Home » News » London’s rich-poor gap among largest in Canada

London’s rich-poor gap among largest in Canada

According to a recent report, London is among the Canadian municipalities that have experienced significant growth in the gap between rich and poor.

A report entitled “Mending Canada’s Frayed Social Safety Net: The role of municipal government,” was released March 24 by the Federation of Canadian Municipalities and noted London has one of the largest income inequalities in the country. It also stated the wealthiest 10 per cent of Londoners earned more than nine times the poorest 10 per cent in 2005.

“One really important [factor] is the loss of manufacturing and unionized jobs,” Gina Barber, a member of the board of control for the City of London, said when explaining the increased income inequality. “They are being replaced partly by part-time and lower wage jobs.”

According to Barber, the lack of provincial and federal funding is partly to blame.

“A lot of programs have been downloaded over time, so what was a provincial responsibility becomes a municipal responsibility, and unfortunately our ability to raise funds is pretty much limited either to government grants or to the property tax base,” Barber explained.

“It’s very hard to ask people, for example people who may have lost their jobs as a result of plant closures, to take on additional burdens through the property tax base.”

However, the report explained growing inequalities are common symptoms many municipalities across the country are currently experiencing.

According to a press release from the FCM, the “federal and provincial retreat from traditional social transfers in the 1990s has frayed Canada’s social safety net, and cities are now struggling to fill the growing gaps.”

The report also demonstrated the number of working poor families in London has increased from approximately six per cent to almost eight per cent.

“First of all we are working very hard to attract advanced manufacturing to the city which we would hope would pay better wages than those jobs pay at present,” Barber said regarding efforts made by the City to address the current situation.

Barber also mentioned the opportunities the city council is providing to upgrade the skills of those who are unemployed, and also described city hall’s endeavour to establish a living wage in London.

“People who have full-time jobs and full-time responsibilities should be able to live without being in poverty, that’s a really a critical concept,” she said.

Follow the Gazette on Facebook and Twitter.