Those 500 new jobs at a high-tech centre Morgan Stanley is setting up in Montreal? Turns out it's at most 300 - or possibly only 100. Late last week, at a high-fanfare press conference, a "jubilant" Quebec Premier Jean Charest announced that the investment bank's arrival in Montreal would "create" 500 positions, heavily subsidized by the province through tax credits worth $20,000 a year for each job for six years. Two other senior government ministers, Monique Jérôme-Forget from Finance and Raymond Bachand from Economic Development, were there for the hoopla, which was broadcast live on Quebec TV. The next day, the government's investment agency took out full-page newspaper ads proclaiming: "All Quebec is proud of the arrival of Morgan Stanley. This great player in world finance will create up to 500 jobs right here thanks to a $200-million investment."
Er, actually, 200 of those jobs already exist at a subcontractor, although the government made no mention of that. So, the 200 current jobs will now be subsidized to the tune of $4-million a year for six years, for a total of $24-million. Any new jobs will also be subsidized - if 300 more are created it will cost Quebec $60-million - but Morgan Stanley is clear that it is only committed to hiring 100 for now. So much for the bank's $200-million investment.
