The government of Canada announced yesterday a
$4.3 billion bailout package as “compensation” for the dairy, egg and poultry industry to deal with the impacts of the new Trans-Pacific Partnership (TPP). Today, the Conservative Party promised
$1 billion in corporate welfare for the auto sector.
“The CTF fully supports the TPP and believes that fewer trade barriers and access to bigger markets benefits the overwhelming majority of Canadians,” said CTF Federal Director Aaron Wudrick. “What we oppose is using taxpayer dollars to buy off favoured sectors. These handouts to special interests are not required by the TPP itself – they simply punish taxpayers.”
The CTF is also critical of promises of additional corporate welfare from all three major parties – specifically the $1 billion Conservative promise to the auto industry, the $400 million Liberal promise to
“invest in clean-tech production” and the $400 million NDP promise of
“auto and aerospace strategies.”
“Make no mistake, these promises have nothing to do with sound economics or business decisions and everything to do with cynical political pandering,” continued Wudrick. “Entrenched special interests with loud lobbyists in pet industries receive billions, while the vast majority of Canadians work in businesses that face the reality of competitive markets every single day – without any government coddling.”
Wudrick also noted that continuing to subsidize failing, inefficient industries runs counter to one of the primary benefits of the TPP, which is to bring lower prices to all Canadians.
“This government clearly understands the benefits of free trade, yet these handouts undermine those very benefits. Whatever consumers save at the cash register, they simply end up paying as a taxpayer instead,” stated Wudrick. “In the vast majority of industries, governments do not step in to say ‘if your profits go down, we will just give you taxpayer dollars to make up the difference.’ Forcing all Canadians to subsidize businesses that cannot stand on their own two feet is wasteful, inefficient and morally wrong.”
Aaron Wudrick, CTF Federal Director
