Canada have shown public auto insurance gives the best value to customers.
Since ICBC was established on March 1, 1974, British Columbians have enjoyed reduced insurance fraud, safer roads and lower rates. Part of this is because ICBC was designed to operate on a non-profit, break-even basis.
So where is the real issue? Executive salaries at ICBC are too high and should be dealt with, but that's only exacerbated in the private sector. The biggest problem at ICBC is that the government hasn't stayed true to the break-even mandate.
Premier Christy Clark's government is treating ICBC as a cash cow, raiding more than $1.2 billion from the corporation's coffers even as it asks ICBC workers to continue their wage freeze and B.C. drivers to pay higher insurance premiums.
That money isn't even going into improving roads or transportation - it's going into general revenue.
When Manitoba's public insurer was found to have overcharged its customers, it gave everyone a rebate. The government's mismanagement of ICBC hurts both its employees and B.C. drivers.
Siphoning off ICBC's profits was never what was intended for our public insurance corporation.
Jeff Gillies Vice-president, Canadian Office and Profession Employees, Local 378
Burnaby
