EDITORIAL: Let’s avoid another Liberal slush fund
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Prime Minister Justin Trudeau has promised to aid those impacted by President Donald Trump’s tariffs with a financial support package similar to pandemic era relief.
We say no. We do not need a repeat of the horrific abuse of tax dollars that occurred during COVID-19. Yes, of course, there was a need to support those financially impacted when they were forced to shut down their offices and those laid off during the pandemic. But the federal auditor general documented the massive misspending that happened with benefits such as the Canada Emergency Response Benefit (CERB).
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Federal Auditor General Karen Hogan estimates $4.6 billion was paid to people who were not eligible, and another $27.4 billion in payments to individuals and businesses should be investigated further.
“I am concerned about the lack of rigour on post-payment verifications and collection activities,” Hogan said.
Overpayment recipients included 1,522 prisoners, 391 dead people and 434 children too young to be eligible. Additionally, 51,049 employers who received $9.9 billion from the Canada Emergency Wage Subsidy (CEWS) payments didn’t demonstrate a sufficient revenue drop to qualify for the subsidy.
The Fraser Institute reports that nearly $82 billion in COVID spending — 27% — was poorly targeted, amounting to an equivalent to $22.3 billion in wasted tax money.
“This included up to $11.8 billion in CERB payments that went to eligible dependent young people (ages 15-24) living with parents in households with at least $100,000 in household income. And up to $7 billion in additional CERB payments that went to eligible spouses in families with at least $100,000 in household income.”
It also helped fuel inflation by putting more money into the economy when supply chain issues meant fewer goods were available. It added massively to the federal debt, slowed productivity and made this country less competitive with the world.
Whatever form the tariffs take and whatever this country’s response, aid for those who are laid off or companies shuttered should be narrowly targeted.
This should not be allowed to snowball into yet another Liberal slush fund. Not every problem is solved by printing more money.
A trade war will cause pain. We must be brave. We must be compassionate in our response. But we should not be foolhardy.
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