Bombardier’s Irish Incentives Scrutinized After KC Failure

Bombardier, the aerospace company that acquired Northern Ireland’s Shorts and LearJet of Wichita, Kansas, is again in the news because of possible subsidization.

KC mayor Mark Funkhouser said of the recent failed $240 million tax credit attempt to lure Bombardier to Kansas City, “The package the state put together was generous but responsible, and this would have been a great deal for Bombardier, Kansas City and Missouri”.

Back in 2001 the WTO ruled against the Canadian government over low interest loans intended to help Bombardier increase market share. Kansas City lost out to a Montreal package that worked hand in hand with a Belfast package.

And now AV Web reports that because Bombardier is getting some hefty “loans from the Canadian, Quebec and Irish governments” for its C Series, that it faces scrutiny from the US and possible investigation by the World Trade Organization.

It’s the British government though, not the Irish one, that has announced a financial package for Bombardier, because for all the peace that has broken out, Belfast remains part of the United Kingdom.

So when AV Net says “Ireland” in the following paragraph, it means the UK:

Bombardier could be hauled in front of the World Trade Organization. The Canadian and Quebec governments have provided loans worth $437 million to support final assembly of the 110-to-130-seat airliners and Ireland is chipping in $248 million for the plant that will build the wings. Kansas City, Mo., was in the running for the assembly plant and the state government offered $880 million in incentives.

For a more detailed look at the story of the financial package on offer from the British government, Francess McDonnell in the Irish Times has all the figures.

It should also be mentioned, maybe, that for different reasons altogether, not everybody in Northern Ireland was happy with Bombardier’s recent announcement of 500 million euro investment in its Belfast plant.

More on Irish Business:
   • Irish Renewable Energy Company Backs Missouri Wind Farm Company
   • Irish Firm to Double Employment in Lawrence, KS
   • Tom O’Malley’s Locks & Pulls of Overland Park, KS
   • People in Ireland Scammed by North Kansas City, MO

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This entry was posted on Wednesday, August 13th, 2008 at 4:08 am and is filed under Irish Business. You can follow responses via my RSS 2.0 feed. Both comments and pings are currently closed.