• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events
New Energy Economy Series Business Law Talks Podcast Economic Outlook
ESG & the CIO Subscribe
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Globe and Mail Refuses to Print Reporter's Apology to David Dodge

May 07, 2012

TORONTO, May 7, 20212 – After printing two items, last week, that misrepresent David Dodge's positions on personal debt and housing prices, the Globe and Mail refused to print Mr. Dodge's response if it contained reference to the reporter's apology or the implication that they were creating controversy where none exists.

Here is the letter in its entirety – In bold are the sentences the Globe did not want you to see.

"I was distressed to read your editorial that was based on a report in the Globe and Mail on May 2 that did not accurately reflect my views on household debt in Canada. Your reporter has since contacted me to "apologize for the mix-up". He correctly suggests that he should have pressed further in his telephone interview with me to ensure that he understood my exact meaning.

In our interview we did not discuss monetary policy. I did not criticize the Bank of Canada policy either, implicitly or directly as you suggest in your editorial. Had I done so, it would indeed have been "ill judged".

In our discussion of the current high ratio of household debt to income, I indicated that this indeed does constrain consumption going forward and thus has an impact on future economic growth (as the Bank of Canada has indicated). I also pointed out that the elevated level of household debt would constitute a risk to the stability of our financial system if there was a sharp run up in unemployment and hence reduction in household incomes, but that a return over time to "more normal" interest rates did not pose such a risk. That said, I certainly support the Bank's message of caution that households should avoid building excessive leverage.

I certainly did not convey "optimistic comments on housing markets" as you say in your editorial. I simply made the point that the increase in Toronto and Vancouver was being driven in part by offshore investment. The possibility of a reversal of that investment flow constitutes the most serious source of risk of a sharp price correction in those markets.

Finally, as I have noted many times, both during my term as Governor and subsequently, the Government through its ability to set the terms and conditions for government backed mortgage insurance, can and should constrain the ability of the most risky households to take on excessive leverage and thus contribute to house price escalation.

To suggest that my observations were intended to "undermine the present Governor's salutary efforts of persuasion" is to misrepresent me and can only be seen as your newspaper's attempt to create controversy where none exists."

How Sustainable is the Government of Canada's Current Fiscal Plan?

Related Links

  • Insights
  • Media
  • Subscribe

Recent Posts

Announcements

Jason Kenney Joins Bennett Jones as Senior Advisor

February 01, 2023
       

Speaking Engagements

U.S. Export and Re-Export Compliance for Canadian Operations

February 01, 2023
       

In The News

Canadian Government Cannot Rely on More Borrowing to Fund Pledges

January 27, 2023
       

Speaking Engagements

The Evolution of Economic Crime, Asset Recovery, Money Laundering and Enforcement

January 26, 2023
       

In The News

Why Ottawa's Plans to Restore Fiscal Balance Are On Shaky Ground

January 26, 2023
       

In The News

Canada Needs to Get Its Act Together on Growth

January 25, 2023
       

In The News

Canada's Spending Plans Will be Threatened by Higher Interest Rates and Looming Recession

January 25, 2023
       

In The News

David Dodge on Power Play: Canada's Fiscal Plan is Not the Full Story

January 25, 2023
       

In The News

Federal Government is Underestimating Risks of Recession and Higher Interest Rates

January 25, 2023
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones