The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
They are often called bailouts, those large sums of money governments give to private industry. The Canadian version has seen much of the cash assigned to the Ontario auto industry by the federal and Ontario governments. This is of course future tax money, for where else do governments get money? The prime minister was not happy with the bailout, but he said he had no choice, for the alternative of not following the American lead would end the auto industry in Canada and cost thousands of spin-off jobs. Certainly not everyone, especially conservative people, agree with costly protection for private companies. In a conversation I had with a businessman who runs a small carpet cleaning company, he was adamant that no bailout should have been given. Other businesses now want to get into the act and get some of that tax money. The best examples are the forest industry and, surprise surprise, the fishing industry on the east coast. The forest workers union claims that they have lost more than 130,000 jobs over six years. They want tax money similar to the American bailout of $8 billion Ð not that much, mind you, just $2 billion will be enough! The government is of course hesitating as they have already given them $14 billion since 2008. The cause of their concern is of course the collapse of the American housing industry and a similar lack of building in Canada. The question is, should the taxpayer pay more? Similarly, the fishing industry is in dire straits due mainly to a lack of demand. You would never know it in a restaurant, but lobster fishers are losing money on their once-lucrative catches, and the shrimp industry has hit bottom with production halted by Newfoundland until the economy improves. This is a far cry from a number of years ago, when on a trip to PEI I was told that a lobster/shrimp fisher could make $100,000 during the short season and then go on unemployment for the rest of the year. Not a bad job! Protecting the Greyhound bus service between Flin Flon, Thompson and Snow Lake has been discussed by many leaders in northern communities in recent months. The issue was even brought up in the legislature by the local MLA as part of the member's statements. Discussed are the serious consequences to residents who have no vehicles if Greyhound is allowed to discontinue its money-losing service. They want the Motor Transport Board to refuse this private company's bid to shut down the service. While at a Service Canada building in Winnipeg, I had a chance meeting and conversation with a gentleman who identified himself as head of the Greyhound workers union. He was there to inquire as to whether laid off/terminated workers would be eligible for Employment Insurance if they accept Greyhound's offer to let them take out their pension funds and invest them elsewhere. The pension funds cannot be cashed in until they retire and, he explained, is fully funded, unlike the auto workers pension, which is in serious condition. When I asked him his opinion on discontinuing the Snow Lake bus service. He was adamant that it should be shut down. He said nobody rides the bus and the route is losing thousands of dollars a year. He also claimed that Greyhound expects to lose about $35 million this year and will have to cut back to survive. He also mentioned that the Winnipeg-Flin Flon route remains profitable and will continue. I presume his fellow union executives agree with him, and in any case, can a private company be forced to keep in place a money-losing service? If you or I owned a taxi/transport service from Flin Flon to Snow Lake and we were losing money, could we be forced to keep it in operation? I don't think so! What about subsidies? Have you heard a word from those leaders complaining about Greyhound, about the bus line getting financial help to keep the service? If the service is so essential, what about Snow Lake, Thompson and Flin Flon making up the shortfall? As well, what about the provincial NDP government? After all, all of the northern MLAs are members of the governing party and should have some influence with the Doer government. It is not a lot of money, either, and although it is not wise to provide tax money for money-losing companies, isn't everybody doing it? Roger's Right Corner runs Wednesdays.
