Here we go again with government “investments” in business with a $100 million nest egg courtesy of you the taxpayer for new technologies (artificial intelligence) which apparently is such a sought after space that the private sector isn’t interested.
This is what’s happening. Very poor decisions were made regarding the construction of new office towers in the downtown core of Calgary leading to a 30 per cent vacancy. Obstructionist policy from governments in the oil and gas sector has impeded business from expanding into these new commercial spaces. Now, you the taxpayer are going to pay the price for “malinvestment”. That’s right. Governments have historically been poor investors because politicians don’t personally have any skin in the game. Politicians cater to special interest groups and are amenable to influence from effective lobbyists.
When was the last time your government presented you with a performance statement in lieu of a benefit to you arising from their investment decisions in the private sector? You guessed it – never. There is no accountability.
The unremarkable thing about “capitalism” is that people and businesses fail because of poor investment decisions. The backdrop of a failure potential has the effect of scrutinizing capital carefully for its most efficient deployment.
This decision made by bureaucrats with your money is not sound but there is desperation in the corridors of governments because pension funds with equity interests in Alberta office towers are clamouring.