Government business ventures bite the dust — on the taxpayer's dime

The government has no business in the brew rooms of the nation. Or so it would seem, with the news that sales of New Brunswick’s private-label beer have tanked.

Two years after two government-brewed and marketed beers — Selection Lager and Selection Light — hit the shelves, their popularity has fallen flat and NB Liquor is canning the products.

“Production will end,” a sober spokeswoman Nora Lacey said of the Crown corporation’s brew made by Moosehead Breweries in Saint John.

Introduced under the former Liberal government in March 2009, the private-label beer was the only Crown-owned product of its kind in Canada. But it doesn’t represent the only time elected officials have gambled with public money — and lost.

Governments, in fact, seem to have a knack for getting into business ventures that fizzle. Here are a few more through the years:

In a real pickle

It was a bad case of cucumber envy that spawned Newfoundland’s infamous greenhouse caper in the late 1980s. Apparently, the province’s veggie growers were coming up short, at least compared to Ontario farmers.

“Neither the price nor taste of a tomato or a cantaloupe you buy at a St. John’s supermarket matches what you can find at Toronto’s Kensington Market,” the government pointed out as it prepared to dig up millions to subsidize a hydroponic greenhouse.

Creator Philip Sprung, whose business venture had already failed in Alberta, boasted he could grow a supersized cucumber in six days. Just the ticket, thought then-premier Brian Peckford, to put his province on the world’s produce map, and grow a few jobs in the process.

No one paid much attention to a market survey indicating the average Newfoundlander eats only half a cuke a year. Nor did anyone do the math. The green giants cost $1.10 to grow but sold wholesale for half that. Less than three years later, the Sprung greenhouse — dubbed “Peckford’s Pickle Palace” — went belly up, leaving the province $14 million in the red.

Racing into red ink

A nifty little sports car called the Bricklin raced into New Brunswick’s bad books, financially and politically speaking.

American businessman Malcolm Bricklin was looking for backers to produce his pricey gull-wing door toy in the mid-1970s, and then-premier Richard Hatfield was quickly smitten.

Fuelled by taxpayers’ money, an assembly line was set up in Saint John for the Bricklin. But the car was faster than the factory that made it, and production levels failed to yield a profit. Only 2,854 cars were built before the company went into receivership, leaving the New Brunswick government with a $23 million debt. Stung by the failure, Hatfield made a beeline for the exit door of the premier’s office.

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Government business ventures bite the dust — on the taxpayer's dime

Driven, perhaps, by a sweet tooth, he opened chocolate factories, then added rubber and hardwood to the mix of business ventures. The tally topped two dozen companies, most of which flopped in short order, taking jobs with them.



Postal workers to strike in Toronto, Montreal
Postal workers to strike in Toronto, Montreal

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Postal workers' union moves forward with strike
Postal workers' union moves forward with strike

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University of Toronto dental journal

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