The Senate Finance committee found out that taxpayers will only know about the details of a $13 billion subsidy given to Volkswagen Canada after the money has been spent.. Raining moneyRaining money .Managers in the department of Industry did not want to talk about the subsidy, which was given to a new battery factory in St. Thomas, ON..“The agreement is not public,” testified Jean-Philippe Lapointe, director general of the Industry department..“It is a confidential agreement between the Government of Canada and the company, but through proactive disclosure at one point in time, we are able to disclose expenditures that have been covered under contribution agreements.”.“We monitor the spending of the recipients,” said Lapointe..“When we see the expenditures aren’t happening — you see, companies have to claim for their expenditures and then they are reimbursed.”.“Within a specific project like the one you have mentioned, we obviously have a contribution agreement,” said Lapointe..“There are conditions regarding the timeline of the project, the period of time for claiming expenditures and the period of time for reimbursing those expenditures.”.“So you have a timeline?” asked Sen. Éric Forest (QC). .“Is that public? Can we have access to that?” .The department did not answer..“This is a major investment,” said Forest..“We’re talking about funding to produce batteries for Volkswagen.” .According to Blacklock’s Reporter, the cabinet has estimated federal subsidies for the plant at $13.2 billion to $13.7 billion, with an additional $500 million from the Government of Ontario..Senate committee members questioned the financing during a review of Main Estimates, a key budget document..“I want to ask about the $13 billion for the Volkswagen deal,” said Sen. Elizabeth Marshall (NL). .“Is any of that money in your Main Estimates?”.“Unfortunately, I am not in a position to answer that question,” replied James Burns, senior policy director with the department of Industry..“You don’t have any information on it at all?” asked Marshall..“At this point in time, I don’t have any information on that,” replied Burns..“Well, we’re here on Main Estimates,” said Marshall..Burns did not reply..“I am just trying to get an impact of what that $13 billion is going to be on the government’s deficit,” said Marshall..“If the budget projects over five years, I would think the money is in there. But if it’s not, it is going to have a big impact on the deficit and that’s what I am trying to find out.”.Cabinet claimed taxpayers will recoup the cost of subsidies within five years of the factory’s completion in 2027..Authorities did not explain how the money would be recovered..The Commons Industry committee on May 10 is to see an uncensored copy of the Volkswagen contract under terms of a motion proposed by Conservative MP Rick Perkins (South Shore-St. Margarets, NS). .MPs are forbidden from photographing the document or taking notes..READ MORE Trudeau gov’t keeps $13 billion Volkswagen subsidy a secret, MPs closed-door meeting only.“My suspicion is there are no job commitments,” Perkins said on Tuesday in an interview..Cabinet has claimed the subsidies would create 3,000 factory jobs..“These plants are highly automated,” said Perkins..“The claim of 3,000 jobs, I think is a padded number.”.“We are spending $14 billion to create what?” said Perkins..“We will likely pay to match a $7,500 USD subsidy per battery that is then shipped to the United States since Volkswagen has no assembly plants in Canada, and they send the finished cars back and sell them at retail prices. ”
The Senate Finance committee found out that taxpayers will only know about the details of a $13 billion subsidy given to Volkswagen Canada after the money has been spent.. Raining moneyRaining money .Managers in the department of Industry did not want to talk about the subsidy, which was given to a new battery factory in St. Thomas, ON..“The agreement is not public,” testified Jean-Philippe Lapointe, director general of the Industry department..“It is a confidential agreement between the Government of Canada and the company, but through proactive disclosure at one point in time, we are able to disclose expenditures that have been covered under contribution agreements.”.“We monitor the spending of the recipients,” said Lapointe..“When we see the expenditures aren’t happening — you see, companies have to claim for their expenditures and then they are reimbursed.”.“Within a specific project like the one you have mentioned, we obviously have a contribution agreement,” said Lapointe..“There are conditions regarding the timeline of the project, the period of time for claiming expenditures and the period of time for reimbursing those expenditures.”.“So you have a timeline?” asked Sen. Éric Forest (QC). .“Is that public? Can we have access to that?” .The department did not answer..“This is a major investment,” said Forest..“We’re talking about funding to produce batteries for Volkswagen.” .According to Blacklock’s Reporter, the cabinet has estimated federal subsidies for the plant at $13.2 billion to $13.7 billion, with an additional $500 million from the Government of Ontario..Senate committee members questioned the financing during a review of Main Estimates, a key budget document..“I want to ask about the $13 billion for the Volkswagen deal,” said Sen. Elizabeth Marshall (NL). .“Is any of that money in your Main Estimates?”.“Unfortunately, I am not in a position to answer that question,” replied James Burns, senior policy director with the department of Industry..“You don’t have any information on it at all?” asked Marshall..“At this point in time, I don’t have any information on that,” replied Burns..“Well, we’re here on Main Estimates,” said Marshall..Burns did not reply..“I am just trying to get an impact of what that $13 billion is going to be on the government’s deficit,” said Marshall..“If the budget projects over five years, I would think the money is in there. But if it’s not, it is going to have a big impact on the deficit and that’s what I am trying to find out.”.Cabinet claimed taxpayers will recoup the cost of subsidies within five years of the factory’s completion in 2027..Authorities did not explain how the money would be recovered..The Commons Industry committee on May 10 is to see an uncensored copy of the Volkswagen contract under terms of a motion proposed by Conservative MP Rick Perkins (South Shore-St. Margarets, NS). .MPs are forbidden from photographing the document or taking notes..READ MORE Trudeau gov’t keeps $13 billion Volkswagen subsidy a secret, MPs closed-door meeting only.“My suspicion is there are no job commitments,” Perkins said on Tuesday in an interview..Cabinet has claimed the subsidies would create 3,000 factory jobs..“These plants are highly automated,” said Perkins..“The claim of 3,000 jobs, I think is a padded number.”.“We are spending $14 billion to create what?” said Perkins..“We will likely pay to match a $7,500 USD subsidy per battery that is then shipped to the United States since Volkswagen has no assembly plants in Canada, and they send the finished cars back and sell them at retail prices. ”
