"It's a company that's got a bright future." This remark was made by Trade Minister Frances Lankin as she committed the government of Ontario to give $19-million to Ontario Bus Industries of Mississauga to save 690 jobs. That was 1994. In April of 1995 the government finally sold most of the shares in the company to a truck manufacturer from B.C. and lost $66.4-million in the process. Over $96,000 for every job they claimed they would save.
Saving jobs is one reason the government gives for what they call "strategic investments" and has put taxpayers on the hook for over $163-million. Most collapse anyway and no jobs are actually saved. Whether under the guise of saving jobs or creating jobs, governments have a poor track record of picking winners. Usually, they only delay the inevitable leaving taxpayers with the bill. Other examples from the Progressive Conservative era include the Skydome stadium in Toronto and Suncor. Frequently such loans or outright grants result in companies paying higher taxes to finance their competitors.
Ontario's Libertarian Party believes government should not be financing any business in any manner. Ontario's taxpayers cannot afford to back losers.
$ 450,000 /Feb/95 for entrepreneurs loan fund /Sault Ste. Marie
$ 538,272 /March/95 for road to a business park in Smith Falls
$ 500,000 /March/95 for a Wawa mill making strandboard, a construction material.
$ 150,000 /March/95 to help commercial theatre operators