Wednesday, October 5, 2022
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Fed’s refuse to answer questions about $120 million tax payer money loaned to billion-dollar developer firm.

When it comes to responsibility and accountability, the federal government seems that it doesn’t have to answer to tax payers.

As reported on July 26, 2021 the government is refusing to answer any questions about their comments of a housing loan to one of Canadas wealthiest developers.

“This project will help over 300 local families find rental housing units,” Ahmed Hussen, the minister responsible for housing, told reporters. “That’s why the government is taking action to increase the supply of rental housing through projects like the one we’re announcing.”

Back on july 19, 2021 was the offical announcement the $120 million loan to build 302 apartments in Brampton, Ontario. The developer is Choice Properties Real Estate Investment Trust, whose CEO was paid $3 million in salary and benefits last year, according to corporate filings

The reason Canadians are asking question and demanding answers is because Choice Properties is owned by George Weston Ltd. Their 2020 net income was $451 million.

A federal program, the Rental Construction Financing Initiative approved the loan that extended ten-year, easy-term credit “for certainty during the riskiest periods of development,” according to Canada Mortgage and Housing Corporation (CMHC). Both CMHC and the Department of Social Development declined to respond to questions.

George Weston Ltd. reported net earnings of $1.6 billion last year. It also operated the Loblaw Companies Ltd. supermarket chain that in 2019 received a $12 million federal grant also known as corporate welfare to install new freezers.

“Canadians might wonder why the Liberals handed over $12 million to Loblaw’s, one of Canada’s richest companies,” said Conservative MP Mark Strahl.

Loblaw use the Low Carbon Economy Fund to apply for corporate welfare and subsidies at the expense of Canadians and other companies.

Canada use to have another program called “ecoEnergy program” similarly paid grants to large corporations in the name of energy efficiency. Sobeys Inc. received $1.48 million in ecoEnergy grants in the period from 2006 to 2013. Loblaw Companies received $801,000. A total of $207,968 was paid to McDonald’s Restaurants and $153,960 to Sears Canada.

“These companies are flush,” Liberal MP John McKay said in an interview at the time. “Companies, given their financial statements, don’t seem to be worthy recipients of taxpayers’ largesse.”

How long do Canadian tax payers have to put up with the unsustainable spending and corporate welfare?

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