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REACTION – Electric vehicles: One measure too many

Montreal, December 19, 2023 – The numerous support measures for the electric vehicle industry adopted by the Trudeau government go too far, according to a Montreal Economic Institute researcher.

“Ottawa already spends billions of dollars to subsidize the production of electric vehicles, and hundreds of millions to subsidize their purchase,” says Krystle Wittevrongel, senior policy analyst at the MEI. “And today, it’s just piling more on by legislating against their main alternative.

“At what point will Ottawa start to say no to requests from the electric vehicle industry and its lobbyists?”

The mega-subsidies given to the Northvolt, Stellantis, and Volkswagen battery plants will cost Canadian taxpayers $43.6 billion by 2033, estimates the Parliamentary Budget Director.

Last year, the federal purchase subsidy program for zero-emission vehicles cost Canadian taxpayers $269.8 million.

Today at noon, the federal Environment Minister, Steven Guilbeault, announced the Electric Vehicle Availability Standard, imposing minimal sales quotas for zero-emission vehicles. These quotas will reach 100 per cent of sales in 2035, according to the federal government’s announcement.

“The Trudeau government just keeps extending one helping hand after another to the electric vehicle industry,” adds Mrs. Wittevrongel. “At a certain point, we have to wonder if it’s not going a little too far with all this aid.”

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The MEI is an independent public policy think tank with offices in Montreal and Calgary. Through its publications, media appearances, and advisory services to policy-makers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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