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No Dice for MCI

Author: Victor Vrsnik 2002/01/30
This movie has played so often that my nerves have gone numb. High and mighty politicians shake down ordinary Manitobans for taxes to bribe high and mighty corporate execs not to take their businesses and jobs elsewhere.

The latest chapter in the Corporate Welfare Chronicles involves a possible $20 million handout to entice Motor Coach Industries to consolidate operations in Winnipeg . The bus manufacturer is also courting offers from other undisclosed suitors who would have the company relocate its operations south of the border.

Senior politicians like Liberal MP Rey Pagtakhan and Premier Gary Doer have no businesses getting into bidding war and gambling with our money. If they happen to have an extra $20 million lying around they should return it from whence it came. The money itself is the smoking gun that proves we're all well over-taxed.

There are only a few possible outcomes to this story. The director's cut has politicians, company brass and union leaders all pitching in to make MCI the poster child for Manitoba industry. The director's cut usually sucks because the improbable finale.

The more likely conclusion has a made-in-Manitoba real-life flare to it. Well-intended politicians run to the aid of local industry with cash in hand. Everyone goes back to work happy for a few years until the subsidies dry up and the same backward labour laws and taxes force company execs back into relocation mode.

The union goes ballistic over the threat of a plant closure and uses the Manitoba Labour Board to fleece millions out of the company, effectively putting the kaibosh on any plans of relocation. This ain't Hollywood. This is the John Buhler story all over again.

If that's unconvincing, here's another four reasons why not to gamble taxpayer dollars on risky business ventures: WinnPort, Schneiders, the Winnipeg Jets and Isobord. Where are they now? Up in smoke. And chances are a Winnipeg-based MCI could meet the same fate.

Politicians can't stiffen the spine and say "no dice" to bailouts because they know Manitoba has a hostile business environment. The labour laws are unbalanced and taxes are on of the high side.

The only remedy is the quick fix. So they shoot business up with concessions hoping to tie them over for a while. By the time the next bailout incident flares up, hopefully some other hapless politician will be on the watch to put out the brush fire. That's the twisted mentality behind subsidies.

If MCI can broker a better deal elsewhere all the power to them. In fact, it's remarkable they haven't left already. And like the prodigal son, they'll be welcomed with open arms should they have reason to return.

In the meantime, Pagtakhan and Doer should stop groveling before companies with subsidy packages that are doomed to failure. Like Sisyphus of Greek lore, who spends an eternity rolling a boulder uphill then watching it roll back down again, Manitoba politicians only condemn themselves by repeatedly making the same mistake of squandering money on business.

The two senior politicians should join forces to script a new story about a province that lures investment with a top notch business atmosphere instead of the familiar and tired old tale about the one that tried to get away.

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