Monday, April 3, 2017
Bombardier Makes Fools of Us All
Quebec is the provincial champion of government largess vis-a-vis company handouts and actually doles out three times as much money and tax breaks to companies as Ontario does. Considering that Ontario's budget is 1½ times that of Quebec, it means that we dole out money at a rate 4½ times in comparison.
This adds up to about $6 billion that the government shells out to keep companies from fleeing to greener pastures.
The vaunted Montreal video game industry, the poster boy of the government's investment in jobs is strictly a question of pay to play, with tax benefits that cover in some cases of up to a third of the overall company payroll.
At any rate, let us say that when negotiating with these companies, our illustrious leaders are over-matched, like a flyweight boxer getting into the ring with a heavyweight.
If you hadn't heard the latest, Bombardier blackmailed the Quebec government for a $1.3 billion loan, claiming poverty, and then turned around and gave huge raises and bonus' to its bosses.
The company has a long history of living on the government dole.
There is no better description of Bombardier's actions than the Yiddish word "Chutzpah"
How stupid are Bombardier bosses?
Not since "New Coke" has a company blundered so publicly, turning even the biggest government defenders against them.
The federal government is now considering an additional request from the company for a further $1 billion loan, which has become toxic overnight.
Not even Trudeau can sell this loan, the country won't have it.
It's time for governments to forgo loans and subsidies to private business. Those companies asking for handouts are either commercial failures (Bombardier) or successful companies who scam idiot politicians with threats and promises over jobs.
Now we are hearing that the Calgary Flames are threatening the city and province with moving if taxpayers don't shell out for a new arena.
The Flames are in the successful scammer category, threatening taxpayers in a shameful ruse that would make a mafia protection racketeer proud.
The Flames billionaire owner is just following the successful shakedown that the other Alberta hockey billionaire-owner of the Oilers, Daryl Katz did on Edmonton taxpayers, getting the city to pay for most of the $600 million arena project. All it took was a shopping trip to Seattle to frighten officials into coughing up. Easy-peasy.
But Calgary mayor Naheed Nenshi should call the Flames bluff.
There is absolutely no good option in the western part of Canada or the United States to move to, Seattle included. If there was an option, the NHL would have expanded there itself.
On the other hand, on the remotest of chance that the Flames move, another ownership group would jump at the chance to operate in Calgary under the present conditions.
Politicians need to grow a pair.
Subsidies and corporate handouts should be made illegal, because just like drugs they are too tempting for weak-kneed politicians.
As Nancy Reagan said....JUST SAY NO!
Posted by Barbara Berlach on 4/03/2017 02:11:00 PM