Monday, April 3, 2017

Bombardier Makes Fools of Us All

It boggles the mind how devious, arrogant and underhanded companies like Bombardier can be. This coupled with the rank stupidity of those in government who deal with these slickers, leaves taxpayers holding the bag once again, a Quebec tradition.

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!

8 comments:

  1. Ohhhhhhhhhhh, Barb, I'm so glad that either you or Phil posted a blog on that big, fat boner.

    In actual fact, this is nothing new. Bombardier has been sucking at the government teat endlessly. Didn't "Gorgeous" Trudeau Jr. already release $372 million non-refundable to the Bomb? Corporate bailouts--like father, like son! Papa Duck shelled out billions to the Bomb, billions to Canadair (and where TF are they now), $34 million to the defunct Maislin Trucks whose fleet crashed and burnt within a year of that easy money, and a host of others.

    Corporate welfare for hockey arenas and teams is nothing new. I hope the Calgary mayor says "no". Those crash-test dummies in Glendale, AZ are paying through the nose, and I wouldn't be surprised if that team either folds or transplants...to Quebec City «nudge-nudge-wink-wink!»

    OK, back to the Bomb. In Toronto, the City invested in new light rapid rail street cars/mini trains. By now there should have been about 100 of these ditties on the rails. There are barely 20!! Toronto had to re-do its tracks to enable the trains to handle the turns and endure their additional weight. In the meantime, countless millions are being spent on repairing old streetcars that are exhausted, spent forces.

    Bombardier should be forced to compensate the City of Toronto for those additional costs. Too, passengers are not being properly accommodated for because of the lack of street cars with a growing demand by passengers for ample service. I've heard "talk" about suing the Bomb, but I haven't yet heard it come to fruition.

    Oh, well, now nurses and other hospital people who help the sick and wounded are being laid-off to keep afloat a perennial loser. Why don't they just write an ode to Joseph-Armand Bombardier and shoot the f--king lame duck already?

    DIE BOMBARDIER DIE!

    The Always Right and Honorable Mr. Sauga

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  2. I almost forgot. The JCs (namely Jean Chrétien and one other than John James "Goldilocks" Charest) were also very generous with the coffers your tax dollars are placed into that Bomb of an organization

    This one involves the chimpanzees that work or have worked for the Bomb. One person they hired to read plans à l'engineer couldn't read plans. His former occupation was a chimney sweeper and he married three times. He never earned a degree, period, never mind in engineering.

    You pay peanuts, you get chimpanzees!

    DIE BOMBARDIER DIE!

    Mr. Sauga is right again! Get used to it!

    The first story is about a

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  3. I borrowed my wife's computer and thus automatically post under her name. Philip

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  4. Rhetoric aside, a $20 billion, Fortune 500 company like Bombardier does need to keep up with the market for their executive compensation. You and I may not like it, but it is what it is.

    What bad is that the governments keep on throwing money to Bombardier and the company announcing the raise when the news cycle is about lay-offs and subsidies.

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  5. Editor,

    This is nothing new. Bombardier should indeed die but, there are thousands of votes at stake. Votes at the federal and provincial level.

    Let me also add one point, Quebec is not alone in this situation. Our genius neighbors to the south engaged in farce 10 years ago, printing out money to bail out failing enterprises. An idea loved so much by the intellgencia that our friends in Europe adopted it a few years later (and continue to do so).

    Good money chasing bad purposes.

    Basically, the west is fucked.

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    Replies
    1. You're not far off Mr. Marco, and it's idiotic, but votes mean more than dollars or euros. What kills me more than anything is the US is in far worse fiscal shape than we are, but Quebec's doctor and Ontario's dike are doing their best to play deficit financing. Gorgeous too, is taking after his Papa Duck and turning our dollars into Zimbabwe dollars. Zimbabwe, before their currency absolutely collapsed, printed hundred trillion dollar bills that couldn't buy a dozen eggs! In Canada, those bills sell in novelty stores for about $30! I'd only buy it if they discounted it by $29, and it's barely worth a buck!

      But I digress. Can't call you wrong, Mr. Marco. We are in bad shape.

      Mr. Sauga

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  6. Those crying about the salaries of Bombardier executives fail to understand the major issue involved. And that is, that more than anything lower revenues are affecting the strength of Bombardier.

    You could lower every major executive salary by a million or two; it would not change fundamentally anything.

    Repeating the thetoric of left wing types commenting in newspapers like Le Devoir will do little to save Bombardier.

    The Quebec govenment absolutely did the right thing. Now it is up to Bombardier to use this help and hopefully become more competative and save this Quebec based company.

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  7. Mr Editor,

    Glad to see you posting again. I just noticed today that you were back.

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