a $1.7-million subsidy for a pasta manufacturer in Brampton, Ont., citing the creation of 10 jobs. This may appear insignificant compared with the tens ofallocated to industries such as electric vehicles, but it highlights just how normalized corporate welfare has become across our economy.in recent years, such as those from the Ford government in Ontario and the Legault government in Quebec, and it’s clear that the private sector is increasingly infused with taxpayer money.
Most concerning, however, is how this deluge of subsidies allows governments at all levels to drown out calls for necessary policy reforms. Our, declining tax competitiveness and plummeting attractiveness as an investment destination are all serious challenges that are being ignored in favour of short-term political benefits.
These days, no one blinks an eye at taxpayer money going to a thriving pasta maker. In this case the government insists it is only offering a “repayable loan,” but if so, and if that loan is offered at market rates, the obvious question is why the government needs to be involved at all; surely any thriving company can avail itself of one of the many lending institutions known as “banks.”
Positive spending announcements also allow government officials to sidestep difficult questions about their role in creating an unfriendly business environment. Minimum-wage hikes represent a major cost for most employers . Development charges imposed by municipal governments for housing not only increase consumer costs but can threaten the very viability of projects in a country already facing a severe housing shortage.