The Spinning Yarn of Corporate Welfare

Atlantic Yarns: Nose Back in the Trough

On the heels of finalizing their last report on "self-sufficiency", the Government of New Brunswick has shown its [citizens] once again why it can no longer be trusted with their hard-earned tax-dollars. According to a recent report filed by the Telegraph Journal, New Brunswick taxpayers are on the hook once more for additional corporate subidies worth a wopping $3.4 million dollars. The winning recipient? A repeat offender by the name of Atlantic Yarns in Atholville. As Telegraph Journal reporter Daniel Mchardie explains;

This isn't the first time the provincial government has opened its wallet to help Atlantic Yarns or Atlantic Fine Yarns, which is owned by the same company and operated in Pokemouche.

Atlantic Fine Yarns has received approximately $41 million in different loans and loan guarantees since 2000. And on April 10th, the Liberal cabinet waved the interest on its loans for another year, a similar stance taken by the former [Progressive] Conservative government. And on April 5th, the cabinet approved a $2.4 million loan not to exceed four years and another $1 million loan for a term not to exceed 10 years. To date, taxpayers have fronted Atlantic Yarns $37.7 million bringing the total public investment in the two mills to $78.7 million.

And so it goes, once again Atlantic Yarns gets a subsidy while all the other New Brunswick firms stand patiently in line [waiting] to get their share of the government pie. When will this vicious cycle end? Unfortunately, for all those hard-working taxpayers and small business owners, it will ultimately mean higher taxes and a less competitive business climate.

However, I can't say that I'm all that surprised since this is the same Graham government that unilaterally raised personal income taxes retroactively, rescinded corporate and small-business tax cuts and raised liquor prices. All in the name of increasing government revenues.

I think it's time that the Liberal government stopped this practice of picking winners and losers and focused more on creating a level playing field with lower taxes, especially if they are serious about attracting investment and stimulating job creation in New Brunswick. Coincidently, a pledge they will most likely be making when they table their final task force report on "self-sufficiency" this coming Monday.