FREDERICTON – New Brunswick New Democrat leader Dominic Cardy responded to the announcement by the Gallant government that BMM Testlabs will be getting $14 million in corporate welfare according to Radio-Canada, or $14,000 per job, saying it was yet another misguided example of corporate welfare and potentially another Atcon.
“We have a government that is cutting teachers, pick pocketing seniors, and is nickel-and-diming citizens with fee increases, and then throwing money at highly profitable companies.” Cardy said. BMM Testlabs saw a 7 percent increase in their revenue in the first half of 2015 compared to the previous year. “This isn’t economic development, it is corporate welfare.”
BBM Testlabs received $1.8 million in payroll rebates from the Alward government in 2013 and 2014 to create 200 jobs. At the moment, only about 50 people work at the company’s Dieppe location. Cardy says it amounts to a doubling down on corporate welfare, paying a company twice to create the same job. “BBM Testlabs got nearly $2 million to create 200 jobs in New Brunswick. Today only 50 work there. Today’s announcement means it appears we are paying the same company twice to create 150 jobs. It’s bad enough to give out corporate welfare once for a job, but twice is just plain ridiculous,” said Cardy.
“The way to create jobs is not by having fancy press conferences to give out money to profitable companies. It is by creating conditions that help inspire entrepreneurs, reduce costs for small business, cuts taxes for all job creators, and nurturing an educated and skilled workforce,” Cardy added.