How to diversify Alberta and save Bombardier (crazy thought) - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

GP_Matt · 03-03-2016, 01:45 PM

What would happen if the Alberta government offered to bail out Bombardier and invest money in exchange for equity and representation on the board. Then use the influence to move factories and research to Alberta.

We could diversify our economy away from oil while also saving a national flagship company.

I know it is completely tongue in cheek but I would like to see the reactions to proposing it. Apparently taking the day off today left me with too much time on my hands.

SebC · 03-03-2016, 01:52 PM

Pay taxes to invest where we already have no competitive advantage and move it to a high-cost business environment?

burn_this_city · 03-03-2016, 01:53 PM

The majority of manufacturing for aerospace is in the east. All your suppliers would be far from Alberta.

Fuzz · 03-03-2016, 01:59 PM

My earlier suggestion was to get Bombardier bailout money by building pipelines out of C-series fuselages.

Looch City · 03-03-2016, 02:03 PM

Quote:

Originally Posted by Fuzz

My earlier suggestion was to get Bombardier bailout money by building pipelines out of C-series fuselages.

Or better yet, scrap the entire Energy East Pipeline project and change it to...Energy East Airline and transfer all the oil to the east coast by plane.

GP_Matt · 03-03-2016, 02:06 PM

Quote:

Originally Posted by burn_this_city

The majority of manufacturing for aerospace is in the east. All your suppliers would be far from Alberta.

You have to start diversifying somewhere. We have wasted a billion dollars in Alberta on worse things.

Bandwagon In Flames · 03-03-2016, 02:10 PM

There's been some talk of turning Calgary into the tech capital of Canada. I think that would be more realistic and beneficial to the city.

Vancouver is currently considered the tech capital with their gaming industry. But Calgary has the infrastructure and will soon have affordable cost of living (already much more affordable than Vancouver).

Enoch Root · 03-03-2016, 02:12 PM

Quote:

Originally Posted by SebC

Pay taxes to invest where we already have no competitive advantage and move it to a high-cost business environment?

thanks NDP!

heep223 · 03-03-2016, 02:12 PM

Quote:

Originally Posted by Bandwagon In Flames

There's been some talk of turning Calgary into the tech capital of Canada. I think that would be more realistic and beneficial to the city.

Vancouver is currently considered the tech capital with their gaming industry. But Calgary has the infrastructure and will soon have affordable cost of living (already much more affordable than Vancouver).

Vancouver and Victoria are miles and miles ahead on this. Tech parks etc.

As to OP, nobody should bail out Bombardier.

Enoch Root · 03-03-2016, 02:14 PM

Quote:

Originally Posted by Bandwagon In Flames

There's been some talk of turning Calgary into the tech capital of Canada. I think that would be more realistic and beneficial to the city.

Vancouver is currently considered the tech capital with their gaming industry. But Calgary has the infrastructure and will soon have affordable cost of living (already much more affordable than Vancouver).

The nano-technology school at the UofA (I know that's in Edmonton but I think the focus should be Alberta) is one step in this direction.

10 more are needed ASAP.

CaptainCrunch · 03-03-2016, 02:15 PM

Quote:

Originally Posted by GP_Matt

What would happen if the Alberta government offered to bail out Bombardier and invest money in exchange for equity and representation on the board. Then use the influence to move factories and research to Alberta.

We could diversify our economy away from oil while also saving a national flagship company.

I know it is completely tongue in cheek but I would like to see the reactions to proposing it. Apparently taking the day off today left me with too much time on my hands.

Bombardier is a fricken sink hole, this 1 billion is just the latest, I think they've previously received about 3 million from the provincial and federal government. Plus why would they take our money with conditions, when the Feds are just going to give them cash with no conditions.

Plus if Bombardier threatened to move to Alberta they would just use it as blackmail to siphon more money out of Quebec. Add on that its a company with serious deep roots in Quebec.

I have a better idea, let it fricken die.

or have the government buy it and Pretty Woman Richard Gere style break it up and sell the assets.

afc wimbledon · 03-03-2016, 02:16 PM

Quote:

Originally Posted by heep223

Vancouver and Victoria are miles and miles ahead on this. Tech parks etc.

As to OP, nobody should bail out Bombardier.

BC has closeness to Seattle and California on its side as well, same time zone.
The BC film industry is also crucial, the tech crossover ensures a constant stream of employees between the two fields.

TheAlpineOracle · 03-03-2016, 02:17 PM

Bombardier is a garbage company. They need to be sent out to the pasture. This isn't the auto industry where a bail out was a pretty safe bet to get them through the downturn. These guys can simply not compete on their own.

Jacks · 03-03-2016, 02:18 PM

Quote:

Originally Posted by GP_Matt

What would happen if the Alberta government offered to bail out Bombardier and invest money in exchange for equity and representation on the board.

Will they take Monopoly money, that's all we've got left.

afc wimbledon · 03-03-2016, 02:19 PM

Quote:

Originally Posted by TheAlpineOracle

Bombardier is a garbage company. They need to be sent out to the pasture. This isn't the auto industry where a bail out was a pretty safe bet to get them through the downturn. These guys can simply not compete on their own.

No aerospace company can, they all rely on bailouts and military contracts, in a country that has a minimal military an aerospace industry is absurd.

calgarygeologist · 03-03-2016, 02:20 PM

Quote:

Originally Posted by GP_Matt

What would happen if the Alberta government offered to bail out Bombardier and invest money in exchange for equity and representation on the board. Then use the influence to move factories and research to Alberta.

We could diversify our economy away from oil while also saving a national flagship company.

I know it is completely tongue in cheek but I would like to see the reactions to proposing it. Apparently taking the day off today left me with too much time on my hands.

If Alberta wanted to try to diversify the economic by attracting some big manufacturing they should aggressively pursue Hyundai/Kia. HK has been planning to open a new manufacturing facility in Canada for a few years now. Obviously there are some hurdles with being in Alberta such as distance from the major auto manufacturing on the east coast and potentially higher cost labour. Some of the benefits though could be big government incentives, cheap land, non union workforce and closer access to west coast shipping ports.

Bandwagon In Flames · 03-03-2016, 02:21 PM

Quote:

Originally Posted by heep223

Vancouver and Victoria are miles and miles ahead on this. Tech parks etc.

As to OP, nobody should bail out Bombardier.

And they are also getting bought up by China. The cost of living is absolutely ridiculous and it's hard for businesses to successfully operate there. Not to mention both cities are becoming the Miami of Canada for wealthy retired people.

It makes a lot of sense for Calgary to go this route. The Tech industry is wiping out other industries left, right and center. You can either become the predator or remain the prey.

And it's not like Calgary is devout of Technology companies in the first place. Plenty of Web design companies, gaming companies, SMART technology, etc.

The Java programming language was invented in Calgary. It's already in our blood!

TheAlpineOracle · 03-03-2016, 02:24 PM

Quote:

Originally Posted by afc wimbledon

No aerospace company can, they all rely on bailouts and military contracts, in a country that has a minimal military an aerospace industry is absurd.

Yup, throwing bad money after bad money to appease Quebec. The worst part is that Bombardier has minimal contracts and they don't even do a good job of delivering on those.

CaptainCrunch · 03-03-2016, 02:31 PM

Actually I like the idea of buying Bombardier outright, shutting it down throwing 4000 Quebecers out of work and putting out a press release with me holding up a middle finger and saying now you know how we feel.

Newfoundland would probably give us a standing ovation.

Frequitude · 03-03-2016, 02:42 PM

I like where your head is at but I am a much larger proponent of the classical economics theory of division of labor. Do what you're good at and trade it for what you're not.

Now, that does come with more volatility but in theory we would join up with some friends (i.e. the provinces) and share our respective profits (i.e. taxes and transfer payments) to level out those swings.

Great in practice eh. But when your friends are greedy self-serving dicks it all breaks down.

I'm not totally against a Bombardier bail out. It's an important industry for Quebec. They just need to get the god damn bloat out (Priceless art, mahogany furniture, "investor days" at fancy hotels in New York). Sell that **** off and we'll talk.