Remember how mad you were about $1+ billion going to bail out Bombardier after the C-Series debacle? What if I told you that the Alberta government had bailed out a company facing massive cost overruns to the tune of 4x that much money? #ableg It gets worse.
What if I told you that a Crown Corporation loaned money to the company in question so that they could meet the 'equity' portion of their commitment under a contract with the government, effectively allowing them to increase their leverage on the project? 2/
Now, what if I told you that the company has a contract with the government that allows it to flow through operating costs (subject to some collars) to the government, that it takes no risks if the government loses money on the contract, but it shares in profits if it does well?
Sound interesting? Scandalous? It's all of the above. Stay tuned for more details in the coming days. Now, back to thesis writing.
Also, don't let your biases lead you to blame the current gov't. Blame for this fiasco starts in 2007, and follows through the offices of 6 Premiers.
