Quote:
Originally Posted by iggy_oi
Do you consider it to be extortion when a company demands special tax breaks/incentives or public assistance before committing to a project in a given jurisdiction?
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Depends on the circumstance and context. It can look that way depending on the situation, yes.
My opinion is that ultimately it depends if there are viable competitive conditions that allow multiple groups to do something or allow for something or not. So for example, if new service is required from CP / CN and they won't do it without special treatment. Well, we've created a monopoly / oligopoly for them that is literally unbreakable without returning to slave labour prices so, yeah, extortion there. Nobody can build a new railroad. It is not economic.
BBS is right, it's not only indigenous communities that are necessarily extortionist, but they are for sure and the current construction climate requires you basically to give up interest in infrastructure projects to them to get stuff done. Personally, I don't think it's necessarily right but it's where we are due to years of terrible consultation by industry so to a degree to reap what you sow.