The absolute “arrogance” of this Liberal Government is astounding!
When caught spending OUR hard earned tax dollars with complete abandon of moral or financial responsibility these Queen’s Park hooligans spin such outrageous claims about why they did it that I believe the normal over-worked and over-taxed Ontario citizen is probably too tired to even try and make sense out these bozos statements any more!
Once again Parker Gallant sheds light on what has become a cesspool of gravy these Provincial purveyors of poverty have created for their own use.
Parker Gallant, Special to Financial Post | June 10, 2014
All of Ontario’s taxpayers will be saddled with the obligation to repay not only the bad debt of MaRS but also to fund other public entities who have signed on to occupy a portion of that high-cost Phase 2 building.Peter J. Thompson
Those “premium tenants” are provincial entities that depend on the Ontario government for funding
Infrastructure Ontario (IO), an Ontario Crown corporation, provided financing of $235-million to fund the Phase 2 expansion of Toronto’s MaRS Discovery District. That loan is apparently now in default, a revelation that has had an impact on the current Ontario provincial election. What’s the story behind MaRS, which stands for Medical and Related Sciences?
Begin with Infrastructure Ontario’s March 31, 2012 annual report (the March 31, 2013, annual report has yet to be released, so never mind the 2014 report). In the 2012 report, it is difficult to find any information on the MaRS financing. On page 21 the name MaRS together with an amount of $153,612,000 is listed as “Outstanding” among a list of Tier 1, 2 and 3 risk-rated loans totaling over $4.2-billion. The MaRS loan is classified as a Tier 2 category risk under the heading “Credit Risk Mitigation,” which is described as: “Industries are either regulated or entitled to government based revenue contracts and therefore have a stable source of debt repayment.”
That description sounds reasonable, except that MaRS is neither “regulated” nor “entitled to government based revenue contracts.” MaRS is a “registered charity under the Income Tax Act” and therefore not “regulated” by the province nor “entitled to government based revenue contracts.”
As an entity, MaRS has been dependent on government largesse via grants (mainly from the Province of Ontario). Grants now exceed $160-million since MaRS was created.
Peter Foster also adds his “take” on this monetary monstrosity and literally calls it what it is ……A “SUICIDE MISSION” on our dime!
Peter Foster | June 9, 2014
MaRS has come up with all kinds of bogus “independent” studies to demonstrate what a great boon it has been, but do those figures include money hosed away in promoting and participating in the green energy fiasco? Peter J. Thompson/National Post
Businesses were wise to steer clear of Ontario’s now-insolvent innovation hub
The scandals have been piling up thick and fast for the Ontario Liberals ahead of Thursday’s election. One all-too-typical example is the revelation of a government plan to bail out – at a cost of hundreds of millions of dollars — the foundering second phase of the MaRS Discovery District (the ugly financial details are provided by Parker Gallant).
The real scandal at MaRS – which was created as a whizz-bang incubator-hub-cluster for government coddled high-tech start-ups – is not that its shiny second phase is sitting empty. It’s that the institution ever existed in the first place.
MaRS DD was based on the zombie delusion that governments can pick winners or, in this case, carefully select those whom they will guide across the so-called “valley of death” – a place littered with the bleached bones of brilliant innovators who couldn’t sell their dreams to blinkered, flinty-eyed financiers.
Using taxpayers’ money to buy jobs from South Korean Samsung – to jump start wind and solar “technologies of the future” – and San Francisco-based Cisco – to do computer stuff in return for up to $220-million — were both what Jane Jacobs called “transactions of decline,” but at least Samsung and Cisco are likely to stay in business. MaRS was always doomed without ever-increasing public support. It inevitably turned into a place that was more about empire building, sunshine salaries, and serving its political masters than promoting any net benefit to the economy.
“The Liberals’ bailout plan involves filling half the high-price building with bureaucrats”