The cost of subsidizing new EV battery plants keeps going up.A new report from the Parliamentary Budget Office released on Friday now pegs the total tab to support EV battery manufacturing by Northvolt, Volkswagen and Stellantis to be $43.6 billion over the next 10 years or $5.8 billion higher than the Liberal government’s $37.7 billion announced outlay.Based on projected annual production schedules, it would take 15 years for the government to recoup its $13.2 billion from Volkswagen and 23 years for the $15 billion sunk into Stellantis, PBO said..“Our estimates of the break-even timelines for the production subsidies are based on several optimistic assumptions,” it said.Parliamentary Budget Office report.However, the report notes those are just estimates — total costs haven’t been publicly released.“These announcements have largely been made in isolation and an estimate of the total cost of support has not been publicly provided,” it said.The total announced taxpayer “support” to date includes production subsidies of $32.8 billion and another $4.9 billion in construction costs. Not included are additional 'unannounced' costs associated with manufacturing the batteries themselves.Of those ‘announced’ figures, $26.9 billion — or 62% — will be incurred by the federal government while $16.7 billion will be split between the governments of Ontario and Quebec.Assuming the program is funded with deficit financing — as it surely is — public debt charges for both provincial and federal governments tack another $6.6 billion onto the growing tab, now approaching $50 billion..But that’s not all.The subsidies were meant to lure the companies from locating to the US. But the PBO estimates maintaining equivalency with the Biden administration’s Advanced Manufacturing Production Credit results in about $5.8 billion in foregone tax revenue over the next 10 years.“Our estimates of the break-even timelines for the production subsidies are based on several optimistic assumptions,” it said. “It is certainly possible that the break-even timelines for the production subsidies exceed our estimates.”Including other costs — construction, foregone revenues and debt servicing — “would further extend break even times,” it added..“The PBO report is proof taxpayers shouldn’t trust politicians when they promise the moon and the stars on corporate welfare deals,”CTF Ontario Director Jay Goldberg.Predictably, the Canadian Taxpayers Federation (CTF) was appalled at what it termed an egregious example of “corporate welfare.”Said CTF Ontario Director Jay Goldberg: “Governments have a terrible track record on corporate welfare and there’s a real risk these overruns will soar even higher.”“The PBO report is proof taxpayers shouldn’t trust politicians when they promise the moon and the stars on corporate welfare deals,” Goldberg continued. “Given the awful track record governments have on corporate welfare deals, taxpayers are most likely to break even somewhere between 23 years from now and never.” .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
The cost of subsidizing new EV battery plants keeps going up.A new report from the Parliamentary Budget Office released on Friday now pegs the total tab to support EV battery manufacturing by Northvolt, Volkswagen and Stellantis to be $43.6 billion over the next 10 years or $5.8 billion higher than the Liberal government’s $37.7 billion announced outlay.Based on projected annual production schedules, it would take 15 years for the government to recoup its $13.2 billion from Volkswagen and 23 years for the $15 billion sunk into Stellantis, PBO said..“Our estimates of the break-even timelines for the production subsidies are based on several optimistic assumptions,” it said.Parliamentary Budget Office report.However, the report notes those are just estimates — total costs haven’t been publicly released.“These announcements have largely been made in isolation and an estimate of the total cost of support has not been publicly provided,” it said.The total announced taxpayer “support” to date includes production subsidies of $32.8 billion and another $4.9 billion in construction costs. Not included are additional 'unannounced' costs associated with manufacturing the batteries themselves.Of those ‘announced’ figures, $26.9 billion — or 62% — will be incurred by the federal government while $16.7 billion will be split between the governments of Ontario and Quebec.Assuming the program is funded with deficit financing — as it surely is — public debt charges for both provincial and federal governments tack another $6.6 billion onto the growing tab, now approaching $50 billion..But that’s not all.The subsidies were meant to lure the companies from locating to the US. But the PBO estimates maintaining equivalency with the Biden administration’s Advanced Manufacturing Production Credit results in about $5.8 billion in foregone tax revenue over the next 10 years.“Our estimates of the break-even timelines for the production subsidies are based on several optimistic assumptions,” it said. “It is certainly possible that the break-even timelines for the production subsidies exceed our estimates.”Including other costs — construction, foregone revenues and debt servicing — “would further extend break even times,” it added..“The PBO report is proof taxpayers shouldn’t trust politicians when they promise the moon and the stars on corporate welfare deals,”CTF Ontario Director Jay Goldberg.Predictably, the Canadian Taxpayers Federation (CTF) was appalled at what it termed an egregious example of “corporate welfare.”Said CTF Ontario Director Jay Goldberg: “Governments have a terrible track record on corporate welfare and there’s a real risk these overruns will soar even higher.”“The PBO report is proof taxpayers shouldn’t trust politicians when they promise the moon and the stars on corporate welfare deals,” Goldberg continued. “Given the awful track record governments have on corporate welfare deals, taxpayers are most likely to break even somewhere between 23 years from now and never.” .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.