Saturday, September 10, 2011

ONTARIO LIBERAL PROMISE FOR IMMIGRANT CREDITS IS BAD ECONOMIC POLICY

The Ontario Liberals are promising , amongst many other spending measures, to give employers a $10,000 credit to hire immigrants. Aside from the politics, this is just plain bad economic policy, and may even be unconstitutional. No employer would hire anyone unless he or she thinks that the person has the appropriate skills for the job, even if you give the employer a credit. This is particularly true in a labour market environment with close to 8% unemployment where there are lots of qualified candidates who are ready to work. Why train someone when you can hire a person who is already trained? Employers do not like to reinvent the wheel.

In addition, close scrutiny to the constitutional aspects of the costly promise is warranted: under the Charter of Rights, the promise may offend the equality sections as discriminatory based on legal status. Even if that is not the case, it will undoubtedly lead to litigation by job seekers who sooner or later will discover that they have been passed over for a job in favour of a person who ill allow the employer to get the credit. Employers will have to tread carefully and the program will become a minefield. remember that the program appears to be targeted to people in specific occupations, mostly regulated, where the comparisons will be easy to make and many will be able to show that they are better qualified that the person hired.

Last, has anyone even tallied the total cost? Since Ontario received most off the immigrants to Canada, this could cost hundreds of millions of dollars overtime.

Simply out, this program is stupid and just a way for the Ontario Liberals to try to get votes, bu tit does nothing for the economy, for the unemployed, or for the immigrants who need permanent jobs and must compete in the labour market in an open fashion. It will also create resentment by job seekers against immigrants, something that we do not need in our society. This is just cheap politics and bad economic policy.

Immigrant tax credit pledge brews election nasties - Toronto - CBC News

No comments:

Visalaw International CS CBA OBA-ABO AILA IPBA NYSRA ABA IBA