Don’t get me wrong, the title of this blog is meant to be ambiguous. I am very happy that the province decided to out bid Nova Scotia for the new Molson plant to be located in Moncton. However, the $100,000 per job price tag is the highest financial incentive that I have seen doled out in recent memory. Given that the average worker in that plant will pay somewhere in the range of $10,000 in total provincial taxes (this is optimistic – income tax, provincial portion of the HST, etc), the direct payback on the investment will take something like ten years. Just to put it into context, for other projects that have been announced in recent years, the per job amount was between $5,000 and $15,000 per job – a far cry from $100,000.
I’ll state unequivocally that I support targeted government investments into strategic economic development projects. I’ll take the government’s word that this project makes sense. But when they brag openly about cutting funding to projects like this, I can only wonder how many future projects will suffer as a result of ‘breaking the bank’ on this one.