Every week, it seems, we get another report revealing the deep thoughtlessness and fiscal recklessness of Ottawa’s electric car and electric-car battery fixation.For example, the Parliamentary Budget Officer recently asked how long it will take for the federal government to see a return on the $28.2 billion of production subsidies to EV battery-makers Stellantis and Volkswagen. The answer — about four times longer than government originally claimed.
In fact, as the PBO notes, of the total “investment package” government modelled in calculating its “payback” date, only 8.6% was directly related to battery production at the Volkswagen plant. More than 90% was based on assumptions about developments outside of the subsidized battery-makers purview or control.
By contract, the PBO’s modelling of the investment cost-recovery focused only on “government revenues generated by cell and module manufacturing, upon which the production subsidies are based.” And unlike the government’s analysis, the PBO analysis starts when production is actually expected to begin at the new battery plants, which is not until sometime next year.
Clearly, the Trudeau government’s EV crusade is textbook bad public policy where the government attempts to pick winners and losers in the economy, in this case dependent on fanciful scenarios of future developments in global markets far outside Canada’s control.
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Source: TheTorontoSun - 🏆 23. / 68 Read more »