Oh Canada! Where is My Country Going?

The Canadian landscape is littered with examples of “white elephant” projects in which governments have invested our hard-earned tax dollars with disastrous results. Take a few minutes and move your mouse across the following map of Canada to take a virtual cross-Canada White Elephant tour. (Note: This tour is just a sampling of government “investment” gone wrong.)

National Energy Program (NEP)
In an effort to encourage development of oil and natural gas from the Beaufort Sea, the federal government in the 1980s provided subsidies via the NEP that lead to between $1 billion and $2 billion being invested in drilling 15 to 20 uneconomic wells.

East Coast Cod Fishery
Years of government subsidies encouraged too many to remain in the industry, and this helped kill the cod fishery.

SYSCO Steel
In a 30-year period, more than $2.8 billion of tax-payers’ money has been spent on this company in a hopeless attempt to keep an uneconomic steel mill running. In addition, residents of Sydney are now left to contend with the toxic tar ponds left behind.

Mirabel Airport
The federal government during the Trudeau era invested millions to create this airport on the outskirts of Montreal in 1975. The government projected a need to handle 40 million passengers annually in Montreal by 2000. There are only 9 million passengers today… all will be using Dorval Airport by the end of 2004. Ironically Dorval Airport will be renamed Trudeau International Airport in 2004.

Montreal Olympics 1976
The 1976 Games ran $1 billion deficit. The city of Montreal still owes $300 million.

National Trade Centre
Refurbished with $180 million from the Canada Infrastructure Works Program, this convention centre has over capacity and an annual operating deficit.

Darlington Nuclear Station
Originally estimated to cost $3 billion, it ended up costing $15 billion. It is a big reason why Ontario Hydro left Ontarians with a $35 billion stranded debt.

Lloydminster Heavy Crude Upgrader Plant
$1.7 billion has been invested since 1987 in this upgrader by Husky Oil, the Alberta government, the Saskatchewan government and the federal government. The Saskatchewan government is the only remaining public partner, the federal government and Alberta have pulled out. The federal government has lost $500 million, Alberta $400 million, and Saskatchewan $200 million.

Magnesium Plant
The Alberta provincial government invested approximately $175 million in a magnesium plant that went bust.

B.C. Ferry Fiasco
In 2000, The Government of British projected that new ferries would cost $210 million, but these ended up costing more than $450 million. From the beginning there were problems with the design of the vessels, the costly construction techniques and their inappropriateness for the busy runs between the B.C. mainland and Vancouver Island. The ferries were sold to US interests in March 2003 for $13 million.

Bricklin Canada Ltd.
In the 1970s, the New Brunswick government provided $4.5 million in financing to Malcolm Bricklin in order to produce his cars there. Three years later the company filed for bankruptcy and declared debts of over $30 million.

What do you think is the proper role of government? Should governments be major players in the economy by making direct investments in industry? Or should governments be more concerned with creating the conditions in which businesses can succeed? Join the debate in the discussion forums.