Globe confirms “myth” re EMD/Caterpillar — did NOT get federal subsidies!

Yesterday, I wrote a blog post highlighting Andrew Coyne and his column in the National Post that proved that Caterpillar’s Electro-Motive Diesel (EMD) plant in London, Ontario had NOT received tax credits or tax subsidies from Prime Minister Harper and his Conservative Government. It also proved that Caterpillar, with its many subsidiaries, is an American company that has taken nothing from Canada or Canadian workers or taxpayers, be it technology or equipment.

Now today, we have Mike Moffatt, a chemical industry consultant and lecturer at the Richard Ivey School of Business (which is located at University of Western Ontario), with an article in the Globe and Mail confirming what Coyne wrote but in terms of the whole idea of subsidies being nothing more than a “myth” — a nice way of pointing out what was a “lie.”  For example, Moffatt writes:

“If this $5-million is seen as a subsidy, we should not see it as one that went to Electro-Motive Diesel, for two reasons:

1. The benefits of the $5-million were split between the purchasers of locomotives and the manufacturers.

2. The benefits that went to manufacturers went to all manufacturers, regardless of their location. If a Canadian company bought a locomotive from the GE plant in Erie, Pa., they were eligible for the higher CCA rate. Much of this subsidy, in fact, would have gone to locomotives produced outside of Canada, as Electro-Motive has only a 30 per cent North American market share in diesel locomotives.

The notion that Electro-Motive was given a $5-million tax break or subsidy to create jobs in Canada simply does not hold up to scrutiny. We need to put this myth to rest.”

But, the Globe goes even further by posting a column by William Polushin, founding director of the McGill International Competitiveness Program. In Polushin’s first paragraph, he points out that:

“Caterpillar’s decision to close its Electro-Motive Diesel facility in London has generated a wide range of responses and opinions. Caterpillar’s actions are distasteful and unfortunate, but there is a need in Canada for a serious reality check in our country about what it means to live in an increasingly integrated and competitive global economy.”

Whatever the case, the CAW and other private sector unions need to wake up to the reality of the unsustainability of union wages and entitlements versus the global economy and competition if they don’t want businesses, in similar or other sectors, moving away from Ontario or other parts of Canada.  It’s all about profit. If Ontario is not open for business and they can’t make the profit they need to make, they will simply go elsewhere.

In any event, since EMD/Catepillar did not receive a cent from the Canadian taxpayer, what this all comes down to anti-Conservative government hysteria. Day in and day out, the federal opposition parties hysterically cry wolf, usually confirmed by the Toronto Star, CTV and CBC, with the result that those particular media sources no longer have credibility about anything.

Endnote: Comment feature is the small bubble dialogue bubble at top right of post.

12 thoughts on “Globe confirms “myth” re EMD/Caterpillar — did NOT get federal subsidies!

  1. Not mentioned are the energy prices, at the moment approx $200,000 per month in 2018 $2.4 million. This from the auditor general.


  2. If the CAW didn’t have a double standard, they’d have no standards at all. They spout their lies and the lame stream media just laps it up. We’re still determined to shine as much wattage on them as possible. We’ve contacted the Guiness World Book of Records to have the CAW turbine listed as the closest turbine to people on Earth!


  3. Thanks Fay. Pissedoff — true thanks to Dalton McGuinty’s energy policies. It’s like the left hand doesn’t know what the right hand is doing.


  4. BTW check out Thomas Walkom’s latest Star column: “The real villain of Caterpillar shutdown? Mindless free trade.”

    Yeah sure. That’s the answer,Thomas. *Slap upside the head*


  5. Joanne — So Walkom says mindless free trade? Wow! Just think of the imports and exports we would lose. Protectionism at its worse.


  6. Just cross post this and the supporting articles on left wing sites and watch people’s heads explode!

    Maybe we need to suggest SunTV also look at the manufactured controversy surrounding the issue, more exploding heads.

    I never realized this issue could have so much positive potential


  7. Please note that I had to change my theme/template today because it was causing problems (as did the last one). I had things programmed so that there were no more than five posts on the Home page at any one time. However, what was happening is that you had to scroll through every post I had ever written before you got to the bottom of the page. Frustrating to say the least.

    The comment feature on this latest theme is a little different, however, in that you have to click on a little dialogue bubble at the top right side of each post.


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