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The debt silver bullet? Ending corporate welfare

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From the Canadian Taxpayers Federation

By Jay Goldberg

Canadians are worried about government debt and axing corporate welfare is the closest thing to a silver bullet politicians have to solve the problem.

Canada’s politicians spent $89 billion handing out taxpayer cash to corporations in 2021, the last year for which figures are available, according to the Fraser Institute.

To get a handle on swelling government debt at both the federal and provincial levels, it’s time to put corporate welfare on the chopping block.

And those who think taxpayers don’t care about government debt are sorely mistaken.

A recent Leger poll shows 81 per cent of Ontarians are concerned about the debt dive the province has taken over the past decade.

No doubt Canadian taxpayers are just as alarmed about the doubling of Canada’s federal debt during Prime Minister Justin Trudeau’s nine years running Parliament Hill.

When an individual has a debt problem, the first step is to stop digging. The same is true of governments.

This year, just two of Canada’s 10 provinces are running balanced budgets. And Ottawa is nowhere close.

But look at the corporate welfare numbers and a path to solving Canada’s run-away government debt problem begins to emerge.

Take Ontario.

Ontario’s politicians have racked up $145 billion in new debt over the past decade, including more than $80 billion over the past six years under Premier Doug Ford.

Thanks to years of mismanagement, Ontario taxpayers will spend $13.9 billion on debt interest payments this year. That’s more than the province spends on post-secondary education.

And this year’s deficit is a whopping $9.8 billion.

Ontarians are concerned. And rightly so.

But take a quick gander at the Fraser Institute’s report and a path toward balance becomes clear.

The Ford government spent $22.1 billion in taxpayer handouts to corporations in 2021.

If this year’s handouts are even half of what they were in 2021, the Ford government could wipe out its deficit and produce a surplus by eliminating corporate welfare alone.

It’s unfair to place more and more debt at the feet of our children and grandchildren to give wealthy companies handouts.

It’s also unfair to pick winners and losers. The Ford government is taxing hardworking Ontarians, as well as small businesses, and handing billions over to wealthy corporations that don’t need taxpayer help.

Over the past few years, the Ford government has teamed up with the Trudeau Liberals to give billions to wealthy companies like HondaVolkswagen, the Ford Motor CompanyStellantis, and many others.

Each year, Ottawa and Queen’s Park ran big deficits while handing out taxpayer cash to wealthy companies like candy. In many cases, taxpayers are paying millions of dollars for every job created.

Corporate welfare is fueling government debt. And it’s time for it to stop.

Not only is corporate welfare insanely costly, but it simply doesn’t work.

Between 2011 and 2021, the Ontario government spent $100 billion on corporate welfare. Yet inflation-adjusted economic growth in Ontario was below one per cent, on average, during that decade.

If handing out billions to create jobs and grow the economy worked, surely, we’d have the evidence by now.

Queen’s Park isn’t the only place where the budget could be turned around if corporate welfare were a thing of the past.

The Trudeau government also spent $47 billion on corporate welfare in 2021, which roughly equates to its budget deficit this year.

If 2024 corporate welfare numbers are in line with 2021, the Trudeau government could balance its budget in one fell swoop.

Taxpayers are rightly concerned about growing government debt across the country. Ending handouts to wealthy companies is an obvious solution to the debt binge.

After all, you cannot borrow and subsidize your way to prosperity.

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Alberta

Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Business

Why it’s time to repeal the oil tanker ban on B.C.’s north coast

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The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority

From the Canadian Energy Centre

By Will Gibson

Moratorium does little to improve marine safety while sending the wrong message to energy investors

In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”

Six years later, her opinion hasn’t changed.

“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.

The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.

Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.

“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.

Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.

She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.

“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.

“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”

The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.

“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.

“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.

“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”

The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.

Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.

“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.

“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”

Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.

“Sentiment has changed and evolved in the past six years,” he said.

“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”

The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.

“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.

He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.

This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.

“Industry has come leaps and bounds in terms of working with First Nations,” he said.

“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”

Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.

“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.

“Repealing C-48 would be a sign of that happening.”

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