BDC Fact #4

2 responses

  1. Assuming the trend is real, shouldn’t the real question be: is this bad?

    Aside from the vaguely dogmatic feeling of what is the government doing playing in private industry… at the end of the day, does the fact that the BDC is stepping in to fund more ventures represent a good deal or a bad one for canadian taxpayers and for canadian economics and competitive innovation in general?

    Are you suggesting they back off, or are you suggesting we should be giving them a medal? should they be doing even more?

  2. Mark McQueen says:

    All useful observations. Here is my generic take:

    – BDC’s lenders should abide by their mandate: complement the private sector, not compete. If their are firms that are not being served now, I understand why the lending division might have a role.
    – Air Canada, CN, Petro-Canada, etc. were also once owned by the Gov’t for the very same reason. They were released to private ownership, and have thrived as compared to many competitors.
    – As an aside, how would you like it if the feds started a consulting practice or build software and always dropped price or eased terms to beat you with for a customer opp?
    – If the government wants to make the cost of banking cheaper, they should roll-out Gov’t Automated Teller Machines. Canadians think those fees are too high, so retail customers deserve cheap ATMs.
    – All kidding aside, the private sector is best equipped to finance the debt needs of the economy. Just like it is best equipped to provide life insurance, grow crops, paint the houses, run variety stores, etc. If the Gov’t squeezes out all of the individual players in business and the economy, what do we have left?


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