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Conservatives grill CBC CEO for billing taxpayers $6,000 during France vacation

Published

4 weeks ago

5 minute read

From LifeSiteNews

By Clare Marie Merkowsky

Conservative MPs have blasted the state-funded Canadian Broadcasting Corporation’s CEO after she billed taxpayers $6,000 during a vacation to France.

During an October 21 Standing Committee on Canadian Heritage meeting, Conservative MPs grilled the CBC’s Catherine Tait over her $5,869 France vacation which she claimed qualified as work since it was during the Paris Olympics.   

“There were no hotel rooms in Paris that were available at a lower price than that,” Tait told the Commons heritage committee after records obtained by the National Post revealed that she stayed at the luxury Hotel du Collectionneur at $1,000 per night.   

“This was the official hotel for the Games. I was there with other delegates. I benefited from all the services, for example the shuttle that took us to the opening of the Games,” she continued.  

Tait continued to explain that she was in France for vacation, but interrupted her vacation to cover the Olympics which took place as the same time.   

“I was on a personal trip to France and I did not bill the taxpayer for my flight or travel from Canada,” she said. 

“What did you bill the taxpayer for?” Conservative MP Jamil Jivani questioned.  

“The hotel and the train to get to Paris,” replied Tait.  

“Where did your personal trip end and your taxpayer billing begin?” he pressed.   

“As part of my job, being at the opening of the Olympics was absolutely expected of me so I interrupted my holiday and took the four days to go to the Olympics,” Tait insisted.   

According to her schedule, Tait attended a reception at the Louvre Museum, two meetings with non-CBC staff, three meetings with CBC staff, and attended the opening ceremony. Tait also attended the fencing, swimming and beach volleyball competitions, although it is unclear if these were in a work or recreational capacity.

Tait later claimed that questions surrounding her spending “is a clear effort on the part of members of this committee to vilify and to discredit me and to discredit the organization.” 

MP Damien Kurek pointed out that Tait is one of the highest paid public employees in Canada.   

“You make more than the Prime Minister,” said Kurek, noting that the prime minister currently earns $406,200 without any yearly bonus.  

“You just spent $1,000 a night for a hotel room in Paris during the Olympics,” he continued. “We are in a situation where you are coming to the conclusion of your term being paid more than the Prime Minister of this country.”   

Tait’s spending of taxpayer dollars comes as the outlet’s TV advertising revenue dropped nearly 10 percent last year, which the CBC admitted they do not expect to regain in the foreseeable future.    

While the CBC’s overall revenue dropped 4.3 percent in 2024, funding from Prime Minister Justin Trudeau’s government increased 13 percent from $1.2 billion to $1.4 billion.   

Additionally, in August, documents revealed that Tait doled out $18 million in bonuses after eliminating hundreds of jobs to cut costs.  

Regardless of their low viewership, the CBC continues to receive massive subsidies from the Liberal government. Many independent media outlets and Conservative Party politicians, including leader Pierre Poilievre, have accused the outlet of bias and partisanship because of this dependency on government.    

Despite these concerns, the Trudeau government has only poured money into the outlet. Beginning in 2019, Parliament changed the Income Tax Act to give yearly rebates of 25 percent for each news employee in cabinet-approved media outlets earning up to $55,000 a year, to a maximum of $13,750.      

The Canadian Heritage Department since admitted that the payouts are not sufficient to keep legacy media outlets running, and even recommended that the rebates be doubled to a maximum of $29,750 annually.    

Last November, Trudeau again announced increased payouts for legacy media outlets, payouts which coincidence with the lead-up to the 2025 election. The subsidies are expected to cost taxpayers $129 million over the next five years.        

Similarly, Trudeau’s 2024 budget outlined $42 million in increased funding for the CBC for 2024-25.      

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

Published on November 21, 2024

By

From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

Author:

Tegan Hill
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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

Published on November 21, 2024

By

Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

  • $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
  • $125 million to address enrollment growth pressures in Alberta schools.
  • $847 million for disaster and emergency assistance, including:
    • $647 million to fight the Jasper wildfires
    • $163 million for the Wildfire Disaster Recovery Program
    • $5 million to support the municipality of Jasper (half to help with tourism recovery)
    • $12 million to match donations to the Canadian Red Cross
    • $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
  • $240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

  • $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
  • $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

  • $1.4 billion or half will pay debt coming due.
  • The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

  • The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

  • Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

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