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Honda deal latest episode of corporate welfare in Ontario

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4 minute read

From the Fraser Institute

By Jake Fuss and Tegan Hill

If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

On Thursday, the Trudeau and Ford governments announced they will dole out an estimated $5 billion in corporate welfare to Honda so the auto giant can build an electric vehicle (EV) battery plant and manufacture EVs in Ontario. This is the third such deal in Ontario, following similar corporate welfare handouts to Volkswagen ($13.2 billion) and Stellantis ($15.0 billion). Like the previous two deals, the Honda deal comes at a significant cost to taxpayers and will almost certainly fail to create widespread economic benefits for Ontarians.

The Trudeau and Ford governments finalized the Honda deal after more than a year of negotiations, with both governments promising direct incentives and tax credits. Of course, this isn’t free money. Taxpayers in Ontario and the rest of Canada will pay for this corporate welfare through their taxes.

Unfortunately, corporate welfare is nothing new. Governments in Canada have a long history of picking their favoured firms or industries and using a wide range of subsidies and other incentives to benefit those firms or industries selected for preferential treatment.

According to a recent study, the federal government spent $84.6 billion (adjusted for inflation) on business subsidies from 2007 to 2019 (the last pre-COVID year). Over the same period, provincial and local governments spent another $302.9 billion on business subsidies for their favoured firms and industries. (Notably, the study excludes other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the total cost of corporate welfare during this period is actually much higher.)

Of course, when announcing the Honda deal, the Trudeau and Ford governments attempted to sell this latest example of corporate welfare as a way to create jobs. In reality, however, there’s little to no empirical evidence that corporate welfare creates jobs (on net) or produces widespread economic benefits.

Instead, these governments are simply picking winners and losers, shifting jobs and investment away from other firms and industries and circumventing the preferences of consumers and investors. If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

Unfortunately, the Trudeau and Ford governments believe they know better than investors and entrepreneurs, so they’re using taxpayer money to allocate scarce resources—including labour—to their favoured projects and industries. Again, corporate welfare actually hinders economic growth, which Ontario and Canada desperately need, and often fails to produce jobs that would not otherwise have been created, while also requiring financial support from taxpayers.

It’s only a matter of time before other automakers ask for similar handouts from Ontario and the federal government. Indeed, after Volkswagen secured billions in federal subsidies, Stellantis stopped construction of an EV battery plant in Windsor until it received similar subsidies from the Trudeau government. Call it copycat corporate welfare.

Government handouts to corporations do not pave the path to economic success in Canada. To help foster widespread prosperity, governments should help create an environment where all businesses can succeed, rather than picking winners and losers on the backs of taxpayers.

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Trump makes impact on G7 before he makes his exit

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Trump Rips Into Obama and Trudeau at G7 for a “Very Big Mistake” on Russia

At the G7 in Canada, President Trump didn’t just speak—he delivered a headline-making indictment.

Standing alongside Canada’s Prime Minister, he directly blasted Barack Obama and Justin Trudeau, accusing them of committing a “very big mistake” by booting Russia out of the G8. He warned that this move didn’t deter conflict—it unleashed it, and he insists it paved the way for the war in Ukraine.

Before the working sessions began, the two leaders fielded questions. The first topic: the ongoing trade negotiations between the U.S. and Canada. Trump didn’t hesitate to point out that the issue wasn’t personal—it was philosophical.

“It’s not so much holding up. I think we have different concepts,” Trump said. “I have a tariff concept, Mark [Carney] has a different concept, which is something that some people like.”

He made it clear that he prefers a more straightforward approach. “I’ve always been a tariff person. It’s simple, it’s easy, it’s precise and it just goes very quickly.”

Carney, he added, favors a more intricate framework—“also very good,” Trump said. The goal now, according to Trump, is to examine both strategies and find a path forward. “We’re going to look at both and we’re going to come out with something hopefully.”

When asked whether a deal could be finalized in a matter of days or weeks, Trump didn’t overpromise, but he left the door open. “It’s achievable but both parties have to agree.”

Then the conversation took an unexpected turn.

Trump went off script and straight to one of the most explosive foreign policy critiques of the day. Without any prompting, he shifted from trade to Russia’s removal from the G8, calling it one of the most consequential mistakes in recent memory.

Standing next to Canada’s Prime Minister, whose predecessor helped lead that push, Trump argued that isolating Moscow may have backfired. “The G7 used to be the G8,” he said, pointing to the moment Russia was kicked out.

He didn’t hold back. “Barack Obama and a person named Trudeau didn’t want to have Russia in, and I would say that was a mistake because I think you wouldn’t have a war right now if you had Russia in.”

This wasn’t just a jab at past leaders. Trump was drawing a direct line from that decision to the war in Ukraine. According to him, expelling Russia took away any real chance at diplomacy before things spiraled.

“They threw Russia out, which I claimed was a very big mistake even though I wasn’t in politics then, I was loud about it.” For Trump, diplomacy doesn’t mean agreement—it means keeping adversaries close enough to negotiate.

“It was a mistake in that you spent so much time talking about Russia, but he’s no longer at the table. It makes life more complicated. You wouldn’t have had the war.”

Then he made it personal. Trump compared two timelines—one with him in office, and one without. “You wouldn’t have a war right now if Trump were president four years ago,” he said. “But it didn’t work out that way.”

Before reporters could even process Trump’s comments on Russia, he shifted gears again—this time turning to Iran.

Asked whether there had been any signs that Tehran wanted to step back from confrontation, Trump didn’t hesitate. “Yeah,” he said. “They’d like to talk.”

The admission was short but revealing. For the first time publicly, Trump confirmed that Iran had signaled interest in easing tensions. But he made it clear they may have waited too long.

“They should have done that before,” he said, referencing a missed 60-day negotiation window. “On the 61st day I said we don’t have a deal.”

Even so, he acknowledged that both sides remain under pressure. “They have to make a deal and it’s painful for both parties but I would say Iran is not winning this war.”

Then came the warning, delivered with unmistakable urgency. “They should talk and they should talk IMMEDIATELY before it’s too late.”

Eventually, the conversation turned back to domestic issues: specifically, immigration and crime.

He confirmed he’s directing ICE to focus its efforts on sanctuary cities, which he accused of protecting violent criminals for political purposes.

He pointed directly at major Democrat-led cities, saying the worst problems are concentrated in deep blue urban centers. “I look at New York, I look at Chicago. I mean you got a really bad governor in Chicago and a bad mayor, but the governor is probably the worst in the country, Pritzker.”

And he didn’t stop there. “I look at how that city has been overrun by criminals and New York and L.A., look at L.A. Those people weren’t from L.A. They weren’t from California most of those people. Many of those people.”

According to Trump, the crime surge isn’t just a local failure—it’s a direct consequence of what he called a border catastrophe under President Biden. “Biden allowed 21 million people to come into our country. Of that, vast numbers of those people were murderers, killers, people from gangs, people from jails. They emptied their jails into the U.S. Most of those people are in the cities.”

“All blue cities. All Democrat-run cities.”

He closed with a vow—one aimed squarely at the ballot box. Trump said he’ll do everything in his power to stop Democrats from using illegal immigration to influence elections.

“They think they’re going to use them to vote. It’s not going to happen.”

Just as the press corps seemed ready for more, Prime Minister Carney stepped in.

The momentum had clearly shifted toward Trump, and Carney recognized it. With a calm smile and hands slightly raised, he moved to wrap things up.

“If you don’t mind, I’m going to exercise my role, if you will, as the G7 Chair,” he said. “Since we have a few more minutes with the president and his team. And then we actually have to start the meeting to address these big issues, so…”

Trump didn’t object. He didn’t have to.

By then, the damage (or the impact) had already been done. He had steered the conversation, dropped one headline after another, and reshaped the narrative before the summit even began.

By the time Carney tried to regain control, it was already too late.

Wherever Trump goes, he doesn’t just attend the event—he becomes the event.

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The CBC is a government-funded giant no one watches

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This article supplied by Troy Media.

Troy Media By Kris Sims

The CBC is draining taxpayer money while Canadians tune out. It’s time to stop funding a media giant that’s become a political pawn

The CBC is a taxpayer-funded failure, and it’s time to pull the plug. Yet during the election campaign, Prime Minister Mark Carney pledged to pump another $150 million into the broadcaster, even as the CBC was covering his campaign. That’s a blatant conflict of interest, and it underlines why government-funded journalism must end.

The CBC even reported on that announcement, running a headline calling itself “underfunded.” Think about that. Imagine being a CBC employee asking Carney questions at a campaign news conference, while knowing that if he wins, your employer gets a bigger cheque. Meanwhile, Conservative Leader Pierre Poilievre has pledged to defund the CBC. The broadcaster is literally covering a story that determines its future funding—and pretending there’s no conflict.

This kind of entanglement isn’t journalism. It’s political theatre. When reporters’ paycheques depend on who wins the election, public trust is shattered.

And the rot goes even deeper. In the Throne Speech, the Carney government vowed to “protect the institutions that bring these cultures and this identity to the world, like CBC/RadioCanada.” Before the election, a federal report recommended nearly doubling the CBC’s annual funding. Former heritage minister Pascale St-Onge said Canada should match the G7 average of $62 per person per year—a move that would balloon the CBC’s budget to $2.5 billion annually. That would nearly double the CBC’s current public funding, which already exceeds $1.2 billion per year.

To put that in perspective, $2.5 billion could cover the annual grocery bill for more than 150,000 Canadian families. But Ottawa wants to shovel more cash at an organization most Canadians don’t even watch.

St-Onge also proposed expanding the CBC’s mandate to “fight disinformation,” suggesting it should play a formal role in “helping the Canadian population understand fact-based information.” The federal government says this is about countering false or misleading information online—so-called “disinformation.” But the Carney platform took it further, pledging to “fully equip” the CBC to combat disinformation so Canadians “have a news source
they know they can trust.”

That raises troubling questions. Will the CBC become an official state fact-checker? Who decides what qualifies as “disinformation”? This isn’t about journalism anymore—it’s about control.

Meanwhile, accountability is nonexistent. Despite years of public backlash over lavish executive compensation, the CBC hasn’t cleaned up its act. Former CEO Catherine Tait earned nearly half a million dollars annually. Her successor, Marie Philippe Bouchard, will rake in up to $562,700. Bonuses were scrapped after criticism—but base salaries were quietly hiked instead. Canadians struggling with inflation and rising costs are footing the bill for bloated executive pay at a broadcaster few of them even watch.

The CBC’s flagship English-language prime-time news show draws just 1.8 per cent of available viewers. That means more than 98 per cent of TV-viewing Canadians are tuning out. The public isn’t buying what the CBC is selling—but they’re being forced to pay for it anyway.

Government-funded journalism is a conflict of interest by design. The CBC is expensive, unpopular, and unaccountable. It doesn’t need more money. It needs to stand on its own—or not at all.

Kris Sims is the Alberta Director for the Canadian Taxpayers Federation

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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