Government should not be picking the winners and losers in the marketplace. I feel they should be focused on building a business climate that supports economic development through investing in infrastructure and technology and not individual firms. Their decisions are riddled with inflated estimates and poor economic forecasting models that are used to justify politically motivated directives. These funds were established to let the province serve as the “bank of last resort” in cases where commercial lenders could not be enticed to invest in worthwhile projects. They were designed to stimulate growth in future investment in our great province. They have become something very different. Government has become the first stop for any business looking to borrowing money. Many are told by their institutional lenders to subsidize their borrowings with public support. Very little of the money is going to new businesses who have growth plans. It is being used to sustain broken business models for unhealthy companies that are decreasing their asset base in Nova Scotia. The public enjoys the “job buying/saving” up front benefits and is later disgusted when they see how much that actually costs. It’s time for a completely new approach that is based on sound economics, growth industries, and independence from political interference. As the old saying goes…”this ain’t it”
The government should get completely out of the business of financing businesses. The board of the now defunct Jobs Nova Scotia had all the board members not being full time residents of Canada. Then the presence of a Former Mayor of New Glasgow whom has never worked a day in the private sector shows the depths of political patronage in this body. A mayor that spent her way through a 5 million dollar reserve which has led to New Glasgow being about 10 million in debt. What is the result ? Her policies are driving businesses out of what was once the centre of Maritime Business exceptional-ism. Maritime Steel has suffered via mindless progressive politics which believes citizens can pay mortgages and taxes by planting flowers to please tourists. The department of Economic Development and Tourism is the most idiotic pairing of too things the exact opposite of each other. The BBC world service recently reported on Disney Theme Park best year 2013. The world leader of tourism destinations grossed 3.8 billion dollars in revenues for a 600 million dollar profit. Nova Scotia does not have a 2.2 billlion tourism industry despite that yammering classes trying to sell that you the taxpayer. If we indeed had such a tourism industry we would have a 100 percent privately funded ferry from Portland to Yarmouth. Not a 25 million dollar subsidy to support a ridiculously over priced operator.
The most or best the government should do for aspiring business ventures is to guarantee 25% of any loan made by a major Canadian bank to the entity.
If the entity is not a public company, all major shareholders should be required to execute full personal guarantees.
Cabinet should have no authority to deviate from this structure unless all individual members execute personal guarantees limited to 5 years of their pensionable MLA income.
At first glance this appears to be just another one of those instances where the party in power has left ITSELF sufficient ‘wiggle room’ to,in the end, get the outcome it wants , while at the same time, attempting to avoid responsibility if it all ends poorly..
Government should not be picking the winners and losers in the marketplace. I feel they should be focused on building a business climate that supports economic development through investing in infrastructure and technology and not individual firms. Their decisions are riddled with inflated estimates and poor economic forecasting models that are used to justify politically motivated directives. These funds were established to let the province serve as the “bank of last resort” in cases where commercial lenders could not be enticed to invest in worthwhile projects. They were designed to stimulate growth in future investment in our great province. They have become something very different. Government has become the first stop for any business looking to borrowing money. Many are told by their institutional lenders to subsidize their borrowings with public support. Very little of the money is going to new businesses who have growth plans. It is being used to sustain broken business models for unhealthy companies that are decreasing their asset base in Nova Scotia. The public enjoys the “job buying/saving” up front benefits and is later disgusted when they see how much that actually costs. It’s time for a completely new approach that is based on sound economics, growth industries, and independence from political interference. As the old saying goes…”this ain’t it”
Barry | May 14, 2014 |
The government should get completely out of the business of financing businesses. The board of the now defunct Jobs Nova Scotia had all the board members not being full time residents of Canada. Then the presence of a Former Mayor of New Glasgow whom has never worked a day in the private sector shows the depths of political patronage in this body. A mayor that spent her way through a 5 million dollar reserve which has led to New Glasgow being about 10 million in debt. What is the result ? Her policies are driving businesses out of what was once the centre of Maritime Business exceptional-ism. Maritime Steel has suffered via mindless progressive politics which believes citizens can pay mortgages and taxes by planting flowers to please tourists. The department of Economic Development and Tourism is the most idiotic pairing of too things the exact opposite of each other. The BBC world service recently reported on Disney Theme Park best year 2013. The world leader of tourism destinations grossed 3.8 billion dollars in revenues for a 600 million dollar profit. Nova Scotia does not have a 2.2 billlion tourism industry despite that yammering classes trying to sell that you the taxpayer. If we indeed had such a tourism industry we would have a 100 percent privately funded ferry from Portland to Yarmouth. Not a 25 million dollar subsidy to support a ridiculously over priced operator.
paul taylor | May 10, 2014 |
The most or best the government should do for aspiring business ventures is to guarantee 25% of any loan made by a major Canadian bank to the entity.
If the entity is not a public company, all major shareholders should be required to execute full personal guarantees.
Cabinet should have no authority to deviate from this structure unless all individual members execute personal guarantees limited to 5 years of their pensionable MLA income.
Bill F | May 9, 2014 |
At first glance this appears to be just another one of those instances where the party in power has left ITSELF sufficient ‘wiggle room’ to,in the end, get the outcome it wants , while at the same time, attempting to avoid responsibility if it all ends poorly..
bob mackenzie | May 9, 2014 |