I‘m not religious, but last Sunday I felt like parking myself in the nearest church pew to thank god for the uproar over MLA expenses. At first, I thought the expenses story was a tempest in a teapot. I blamed sustained media hype for the furor over MLA spending on such items as big-screen TVs, digital cameras, laptop computers and electrical generators. But last Friday, I changed my mind when a sensible-looking woman the CBC identified as Jen McLaren told a TV reporter: “It’s our money and they’re buying things that we can’t afford, that people with lower incomes can’t afford. And it just seems outrageous.”
Well, it does seem outrageous even though, as my colleague Tim Bousquet pointed out last week, overall spending on constituency office furniture and electronic gadgets that the auditor general deemed inappropriate or excessive, totalled $73,527. That’s small potatoes considering that over the three-year period of the audit, total provincial spending came to roughly $16.5 billion. In other words, excessive MLA expenditures on furniture and electronics amounted to a minuscule 0.00045 percent of provincial spending. Yet, that’s not the point. As Jen McLaren noted, many Nova Scotians couldn’t afford to buy Richard Hurlburt’s $3,508 big-screen TV, Darrell Dexter’s $2,667 digital camera, or even Judy Streatch’s $833 espresso maker. And don’t get me started on Liberal Dave Wilson’s four laptops! No, it’s not the total amount of spending that makes people angry, it’s the fact that MLAs spent public money on high-end consumer goods when many taxpayers were having a bitch of a time making ends meet.
Now, here’s why I felt like thanking god. Finally, thousands of people who usually don’t pay much attention to politics are steamed over what our politicians are up to. And when that happens, politicians and public officials are forced to act. Darrell Dexter quickly ordered the release of detailed financial information showing which MLAs spent how much on what. He also promised to lift the traditional secrecy surrounding the process for setting MLA expense rules. And the auditor general was forced to investigate whether any MLAs broke the law. Yes, when voters get mad and start paying attention, the politicians and public servants have to get their asses in gear.
I’ve been following politics since 1957, when John Diefenbaker narrowly defeated arrogant federal Liberals. That was more than half a century ago, and believe me, a day hasn’t gone by since that I haven’t felt angry about what our politicians are up to. Here’s an example. On April Fool’s Day 2009, Rodney MacDonald handed Lockheed Martin up to $1.8 million in payroll tax rebates. In return, the company, which enjoyed $45 billion in sales and net earnings of $3 billion last year, promised to create 100 jobs over five years. But why did we need to bribe Lockheed Martin with Nova Scotia taxpayer’s money when the company is already working here on $2 billion worth of federal government contracts to upgrade 12 Canadian naval frigates? I mean, jesus, why does the world’s largest military contractor need corporate welfare handouts from the debt-ridden Nova Scotia government?
I guess the answer is that corporate subsidies are so routine most taxpayers hardly notice. A 2008 study from the right-wing Fraser Institute reported that between 1994 and 2006, Canada’s federal, provincial and municipal governments handed out $182.4 billion in business subsidies such as subsidized loans and grants. (Unlike me, the Fraser Institute doesn’t consider business tax breaks to be corporate welfare.) An earlier Fraser study found that big military contractors, including Lockheed Martin, Pratt and Whitney and General Dynamics were among the 50 largest corporate welfare recipients. Those huge military companies already enjoy hefty government contracts yet continue to receive corporate welfare, including tax breaks.
The furor over MLA spending makes me ask: Would all hell break loose if the media hammered away half so hard at how much Nova Scotians are paying to subsidize profitable corporations?
This article appears in Feb 18-24, 2010.
Mr. Wark, Nova Scotia is competing for the rest of the world for those companies (and the high-paying jobs that they bring). Let’s even forget for a moment that the payroll tax that the province receives in return more than compensates for the tax incentives. Let’s forget for a moment that the sales by these companies are almost exclusively export sales (which brings new revenue into the province). Let’s forget for a moment that these companies all use local suppliers for services and materials. If the incentives weren’t there, these companies would likely start looking at other places … like Quebec, where there’s already an established aerospace and defense sector. The game may not be ‘fair’ – other jurisdictions are far more generous with incentives than we can afford to be – but we need to be in the game nonetheless. Or … would you rather those companies take their business and jobs somewhere else?
I for one would rather see those companies take their business and jobs somewhere else. Those massive subsidies could then go to local businesses, who would in turn create far more local jobs – jobs that are greener, safer, and more ethical.
How about we stop pathetically begging multinational corporations for their scraps, have some dignity and take care of ourselves in this province?
This just sounds par for the course, sadly. Once the government subsidies dry up and we say, pony up, they’ll move and take the jobs with them. Sounds like the call centre lament that happens every 5 years or so, when the offers are legislated away and they quickly reappointed to keep the 500 or so primarily part time, low paying positions. Except this time, we’re keeping up to 100 higher paying positions. Benefit for the average taxpayer: none. All benefit for big business.
You forgot the hundreds of millions pured down the drain at Sysco & Devco.
Or you can look at it as sustaining an economy and providing thousands of jobs for about 30 years.
Bruce, tell me why any business should come to Nova Scotia? The weather, the cheap housing, the rain, the schools ?? You can get the same anywhere else in Canada.
Governments around the world hand out money.
We did not give Lockheed one penny, we just said you don’t have to pay payroll taxes.
Subsidies are a fact of life, especially at universities, but few complain except when something they don’t like gets the subsidy. Apparently subsidies to the automobile industry are ‘investments’ and good.
Quit moaning, it won’t change a thing.
Every province gives incentives to get corporations to do business there. It’s Economics 101. Why would I set up shop in a province where the taxes are high and the red tape is ridiculous. Most of the Atlantic Provinces have a 13% HST rate where Alberta has I believe only a GST rate. Our provincial income tax rate is higher than almost any other province. The only way to attract business is to give the corporatons tax breaks (hey DD can you lower my tax rate too).
As for the expense scandal, it’s not that the politicians have been going after their “entitled to their entitlements”, it’s that the present government promised to do things different and are for the working people, then finding out THEIR leader (esp when in Opposition) is one of the worse ones abusing the system.
I’m guessing that “growingcity” has never worked for one of the major corporations in this province who receive government welfare. Because if he/she did then they would know these companies do not use local suppliers for services and materials but have national contracts with suppliers like Grand & Toy. It is these kinds of false beliefs that allow the lazy thinkers to keep supporting government handouts. If the tax dollars spent on corporate welfare were equated to how many big-screen tvs, digital cameras, laptops, etc it would buy then people might pay attention. But when a handout is called a “corporate subsidy” or a “tax incentive” then the minds glaze over because that does not sound like something I can sit back and watch in my own home like a big-screen tv.
I’m glad the NDP government is raising taxes, non-unionized Nova Scotians are part of the problem, the private sector is evil. MLA’s don’t get paid enough. Lenared Preyra bought a pink ipod as support for the Transgender and Homosexual community, he bought his son a plane ticket in order to help stimulate the economy, all MLA’s should get $3,000 Chapters Bookstore vouchers like Epstein, library’s are for plebians.
Hooray, Bruce is back with his nonsensical rantings. Unfortunately, his meds didn’t seem to make the trip. Lockheed was given only a waiver on payroll taxes for a period of time for any NEW jobs they create.
Terrible thing. I’m sure he’s rather have those people in those jobs collecting welfare.
how is the propaganda course going bruce.still spewing your leftwing bullshit i see.does anyone actually take his articles seriously.this guys a clown.
I remember this one time Bruce Wark didn’t write an editiorial that bitched about the Conservative party.
It was shocking.
So Bruce you are against the government becasue they want to bring well paying jobs to Nova Scotia?
Well said, Bruce.
To Charles, the jobs are already here, so why make rich corporations even richer?
James, jobs won’t magically stay here if the company thinks it can get a sweeter deal elsewhere.
Well then Swamp Donkey, we’ll get someone else to build & refit our Navy.
Are you really that dense, that you believe we need to bribe them with a 1.8 million from NS taxpayers to keep them here working on a 2 billion dollar contract?
Your about as bright as a broken lightbulb if you believe that.
We are in huge debt, very huge if you look at what 12+ BILLION dollars will cost each & every Nova Scotian to pay off, say tomorrow . $14,000.00 + for each & everyone of us.
But most of us Nova Scotians don’t have that in the bank right now, so we pay interest to service the debt.
Money paid to these mega rich companies would serve NS tax payers better if it went directly onto the debt !