National
The political welfare straw man
From the Canadian Taxpayers Federation
Author: Jay Goldberg
After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.
For Ontario’s political parties, the jig may finally be up.
Premier Doug Ford is just six months away from scrapping Ontario’s political welfare system. Political welfare has been a golden goose for the province’s political bigwigs and a nightmare for everyday taxpayers.
The program will soon be relegated to the ash heap of history, so long as Ford doesn’t go wobbly.
How did we get here?
Nearly a decade ago, former premier Kathleen Wynne banned corporate and union donations to political parties in Ontario. But at the same time, she created a taxpayer-funded political welfare scheme. As a result, political parties get a set amount of money from taxpayers four times a year for every vote they received in the previous election – no strings attached.
In trying to sell this political welfare cash cow to Ontario taxpayers, Wynne presented the situation as a trade-off: to ban corporate and union donations to political parties, the so-called per-vote subsidy was needed.
“Democracy is not free,” argued one of Wynne’s ministers when the Liberals introduced the program.
Before Ford got to Queen’s Park, he knew all of that was hogwash.
“I do not believe the government should be taking money from hard-working taxpayers and giving it to political parties,” said Ford in 2018.
Political parties, Ford argued, should survive by raising money from everyday taxpayers. There was no need for corporate and union donations or taxpayer handouts.
Sadly, Ford lost his way.
After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.
Of course, Ford didn’t let logic or facts get in the way. The truth is Ontario’s political parties raised millions during the pandemic and didn’t need taxpayer handouts.
But now it appears Ford is finally seeing the light: Wynne’s political welfare regime is set to expire at the end of 2024.
Let there be no mistake: there is no valid argument in favour of keeping this taxpayer atrocity.
Ontario’s political parties will not go broke when the taxpayer taps turn off next year. In fact, they’re currently swimming in buckets of cash.
The province’s four major political parties – the Progressive Conservatives, Liberals, NDP and Greens – raised more than $14 million collectively in 2023, and currently have the same amount of money in the bank.
The PCs, Liberals and NDP all have at least $2.3 million in their bank accounts. Even the Green Party, which holds just one seat at Queen’s Park, is sitting on more than $500,000 in cash.
Clearly, Ontario’s political parties won’t go broke if they get off the taxpayer dole.
Even if Ontario’s political parties weren’t sitting on a massive war chest, the reality is they would adapt quickly to a new system reliant on small-dollar donations.
Former prime minister Stephen Harper ended the federal version of Wynne’s political welfare scheme over a decade ago. And corporate and union donations have been banned federally for two decades. Prime Minister Justin Trudeau hasn’t so much as tweaked those changes.
Since Harper put an end to federal political welfare, Canada’s political parties have flourished.
They’ve all gotten better at appealing to everyday Canadians to make small-dollar donations and they’re raised more money since the per-vote subsidy was scrapped than they did before.
That’s exactly what will happen when Ford kiboshes Ontario’s version of the per-vote subsidy at the end of the year. And that’s how it should be.
If political parties want to raise cash, they should do so by winning over taxpayers, not raiding their wallets.
The deadline is looming, but the fight here in Ontario is far from over.
Ford extended the life of the political welfare regime before and he could do it again.
That means taxpayers must stay vigilant.
If Ford sticks to his word, Ontario taxpayers will have one less monkey on their backs come 2025.
Let’s make sure that comes to pass.
New documentary produced by the Canadian Centre For Responsible Drug Policy features a 25-year-old student who purchased thousands of diverted “safer supply” opioids.
The Centre For Responsible Drug Policy, parent organization of Break The Needle, has launched its first mini-documentary: “Government Heroin.” The film follows the story of Callum Bagnall, a 25-year-old student from London, Ontario, who purchased thousands of opioid pills diverted from government-funded “safer supply” programs. Callum recounts how rampant fraud has turned these programs into a an abject disaster, leading to new addictions and immense profits for organized crime.
The film also features Joanne, his anxious mother, as well as Dr. Janel Gracey, an addiction physician whose clinical experiences make it obvious that safer supply is causing a wave of relapses and getting teenagers hooked on “government heroin.”
Subscribe to Break The Needle. Our content is always free – but if you want to help us commission more high-quality journalism, consider getting a voluntary paid subscription.
From the Fraser Institute
By Julio Mejía and Elmira Aliakbari
The resulting reduction in global GHG emissions would amount to a mere four-tenths of one per cent (i.e. 0.004 per cent) with virtually no impact on the climate or any detectable environmental, health or safety benefits.
Last year, when the Trudeau government said it would cap greenhouse gas emissions (GHG) from the oil and gas sector at 35 to 38 per cent below 2019 levels by 2030, it claimed the cap will not affect oil and gas production.
But a report by Deloitte, a leading audit and consulting firm, found that the cap (which would go into effect in 2026) will in fact curtail production, destroy jobs and cost the Canadian economy billions of dollars. Under Trudeau’s cap, Canada must curtail oil production by 626,000 barrels per day by 2030 or by approximately 10.0 per cent of the expected production—and curtail gas production by approximately 12.0 per cent.
According to the report’s estimates, Alberta will be hit hardest, with 3.6 per cent less investment, almost 70,000 fewer jobs, and a 4.5 per cent decrease in the province’s economic output (i.e. GDP) by 2040. Ontario will lose more than 15,000 jobs and $2.3 billion from its economy by 2040. And Quebec will lose more than 3,000 jobs and $0.4 billion from its economy during the same period.
Overall, the whole country will experience an economic loss equivalent to 1.0 per cent of GDP, translating into lower wages, the loss of nearly 113,000 jobs and a 1.3 per cent reduction in government tax revenues. Canada’s real GDP growth in 2023 was a paltry 1.1 per cent, so a 1 per cent reduction would be a significant economic loss.
Deloitte’s findings echo previous studies on the effects of Ottawa’s cap. According to a recent economic analysis by the Conference Board of Canada, the cap could reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, eliminate up to 151,000 jobs by 2030, reduce federal government revenue by up to $151 billion between 2030 and 2040, and reduce Alberta government revenue by up to $127 billion over the same period.
Similarly, another recent study published by the Fraser Institute found that an emissions cap on the oil and gas sector would inevitably reduce production and exports, leading to at least $45 billion in lost economic activity in 2030 alone, accompanied by a substantial drop in government revenue.
Crucially, the huge economic cost to Canadians will come without any discernable environmental benefits. Even if Canada were to entirely shut down its oil and gas sector by 2030, thus eliminating all GHG emissions from the sector, the resulting reduction in global GHG emissions would amount to a mere four-tenths of one per cent (i.e. 0.004 per cent) with virtually no impact on the climate or any detectable environmental, health or safety benefits.
Given the sustained demand for fossil fuels, constraining oil and gas production and exports in Canada would merely shift production to other regions, potentially to countries with lower environmental and human rights standards such as Iran, Russia and Venezuela.
The Trudeau government’s proposed GHG cap will severely damage Canada’s economy for virtually no environmental benefit. The government should scrap the cap and prioritize the economic wellbeing of Canadians over policies that only bring pain with no gain.
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