Right up front, let’s be clear that I am not picking on either TD Bank or Frank McKenna. It’s just that I came across this information in their well written 2006 Corporate Social Responsibility Report and it helps support my point here in this blog.
Firstly, TD pays less than 1% of its provincial taxes (income and capital) in New Brunswick.
In addition, the bank employs less than 1% of its people in New Brunswick.
Probably the fact that one tenth of one percent (0.1%) of its loans to business are in New Brunswick as shown in the chart.
So, what’s my point here? Assuming that the other banks have similar debt in New Brunswick (some higher/some lower), it becomes pretty clear that the banks aren’t investing too much in New Brunswick. In fact, at less than 20% of Nova Scotia’s TD invested capital, it’s pretty bad.
So, to sum up. TD Bank is not ‘risking’ its capital in New Brunswick firms (I make no direct reason for this at least in this blog – I am just stating a fact). As a result it pays almost no tax here and it employs relatively few people here.
So for those of you who criticize my desire to attract foreign investment (of which I obviously include ‘national’ investment), take a long hard look. Embedded in this blog is a primary reason why New Brunswick has been mired among the weakest provinces and states in North America.