Business
Ottawa once again defends egregious mismanagement during COVID

From the Fraser Institute
By: Jake Fuss and Tegan Hill
Two federal cabinet ministers criticized the report because it “fails to properly acknowledge that CEBA was designed and delivered during a global pandemic.” Translation—taxpayer money can be mismanaged so long as it’s delivered quickly, and we can use an emergency as an excuse for wasteful spending
According to a new report by Canada’s auditor general, in another of example of mismanagement and waste during the COVID pandemic, nearly 10 per cent—or $3.5 billion—of the federal government’s Canada Emergency Business Account (CEBA) loans went to ineligible businesses.
The report said “the program was not managed with due regard for value for money” and the government “did not effectively oversee the CEBA program.”
In response, two federal cabinet ministers criticized the report because it “fails to properly acknowledge that CEBA was designed and delivered during a global pandemic.”
Translation—taxpayer money can be mismanaged so long as it’s delivered quickly, and we can use an emergency as an excuse for wasteful spending. Accountability to the public is evidently an afterthought.
Of course, this is only the latest revelation of Trudeau government mismanagement during COVID. The government spent huge sums of taxpayer money on expensive programs such as the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Response Benefit (CERB). But a substantial share of this spending was simply wasted.
For example, an earlier report in 2022 by the auditor general found that ineligible individuals received $4.6 billion in CERB payments and other benefits. Ineligible recipients included 1,522 prisoners, 391 dead people and 434 children too young to be eligible. And 51,049 employers incorrectly received $9.9 billion in wage subsidies even though they did not have a sufficient drop in revenue to be eligible for the subsidies.
The federal government also spent billions on Canadians who probably didn’t need the money. An analysis published in 2020 by the Fraser Institute estimated that $11.8 billion in CERB payments went to eligible young people (ages 15 to 24) living with their parents in households with at least $100,000 in income. And an estimated $7.0 billion in CERB payments went to spouses in families with at least $100,000 in household income.
COVID-related programs were not only poorly targeted, but many payments surpassed the level required to restore the regular income of many recipients. According to the auditor general, the lowest-income Canada Recovery Benefit (CRB) recipients could take in more money from government benefits than from working, and the program “represented a disincentive to work, which impacted some labour markets at a crucial time when the need for employees was trending upwards.”
The total costs of fiscal waste during COVID are difficult to nail down. But our 2023 study estimated that one in four dollars of federal pandemic spending was wasted. That amounts to at least $89.9 billion in total fiscal waste. For context, that’s roughly what the British Columbia government spends annually in its entire budget for health care, education, social services, infrastructure, etc.
Finally, because the Trudeau government borrowed money to finance its excessive and wasteful COVID spending, Canadians will pay an estimated $21.1 billion in debt interest costs (over a 10-year period) that are directly attributable to this fiscal waste.
The new report by the auditor general is the latest proof of mismanagement by Ottawa during COVID, to the tune of billions of dollars in waste. Unfortunately, the government continues to scoff at the bill it’s handed to taxpayers for the waste it produced.
2025 Federal Election
Alcohol tax and MP pay hike tomorrow (April 1)

The Canadian Taxpayers Federation is calling on all party leaders to stop a pair of bad policies that are scheduled to happen automatically on April 1: pay raises for members Parliament and another alcohol tax increase.
“Party leaders owe taxpayers answers to these two questions: Why do you think you deserve a pay raise and why should Canadians pay higher taxes on beer and wine?” said Franco Terrazzano, CTF Federal Director. “Politicians don’t deserve a raise while millions of Canadians are struggling.
“And the last thing Canadians need is another tax hike when they pour a cold one or uncork a bottle with that special someone.”
MPs give themselves pay raises each year on April 1, based on the average annual increase in union contracts with corporations with 500 or more employees.
The CTF estimates tomorrow’s pay raise will amount to an extra $6,200 for backbench MPs, $9,200 for ministers and $12,400 for the prime minister, based on contract data published by the federal government.
After tomorrow’s pay raise, backbench MPs will receive a $209,300 annual salary, according to CTF estimates. A minister will collect $309,100 and the prime minister will take home $418,600.
Meanwhile, the alcohol escalator automatically increases excise taxes on beer, wine and spirits every year on April 1, without a vote in Parliament. Alcohol taxes will increase by two per cent tomorrow, costing taxpayers about $40 million this year, according to Beer Canada estimates.
The alcohol escalator tax has cost taxpayers more than $900 million since it was imposed in 2017, according to Beer Canada estimates.
“Politicians are padding their pockets on the same day they’re raising beer taxes and that’s wrong,” Terrazzano said. “If party leaders want to prove they care about taxpayers, they should stop the MP pay raises.
“And if party leaders care about giving Canadian brewers, distillers and wineries a fighting chance against tariffs, it’s time to stop hitting them with alcohol tax hikes year after year.”
The CTF released Leger polling showing 79 per cent of Canadians oppose tomorrow’s MP pay raise.
2025 Federal Election
Poilievre To Create ‘Canada First’ National Energy Corridor

From Conservative Party Communications
Poilievre will create the ‘Canada First’ National Energy Corridor to rapidly approve & build the infrastructure we need to end our energy dependence on America so we can stand up to Trump from a position of strength.
Conservative Leader Pierre Poilievre announced today he will create a ‘Canada First’ National Energy Corridor to fast-track approvals for transmission lines, railways, pipelines, and other critical infrastructure across Canada in a pre-approved transport corridor entirely within Canada, transporting our resources within Canada and to the world while bypassing the United States. It will bring billions of dollars of new investment into Canada’s economy, create powerful paycheques for Canadian workers, and restore our economic independence.
“After the Lost Liberal decade, Canada is poorer, weaker, and more dependent on the United States than ever before,” said Poilievre. “My ‘Canada First National Energy Corridor’ will enable us to quickly build the infrastructure we need to strengthen our country so we can stand on our own two feet and stand up to the Americans.”
In the corridor, all levels of government will provide legally binding commitments to approve projects. This means investors will no longer face the endless regulatory limbo that has made Canadians poorer. First Nations will be involved from the outset, ensuring that economic benefits flow directly to them and that their approval is secured before any money is spent.
Between 2015 and 2020, Canada cancelled 16 major energy projects, resulting in a $176 billion hit to our economy. The Liberals killed the Energy East pipeline and passed Bill C-69, the “No-New-Pipelines” law, which makes it all but impossible to build the pipelines and energy infrastructure we need to strengthen the Canadian economy. And now, the PBO projects that the ‘Carney cap’ on Canadian energy will reduce oil and gas production by nearly 5%, slash GDP by $20.5 billion annually, and eliminate 54,400 full-time jobs by 2032. An average mine opening lead time is now nearly 18 years—23% longer than Australia and 38% longer than the US. As a result of the Lost Liberal Decade, Canada now ranks 23rd in the World Bank’s Ease of Doing Business Index for 2024, a seven-place drop since 2015.
“In 2024, Canada exported 98% of its crude oil to the United States. This leaves us too dependent on the Americans,” said Poilievre. “Our Canada First National Energy Corridor will get us out from under America’s thumb and enable us to build the infrastructure we need to sell our natural resources to new markets, bring home jobs and dollars, and make us sovereign and self-reliant to stand up to Trump from a position of strength.”
Mark Carney’s economic advice to Justin Trudeau made Canada weaker while he and his rich friends made out like bandits. While he advised Trudeau to cancel Canadian energy projects, his own company spent billions on pipelines in South America and the Middle East. And unlike our competitors Australia and America, which work with builders to get projects approved, Mark Carney and Steven Guilbeault’s radical “keep-it-in-the-ground” ideology has blocked development, killed jobs, and left Canada dependent on foreign imports.
“The choice is clear: a fourth Liberal term that will keep our resources in the ground and keep us weak and vulnerable to Trump’s threats, or a strong new Conservative government that will approve projects, build an economic fortress, bring jobs and dollars home, and put Canada First—For a Change.”
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