The Spinning Yarn of Corporate Welfare --- Part Deux
Atlantic Yarns: A bottomless-pit of government subsidies
I see BNB is on the dole once again. And who better to be on the receiving end then Atlantic Yarns Inc. in Atholville and Atlantic Fine Yarns, which is owned by the same company and operates in Pokemouche. I really don't know what more can be said about this corporate welfare [repeat] offender that hasn't already been said on this blog before.
However, I will note that this whole mess could have been avoided if the government had of left it up to the market to decide the textile industry's fate [in the first place] here in New Brunswick. Allow AIMS spokesperson Charles Cirtwell to explain, "By signing the first cheque, Business New Brunswick has essentially committed itself for the long-haul." True indeed. And what's even worse is it's our hard-earned tax dollars that are being flushed down the toilet in order to prop up these two very inefficient mills.
Update
Not that I have ever been an avid supporter of state sponsored programs when it comes to the economy, but if you're going to pump millions of our tax dollars into a venture, then why not invest it in essential infrastructure that will aid in the blossoming of the information era and the knowledge-based economy (KBE). However, I have to admit (for obvious reasons) that I would never have gone as far as the Saskatchewan government did.
I see BNB is on the dole once again. And who better to be on the receiving end then Atlantic Yarns Inc. in Atholville and Atlantic Fine Yarns, which is owned by the same company and operates in Pokemouche. I really don't know what more can be said about this corporate welfare [repeat] offender that hasn't already been said on this blog before. However, I will note that this whole mess could have been avoided if the government had of left it up to the market to decide the textile industry's fate [in the first place] here in New Brunswick. Allow AIMS spokesperson Charles Cirtwell to explain, "By signing the first cheque, Business New Brunswick has essentially committed itself for the long-haul." True indeed. And what's even worse is it's our hard-earned tax dollars that are being flushed down the toilet in order to prop up these two very inefficient mills.
Update
Not that I have ever been an avid supporter of state sponsored programs when it comes to the economy, but if you're going to pump millions of our tax dollars into a venture, then why not invest it in essential infrastructure that will aid in the blossoming of the information era and the knowledge-based economy (KBE). However, I have to admit (for obvious reasons) that I would never have gone as far as the Saskatchewan government did.
2 Comments:
As a consultent in the textile and garment trade, I find it very amusing that BNB is still enterraining these type of activities.
They even stated "We obviously need to stabilize the industry and maintain the jobs, and it is a significant employer in the north of the province," Business Minister Greg Byrne said.
Is our cotton products in danger?
Are our cotton fields and pickers in danger of losing their jobs?
Are our weaving plants in danger?
What gives, they import raw yarns and spins them into value added yarns. They resell these yarns to weaving plants to make clothing fabrics. These plants are all over the world. (Mostly in India, Pakistan and China)
All I got to say that these 2 companies that are spinning yarns in New Brunsiwck, are making a pretty good spin whith BNB and the New Brunswick Tax Payers.
PS. What ever happened to Sunshine Mills in Tracadie?
Paul;
Thanks for the comment. It's great to see an experience consultant in the industry, like yourself, who opposes this stuff.
As for Sunshine Mills in Tracadie? I know they opened their doors via a generous provincial government subsidy in 2002 employing aprroximately 100 ppl (87 locals). However, I noticed from the CEP job lost report for the period between 2003 and 2007 that 100 per cent of the jobs were lost (100).
So much for government trying to impose economic develpment in a slow growth region like Tracadie, especially with the declining manufacturing textile industry.
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