Negative Impacts of Montreal Amalgamation

Worth A Look, Municipal Government, Frontier Centre

A new study released in Montreal on April 13 concludes that the creation of the Montreal megacity is causing a negative effect on the economic growth on the city. It estimates a loss of $2.1 billion in economic activity, and a loss in real estate values of up to $3.7 billion.

“For taxpayers of the former cities, demerging from the megacity will mean an increase in both their property values and disposable income, “ concludes the press release accompanying the study. “For example, demerger could mean an increase in market value of $2,000 for a typical house.”

The study was done by the Analysis Group for the Association of Elected Officials for Demerger. The study was written by Patrick Petit, principal economist in the Analysis Group’s Montreal office, along with Professor Marc VanAudenrode of the Université Laval and Vice-President of the Analysis Group, Professor Pierre-Yves Crémieux of UQAM, and Professor Philip Merrigan of UQAM. Peter Trent, former mayor of Westmount, is a spokesman for the Demerger group.

The Minister of Municipal Affairs is expected to release demerger impact studies which, according to the Analysis Group “will be just accounting exercises, only dealing with the short-term financial effects of demergers, rather than their long-term economic effects.”

A copy of the study, in French, is in the Library, under the title ‘Defusions Municipales.’ The study includes an Executive Summary in English.