Business subsidies create unlevel playing field

Re: Wynne defends government’s financial support for business — May 15

As a business owner, I do not support the government subsidization of selective companies. At first glance, since these grants are often announced just before an election campaign starts, one is led to the obvious conclusion that the government is repaying supporters, or the government is trying to buy votes. However, that is only one side of the subject, because there is another major issue at stake: The government subsidization of selected companies creates an uneven playing field in the business community. Here is an example: Company A receives a substantial government grant so it can expand its operations and hire new, often highly skilled employees. Since there is a chronic shortage of skilled workers in Canada, some of these will necessarily have to be hired away from Company B. That leaves Company B with a shortage of skilled people, the very people it has trained to contribute to its future success. So, Company B, which, through its taxes has also, at least partially, paid for the grant to Company A, is on the losing end twice. A better way to help all businesses is to cut red tape, lower taxes, and support apprenticeship programs. This would lead to a fair and level playing field for everyone.

Ernst Friedel

Waterloo