I keep an eye on the news in Newfoundland. It is my home province and I have many friends and family living there. A large Newfoundland shipping company, Oceanex, has created consternation by blaming the COVID-19 illness for its poor finances and is subsequently requesting federal subsidies if it is to continue delivering needed food and supplies to the island.
NEW | Newfoundland faces possible food shortage as pandemic hammers Oceanex. “We just can’t continue,” head says
— CBC Newfoundland and Labrador (@CBCNL) April 13, 2020
Why doesn’t Oceanex downsize its operations to meet demand? If there is still negative cashflow, that’s called business risk. Surely, there is some money on the balance sheet to handle a down turn like a recession? Government should not be quick to hand out subsidies to big businesses. It didn’t take long for the Premier to come out in support of subsidies. Is anyone in the media looking at this with a critical eye? The CBC piece was very shallow for such an important topic. A threat to starve the island should not be taken lightly. Newfoundlanders have a long memory.