Stop the corporate welfare

The Herald reports:

More than half of the $257 million loan book held by the Government entity formerly known as the Provincial Growth Fund is considered to be at risk of impairment or default.

The surge in at-risk loan advances made by Crown Regional Holdings (CRH) – a vehicle used by the Government to warehouse policies intended to promote provincial growth or regional infrastructure – were laid bare in its long-delayed annual report tabled to Parliament late last week.

The report, to June 2024, shows the proportion of loans advanced that were considered to be at a “significant increase in risk” of impairment or default reached 54% of the total book at balance date – up from 40% a year earlier. 

This is a great example of why taxpayers shouldn’t do corporate welfare loans. Taxpayers are now at risk of losing over $100 million, which could have been spent on health or education. Banks, not Governments, should do loans.