Draining ICBC profits
I write in response to the ICBC mishandled editorial. I believe the writer is correct in that ICBC has been mishandled by Christy Clark’s government, but privatization isn’t the answer. Independent studies show public auto gives the best value to customers, better coverage for less money. Public insurance systems also have lower rates of insurance fraud and are able, like ICBC has, to invest in road safety and driver education.
The most pressing issue and one not addressed in the review, is the fact that the government is taking over $1 billion from ICBC’s profits into general revenue by 2013.
ICBC was designed to work on a break-even basis where profits would be reinvested in the company and its workers, put towards road safety, and given back to drivers in the form of lower rates.
The ICBC review shows that mismanagement resulted in a system where executives and government got the corporation’s profits while ICBC employees and drivers have been left behind.
President, Fraser Valley Labour Council