Moldy Peaches

Montrealers are more dependent on government subsidies to augment their incomes than in any other major city in Canada, according to a study conducted by an independent think tank based in Montreal.

And young people growing up in the city are the most economically vulnerable, concludes the national study based on the 2001 Canadian Community Health Survey, by the Association For Canadian Studies.

Listed below is proportion of total income coming from government:

Montreal: 13.9 per cent

Saskatoon: 12.7

Regina: 12.1

Hamilton: 12.1

Winnipeg: 11.9

Halifax: 11.1

Edmonton: 9.9

Vancouver: 9.6

Toronto: 9.5

Ottawa: 7.4

Calgary: 7.2

A couple of things jump out at you when you read the report, examine the data and analysis the comments from Montrealers - something does not add up. First, three of the top four cities on the list struggle with a higher percentage of Aboriginal Canadians than any other cities in Canada. Although, as Statistics Canada pointed out earlier last week, Aboriginal educational attainment and employment has improved in the past twenty years, there are still many challenges in the prairie region.

Second, Ottawa is performing remarkably well. Calgary is often the economic example for Canada, but it appears that Ottawa is running on all cylinders as well.

Finally, the Montreal data are quite sad. The situation in the city has improved dramatically from the mid-1990s when 25% of the residents were on some form of social assistance and landlords were pleading with perspective tenants to take apartments, but still problems persist.

The Montreal Gazette interviewed a couple of community leaders for their opinion on the matter, but I am not sure they understand the larger macroeconomic situation in the city and the province.

Marlo Ritchie, director of Head and Hands, a community organization that offers counselling services to young people, says young Montrealers face growing obstacles.

"Their debt loads are growing, health and social services agencies are under strain. More and more young people are becoming isolated and discouraged and as a result, health-related complications can arise. Many don't even have food, housing and income security."

Why are rising debts loads a Montreal only phenomenon - they aren't. In fact, I would argue that youth in the Atlantic and Ontario are more heavily indebted, especially when you factor in education related debt - where there is very little in Quebec compared to other parts of the country.

Also, post-secondary students enjoy the lowest university tuition fees in the country - on average $1,800 and there is no college tuition fee. Rent, in Montreal, compared to other major Canadian cities is reasonable and most cases down right affordable.

Patricia Murphy, the director of St. Columba House, a community outreach organization in Point St. Charles, says the findings don't surprise her.

"It's hard to say if there is a correlation, but the high school dropout rate in Montreal is so high, around 40 per cent," Murphy said. "We have a problem keeping kids in school, which must contribute to their economic vulnerability."

Ms.Murphy is actually closer to the real problem in Quebec. The province has an accessible and affordable post-secondary education system but the larger issue resides in the secondary school system. Too many young Quebeckers are turning their back on education. This is a real problem for an aging society with strong ties to their social support programs, a heavy unionized environment and a rapidly declining birthrate (see France and Germany for examples of why is this is a recipe for disaster or internal struggle). The province would be wise to address these areas instead of continually complaining of the mythical fiscal imbalance.