National Post (National Edition)
Tax dollars are not for rescuing Bombardier
News that a Bombardier plant in Thunder Bay, Ont., would lay off almost half its staff due to a shortage of orders had barely broke when federal and provincial leaders were at each other’s throats over who was to blame.
Liberal federal Employment Minister Patty Hajdu claimed Ontario hadn’ t come through with promised projects for the plant. Progressive Conservative Premier Doug Ford fired back that he had a $28.5-billion plan but had heard nothing from Ottawa. The feds retorted that money was available, but Ontario had to apply for it. The province claimed it sent Ottawa a list of 49 projects needing cash. Sure, responded Infrastructure Minister François-Philippe Champagne, but Ontario had sent only “flashy pictures,” not a real plan.
Which camp deserves the award for the most kindergarten-like behaviour remains open. With the Liberals in full re-election mode and Ford’s PCs pledged to non-co-operation with the Trudeau government, neither side deserves much admiration on this file. That, unfortunately, has become the norm in a political environment in which opponents are enemies to be derided and scorned at all costs, including the public good. But it’s of particular note in the case of Bombardier and the long, costly soap opera that started with a contract for some streetcars a decade ago. Since its start, it has been a saga steeped in pure politics, and little else. Latest events suggest an opportunity to end the foolishness may be missed.
The original plan was to replace the Toronto Transit Commission’s aging streetcar fleet with some spiffy new models. David Miller, the New Democrat mayor at the time, felt the contract should go directly to Bombardier without the trouble of soliciting competing offers, to create and protect union jobs. But an earlier sole-source TTC deal for subway cars had come under such fierce criticism that transit bosses chose to entertain alternatives, only to have Bombardier win by dramatically underbidding the only other rival, Germany’s Siemens.
What followed has been one long tale of woe: missed deadlines, escalating costs, delayed deliveries and rejected streetcars, accompanied by regular allegations of incompetence, ineptitude or political chicanery.
Although the contract required 25 per cent Canadian content, Bombardier shifted substantial work to a plant in Mexico where much difficulty ensued. Production costs were expected to be shared among municipal, provincial and federal governments, but fighting quickly erupted. Toronto hoped for part of a $4-billion federal stimulus fund, but when the application was submitted, transport minister John Baird — angry at perceived municipal gamesmanship — said it didn’t meet the criteria and the city should “f--k off.”
Deadlines for the much-needed streetcars were regularly missed. Of the first 89 produced, 67 had to be returned for repairs. Delays forced the TTC to spend millions repairing the existing fleet. A Toronto councillor who chaired the TTC board said he had no confidence in Bombardier’s altered schedules; in 2016 the commission considered taking legal action against the firm.
At long last, the contract is due to wrap up by the end of the year, and Bombardier says it doesn’t have enough work to maintain staff levels. “Every day that they don’t sign something means another day for my people to be laid off,” said a union official.
One might think the city and province would sigh with relief at the end of the ordeal, but, instead, the supposedly conservative, efficiency-minded Ford government is dead keen on finding more ways to spend money in Thunder Bay. Transportation Minister Caroline Mulroney wants the company to delay its plans. Economic Development Minister Vic Fedeli is assailing Hajdu for being “missing in action.”
Though it may sound hard-hearted to Bombardier workers, if the company can’t drum up customers for its wares, it is not the duty of the province or the city of Toronto to keep it in business. A better record on the streetcar file might have drawn more orders, but who would want to risk another decade of rising costs and failed schedules? Ford took great delight in declaiming his status as a canny businessman while seeking office, but is now acting no different from Liberal and NDP predecessors willing to devote tax money to propping up struggling manufacturers solely on the basis that they’re located in Ontario.
A company whose survival depends on an endless stream of government orders is not a model of commercial success. It’s not Ontario’s duty to rescue Bombardier. Buying votes and propping up struggling companies with tax dollars is bad business, whether practised by Liberals, the NDP or Tories.