Funny stuff

It turns out that the New Brunswick government is prepared to give large scale incentives – just not to good projects. NB Taxpayer (with hand shaking on the mouse) sent this link.

$78.5 million to prop up 365 jobs. That’s $215,000 per job.

Or almost exactly the amount that the Alabama government paid to get this:

They claim the auto industry in Alabama now features 45,000 direct jobs and 79,000 indirect jobs and a payroll of $4.8 billion.

This is what you get when you attract C grade projects. We should have made the effort to attract A grade projects.

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0 Responses to Funny stuff

  1. NB taxpayer says:

    But if the ethos is to con’t to rely on old traditional, declining industries in areas where the workforce is only capable of doing so much in a global economy (uneducated lacking tech skills), then I think it’s safe to say that it will be even more difficult for government to attract the A grade projects, which to a certain extent, aren’t even suitable for the workforce in a majority of slow growth regions in our province.

    Not a pretty site if you are the managers of this never ending circle or mess.

  2. NB taxpayer says:

    Also, a conservative state like Alabama ranks in the upper half of the State Business Tax Climate Index Rankings. Unlike, a province like Maine which ranks near the bottom.

    I think it’s safe to say, since the recent tax hikes that our province implememted, that NB resembles Maine more than it does Alabama, especially when you consider the politics behind it and the unfriendly climate it has created for both business and personal income taxpayers down the road.

    It really doesn’t pay to simply form a coalition with Governor Baldacci (even if he is a nice Democrat).

  3. David Campbell says:

    There’s a creepy person trying to post weird comments. To that person, I will not be allowing your posts to be viewed by readers. I don’t mind a difference of opinion (NB Taxpayer and Mikel are polar opposites) but this creepy stuff is not worthy of publishing. If you want to make a point, write it legibly and make it relevant to the issue at hand. Thank you.

  4. Anonymous says:

    What $70M buys you in Ontario….

    For Immediate Release

    Construction Start Of New Toyota Plant Means 2,000 Direct Jobs

    Economic Development and Trade Minister Sandra Pupatello joined Toyota Motor Company officials today to celebrate the start of construction of Toyota’s new state-of-the-art assembly facility in Woodstock. The event coincides with Toyota’s 20th anniversary of operations in Ontario.

    “Toyota’s investment and this new construction symbolized by inserting the first steel beam, is a tremendous vote of confidence in Ontario as a destination of choice for the next generation of auto manufacturing,” Pupatello said. “It demonstrates that our government has created the right conditions to attract investment, so we can support workers who rely on a vibrant auto sector.”

    Toyota is investing $1.1 billion to build the new plant with production expected to begin in 2008. The facility will create 2,000 direct jobs and has already spurred more jobs in the supplier, parts and aftermarket industries.

    “The auto industry drives our prosperity and our quality of life,” Premier Dalton McGuinty said. “Our government acted quickly to support a competitive, strong auto industry in Ontario. We’re attracting major investments and more good jobs to the province.”

    Ontario has invested $70 million to support skills training and infrastructure at the new Woodstock facility. Since Toyota announced its new plant, Ontario has welcomed three additional investments from the Toyota group of companies including:

    * Hino Motor Sales Canada Ltd., a manufacturer of diesel trucks, is investing more than $3 million to open a new commercial truck assembly facility in Woodstock’s Pattullo Ridge Business Park
    * Toyotetsu Canada, an automotive components company, is investing $50 million in a new plant in Simcoe, creating 250 new jobs at startup. The plant will supply Toyota operations across Ontario
    * Toyota Boshoku, a parts-supply company, is investing $65 million to build a new manufacturing facility in Woodstock, creating 330 new jobs. Toyota Boshoku will supply seats, door trim and carpets for the Toyota plant in Woodstock

    “A stronger automotive industry helps us to build a stronger and more prosperous province for all of us – and a quality of life that is truly second to none,” Pupatello said.

    Investing in the auto industry is just one example of how the McGuinty government is working on the side of businesses and families to strengthen Ontario’s economy.

    Other initiatives include:

    * Encouraging strong job creation, with over 268,000 net new jobs since taking office
    * Creating the Ministry of Research and Innovation to help support the discovery, funding and marketing of new ideas and technologies
    * Creating the Ministry for Small Business and Entrepreneurship to help strengthen our economy
    * Helping generate almost $7 billion in automotive investments that retain and create thousands of long-term, high-value jobs

  5. Anonymous says:

    215,000 per job reminds me of the subsidy for MOLSON in Moncton.

  6. mikel says:

    Two things, actually, NBT and I aren’t polar opposites, we usually are not even talking about the same things (a criticism doesn’t mean a belief in the opposite)

    However, for auto plants, keep in mind that Toyota also got big bucks from the FEDERAL government, and of course Toyota already has a substancial presence in southern ontario.

    The point is that it costs a LOT more than 70 million, and of course rarely mentioned are the massive losses from other automakers in southern ontario, which means all those ‘net new jobs’ just replace old ones.

    But after reading all about Atlantic Yarns from England, Molson, Nackawic, and the Caissie, I think something basic has to be admitted here-that ‘A grade’ foreign investment is either a pipe dream or SO expensive that its virtually impossible.

    It would be helpful to see what exactly an ‘A grade’ investment means. Molson is multinational, but look how much it ‘cost’ to bring them to Moncton.

    So, its becoming more of a pipe dream to state what used to be stated-that the govenrment ‘just wasn’t trying’ to get foreign investment-its just hideously expensive.