Our Princeling and Ontario’s Liberal First Minister got together last week for a photo Op and announcement . Together they are investing a little over $200 million in an auto plant in Windsor , Ont.
This is nothing new , of course. Governments in Ottawa and Toronto have invested billions of dollars in the auto manufacturing industry of Ontario over the years.
What is most galling about some of these so called investments is that they are going to Companies that are very viable. The Canadian Taxpayers got it right in their response to the news:
‘The federal and Ontario governments continue to double down on the failed strategy of taxpayer subsidies to private businesses. It is ludicrous to suggest that Ford ‘needed’ a $200 million handout from Ontario and Canadian taxpayers, as the company earned a global pre-tax profit of more than US$10 billion in 2015. If the federal and Ontario governments are concerned about business competitiveness, they should eliminate misguided policies that drive up costs (such as the Green Energy Act and carbon cap-and-trade) and lower business taxes.
Corporate welfare is an unsustainable, wasteful and unfair approach to economic development that creates perverse incentives and teaches businesses that the key to success is to cozy up to governments for free taxpayer money.”
Of course, crazy investments by the Ontario Government is an every day affair making it one of the most indebted Provinces , and Ottawa for its part has been following Ontario’s lead where we see from the recent Budget deficits as far as the eye can see.