Ontario Premier: "No Regrets" Over $250m GM Handout
Canada (like most other developed countries) has a hard time attracting/keeping auto manufacturing jobs due to high labor and tax costs. To counteract these competitive disadvantages, provincial governments often offer car companies tax holidays and other incentives. The problem with these handouts is that they do not guarantee a long-term presence by the bought-off manufacturers. Exhibit A: GM got handouts worth nearly $250m in provincial tax money (and about $200m in federal funds) for its Beacon project aimed at revitalizing its Canadian production facilities. Now, a few short years later, they're cutting some 1400 jobs at their Windsor transmission factory, with another 900 lost due to production cuts at the Oshawa truck plant. Having spent some $7b on various automaker subsidies without receiving a single job guarantee, Ontario Premier Dalton McGuinty is coming under fire. "The more money this government invests in a company, it seems the more jobs are lost," says Progressive Conservative MPP Bob Runciman. But McGuinty ays he "doesn't regret" giving the money to GM (at least until the next election). Report on Business tells us that GM is set to ask the Ontario government for another $140m to build transmissions at its St Catharines plant. Oh, and don't expect GM to offer any job guarantees, either.
Ontario is still chugging along quite nicely thank you. The only lesson to be learned from this is perhaps the provincial government should limit its handouts solely to Japanese auto manufacturers. Theys they don't lose market share and bleed money, which is what plant closures are a result of after all.
menno, you said "It’s called socialism. Sadly, it’s done in America, too. ... So I moved to the UK out of total disgust. And stayed there for seven years." You moved to the UK to get away from socialism? Isn't that like moving from Iceland to Finland for a warmer climate? Best I can tell, Thatcherism is dead. As will be British culture in a few decades.
NickR, In emergencies, the Canadian system works great, most of the time. I almost had my bowel explode due to lack of doctors and an unwillingness to use imaging equipment, but hey, once they figured out I could be near death at any minute, the got right on it. Nevermind the full day of them screwing around. OTOH, I would hate to be sitting around for 6 months in my later years waiting for a hip or heart surgery that is not an emergency. Can't leave the country, can't work, can't really live until they get to you. So, in this case, he isn't misinformed according to my experience and information.
Most folks in Canada worry if we open up two tiered medical system, no doctors in right mind would work for the public med system. Because of singular system we do have to wait, or you can fly south to have hip or anything done in a few days instead of you're lucky enuf to out last the waiting time. Now a new trend to have operations done in India, where it can be done with fracton of what it will costs here. Uncle Sam's citizens are doing that already. And some nights if being so looky the Emerg can go beyond SRO ( standng room only) the Ambulance could travel around town trying very hard to find anybody to take you. Solly Nick if your age is not half way across you no need to worry about all these waiting time yet. None the less we're still much cheaper than US Medical, because they practice defensive medicine, do everything under the Sun one is th milk you dry, two is to have adequate defense ( no stone unturned )incase you got screwed up badly.