Musings of the Technical Bard

A place for me to expound on the issues of the day, including my proposals for how to FIX CANADA.

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Location: Calgary, Alberta, Canada

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08 August 2006

Ottawa makes a critical error

The Conservative government in Ottawa is making a mistake

Ottawa overrides its controls on contracts security

Attempts to direct the "benefits" of these military contracts to specific regions of the country is bound to be a failure.   Mulroney did this in 1987 with the CF-18 maintenance contract and this was one of the things that drove the creation of the Reform Party.

It is politically foolish to try to distribute benefits of these projects because provincial and municipal governments who want more will complain that politics left them out in the cold.   And they will be right - they can complain that the government didn't choose them.  So it is politically risky.

The more fundamental reason why doing this is foolish is that is will not grow the economy of Canada and make us richer.  By forcing the supplier (in this case, mostly Boeing) into operating in a new and different way than they are used to it will increase their costs - which they will happily pass on to the government of Canada.  Therefore, taxpayers will face higher costs for the equipment being procured. 

It would be better for the Canadian taxpayer to let Boeing build the equipment wherever Boeing can do it most efficiently.  If Canada is a cheaper place to do this - it will happen through market forces. 

Redistribution of wealth doesn't make us richer - it just gives the false impression of making some people richer at the far greater expense of everyone else.  And it is something the government should not be doing with these contracts.



1 Comments:

Anonymous Anonymous said...

Maybe I missed something here but wasn't Chrentien on the Stand and told Gomery that he hoped rules would never prevent the Government from spending unapproved funds for any 'Perceived' National crisis or Unity cause.
When a MP questioned Martin's overspending it was discovered that a obscure clause gave the Government the power to add money to any Departments fixed budget.

Oddly, Gerrard Kennedy believes Canadians will come to thier senses and re-elect the true Party Of Canadian values and put the Liberal corruption behind them.
This arrogance proves Liberals haven't changed and will rape your paycheck again and again to feather their nests while using lawyers to frame a few bottom feeders paid off with hush-money.

08 August, 2006 23:06  

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