Taxpayers Federation Challenges Industry Minister David Emerson to Provide Bombardier's Exact Re-Payment Figures

Bombardier subsidies


Ottawa - The Canadian Taxpayers Federation (CTF) reacted today to reports the federal government remains committed to provide additional financial aid to Bombardier to help develop a new jet despite the company's dire financial situation and sudden removal of chief executive officer Paul Tellier. The CTF is demanding Industry Minister David Emerson provide Bombardier's exact re-payment schedule of all grants and "loan" contributions provided by Ottawa - courtesy of Canadian taxpayers - following statements made by the minister.

"Minister Emerson said yesterday on Parliament Hill that the taxpayers of Canada 'haven't lost any money on Bombardier,'" said CTF federal director John Williamson. "This is the biggest load of bull I have heard from a federal cabinet minister in many, many years. Mr. Emerson should get his nose out of the Bombardier briefing book, come clean with taxpayers and end the corporate subsidies to this company."

"According to our records, over the past 22 years, Bombardier and its subsidiaries have received $772-million in grants and repayable loans," noted Williamson. "Successive industry ministers have touted Bombardier's so-called repayment record, yet none has produced an actual repayment number to confirm their statements. Mr. Emerson must end this charade by making Bombardier's repayment figures public. Ottawa should let the numbers speak for themselves."

Bombardier has been the largest beneficiary of the federal government's corporate welfare programs. According to calculations made by the CTF, using information gathered under Ottawa's Access to Information and Privacy law, Bombardier and its subsidiaries have received $36-million in grants and $736-million in repayable contributions since 1982. These amounts do not include any loans or guarantees provided through Export Development Canada, which total billions of dollars, as federal access laws do not allow citizens to know the extent of Ottawa's support of Big Business through this Crown corporation. The list of direct contributions to Bombardier and its subsidiaries is available at: http://www.taxpayer.com/pdf/Bombardier.pdf

"How can Ottawa justify throwing another half-billion dollars at a new Bombardier jet when it cannot account for past loans This spending should be grounded until taxpayers have all the facts," said Williamson.