Thursday, November 03, 2005

Sask: Province handing out corporate welfare

First, the province announces a plan to give more money mult-national film companies. Turns out, the old subsidies weren't doing the trick. Film companies would come to Sask, take tax dollars and make their movie without hiring very many Saskatchewan labourers. So, they decide to dangle a bigger carrot.

Saskatchewan is enhancing film industry incentives to maintain Saskatchewan's competitiveness in attracting major film and television productions to theprovince and the resulting jobs the industry creates. A tax credit of up to 55 per cent will be made available to film and video producers through legislation to be introduced this fall.

"The film industry generated $80 million in economic activity and createdabout 850 full-time equivalent jobs last year," Culture, Youth and RecreationMinister Joan Beatty said. "To continue to grow Saskatchewan's vibrant filmindustry, the province will enhance its incentives by increasing its film tax credit to producers to 45 per cent of total eligible costs."

Imagine the smiles in the big film studios.

Then there was this item:

Meat processors in Saskatchewan received a big boost today from the provincial government's Meat Processing Strategy. Agriculture and Food Minister Mark Wartman announced a $3.3 million investment to create a toll processing facility at the Thomson Meats Ltd. plant inMelfort.

Today's announcement is the third of three initiatives outlinedwithin the $37.3 million Meat Processing Strategy unveiled in June 2005." Toll processing will enable our agriculture industry to process more of what we produce in the province," Wartman said. "

It has the potential to enable thedevelopment of new meat products for specialized or niche markets and therebycreate new businesses and jobs for rural Saskatchewan."

Anybody else need some more cash? Anyone?

Update: Check the CTF news release here.


Rightwingbob said...

The biggest dispensers of Corporate welfare were the Mulroney government and the Grant Devine government. That is why many of us are nervous about what Brad Wall has in store. Look either we have a free market or we don't. can't play both sides of the street and that is what was wrong with those former governments.

Shawn said...

How about the current government? Any problems with handouts there?

I agree it is beyond stupid to prop up failing businesses with tax dollars from successful businesses. The temptation for the government to play white knight seems to be too great. Perhaps some legislation could be introduced to forbid such activities.

Scott said...

Such legislation exists in Right Wing Alberta. After losing 2.3 billion from 1980 to 1994.
Now any deal has to go before the house and be debated.
By the way Bombardier opened a plant in Belfast Ireland because corporate taxes are cheaper there.
Devine and Mulroney were not the biggest dispensers of welfare. Check the facts Bob.

Anonymous said...

I've heard that Calvert's communication budget has really increased lately, that it's now in the millions: I suspect that "rightwingbob" is earning his keep! Our tax dollars, hard at work! The future is wide open! Vive Saskatchestan!

bing said...

Tax credits, especially in the film industry are quite disturbing. I mean, its a race to the bottom, and what happens when we reach the bottom? How long until we see a 100% tax credit? For once Sask. ups their tax credits, then Quebec will up theirs to stay the leader in the country. its insanity. Someone has to draw the line.

Shawn said...

Good for you guys. Wonder what the chances are of the same measures here in SK?

Scott said...

A small rural newspaper in Sask. started printing editorials and
letters slamming the Calvert government's inaction on the farm crisis inclding School taxes which he promosed to address 2 years ago at a SARM convention.
Guess what evolved. All government ads including the Crowns were no longer running in that paper.

Does the government control the press with all their ads?

Anonymous said...

The electorate is increasingly dependent on government: this means that the population is becoming unable or unwilling to care for itself. I believe that this government would abuse its power to stiffle dissent and free thought, even being so petty as to boycott publications that are hostile. If things are trending this way, it is decline, and not progress. A dependant population is unable to stand up to tyranny and corruption, and tyranny and corruption eventualy thrive where people are too weak to effectively govern themselves.

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