Decision Making: High price to save failing industries

The Port Hawkesbury paper mill in Nova Scotia makes paper again after a year of closure. (Wendy Martin/CBC)

A Globe and Mail article reports that beginning this week, NewPage Port Hawkesbury paper mill in Cape Breton will reopen since shutting down last September. The Nova Scotia government has agreed to provide large subsidies to save some 600 mill workers and 400 forestry contractors. This is not the first time that the Cape Brenton mill has asked for government assistance. Date from the 1970s show that the Nova Scotia has continued to support the failing business through changing American, Finnish, and Canadian owners. The issue is that the government cannot continue to pour money into ineffective companies when the taxpayer money can and should be used for better solutions or in places such as education. Although large subsidies will save jobs in single town industries, it also shows how taxpayer money is being used inefficiently. This article raises the question of how far should the governments go to save failing industries.

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