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subsidies

Wednesday April 3, 2024

April 3, 2024 by Graeme MacKay

Fossil fuel industries receive $5 billion annually in federal subsidies, while funds circulate through taxes and rebates in a carbon pricing scheme—a stark yet realistic facet of the green transition.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 3, 2024

Addressing the Discrepancy: Climate Action vs. Fossil Fuel Subsidies

Both Bonnie Crombie and Pierre Poilievre's opposition to the carbon tax raises questions about their alternative plans for addressing climate change, leaving voters to wonder: if not a carbon tax, then what specific measures do they propose to tackle this urgent issue, if any at all?

March 22, 2024

In the ongoing battle against climate change, recent events have brought to light a glaring discrepancy that demands our urgent attention. While efforts to lower carbon emissions and transition towards cleaner energy sources are underway, billions of taxpayer dollars continue to flow into subsidizing industries responsible for exacerbating the climate crisis. This incongruity not only undermines the integrity of our climate action efforts but also highlights the urgent need for a fundamental realignment of priorities.

News: Canada is still backing the fossil fuel industry with billions, report finds

Canada's Environment Minister, Steven Guilbeault, faces internal conflict within the Liberal government due to a sudden policy reversal on climate change, particularly the exemption for home-heating oil in Atlantic Canada, sparking criticism and raising concerns about the coherence and consistency of the government's climate policies.

November 4, 2023

The backdrop against which this discrepancy unfolds is crucial to understanding its significance. With the recent rise in the carbon tax, which has prompted outcry and “Axe the Tax” rhetoric from various quarters, tensions surrounding climate policy have reached a boiling point. Yet, amidst the clamour over carbon pricing, a more insidious issue lurks in the shadows: the pervasive subsidization of fossil fuel industries.

November 4, 2021

The rise in the carbon tax has reignited debates over the role of government intervention in addressing climate change. While some argue that carbon pricing is an essential tool for reducing emissions and incentivizing greener practices, others decry it as a burdensome tax on hardworking Canadians. The “Axe the Tax” movement, fuelled by political rhetoric and industry lobbying, has gained traction among those sceptical of government intervention in the economy.

February 6, 2020

However, lost in the noise of this political theatre is the stark reality of fossil fuel subsidies. Despite the rhetoric surrounding carbon pricing, billions of taxpayer dollars continue to prop up industries that contribute to carbon emissions and environmental degradation. This contradiction raises profound questions about the sincerity of our commitment to combating climate change and the efficacy of our policies in achieving that goal.

April 11, 2018

It’s time for a reckoning. As we grapple with the complexities of climate policy, we must confront the uncomfortable truth that subsidizing fossil fuel industries undermines the very objectives we seek to achieve. While carbon pricing may be a necessary step towards reducing emissions, it is only one piece of the puzzle. Real progress requires a holistic approach that addresses the root causes of climate change and fosters a transition towards sustainable, renewable energy sources.

News: Fossil fuel subsidies cost Canadians a lot more money than the carbon tax

December 15, 2015

This means reevaluating our priorities and reallocating resources away from fossil fuel subsidies towards initiatives that promote renewable energy, sustainable infrastructure, and environmental conservation. It means holding industries accountable for their environmental impact and investing in technologies that pave the way for a greener future. And it means challenging the “Axe the Tax” rhetoric that seeks to undermine meaningful climate action in favour of short-term economic interests.

In the face of growing climate uncertainty, we cannot afford to remain complacent. The time for action is now. By confronting the discrepancy between climate action and fossil fuel subsidies head-on, we can forge a path towards a more sustainable and equitable future for all. Let us not be swayed by political rhetoric or industry interests but instead stand firm in our commitment to safeguarding the planet for generations to come. (AI)

Posted in: Canada Tagged: 2024-07, affordability, Canada, carbon rebate, carbon tax, climate change, cost of living, fossil fuels, green transition, Justin Trudeau, natural gas, oil, subsidies

Thursday May 18, 2023

May 18, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 18, 2023

Doug Ford’s Green Energy Hypocrisy: Subsidies, Subsidies Everywhere

November 22, 2019

In the tangled web of political hypocrisy, few examples are as glaring as the dispute over subsidizing foreign Electric Vehicle (EV) battery corporations in Ontario. Premier Doug Ford finds himself entangled in a battle with the federal government, demanding more funding to keep the Stellantis plant in Windsor. However, it’s essential to remember that Ford came to power on the promise of ending the Wynne/McGuinty Green Energy Deal. The irony is palpable.

The current showdown revolves around the Stellantis battery factory project, a significant endeavor that could shape Canada’s green energy economy. Stellantis, parent company of Chrysler, Jeep, and Fiat, halted construction on the $5-billion project, insisting that the federal government match the subsidies offered by the United States, similar to those given to Volkswagen in St. Thomas. Premier Ford argues that Ontario has already paid its fair share and it’s now Ottawa’s turn to sweeten the pot.

Deputy Prime Minister Chrystia Freeland, on the other hand, asserts that both Stellantis and the province should shoulder their fair share of the increased business costs caused by the Biden administration’s Inflation Reduction Act. She highlights the need for provinces benefiting directly from such investments to contribute their share, emphasizing that the federal government’s resources are not infinite.

News: Ford ‘disappointed’ in feds’ handling of rocky Stellantis deal for EV battery plant  

July 11, 2018

What makes this situation particularly galling is the stark contrast between Ford’s stance now and his previous actions regarding green energy initiatives. When Ford assumed office, he wasted no time scrapping green incentive programs, such as the GreenON program, and canceling renewable energy projects, arguing that they were a burden on taxpayers. He touted these decisions as delivering on his campaign promise to dismantle the previous government’s green energy policies.

Yet here we are, witnessing Ford demanding significant subsidies to secure the future of the Stellantis plant, while simultaneously decrying the subsidies provided by the U.S. Inflation Reduction Act. It’s a case of selective opposition to government funding, conveniently forgetting his own assault on green energy just a few years ago.

The sheer scale of the subsidies involved is mind-boggling. The Trudeau government is prepared to spend up to $13 billion to subsidize the operation of the Volkswagen plant over the next decade, with an additional $700 million for construction. These numbers dwarf the $7 billion investment Volkswagen is making in the project. The disparity is alarming, raising concerns about the effectiveness and sustainability of such massive public spending.

October 16, 2020

While the push for a green energy economy is commendable, the question remains: Can we rely on public subsidies alone to secure long-term jobs and sustainable operations? Ford’s track record suggests otherwise. His cancellation of renewable energy projects and disdain for wind turbines underscores a lack of consistency and commitment to the green energy sector.

It’s crucial to hold our elected officials accountable for their actions and inconsistencies. Ford’s plea for more subsidies, despite his previous rejection of green energy initiatives, highlights a worrisome lack of principles. Ontario deserves a leader who genuinely prioritizes green energy, rather than one who opportunistically seeks subsidies while conveniently forgetting his own past decisions.

News: Ontario Premier Doug Ford defends $231-million cost of killing green-energy deals  

December 1, 2018

If Ford truly wants to be a champion of Ontario’s auto sector and green energy, he must recognize the importance of consistent policies and long-term investments. Hypocrisy and cherry-picking which subsidies to support will only lead to an unstable and uncertain future for Ontario’s green energy ambitions.

In the pursuit of a sustainable future, it’s essential to move beyond political theatrics and work towards comprehensive and transparent policies that foster genuine growth and innovation. Ontario deserves a leader who stands firm on their principles, even when the winds of political expediency blow in a different direction. (AI)

 

Posted in: Canada, Ontario Tagged: 2023-09, Auto sector, Canada, Doug Fordt, EV Battery plant, Green Energy, Justin Trudeau, Ontario, Stellantis, subsidies, Volkswagen, welfare, wind turbine

Wednesday May 17, 2023

May 17, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday May 17, 2023

Subsidy Buffet: Stalled Stellantis Project Raises Concerns of Demands from Foreign Corporations

The recent developments surrounding the Stellantis battery plant project in Windsor have sparked growing concerns about the implications of substantial government subsidies. The situation raises the alarm that such generous incentives might encourage other foreign corporations to demand similar treatment. It is akin to patrons at a restaurant, accustomed to table service, suddenly clamoring for unlimited access to an exclusive all-you-can-eat buffet.

April 28, 2023

Stellantis has confirmed that construction has come to a halt at the Windsor EV battery plant site, citing the failure of the Canadian government to fulfill its commitments as the primary reason. The potential scrapping of the project comes on the heels of Volkswagen receiving substantial subsidies totaling a staggering $13 billion to establish their presence in St. Thomas. The news has raised eyebrows, with Ontario Premier Doug Ford expressing his concerns about the situation.

News: Stellantis halts construction at Windsor EV battery plant over federal funding  

November 22, 2019

Premier Ford rightly points out that the federal government needs to demonstrate the same level of support they offered Volkswagen. He emphasizes the importance of the federal government stepping up and fulfilling its obligations, just as they have done previously. However, it is crucial to note that the federal government’s resources are not unlimited, as mentioned by Finance Minister Chrystia Freeland. This situation calls for a delicate balance between supporting vital investments and ensuring responsible allocation of resources.

The potential ramifications of the stalled Stellantis project extend beyond government commitments. Thousands of jobs hang in the balance, making it imperative for all parties involved to find a constructive resolution. The City of Windsor, committed to leveraging available resources, is actively seeking a solution that will benefit the community. Negotiations are ongoing, and it is essential for all stakeholders to work collaboratively towards a mutually beneficial agreement.

October 16, 2020

While the situation is concerning, Windsor-Tecumseh MP Irek Kusmierczyk provides reassurance that construction will continue, emphasizing the unwavering commitment to the project. Prime Minister Justin Trudeau and Minister of Innovation, François-Philippe Champagne, are actively engaged in discussions to secure a favorable outcome. It is encouraging to see the recognition of this investment as a generational opportunity for the auto sector and Canada as a whole.

However, the episode underscores the need for a comprehensive national auto policy. Without such a policy framework, it becomes challenging to navigate negotiations and ensure consistency in government support. Windsor West MP Brian Masse rightly points out the absence of a national auto policy as a contributing factor to the current concerns and uncertainties.

Opinion: Does a country have ‘no choice’ but to subsidize its auto industry?  

May 4, 2022

Moving forward, it is imperative for all levels of government to uphold their commitments and work collaboratively to establish a clear and consistent framework for supporting the auto industry. The Canadian economy relies heavily on this sector, and it is crucial to secure its future while ensuring responsible use of taxpayer funds.

The situation surrounding the Stellantis battery plant in Windsor serves as a wake-up call for the potential consequences of substantial government subsidies. While the commitment to supporting key investments is commendable, it is equally important to strike a balance between providing incentives and safeguarding the responsible use of public resources. A robust national auto policy can provide the necessary framework to address these challenges and ensure long-term success for the industry and the Canadian economy. (AI)

From sketch to finish, see the current way Graeme completes an editorial cartoon using an iPencil, the Procreate app, and a couple of cheats on an iPad Pro. If you’re creative, give editorial cartooning a try.

https://mackaycartoons.net/wp-content/uploads/2023/05/2023-0517-NAT.mp4

 

Posted in: Canada Tagged: 2023-09, Auto sector, Buffet, Canada, EV Battery plant, Green Energy, Justin Trudeau, Ontario, Printed in the Toronto Star, procreate, restaurant, Stellantis, subsidies, Volkswagen, welfare

Friday October 9, 2015

October 8, 2015 by Graeme MacKay
By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Friday October 9, 2015 Decision on U.S. Steel Canada benefit, tax cuts Friday The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations. Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week. Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions. A lawyer for the steelmaker reiterated the company's position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement. Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said. He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere Ñ making the pension benefit hit unnecessary Ñ and that the company's grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations. United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said "a near-term cessation of operations will be necessary" if the company plan isn't accepted. (Source: Hamilton Spectator) http://www.thespec.com/news-story/5951456-decision-on-u-s-steel-canada-benefit-tax-cuts-friday/ Hamilton, U.S. Steel, Trade, Foreign Investment, subsidies, bailout, St

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Friday October 9, 2015

Decision on U.S. Steel Canada benefit, tax cuts Friday

The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday September 26, 2015 Dispute over U.S. Steel Canada restructuring sent to mediation The dispute between United States Steel Corp. and its stakeholders over the future of U.S. Steel Canada Inc., has been sent to mediation by the Ontario Superior Court judge overseeing the Canadian unitÕs restructuring. The issues in dispute between the United Steelworkers union, the Ontario government, salaried active and retired employees, and a former president of its predecessor company Stelco Inc. on one side and U.S. Steel on the other, will be examined by former Ontario Superior Court associate chief justice Douglas Cunningham in a three-day session scheduled to begin next week. ÒThe mediation shall address the feasibility of a comprehensive agreement among the parties,Ó Justice Herman Wilton-Siegel said in an order. The mediation will also address a business plan for the Canadian unit, its potential sale, the shift of production of high value-added steel to the United States and U.S. SteelÕs claim of more than $2-billion against the Canadian unit. U.S. Steel Canada has been operating under the CompaniesÕ Creditors Arrangement Act since last September, but the announcement by its parent company that it plans to shift production of about 180,000 tons of high-quality steel annually out of its Canadian operations has sparked an imminent crisis in the restructuring. Shifting production would diminish the value of the Canadian assets in the eyes of potential buyers, steel industry sources said. U.S. Steel has started a sales process that has led to a bid by one competitor Ð Essar Steel Algoma Inc., which is based in Sault Ste. Marie, Ont., but has the backing of a deep-pocketed parent company in India. Potential buyers also need to wonder whether other steel-making contracts will be shifted out of Canada, leaving the Canadian operations to depend entirely on the spot steel market. Stakeholders have quest

Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week.

Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions.

A lawyer for the steelmaker reiterated the company’s position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday October 10, 2015 Dairy farmers protest upcoming trade deal Dairy farmers parked tractors at the foot of Parliament Hill, walked cows through downtown Ottawa and dumped milk on the pavement Tuesday to protest what they say is a looming trade deal that threatens their way of life. Farmers in Ontario and Quebec fear that the Trans-Pacific Partnership, a massive 12-country trade deal thatÕs said to be near an agreement in principle, could spell the end of the supply management system that keeps their operations profitable. Dozens of tractors clogged Wellington Street in front of the Parliament Buildings, snarling traffic, while some farmers led cows down the street and others splashed milk on the pavement. Negotiations are currently underway on the ambitious trade deal involving Canada and 11 other countries. Sources say an agreement in principle could be announced as early as Friday. Farmers fear the federal government will make concessions on supply management, a system of production limits and import tariffs that shields the dairy market from competition at the hands of foreign producers. The U.S. has been pushing for Canada to loosen its system, but the federal government says the government will protect Canadian interests at the negotiating table. ÒThis government remains absolutely committed to making sure we preserve our system of supply management through trade negotiations,Ó Conservative Leader Stephen Harper said Tuesday. Opposition parties remain concerned about how the system could be affected in TPP talks. The NDPÕs Mathieu Ravignat, who is running for re-election in the Quebec riding of Pontiac, said supply management allows for many small farms to exist in Quebec and across Canada. (Source: National Post) Canada, United States, USA, trade, dairy, farmers, agriculture, Trans Pacific Partnership, TPP, globalization, cow

Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said.

He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere — making the pension benefit hit unnecessary — and that the company’s grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations.

United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said “a near-term cessation of operations will be necessary” if the company plan isn’t accepted. (Source: Hamilton Spectator)



Posted in: Canada, Hamilton Tagged: #elxn42, bailout, election2015, Foreign Investment, Hamilton, pension, Stelco, Stephen Harper, subsidies, Trade, U.S. Steel

Friday November 14, 2008

November 14, 2008 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Friday November 14, 2008

Stability will not be rebuilt in a day

Ahead of the G20 summit, some commentators have wondering whether we are going to see a new Bretton Woods.

It’s ambitious talk. It is not likely that a single summit will deliver anything so grandiose, especially an event hosted by a US president who almost has his coat on, ready to leave the White House for the last time.

But there is clearly a desire among political leaders from these leading economies to do something – or, some might say more cynically, to be seen to do something – about the financial crisis that has suddenly engulfed them all.

And it really has hit them, from different angles and with different degrees of severity. A short global tour of a few G20 countries will give a flavour of why they are so concerned. (Incidentally, it’s 19 countries, plus the European Union.)

The host, the US, is the main source of the financial poison – $1.4 trillion of it, according to the International Monetary Fund.

That is their latest estimate of the likely losses that will eventually be due to bad debts owed by American borrowers. Most of that is down to mortgages and financial securities based on them. (Source: BBC News) 

 

Posted in: Canada, International Tagged: bailouts, Canada, crisis, cyclone, economic, G20, Global, International, life line, rescue, ship, stimulus, storm, subsidies, tornado, USA, world

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