Oct 10, 2017
Canadian Cookie Jar
Bombadier versus Boeing funding fracas
Betty Krawczyk, Cumberland
PM Justin Trudeau meets with
President Donald trump in Ottawa.
on the face of it, it does seem that Canada is being unfairly run over by
the US. The US just announced a 220 per cent tariff on a new line of
Canadian Bombardier jets. They are claiming that Bombardier receives unfair
government subsidies from the Canadian government.
Is this true? What kind
of subsidies? In a report from the Frasier Institute titled Bombardier and
Canada’s corporate welfare trap (I know most of you don’t like them, I don’t
either) we are told that the welfare program for Bombardier began in 1966
with its first government payment of $35 million.
“In the decades since, various Bombardier iterations received over $1.1
billion in (figures adjusted for inflation) in 48 separate disbursements
from just Industry Canada. That includes two 2009 cheques worth $233
I find there is an interesting parallel between the recent US accusation of
government subsidies for Bombardier and the multi-national logging
companies’ corporate welfare. As I have written previously, I think the US
is correct in this claim. But our governments are supposed to represent us,
right? Not private companies? Yet if the true worth of our public forests
had been secured by the government by charging a true corresponding value
stumpage fee for every huge old growth tree cut in BC public forests, BC
would be a financial beacon of light right now.
We would have no child poverty, no homelessness, nobody going to bed hungry
at night or scrounging in garbage bins. Our medical and social services
would be so up to date that drug overdose deaths would be a thing of the
Where did all this lost public revenue generated by our public forests go?
Into the private pockets of the logging industry barons.
While Boeing (the US jet manufacture that originally sued for redress) also
has subsidies, it is the particular kind of Canadian subsidies that the US
objects to. While Boeing’s aid comes in the form of favorable defense
contracts and tax breaks on the state level, Bombardier’s subsidies, by
contrast, come in the form of the government effectively partnering with the
company in funding the early stages of development.
But quibbling about the details is a false distraction. Both are types of
PPP (public private partnerships) masquerading as private industry while
sucking up obscene amounts of tax money out of hundreds of millions of
increasing impoverished North Americans. Nobody has clean hands in this
©2017 Betty K | Blog:
The Valley Voice News | All