Business Financing

Targeted corporate assistance = jobs + prosperity

The Ontario PC Party again shows it has no clue how jobs are created and grown in Ontario. They propose cancelling such proven job creation programs as the Jobs and Prosperity fund, and the Next Generation of Jobs program, both of which have resulted in the creation and retention of hundreds of jobs, right here in western Mississauga.

Companies like Cyclone Manufacturing in Meadowvale, which came to Meadowvale in 2008 with 80 employees and bought an empty manufacturing plant have used Ontario’s Next Generation of Jobs program as they grew rapidly. Cyclone now owns four large manufacturing plants, employs more than 800 people, offers high-value, high-skill careers, and makes airframe parts for just about every large aircraft manufacturer in the world. Meadowvale’s fast-growing life sciences and pharmaceutical sectors have needed assistance as their new products await global approval and certification. During these times, they ‘burn through’ cash, but their products are not yet generating profits. Once their approvals by Health Canada, the Food and Drug Administration in the USA and their equivalents worldwide are done, and product sales start, life sciences companies become profitable. But without this critical ‘bridge’ financing the PC Party proposes to end, many of our cutting-edge companies would either need to be sold, close business because they had run out of cash just before their revenue stream began, or leave Ontario altogether.

Companies growing rapidly, with cutting-edge products just entering the market, are barely, if at all, profitable. All their cash is going back into their business. Cutting taxes on emerging companies that don’t pay taxes because they are just at break-even (or below) is fruitless and stupid.

Extending a hand to have Ontario put in some money, and the companies themselves put in money both satisfies their financiers, and gets them through a phase in which their earnings catch up with their growth. At that point, they can afford Ontario’s lowest-in-the-region business taxes.

Proposing a PC business tax cut means service, health care, education and infrastructure cuts for absolutely no gain whatsoever. Another reason not merely to vote for programs that have made Ontario the fastest growing region in the industrialized world, but to avoid a foreseeable PC Party disaster like the plague.

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