With election day two weeks away and the Liberal's finding Ontario starting to slip away, Monday brought out the best weapon a government can have, its cheque book.
The Federal Liberals set up shop in Southern Ontario Monday, announcing that Industry was going to be provided with some impressive financing to keep the good times rolling in Canada's Industrial heartland.
1 Billion dollars in aid was announced by Joe Volpe Monday, 500 million for the auto industry and 500 million in other manufacturing sectors of the country's largest province. One lucky recipient of the Liberal bean distributing is the Canadian branch of the Ford Motor company. It will benefit to the tune of 100 million dollars, which will go towards the upgrading of the company's Oakville plant, which is expected to cost 1.2 billion dollars. There had been concerns that unless the government ponied up some cash that Ford would move production to the States or Mexico. Ford recently announced profits of 1.95 billion in its first quarter this year, more than double the profits of a year ago. Impressive statistics for the North American auto maker, which also counts up some good results in the rest of the world on its bottom line.
And there lies the interesting rub in this great debate, is a company that makes that much of a profit deserving of government monies, especially when Canadian plants already come with built in incentives in our National health plan, unemployment insurance programs and previous subsidies. Is it proper form to have suggestions, rumours, or out right threats of possible closings and product movements used to cajole money out of the federal and provincial treasuries?
The culture of corporate welfare was recently addressed by Stephen Harper, who stated that a Conservative government would end that endless system of government subsidy, instead offering tax incentives to corporations to rework their financing needs. But knowing an election hand grenade when one is tossed, the Conservatives were quick to add Monday that they would honour any "existing" arrangements, made prior to their taking power. Thus, becoming kind of a "subsidy if necessary, but not necessarily subsidies" position. The decision to play ball on this issue should at least keep the Conservative momentum in Ontario on the increase for now.
Jack Layton of the NDP had jumped into the debate earlier in the week with warnings that a Stephen Harper government was going to abandon the auto industry, letting the jobs slip away to Mexico, Georgia or any other state with big fists and lots of cash. It makes for an interesting warning, from a fellow that intends to increase taxes on the big corporations and rich individuals.
Layton is offering his own subsidy program for the auto industry, for those companies that help to convert to green cars. Rebates clocking in at 300 million yearly, are to be offered for those that purchase hydrogen fuel cell cars, and the NDP is planning to provide 500,000 dollars in funding for research into clean alternatives.
Still is not a handout a handout? We've traveled a long way from the days of NDP leader David Lewis and his mantra of no more for the corporate welfare bums. Layton's brand of socialism isn't in the same vein as that of Lewis, who took over from the venerated Tommy Douglas and led the NDP to electoral success in 1971, when he formed part of a minority government from 72-74, with Pierre Trudeau, campaigning across the country against the culture of corporate welfare. Lewis even authored a book on the topic "Louder voices: The Corporate Welfare Bums", which is still available at hidden away book stores and found on line, if you're willing to wait a bit.
It's a term that has recently been picked up by the Conservatives with Stephen Harper railing against the continual handover of dollars for less than stellar results. Harper too is hardly the disciple of the old CCF/NDP alliance, but he sure does like a good buzz word, like corporate welfare. Though as the reaction to the Liberal announcement of Monday shows, if it's going to be a troublesome passage in the platform, it can always come with a rider or two.
As the campaign winds down though, the announcement today highlights the crux of what is important in the election. Which party is best suited to cut up your cash and dish it out and to where.
Three separate visions as to how to dole it out, your job is to figure out which one is in your best interest, and for that task you are truly on your own dear voter, you are on your own.
This posting first appeared in my Boondoggle blog, if your are looking for more items regarding government check it out.
Monday, June 14, 2004
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