QUESTION PERIOD — Ministry of Environment and Climate Change
Electric Vehicle Battery Manufacturing Subsidies
November 22, 2023
Minister, the Parliamentary Budget Officer released a report last week which estimates that government subsidies to three battery manufacturers — Northvolt, Volkswagen and Stellantis — could reach $43.6 billion. This is $5.8 billion more than what your government announced. It’s also important to note that these projects haven’t really gotten started yet.
The Parliamentary Budget Officer says that about 60% of this cost will be incurred by the federal government. Minister, has your government now revised its fiscal projections to include the Parliamentary Budget Officer’s estimate? If not, can you provide the reason?
The work of the Parliamentary Budget Officer is obviously very important, and our government is in the process of analyzing last week’s report. Obviously, the appropriate minister, which is the Minister of Innovation, Science and Industry, will respond in the near future.
Thank you. Minister, I find your government very secretive when it comes to providing taxpayers and parliamentarians with information about government spending. I’ve raised this matter with Senator Gold on several occasions. There have been many questions raised about the cost of these agreements and their benefits, including jobs. It is simply not possible to find this information in the government’s financial and other documents.
Since your government says it supports accountability and transparency, will you release the contracts so we can decide for ourselves whether we are receiving good value for such significant amounts of money?
There are two things I’d like to say, senator. First, you might have seen data released last week that shows that Canada now ranks third in the world for foreign direct investment. I think this is a clear signal from the international investment community that they like what they’re seeing in Canada in terms of the framework we’ve put in place to attract investors to help us build the economy and jobs in Canada in the 21st century.
In terms of the contract, I would be happy to provide your office with an answer. I will consult my colleague, the Minister of Innovation, Science and Industry, to provide a specific answer to your question. Thank you.
