TORONTO: The Canadian Taxpayers Federation (CTF) is calling on the federal government to scrap a $1 billion loan announced today by Export Development Corporation to Vale Inc. of Brazil. CTF Federal Director, Kevin Gaudet, said “if corporate welfare worked at creating jobs, every Canadian would have two by now. This loan should be scrapped and fast”.
Gaudet said, “why are Canadian taxpayers lending precious money to a firm that says it already has so much excess cash”.
Vale is a multi-billion multi-national corporation headquartered in Brazil. Their Financial Statements for 2009 reveal a very profitable net income of $5.5 billion (U.S.) down from $13.5 billion and $12.6 billion in the two prior years. On September 23, 2010 Vale announced a share buy-back program for its excess cash.
The CTF asks the government to scrap the loan and to lift the veil of secrecy on the deal, answering a few important questions:
How much will Vale draw off the loan and when?
How is the loan broken down: repayable vs. conditionally repayable vs. non-repayable?
What are the repayment terms and conditions if any?
When is the loan due?
What is the interest rate?
What, if any, loan covenants does the agreement include?
What is the remuneration of senior corporate and Canadian executives?
