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I Canada Savings Bonds could become extinct Dollars & Sense Guest Contributor 35 | Thursday, October 6, 2016 | OAKVILLE BEAVER | www.insideHALTON.com n 2015, the accounting rm KPMG submitted a report to the Department of Finance. The report said there was "no valid economic rationale" for the Canada Savings Bonds (CSBs) program. The value of CSBs in 1987 was $55 billion. In 2015, that value had fallen to approximately $6 billion. Based on such a signi cant decline of CSBs in Canada, it would appear the government should end the program. The dif culty with making that decision is 2.5 million Canadians still continue to invest in them. CSBs have been part of the Canadian investing landscape for 70 years. The government promoted them as being safe investments that could be cashed in at any time. Like most investment products, there has been increased competition by other investment options that offer the same attributes. The safety of these alternative investments is enhanced through the Canada Deposit Insurance Corporation (CDIC), which provides a government-backed guarantee. Bill Morneau, the Federal Finance Minister, Peter Watson said the government is evaluating the CSB program along with other programs to make sure they still deliver the intended objectives. Morneau is asking for feedback from Canadians. This public conversation about the future of CSBs started with a recent media report that speculated CSBs might be phased out in next year's federal budget. Eliminating such a long-standing government-sponsored savings program will be a dif cult decision. Plus, there is the political risk of alienating those who enjoy the process of investing in CSBs. My vote would be to eliminate CSBs. It does not make sense for our government to duplicate things that are also provided by the public sector. As stated above, there are other ways similar investment products can be purchased. These alternatives are safe, can be offered with a government-backed guarantee, and can be purchased on a regular basis, including through a payroll deduction plan. All Canadians have access to similar investment vehicles. Plus, the government has many other more ef cient ways to raise capital. In summary, there is no logical reason for the federal government to continue to offer Canada Savings Bonds. The role of government is to provide leadership and to ll the need of things that are not available to assist all citizens. Like any organization, the government must cut programs that no longer offer real value. That pruning of current programs provides room to spend our government's time, energy, and money on services that can truly make a difference. -- Submitted by Peter Watson of Peter Watson Investments and Aligned Capital Partners Inc., MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner Follow the Oakville Beaver editorial staff on Twitter: @OakvilleBeaver, @NewsHooked (John Bkila), @DavidLea6, @JuliaLeReporter, @HerbGarbutt (Oakville Beaver sports), @PostBeaverSport (Kevin Nagel, Oakville Beaver/Burlington Post) @Halton_Photog (Oakville Beaver photography department) Custom Made Or Reupholstered To Suit Your Style Leaky Basement? Call Us! Since 1967 upholstery & design www.baiers.ca Sofas · Chairs · Headboards · Throw Pillows · Drapery & Hardware Call Us... 905-510-9739 11-2345 Wyecroft Rd, Oakville · 905.616.3156 · info@baiers.ca Professional, Cost Effective Solutions for Wet wayne@wisecracks.com Basements w w w. H a l t o n Wi s e C ra c k s . co m R0023925262 Impression Collection® doors have been magnificently engineered with an artfully molded wood-grain fiberglass surface concealing durable steel construction. Overhead Door (Hamilton-Burlington) Ltd. Impression Collection Showroom: 5450 HARVESTER RD. (West of Burloak) BURLINGTON 905-333-1772 · www.overheaddoorburlington.ca