Tough call

Using taxpayers’ money for economic development is nothing new.
The federal and provincial governments fund a myriad of grant programs and tax incentives. Here in Fort Frances, the town offers various incentives aimed at attracting businesses and spurring development—and even recruiting new physicians.
District residents, meanwhile, help foot the bill for the Rainy River Future Development Corp.
Laying the groundwork and/or greasing the wheel is one thing, however. Being on the hook for what’s essentially the role of free enterprise is quite another. Yet that’s precisely what is happening with alarming regularity.
Chrysler is just the latest example. The company is seeking $700 million from senior levels of government to re-tool a plant in Windsor and, in turn, preserve jobs. And if governments balk at the request, Chrysler is threatening to take its business elsewhere.
Talk about holding taxpayers hostage.
Locally, we’re all waiting with bated breath over the future of the Resolute Forest Products mill here, which was idled indefinitely at the end of January. The company continues to blame market conditions for the downtime but also says it remains focused on repositioning the mill.
Is that secret code for expecting government to step in and help pay for the needed overhaul, similar to what happened with the hog fuel boiler?
It’s a tough call. Governments, on one hand, would love to take credit for saving jobs—especially in an election year. But what if it’s a case of throwing good money after bad, or propping up a business/industry that wouldn’t survive on its own otherwise?
If there’s money to be made, it should be up to corporations funding the investment, not taxpayers.
Our system, after all, is based on capitalism—not corporate welfare.