MPs vote to release Stellantis subsidy agreement — after Liberals fail to block it

Despite billions in taxpayer subsidies, Stellantis shifted Jeep Compass production from Brampton to Illinois last week, cutting 3,000 auto jobs and selling out Canadian workers.

 

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A House of Commons committee has voted to expose the Trudeau government’s confidential $15 billion subsidy deals with Stellantis, details MPs have been demanding for nearly three years.

Conservative MP Rhonda Kirkland asked if the deal ensured Canadian jobs, noting that this was asked for in the previous parliamentary session.

Despite billions in taxpayer subsidies, Stellantis moved Jeep Compass production from Brampton to Belvidere, Illinois, on October 14, gutting 3,000 auto sector jobs in the process. “Autoworkers in Oshawa, Brampton, Windsor, across Ontario and across the country feel like their jobs don’t matter … like they are on the chopping block in order to make some sort of other deal," Kirkland pointed out.

Conservative MP Garnett Genuis moved a motion for all government contracts, MOUs, or agreements since November 4, 2015, concerning automobile manufacturing to be released.

MP Genuis questioned if the government would aid their efforts to obtain the contracts. The committee unanimously voted 8-0 to disclose uncensored documents to MPs for a closed-door review before publication.

Liberal MPs approved the motion for public disclosure of Stellantis documents after failing to block it, according to Blacklock’s. MPs Jenna Sudds and Vince Gasparro argued against public disclosure, with Sudds citing illegality and reputational harm to workers, and Gasparro warning of jeopardized foreign investment and marketplace standing.

Bloc Québécois MP Marie-Hélène Gaudreau, who joined Conservatives in voting to disclose Stellantis contracts, stated, “I think it’s our job.” She emphasized the essential need to care for taxpayers concerned about their economic future and various sectors, adding, “We need to know.”

Canadian EV subsidies are projected to cost taxpayers over $52.5 billion over the next several years, tripling the auto sector's annual production value. 

The Budget Office predicted taxpayers would wait up to 23 years to recover costs, noting break-even timelines could exceed estimates.

From 2007-2019, the federal government spent $76.7 billion on corporate welfare, averaging $5.5 billion annually, according to the Fraser Institute and the 2018 Department of Industry testimony.

The Canadian Taxpayers Federation (CTF) earlier criticized the government's investment in a Volkswagen plant, stating that "Taxpayers can't afford to bankroll everyone and their dog who wants to make batteries," and that "The feds need to draw the line somewhere." 

While neither the Volkswagen nor Stellantis agreements have been made public, a June 14, 2023, PBO report put the Volkswagen subsidy costs at more than $16.3 billion — $2.4 billion more than advertised that March.

Innovation Minister François-Philippe Champagne defended the corporate subsidies, arguing the report overlooks some economic benefits of the EV battery plants.

Environment and Climate Change Canada admitted in 2023 that the ban on affordable gas vehicles would cost drivers $17.4 billion between 2024 and 2050, disproportionately impacting the working poor.

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