Innovation, Science and Economic Development Minister Navdeep Bains announces ‘supercluster’ funding in Ottawa, Feb. 15, 2018. (Government of Canada).

B.C. VIEWS: Subsidy supercluster settles in B.C.

Ottawa, Victoria add to their overlapping ‘innovation’ budgets

A year ago, this column described the Justin Trudeau government’s plan to borrow and spend close to $1 billion on an “innovation and skills plan” to create “superclusters.”

B.C. got its own supercluster last week, part of a nation-wide network announced by federal Innovation Minister Navdeep Bains. Ours is the Digital Technology Supercluster, getting an undisclosed share of the $950 million set aside in the 2017 federal budget.

What are superclusters, you may ask. They’re like the innovation clusters announced in the 2016 federal budget, only bigger. According to Bains, their job is to “supercharge Canada’s regional innovation ecosystems and build Canada as a global centre for innovation.” The B.C. one in particular is “a made-in-Canada Silicon Valley that will create tens of thousands of jobs.”

It’s not all tax dollars. TELUS, Microsoft, Teck, Canfor and other corporations have committed $500 million, along with most of B.C.’s post-secondary institutions, led by UBC.

Bruce Ralston, B.C.’s Minister of Jobs, Trade and Technology, was thrilled to announce B.C.’s “winning bid” for a share of the federal cash. But of course, in the Ottawa style, there were no losing bids. Atlantic Canada “wins” an Ocean Supercluster, Quebec gets one devoted to artificial intelligence, Ontario’s is for “next-generation manufacturing,” and the prairie provinces get a Protein Industries Supercluster based in Saskatchewan.

This so-called innovation bureaucracy is on top of Canada’s regional economic development programs. Stephen Harper’s Conservatives railed against political slush funds like the Atlantic Canada Opportunities Agency, and then when he got into government, he set up Western Economic Development Canada to even things up. Now we have supercluster blobs of icing on the business subsidy cake.

The newly created Protein Industries Canada web page illustrates how contrived this whole thing is. “Outcomes from this cluster will be a new range of plant-derived foods, ingredients and feedstuffs of superior quality, commanding market premiums.”

Feedstuffs? Only in Canada, eh? Perhaps these buzzwords and subsidies mean that shoppers will be able to find Canadian-made mustard at their local supermarket, considering the Canadian prairies are the largest mustard seed producer in the world. From French’s to Grey Poupon, our finished product is mostly made in the U.S. by multi-nationals.

Back to B.C., where Microsoft and other high-tech giants have set up branch plants in Vancouver, or bought startups. It’s a natural extension of the original Silicon Valley, which has always extended to the Seattle area, home of Microsoft, Amazon and others.

It’s similar to the “Hollywood North” movie business. Same time zone, attractive climate, great scenery, oh, and whopping government subsidies.

Why don’t more investors, high tech or otherwise, set up shop in B.C.? Is it a lack of subsidies and “innovation” programs by governments? The B.C. government has just appointed an “innovation commissioner” to go with the “innovation advisor” appointed last year by former premier Christy Clark, to try to induce entrepreneurial activity here.

When the Trudeau government announced the “superclusters” plan last year, they acknowledged that one of Ottawa’s biggest problems was too many “innovation” programs – an astonishing 140 of them. The 2017 budget promised to review and simplify them.

I’ve searched for news that this has occurred, and I couldn’t find any. What we have instead is more layers, at the federal and provincial level.

And what else has the new B.C. government done to attract risk-taking entrepreneurs? It has re-introduced an extra tax bracket for people making more than $150,000 a year, bringing their total tax burden up to half of their income.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

The shores will not rock in 2019

Atomique Productions announce Rock the Shores festival will not return in 2019, future is uncertain

Video shows logging operation on disputed Saturna Island land

Tsawout First Nation members opposed to logging on reserve land

Family still searching for missing Langford man two weeks after disappearance

Family hopeful he is alive, offering $10,000 reward

Victoria police concerned about missing man’s well-being

Delmer was reported missing on March 19

Fracking, economy, climate at centre of Green Party town hall in Metchosin

Green Party leader Elizabeth May and local candidate David Merner take questions from community

Victoria hosts ‘Ultimate Hockey Fan Cave’

The hockey cave was recently featured on a Netflix special

Calgary captain has 3 points as Flames torch Canucks 3-1

Giordano leads way as Alberta side cracks 100-point plateau

Fire crews battle large blaze at Courtenay hostel

Courtenay Fire Chief Don Bardonnex said nobody was injured

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

Most Read