Jeff Burgar
We’re not much in favour of governments getting involved in business. But it happens.
Often, reasons are good. For example, there are few entrepreneurs wanting to run an arena or a swimming pool in most of our small communities. So it’s up to government to step up. This spreads the cost over both users and non-users to help build a better community. We all pay a little bit, whether we like it or not. Schools and hospitals are another instance. But here, we start to get into the weeds.
Why do some people want private schools? Will private clinics really disrupt the medical services Canadians are used? Debates are endless with all kinds of arguments for and against government in business. It’s complicated.
Many politicians see business, rightly or wrongly, as a good way to get a service. In the news business, it isn’t surprising to find governments putting out newsletters, running their own websites sending messages to taxpayers, and in some cases, running ‘communication departments’ that have budgets larger than what many newspapers can only dream of. As said, it’s a complicated story.
Locally, one rural government decided it was a good idea to close down its farm equipment rental business. But the three operating in the area were deemed to be not doing a good enough job in farm equipment. So the government got back into it.
Yes, its complicated. Think about deciding how much to pay government staff. It’s often not even on the table for discussion. There was a time when government employees of any kind were paid less than private enterprise. The argument was, job security and benefits made up for the difference.
There also used to be a time when it was standard practice for government to work with business. These days, it isn’t rare for government to compete with not only business, but with other governments, and even with non-profits. Case in point is the Kinuso Spruce Point Park marina. There are nine marinas on the west basin of Lesser Slave Lake. Not to mention many dozens of private docks heading into the lake. One marina is owned by Big Lakes County. Three are operated by non-profits, including the Big Lakes County owned one. The remaining six are operated by private enterprise.
Big Lakes County spends taxpayer money on the Kinuso Marina to dredge and maintain it. Some of that taxpayer money comes from operators of the private marinas and of course, dock owners, who may or may not be taxed for the docks, but pay for the value of their lakefront property.
In fairness, governments of all levels have many grant programs and cost-sharing agreements. Private enterprise and non-profits are often invited to apply for such grants. Also in fairness, those non-profits tied to a government in some way, as for example in a lease or cost-share or some kind of government ownership, should apply for money in the same manner as everybody else.
At the very least, it can bring so-called ‘transparency and accountability’ to the table and have local politicians keeping an eye on their policies and spending.
Unworkable? As said, it’s complicated.