A significant majority of Canadian CEOs and business leaders want public financial assistance to Bombardier stopped. However, they are somewhat divided on the reason why the assistance should be stopped. Among those who favour reducing or eliminating Government assistance to Bombardier, two camps marked by two different philosophies emerge. Slightly more respondents say subsidizes should be cut because Bombardier has shown poor management and has not succeeded relative to the aid it has already received Slightly fewer say subsidies should be cut because Canada can no longer afford to subsidize the aerospace giant.

The minority who favour continuing to provide Government assistance to Bombardier say that we should do so because the Aerospace industry is unique and Embraer (Brazil), Boeing (U.S.A), and Airbus (E.U.) receive billions of dollars in assistance from their respective Governments.

In general, respondents oppose special assistance to specific companies or industries except under special circumstances. Those affected by an unforeseen crisis like SARS or BSE or those who face unfair competition by competitors in other countries receiving Government assistance are the two exceptions.

The idea of helping Canadian business through a Federal Government ‘buy-Canadian’ procurement policy (suggested by Lamarre of SNC Lavalin, see Nov 2004 NP Business) did not receive an endorsement by this business panel. More than have of respondents said the Government’s procurement policy should instead focus on reducing spending and buy whichever product or service will deliver the best product for the lowest price.

These are the key findings of this week’s on-line survey of Canadian business leaders and CEOs for publication in the Financial Post under the sponsorship of BDO Dunwoody and the Canadian Chamber of Commerce.

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