The government is broke and it should not give taxpayers’ money to corporations
OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to cut its corporate welfare for Northvolt’s electric vehicle battery plant following news that the Quebec government is pulling its funding.
“The federal government should follow Quebec’s lead and pull the plug on this risky corporate welfare,” said Franco Terrazzano, CTF Federal Director. “The Carney government can save taxpayers billions if it stops the flow of cash to multinational corporations now.”
The government of Quebec is “pulling the plug on a $7-billion electric-vehicle battery project near Montreal and trying to recoup some of its investment,” the Canadian Press reported.
The federal government announced more than $4 billion in subsidies to Northvolt’s electric-vehicle battery project, while the Quebec government announced more than $2 billion.
Of the federal corporate welfare, about $3.5 billion is production subsidies while $1.3 billion is for “construction and other support,” according to the Parliamentary Budget Officer. The federal government announced subsidies to help build the first phase of the plant but “hasn’t yet disbursed any funds,” according to the Globe and Mail.
The federal government put taxpayers on the hook for up to $31.4 billion for subsidies for battery factories and the electric vehicle supply chain, according to the PBO.
“The government is broke and it should not give taxpayers’ money to corporations,” Terrazzano said. “The government should be growing the economy by cutting taxes and red tape, not by making risky bets with taxpayers’ money.”
For more information or to schedule interviews, please contact:
Franco Terrazzano
CTF Federal Director
Phone: 403.918.3532
Email: fterrazzano@taxpayer.com
Read next: Government corporate welfare increased by 142% between 2019 and 2024, reaching $87.7 billion in 2024
