Inner City Diary
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Licensing escorts not a city priority
October 3, 2004
From a distance, it seems like Mayor Sam is doing a good job running the city. So I'll show my support by suggesting an easy way for the city to raise some extra cash.

How about getting the licensing department to actually do its job? We've been suggesting this for years, but for all the inaction, you'd think we were asking something really unreasonable.

In a recent article, I objected to some politicians peddling the notion of a red light district as the solution to Winnipeg's prostitution woes. I won't bore you by repeating my objections, but I'll tell you that the whole notion falls apart as soon as advocates mention licensing as part of the strategy to control the trade.  

We already have a de facto red light district in Winnipeg. We just call it something different -- adult entertainment, escort services, massage parlours, private dancers, etc ....

And the city already has a set of licensing regulations and fees associated with the services of escorts. The regulations are antiquated, but the fees are set at $4,100 annually anyway.

Setting aside for a moment the activity of the escorts, one is tempted to give credit to anyone who would actually apply for such a licence. In getting a city licence, they also expose themselves to the necessity to pay income tax and business taxes, remit PST and GST, and rent an office in a location other than their home.

Here's the kicker.

While there are more than 78 escorts listed in various sources around town, only five of these, by my count, are licensed.

Doing some quick math and weeding out some duplication, I figure the city should be able to make more than $250,000 in licence fees alone. In addition -- at least until it's phased out -- there's even more revenue in business taxes.

So the question of the day becomes: "Why isn't the city licensing department doing its job?"

It's not like they can pretend they don't know where these people are. They advertise and even do house calls.

But the licensing department still tries to peddle the old line that they don't really know that there's anything bad going on, that their licence regulations are up to snuff and they are unaware of any blatant abuses of city bylaws.

One well-known massage parlour is located a few doors from Calvary Temple in downtown Winnipeg. As far as I can tell they've been advertising and avoiding licence fees for about 30 years. That's a lot of lost revenue. And a lot of lost credibility for the licensing department.

If anyone in the licensing department pretends they don't know who is abusing their bylaws, they're playing us for fools.

There are other questions as well.

Where's Revenue Canada in all of this?

Does anyone care?

Several years ago I was told that the department was overhauling its escort and adult entertainment licensing to bring it in line with current realities. "You'll have a draft copy next week," promised the head of the licensing department.

That was four years ago, and I still haven't seen any paperwork. I wonder if he'd mind if the delivery of his paycheque coincided with the delivery of his report.

My experience with the city bureaucracy that licenses Winnipeg's present red light district inspires more consternation than confidence. In stereotypically bureaucratic fashion, it seems they'll gladly bully the compliant, but don't deal with the unco-operative.

What are these guys doing if they're not doing their job?
Copyright 2004
Rev. Harry Lehotsky
Rev. Harry Lehotsky is Director of New Life Ministries, a community ministry in the inner-city of Winnipeg, Manitoba.
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