Liberals Should Support Bombardier In Order To Diversify Economy: Experts

Continued government support for global firms such as Bombardier Inc. is critical if Canada wants to diversify its economy beyond natural resources, say two business experts.

Bombardier (TSX:BBD.B) announced Wednesday it's cutting 7,000 jobs over two years, including roughly 3,000 in Canada, months after the Quebec government pledged US$1 billion of public money for the firm.

The federal Liberals say they are studying Bombardier's request for more funding, which reports say is also $1 billion.

Prof. Tyler Adam Chamberlin of the University of Ottawa's Telfer School of Management says more government cash for Bombardier is essential because the country doesn't have many firms like it.

Canada's giant telecoms don't compete internationally and the country's big banks are insulated from foreign competition, he said.

"When you really dig into it and ask how many companies in Canada are really engaged in global, competitive industries, the number dwindles quickly," Chamberlin said.

Bombardier employs more than 70,000 people around the world and exports roughly 95 per cent of its products.

"There is no one at the size of a truly global competitor with a global footprint as Bombardier," said Karl Moore, professor at the Desautels faculty of management at McGill University.

Read full article: Huffington Post, 17 February, 2016