A Toronto movie and TV animation company that abruptly closed this week — leaving more than 500 jobless — won’t have to repay a $23-million Ontario government grant it got in a splashy photo op with Sir Elton John in 2009.
Arc Productions had long ago met job-creation obligations in the deal, Economic Development Minister Brad Duguid said Friday, defending programs that dole out taxpayer money to help businesses expand.
“They fulfilled their end of the bargain,” he told reporters at Queen’s Park after Statistics Canada reported the province lost 36,000 jobs in July as the provincial unemployment rate held steady at 6.4 per cent.
“You can’t hold a company responsible to operate forever because they’re operating in the real world.”
Progressive Conservative MPP Monte McNaughton said the company’s failure is why he’s been pressing the government for six months to release a comprehensive list of government handouts to corporations and details on how many jobs were created.
“The government needs to come clean . . . so all taxpayers can see whether they’re getting value for money,” said McNaughton, who has called the money “crony capitalism” with no transparent guidelines, targets or measurement of results.
A fw weeks ago I heard from an industry bigwig: "Tax subsidies are here to stay."
Today at the IA District 2 Convention in San Diego I heard a labor leader say: "Tax subsidies are here to stay."
So, you know, I'm starting to believe that tax subsidies, otherwise known as Free Money, are here to stay.
I just wasn't aware that tax subsidies stick to companies that have gone bankrupt. I mean, aren't there a bunch of employees who have yet to be paid?
Read about Arc Productions going bust here.