subsidy

Wednesday February 10, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday February 10, 2021

Rogers, Bell and Telus collected more than $240 million from Canada’s wage-subsidy program — and Bell and Telus raised shareholder payouts

June 18, 2020

Canada’s big three telecom companies have collectively received more than $240 million from the federal government’s wage subsidy program while continuing to pay out billions of dollars in dividends to shareholders.

According to the most recent filings in provincial lobbyist registries, Bell has received $122.9 million, Rogers $82.3 million and Telus $38.6 million in support payments as part of the Canada Emergency Wage Subsidy (CEWS).

Since the beginning of the pandemic, the three companies have continued to pay out regular dividends to shareholders; Bell and Telus have announced increases to their annual payouts. Both Bell and Rogers have also laid off workers at their hard-hit media divisions. 

Other large businesses have also paid out dividends while receiving CEWS support, including numerous companies in the oilpatch, auto-parts maker Linamar and furniture retailer Leon’s. (Torstar, the parent company of the Toronto Star, is among the recipients of the federal wage subsidy.)

April 2, 2020

Economists say the relief payments to large, profitable companies with ample access to credit illustrate problems in the way CEWS is designed, in these cases leading to benefits for shareholders but not necessarily targeted support for workers whose jobs are at risk. One Liberal MP is calling on the government to claw back payments from companies that have paid dividends.

“CEWS is sold as a wage subsidy, but it’s really a business expense subsidy,” said Amin Mawani, associate professor of taxation at the Schulich School of Business at York University.

Mawani has argued that Canada should consider a model where the government pays subsidies only in respect of employees who miss hours of work because of the pandemic. Under the current rules of the Canadian program, businesses with any level of revenue decline are eligible for at least some level of subsidy with respect to all their Canadian employees. 

He said it is understandable that businesses would continue to pay dividends, which he described as a “cost of doing business” akin to paying interest to the bank on loans, but he questioned the need to hike payouts this year. “I don’t think shareholders were necessarily expecting an increase during the pandemic.” (Niagara Falls Review) 

 

Thursday October 13, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday October 13, 2016 Federal Liberals signal desire for Ômeaningful investmentÕ in Bombardier The federal government investing in aerospace giant Bombardier is not a matter of if but how, Innovation Minister Navdeep Bains said Tuesday. ÒWe want to be a partner,Ó Bains said after announcing up to $54 million in funds for a Bombardier-led aerospace-research consortium. ÒWe want to find a solution and we want to continue to make meaningful investments. We want to be a partner, we are at the table, we want to find a solution. ItÕs not a matter of if but how we want to make the investment.Ó His comments are the clearest the Liberals have been to date regarding whether theyÕll accept the Montreal-based companyÕs request for $1 billion in federal funding. In early September, Bombardier (TSX:BBD.B) received the second of two instalments of US$500 million from the Quebec government. Quebec now owns 49.5 per cent of a new limited partnership of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed. Bains wouldnÕt give details as to exactly how much Ottawa will invest or where the money will be targeted. He did reiterate the conditions his government will place on any future funding. Ottawa wants Bombardier to keep its head office and the jobs connected to its research and development activities in the country, he said. (Source: Financial Post) http://business.financialpost.com/news/transportation/federal-liberals-signal-desire-to-invest-in-bombardier-but-dont-indicate-dollar-amount Canada, Ottawa, Parliament, Bombardier, aerospace, subsidy, corporate, welfare, Quebec, pipeline, Justin Trudeau, Navdeep Bains, philippe couillard

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday October 13, 2016

Federal Liberals signal desire for ‘meaningful investment’ in Bombardier

The federal government investing in aerospace giant Bombardier is not a matter of if but how, Innovation Minister Navdeep Bains said Tuesday.

“We want to be a partner,” Bains said after announcing up to $54 million in funds for a Bombardier-led aerospace-research consortium.

“We want to find a solution and we want to continue to make meaningful investments. We want to be a partner, we are at the table, we want to find a solution. It’s not a matter of if but how we want to make the investment.”

His comments are the clearest the Liberals have been to date regarding whether they’ll accept the Montreal-based company’s request for $1 billion in federal funding.

In early September, Bombardier (TSX:BBD.B) received the second of two instalments of US$500 million from the Quebec government.

Quebec now owns 49.5 per cent of a new limited partnership of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed.

Bains wouldn’t give details as to exactly how much Ottawa will invest or where the money will be targeted.

He did reiterate the conditions his government will place on any future funding.

Ottawa wants Bombardier to keep its head office and the jobs connected to its research and development activities in the country, he said. (Source: Financial Post)

Published in the Leader-Post (Regina, Sask)

Published in the Leader-Post (Regina, Sask)

Thursday September 15, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday September 15, 2016 Canada Post needs 'transformational changes' to be viable, task force finds A task force studying the national mail carrier says Canada Post isn't financially self-sustainable under its current structure. And it says transformational changes are needed to prevent taxpayers from having to prop it up. The four-member panel issued a discussion paper Monday that suggests a number of ways the letter carrier can turn its business model around, including distributing legalized marijuana and cutting back on door-to-door delivery in favour of community mailboxes Ñ an initiative launched by the Conservative government in 2013 but scrapped by the current Liberal government. The report also suggested charging fees to those who opt to have mail delivered directly to their door.ÊÊ A House of Commons committee has scheduled cross-country hearings this month to hear Canadians' views of what they want from the postal service. The ideas contained in the discussion paper are meant as a launching pad for those public consultations. The task force says a significant decline in letter mail deliveries is sapping revenues at Canada Post, a loss that has yet to be made up from its growing parcel and ad mail businesses. Canada Post applauded the task force findings, saying it reaffirms the challenges faced by the Crown corporation. (Source: CBC News) http://www.cbc.ca/news/business/canada-post-task-force-report-1.3759321 Canada, Parliament, dinosaur, Canada post, relic, debt, propped up, subsidy, debt

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday September 15, 2016

Canada Post needs ‘transformational changes’ to be viable, task force finds

A task force studying the national mail carrier says Canada Post isn’t financially self-sustainable under its current structure.

Thursday, December 12, 2013And it says transformational changes are needed to prevent taxpayers from having to prop it up.

The four-member panel issued a discussion paper Monday that suggests a number of ways the letter carrier can turn its business model around, including distributing legalized marijuana and cutting back on door-to-door delivery in favour of community mailboxes — an initiative launched by the Conservative government in 2013 but scrapped by the current Liberal government.

The report also suggested charging fees to those who opt to have mail delivered directly to their door.

A House of Commons committee has scheduled cross-country hearings this month to hear Canadians’ views of what they want from the postal service. The ideas contained in the discussion paper are meant as a launching pad for those public consultations.

The task force says a significant decline in letter mail deliveries is sapping revenues at Canada Post, a loss that has yet to be made up from its growing parcel and ad mail businesses.

Canada Post applauded the task force findings, saying it reaffirms the challenges faced by the Crown corporation. (Source: CBC News)

 

Thursday May 26, 2011

By Graeme MacKay, The Hamilton Spectator - Thursday May 26, 2011 Budget will phase out political subsidies The government will table its post-election budget on June 6, a document that will implement the Conservatives' promise to phase out political subsidies. Finance Minister Jim Flaherty made the announcement Wednesday morning on Parliament Hill. "On Monday, June 6 our government will reintroduce the next phase of Canada's economic action plan, a low tax plan for jobs and growth," Flaherty said. The document will include several updates to reflect election promises, but Flaherty said the budget will be almost identical to the document that was unveiled prior to the election. The original budget died when the election writ was dropped, and never went to a vote in the House of Commons. Among the changes: the budget will make good on a Conservative election promise to end political subsidies. "We will include phasing out the per-vote political party subsidy as according to what was set out in the platform...which was a phasing out," Flaherty said when asked by CTV's Ottawa Bureau Chief Robert Fife. The budget will also set aside $2.2 billion to fund an agreement the government hopes to reach with Quebec to create a Harmonized Sales Tax. With the Conservatives' new majority government status, there is little doubt the budget will pass. New Democrat Leader Jack Layton lashed out over the elimination of the political party subsidies, suggesting the move was damaging to democracy (Source: CTV News) http://www.ctvnews.ca/budget-due-june-6-will-phase-out-political-subsidies-1.648866 Canada, Stephen Harper, Elizabeth May, Jack Layton, party, subsidy, political, money, tree, majority, chainsaw

By Graeme MacKay, The Hamilton Spectator – Thursday May 26, 2011

Budget will phase out political subsidies

The government will table its post-election budget on June 6, a document that will implement the Conservatives’ promise to phase out political subsidies.

Finance Minister Jim Flaherty made the announcement Wednesday morning on Parliament Hill.

“On Monday, June 6 our government will reintroduce the next phase of Canada’s economic action plan, a low tax plan for jobs and growth,” Flaherty said.

The document will include several updates to reflect election promises, but Flaherty said the budget will be almost identical to the document that was unveiled prior to the election. The original budget died when the election writ was dropped, and never went to a vote in the House of Commons.

Among the changes: the budget will make good on a Conservative election promise to end political subsidies.

“We will include phasing out the per-vote political party subsidy as according to what was set out in the platform…which was a phasing out,” Flaherty said when asked by CTV’s Ottawa Bureau Chief Robert Fife.

The budget will also set aside $2.2 billion to fund an agreement the government hopes to reach with Quebec to create a Harmonized Sales Tax.

With the Conservatives’ new majority government status, there is little doubt the budget will pass.

New Democrat Leader Jack Layton lashed out over the elimination of the political party subsidies, suggesting the move was damaging to democracy (Source: CTV News) http://www.ctvnews.ca/budget-due-june-6-will-phase-out-political-subsidies-1.648866