In this era of financial bailouts for banks and car makers, it seems only fitting that in Quebec we get a bailout for the Recyclers. The response from the man in charge is staggeringly similar to the ones in charge of the banks: “We had NO idea this was coming!” So far, the recyclables market has fallen 80%.
Unfortunately, all these bailouts only serve to prop up a failed, or failing, business model. Time will tell if the market for recycled materials will come back. This leads me to believe that the Greens running this program are no better equipped to lead in the future than the old, mentally lazy farts in auto industry.
Via: CBC News
The Quebec government’s new plan to help the province’s recycling companies doesn’t do enough to sort out the major problems facing the industry, critics say.
Faced with a collapsing market in China and few interested buyers on the horizon, the 38 centres that sort and sell recycled material in Quebec are stockpiling their products.
The price of paper on the world markets in December was about one-fifth its value in October.
“Nobody could have seen this dramatic fall coming,” said Quebec Environment Minister Line Beauchamp.
Beauchamp announced a three-point plan to help the industry, including:
- Loan guarantees for sorting centres.
- A $4.8 million fund to help the companies update their facilities and improve the quality of their products.
- Permission for municipalities to reopen their contracts with recycling companies.
However, the government’s plan does not include the direct financial aid the industry was asking for.
Jean-Guy Doucet said the loan guarantees would only keep his sorting centre in Trois-Rivières afloat for a short time.
“We will perhaps use the loans to give us a month or two more,” said Doucet, who is president of Récuperation Mauricie.
