Frozen pizza economics

Yesterday, the Harper government announced $12 million in funding for Dr. Oetker to help the German food processing company set up a frozen pizza factory in London, Ont. The Canadian Restaurant and Food Association, while also noting the effects of the supply management system, is displeased.

We create jobs and play a key role in the economy in every community across Canada.  We do this without handouts or special assistance from government.  Our members are deeply troubled that your government is using tax dollars, paid by our members, as a direct subsidy to their competitors who threaten their market share and ongoing businesses viability.  This is on top of the $7-million subsidy this same pizza manufacturer received from the Government of Ontario last year. 

Your government’s announcement today may be good news for this foreign-based multinational, but it is precisely the opposite for CRFA members.  They are asking why is your government so ready to give multi-million-dollar taxpayer handouts to their competitors, while a “Made in Canada” policy penalizes them. 

The Conservatives say the new plant will create over 300 jobs. (When the Ontario government made its announcement, the math was a bit different.) For 300 jobs, a $12-million investment works out to $40,000 per job.