More on closure of Canadian Wal-Mart’s Tire and Lube Express

Wal-Mart sets sights on Canadian banking licence, lobbying hard
By Simon Doyle, The Hill Times
October 13th, 2008
Wal-Mart Canada has been working on obtaining a Canadian banking licence for about two years, and global credit tightening is now expected to bolster its arguments with the federal government in Ottawa.

On Oct. 8, the Canada Gazette published a notice that Wal-Mart Canada intends to apply for a licence to establish banking services in Canada. The notice said that “the bank will carry on business in Canada under the name Wal-Mart Canada Bank in the English form and La Banque Wal-Mart du Canada in the French form,” and that its head office will be located in Mississauga, Ont.

Sources say Wal-Mart has been active on the file in Ottawa for about two years, primarily trying to gauge reaction to its business plan with the Office of the Superintendent of Financial Institutions—Canada’s bank regulator. Although the minister of Finance approves the licence, the bureaucratic work and recommendations are done by OSFI.

One banking lobbyist told Lobbying last week that the very fact the notice has been published in the Canada Gazette means Wal-Mart has already laid the groundwork for its licence with OFSI.

“You don’t do that unless you’ve had some warm feedback from OSFI,” the lobbyist said. “I’d say they’re fairly far along on their business plan.”

The lobbyist added that the credit climate now in Canada, which has tightened up in the face of the U.S. credit crisis, is likely to bolster Wal-Mart’s arguments for greater competition. “It’s another source of lending that has access to a very large pool of capital,” the lobbyist said.

Jean Paul Duval, a spokesman for OSFI, said the office does not comment on specific applications, but said the office takes a “holistic approach” to approving banking licences, which includes assessing applications “within the economic context in which it’s received.” Criteria for approving a new licence also ranges from access to capital to having the expertise and experience to run a bank, he said.

Wal-Mart has hired the services of the Prospectus Associates government relations firm in Ottawa. Robert Evershed, Sean Kirby, Martin-Pierre Pelletier, and William Pristanski, Prospectus consultants, are currently registered to lobby on behalf of Wal-Mart.

Wal-Mart opened banking in Mexico last year, but efforts to do so in the U.S. have met stiff resistance from small banks and consumer groups. It’s expected that Wal-Mart’s banking services in Canada will include loans, savings accounts, credit cards, mortgages, and RRSPs, however Wal-Mart has said it would be premature to speculate on what services will be offered.

Observers say that if Wal-Mart succeeds in offering banking services in Canada, the move would put pressure on the U.S. to do the same. Retail chains in Canada such as Canadian Tire and Loblaws have expanded into banking.

Michael Janigan, executive director of the Public Interest Advocacy Centre in Ottawa, acknowledged that that new entrants into Canada’s banking system are usually welcome, but said there is concern about potential “vertical dominance,” in which Wal-Mart could be involved in all aspects of consumer transactions, from financing to consumer spending to mortgages, inside and outside of Wal-Mart stores.

“Vertically integrated industries are always a concern. It’s whether the potential exists for market dominance,” he said.

The banking lobbyist said that Wal-Mart’s lobbying activities in Ottawa would mostly be “a process thing” and would not involve a lot of lobbying of the government. Some lobbying would take place with the office of the minister of finance, however, where the final approval will take place.

“You have to put together a really solid business plan and OSFI has to look at that and say, ‘It looks pretty good to us,’” the lobbyist said.

Wal-Mart officials did not return calls by deadline last week, and Mr. Pristanski, at Prospectus, was not available for an interview.~~~~~~~~~~~~~~~~~~~~~"Sources say Wal-Mart has been active on the file in Ottawa for about two years, primarily trying to gauge reaction to its business plan with the Office of the Superintendent of Financial Institutions....” NOTE:Can you spell C-h-u-t-z-p-a-h? Refusing to raise wages for lowest level employees, and shut down shut down Canadian stores that have organized- THEN- expect the privilege of being accorded a a banking license?

WalMart comes to GTA Growing Toronto Area Ontario :
81 jobs lost as Sobeys grocery store closes North America ...

Sobeys management gave the news to the 81 employees at its Main Street store Wednesday.

One of Stouffville’s four grocery stores will close Nov. 15.

as Construction begins on phase two of Geranium’s Cardinal Point subdivision

Wednesday | Journal of Commerce

Geranium Corporation has started construction of phase two of the Cardinal Point subdivision in Whitchurch-Stouffville.

Located at Main Street and Highway 48, phase two of the development will include 161 ...

Comment ? Related Topix: Canada, Ontario

http://www.topix.net/ca/stouffville-on/2008/10/construction-begins-on-phase-two-of-geraniuma-s-cardinal-point-subdivision

http://www.topix.net/world/canada/2008/10/walmart-comes-to-gta-growing-toronto-area-81-jobs-lost-as-sobeys-grocery-store-closes-north-america