Tuesday, September 13, 2005

Your job prospects just got bleaker

"Men of the same profession never gather together except to conspire against the general public." - Adam Smith.

London taxpayers could pay an extra $1 million a year to attract high-tech business if council adopts a plan comparing the city to economic powerhouses in the U.S.

The plan, to be presented tomorrow to the city's board of control, is backed by groups being funded to lure business and stimulate home-grown enterprise -- the London Economic Development Corp. (LEDC), TechAlliance of Southwestern Ontario and the Stiller Centre for Biotech-nology Commercialization.
Speaking as a human resource who can only benefit from local high-tech companies bidding up his salary, this is a terrible idea. Actual, existing, profitable businesses are to be tapped to pay for phantoms, phantoms that nobody wants to risk his own money on:
The city would guarantee one-third of business loans to qualifying companies up to a total of $15 million over five years. The loans would be of the higher-risk, higher-benefit variety, said Paolatto, and the city could make or lose money.
And the money so thrown away will not go towards creating new businesses attracted by actual demand unsweetened with wasted tax money.

The City That Economics Forgot.

1 Comment:

MapMaster said...

Apposite: OTTAWA (CP) - A massive audit into a federal technology fund is expanding as independent investigators uncover new problems in companies receiving almost $500 million from Industry Canada.

Recently disclosed documents show Industry Canada has already spent at least $755,000 probing 52 companies to determine whether they inappropriately paid middlemen to secure cash from Technology Partnerships Canada.

But the investigation so far has been unable to come up with answers in about 30 per cent of the cases studied, so Industry Canada has begun a fresh round of audits to dig deeper into the firms' books.


Via Canadian Taxpayers Federation blog.