Ottawa's G-8 compensation plan promises no financial protection against property damage or bodily harm caused by protest violence.
The plan places the onus on business owners and citizens to pay for extra insurance coverage to guard against potential damage by protesters at the June 26 and 27 summit of leaders of the G-8 countries.
Judy Kohut, a spokeswoman for the federal Department of Public Works, justified the decision to rule "third-party vandalism" and "bodily harm" ineligible for compensation by saying: "There is no way we would ever be able to cover every single thing."
She added, "The rationale, as I understand, is insurance is available to you. It's a personal decision whether you take it or don't take it."
Failure to add extra insurance coverage eliminates the right to appeal for compensation.
Businesses and residents in Calgary and the Kananaskis region have waited for months to see the details of the G-8 summit compensation plan.
On several occasions, G-8 officials have promised to pay for all "extraordinary" costs arising from the summit.
The plan released Friday, about four weeks before the summit, covers any loss of revenue or relocation costs due to security needs.
Without a clear-cut promise of compensation for property damage, downtown business officials said there is little to encourage merchants to stay open during G-8.
"If we want our businesses to demonstrate we're not cowering in fear for the G-8 summit, ensuring they would be adequately compensated should the summit result in some sort of vandalism . . . would be an obvious inclusion in this list," said Dan Kelly of the Canadian Federation of Independent Business.
Wild Rose MP Myron Thompson, the Canadian Alliance's G-8 watchdog, added it's unacceptable that Albertans should bear any costs of a world summit forced on them by the federal government.
"They're a good government for making sure the fault falls somewhere else," Thompson said. "Dang! We've got to hold them accountable."
Mike O'Shaughnessy, a G-8 spokes-man, declined comment on the compensation package, saying it's the responsibility of the Department of Public Works.
Other summit cities in recent years have suffered millions of dollars in damage and lost business due to confrontations between police and radical protesters.
During the Summit of the Americas in Quebec City in 2001, businesses reported a 75-per-cent drop in sales and eventually received more than $2 million in federal compensation.
Activists had wanted to establish a "solidarity village" at Shaw Millennium Park during the summit, however Mayor Dave Bronconnier said Friday that city parks should not be used for political rallies.
"It's an inappropriate use of this public park," he said. "People have put in a lot of time, money and assets to see this facility go."
The office that will handle the compensation claims will be set up in the Harry Hays Building in downtown Calgary.
Personal injuries, vandalism and anything else that might be covered by private insurance is ineligible for compensation. Ottawa also won't pay the deductibles for private compensation claims resulting from summit-related vandalism or bodily harm.
People whose insurance policies do not include the option for special clauses to cover mob violence can appeal for compensation to the Department of Public Works. However, applicants must prove any harm or damages suffered are "directly attributable" to the G-8 summit.
Public Works auditors will decide claims on a case-by-case basis.
Bronconnier said he would have preferred a compensation plan that was "simpler for small business to understand . . . to find out if they have sufficient coverage."
Richard White, executive director of the Calgary Downtown Association, said the best defence against vandalism is for the downtown to stay active.
"Vandalism is most likely to occur if, in fact, businesses are . . . shut down and nobody's around," said White. "The more people who are around, the safer it's going to be."
G-8 compensation plan highlights
Ottawa will offer financial compensation for losses stemming from the impact of "extraordinary security measures," including:
- A loss of net profits or net revenues due to a "decline of customer traffic" during the summit;
- Specific costs such as "relocation expenses, transportation expenses, accommodation and living expenses" due to the needs of summit security;
- Cleaning expenses to remove any "chemical or other material used by the security authority."
- Claims must be filed within 90 days of the end of the summit.
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