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Economy

Trudeau drops $220,000 on airplane food

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5 minute read

News release from the Canadian Taxpayers Federation

You ever get the feeling the government is running a secret contest to see who can order up the most expensive meals while flying around the world?

Well if they are, we’ve got a new winner: The Right Honourable Prime Minister Justin Trudeau.

After Governor General Mary Simon spent $100,000 on airplane food, Trudeau said, ‘Hold my beef Wellington’ and doubled the taxpayer tab.

All that and more in this week’s Taxpayer Waste Watch.

Bon apétit.

Franco.


Fine China, fancy feasts and a $220,000 taxpayer tab

Welcome to Air Trudeau, where the cares are free, the juice is freshly squeezed, the meals are served on fine China and the bill is sent to you.

Prime Minister Justin Trudeau and his entourage spent $223,000 of your money on airplane food during a six-day tour of the Indo-Pacific region last fall, according to government records dug up by the Canadian Taxpayers Federation.

Eating that much could wear a silver spoon right out.

To put things in perspective: that’s enough money to cover a month of groceries for 165 Canadian families, or buy 13,937 glasses of Bev Oda’s favourite orange juice.

But the bill gets big when this is the grocery list:

Beef brisket and parsley mashed potatoes with truffle oil. Pan fried beef tenderloin with port wine reduction sauce. Braised lamb shanks with steamed broccoli and boiled baby potatoes. Strawberry shortcake and baked cheesecake with pistachio brittle.

Sounds just like the meals you get on Air Canada or WestJet, right?

The records indicate staff were told Trudeau’s meals (and ONLY Trudeau’s meals) must be appropriately garnished and served on China dishware.

Pro-tip for the prime minister:

Have you seen your polling numbers lately? It might be tough to connect with the middle class while chowing down on braised lamb shanks, topped with a sprig of parsley and served on fine China.

Snacks offered onboard Air Trudeau included cured meats and artisanal cheeses, veggies and dip, and fresh papaya, pineapple, dragon fruit, watermelon and berries. And the juice served was noted as being “freshly-squeezed.”

A special request was put in for the plane to be stocked with Trudeau’s favourite brand of premium alkaline spring water, and staff picked up $900 worth of pop and chips before take-off. Trudeau and his entourage also spent $300 on movies and magazines.

Well we already know the prime minister doesn’t read his briefing notes, so it’s good he had the latest editions of the Jacobin and Mad Magazine to keep him occupied – it was a long flight, after all.

All told, the trip cost you $1.9 million and counting.

Trudeau has now claimed the top spot on our leaderboard for the most extravagant taxpayer-funded travel expenses, surpassing Governor General Mary Simon’s legendary March 2022 performance, when she gobbled up $100,000 worth of airplane food.

After details of Simon’s airplane extravaganza went public (courtesy of your friends at the CTF), a parliamentary committee summoned high-ranking bureaucrats to answer for the outrageous tab.

The bureaucrats pinkie promised to change the rules and stop frivolous spending.

Well clearly those efforts are going swimmingly…

The government set out to lower costs.

Then Trudeau doubled them.

Poilievre grills Trudeau about airplane feast in House of Commons 

Conservative Party Leader Pierre Poilievre grilled Trudeau about his $223,000 worth of airplane food expenses in the House of Commons.

 

Trudeau’s EV corporate welfare worse than you think

Federal and provincial governments are ponying up billions more in electric vehicle battery subsidies than the corporations themselves are spending to build their own factories.

The Parliamentary Budget Officer released a report this week showing just how bad taxpayers are being taken to the cleaners on these corporate welfare deals.

Governments promised $52 billion to these corporations. The corporations are only spending $46 billion.

Does that sounds like a good deal to you?

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Business

No reliable evidence that ESG investing produces above-average returns

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From the Fraser Institute

By Steven Globerman

Despite growing skepticism among investors, as evidenced by their withdrawal of billions of dollars from ESG equity funds so far in 2024, many finance industry leaders continue to claim that ESG-focused investing produces above-average returns.

But is that true?

Environmental, social and governance (ESG) is a movement designed to pressure businesses and investors to pursue larger social goals. According to ESG theory, firms that receive poor ratings from ESG rating agencies should lose investment dollars. Yet the claim that ESG-focused investing can help investors do well by doing good has received surprisingly little empirical support from academic studies.

However, according to a new study published by the Fraser Institute, which tracked 310 companies listed on the Toronto Stock Exchange from 2013 to 2020, neither ESG rating upgrades nor downgrades were related in a statistically significant way to the stock market performance of companies.

Moreover, because the study finds that ESG ratings changes—which, when released, are effectively new information for investors—are not consistently related to financial returns, ESG ratings are likely not relevant to the expected future profitability of publicly listed companies in Canada.

This of course raises the question—if new information (i.e. ratings changes) about a company’s ESG-related practises is not statistically related to equity returns from investing in that company, why do money managers pay for the services of ESG rating companies?

One possible reason is that managers pass a substantial share of the costs along to customers who are willing to sacrifice financial returns (due to higher management fees) to express their commitment to environmental sustainability and other social causes. Another possible reason is that promoting ESG-focused investment alternatives appears to have been, at least until recently, an effective marketing tool.

But again, the empirical evidence suggests there’s no reliable statistical relationship between ESG-focused investing and the risk-adjusted returns earned by investors. And since asset managers typically charge higher fees for ESG-focused mutual funds, ESG investment strategies are more likely to underperform than overperform conventional investment strategies.

Certainly, if some percentage of investors choose to pursue ESG-related investment strategies, even at the cost of lower risk-adjusted investment returns, there should be no legal or regulatory restrictions on doing so. However, securities regulators should closely monitor the investment industry to ensure it provides reliable and up-to-date information about the financial performance of ESG-focused investment products that portfolio managers market to the public.

At the same time, when ESG advocates push for more government-mandated ESG disclosures from companies in Canada, policymakers should be wary of any claims that greater disclosure mandates will improve the financial performance of companies.

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Business

Taxpayers call on Trudeau to scrap Digital Services Tax as US threatens trade action

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

“Trudeau is determined to make Canadians’ lives more expensive and he’s willing to risk a trade war with the United States to do it”

The Canadian Taxpayers Federation is calling on the Trudeau government to scrap its Digital Services Tax in the wake of warnings from the United States Trade Representative that the United States will “do what’s necessary” to respond to the Trudeau government’s new tax.

“Canadian consumers know that Trudeau’s Digital Services Tax is nothing more than a tax grab, plain and simple,” said CTF Ontario Director Jay Goldberg. “With providers virtually certain to pass along increased costs to consumers, Prime Minister Justin Trudeau is sticking Canadians with higher taxes and risking the possibility of a trade conflict with the United States.”

The DST targets large foreign companies operating online marketplaces, social media platforms and earning revenue from online advertising, such as Amazon, Facebook, Google and VRBO. It is a three per cent tax on all online revenue these companies generate in Canada.

The Trudeau government pushed its new DST through Parliament last month and plans to apply it retroactively to as far back as 2022.

Since the Trudeau government first explored the idea of imposing a Digital Services Tax three years ago, the USTR has repeatedly warned the United States would retaliate.

“Should Canada adopt a DST, USTR would examine all options, including under our trade agreements and domestic statutes,” said the USTR in 2022.

USTR Katherine Tai is now warning that the U.S. is looking at “all available tools” to respond to Trudeau’s new tax.

“Trudeau is determined to make Canadians’ lives more expensive and he’s willing to risk a trade war with the United States to do it,” said Goldberg. “It’s clear the Digital Services Tax must go.”

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