Trudeau Defends $13.8 Billion in Subsidies for Electric Vehicle Battery Plant, Hits Back at Conservatives

Trudeau Defends $13.8 Billion in Subsidies for Electric Vehicle Battery Plant, Hits Back at Conservatives
Prime Minister Justin Trudeau speaks during a news conference on Parliament Hill in Ottawa on March 6, 2023. Sean Kilpatrick/The Canadian Press
Matthew Horwood
Updated:

Prime Minister Justin Trudeau on Friday defended the federal government’s decision to spend $13.8 billion in subsidies on a new  Volkswagen battery factory in St. Thomas, Ontario, while attacking the federal Conservatives for criticizing the investment.

“Unbelievably, there are still those who continue to say that there is a choice to be made between protecting the environment and growing the economy,” Trudeau said during a press conference alongside Ontario Premier Doug Ford and Industry Minister François-Philippe Champagne.

“Here today, no one should continue to doubt that building a strong economy with great jobs for the middle class must go hand in hand with clean air and a brighter future for this country.”

On Thursday, Champagne confirmed the approval of between $8 and $13.2 billion in subsidies and a $700 million grant to build the Volkswagen battery factory in St. Thomas, Ontario. The factory, which will produce batteries for up to 1 million electric vehicles per year following its completion in 2027, is expected to create 3,000 direct jobs and 30,000 indirect jobs.

Trudeau said countries around the world, including the United States, were willing to offer “an awful lot of money” to get the project. “Everyone wanted this. So yes, we put up a lot of money, money that’s going to come back in investments in economic activity very quickly.”

When the announcement was first made that Canada had been chosen for the first Volkswagen EV battery plant in North America, Conservative Leader Pierre Poilievre said the money the federal government invested “belongs to Canadians, not to a foreign corporation.”

“How much of Canadians’ money is he giving to this foreign corporation? How many jobs? How much is the cost per job?” he asked.

Trudeau responded that “confident countries invest in their workers and invest in their future.” The prime minister said his government had been criticized many times over the years for making investments in the environment, childcare, public health care, or partnerships with indigenous people.

“That is how we build the strong economy of the future. We had to put money on the table to show Volkswagen we were serious about wanting them to come here and to be partners in building this incredible opportunity for Canadian workers,” Trudeau said.

“But if it hadn’t been for the quality of Canadian workers, for things like $10 childcare, dental care, public healthcare, Canada Child Benefits and supports for the middle-class, then Volkswagen wouldn’t have been as interested.”

The prime minister said when the next federal election is called in a few years, Canadians will have to choose whether they want to see challenges around the world as an “opportunity for Canada to step up.”

“Or do we want to throw up our hands and say ‘oh, it’s just too tough out there? The world is too complicated. We’re never going to be able to succeed in this. Canada is broken,’” Trudeau said, referencing Poilievre’s tagline “Canada is broken.”

“Anger doesn’t deliver this plant and St. Thomas. Confidence, hard work, optimism, and a willingness to invest in Canadians and in the brightest possible future for all. That’s why we’re here today,” he said.