Wednesday, February 14, 2007

The Saskatchewan planned economy

This is ridiculous.

CIC will commit up to $60 million to the Fund over seven years. A group of Saskatchewan credit unions and other partners will commit up to $40 million over the same period. The group includes Conexus Credit Union, Cornerstone Credit Union and Innovation Credit Union (formerly BCU Financial and Southwest Credit Union).

“The Apex Investment Fund will act as a mechanism to improve development and investment in Saskatchewan communities,” Conexus Credit Union board president Dennis Anderson said. “It provides the opportunity for both small and medium-sized Saskatchewan businesses operating in key sectors of our economy to be successful.”


The Beast said...

Please forgive an ignorant Beast but could you please point out what is wrong with this?

David MacLean said...

Shawn said...

Being aware of one's ignorance is the first step to remedying it.

The problem is that gov't is picking sides in what should be a market-driven battle. Why couldn't the CU's do this on their own? Perhaps they are hedging their bets by involving the province. After all, who wants to bet against the gov't's horse?

Let's take an example. Say there are 2 competing biodeisel interests. One seeks out private capital and the other latches onto the gov't teat. By siding with one concern over the other, the gov't now has a vested interest in seeing their group succeed.

Why? Because if they don't, the gov't will look like idiots for investing in a failing company. This is how we got trapped by tar babies like the pulp mills and innumerable others. Once you commit to them, you have to do everything possible to ensure they succeed lest you get egg on your face.

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