Chrystia Freeland Wants $2 Billion+ For Non-Existent ‘Green’ Corporation

On December 7, 2022, Finance Minister Chrystia Freeland appeared before a Canadian Senate committee that was studying Bill C-32 and had called her in to question her regarding some details of the bill. Former NL Auditor General and Conservative Senator from NL, Elizabeth Marshall, called out Freeland for spending $2 billion on a non-existent corporation and commented on the fact that if Freeland establishes a new government investment corporation to manage the $2 billion in funding then there will be no oversight whatsoever.

Chrystia Freeland Wants $2 Billion+ For Non-Existent ‘Green’ Corporation

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December 25, 2022 9:00 AM Hermina Paull 0 Comments Canada Growth Fund, Chrystia Freeland, Green Energy

Finance Minister Chrystia Freeland has quite the ambitious plan for Canada’s transition towards a green energy future— so ambitious in fact, that she wants to prematurenly spend over $2 billion of Canadian taxpayers’ funds to buy shares of a company that doesn’t even exist yet.

Neatly tucked away in the Liberal government’s 172-page budget bill is a clause that will grant Freeland the authority to spend $2 billion “or any greater amount” from the Consolidated Revenue Fund, to purchase shares of a non-existent company. That’s right, you read that correctly: as per Part 4 of Bill C-32, “The Minister of Finance may acquire and hold on behalf of His Majesty in right of Canada non-voting shares of a corporation that is incorporated as a wholly-owned subsidiary of the Canada Development Investment Corporation and that is responsible for administering the Canada Growth Fund.”

The vague company is owned by the Canada Development Investment Corporation, a government-owned company reporting to the Minister of Finance that raises private capital via the Canada Growth Fund (CGF). The CGF, for its part, was first unveiled in the Fed’s 2022 April budget with the intention of curbing emission-intensive industries to meet climate targets whilst growing the economy. The Liberals are planning to equip the fund— which isn’t set to go live until sometime in 2023— with $15 billion in initial capital, that will be loaned out at a low cost to businesses participating in green initiatives.

Snippet from Bill C-32. Full text found here.
So, what does that mean for Canadian taxpayers? Well, no one really knows, because the aforementioned non-existent subsidiary doesn’t have a name yet— let alone isn’t even incorporated. We don’t know what purpose the company will serve in the context of green technology, who will sit on the board— or if it will even have a board at all. To further drive home the ambiguity, Part 4 goes as far as failing to provide information on the function and mandate of the subsidiary, its governance structure, or how it will report to Canadians.

More importantly, Part 4 doesn’t provide details as to how the $2 billion will be spent. “Since the corporation does not exist, what does the minister intend to do with the $2 billion? Will she retain the money until the corporation is created, or will she invest it — and if so, where?” Questioned Senator Elizabeth Marshall. “Of equal concern is the provision in the bill that provides the minister with the authority to draw down, as the bill says, ‘ . . . any greater amount that is specified in an appropriation Act . . . .’ There is no dollar limit affixed to this greater amount,” she pointed out.

To add to the absurdity, Freeland herself didn’t seem to know how she’s going to go about buying shares of a company that doesn’t exist, nor did she even explain why such parts of utmost importance were left out of the Bill. Instead, she insisted that Canada’s green transition is essential. “The corporation doesn’t exist — you’re saying you have to buy shares in the corporation, but the corporation doesn’t exist. What’s the minister buying shares in? What’s the control over the $2 billion? And it’s not just $2 billion — it’s $2 billion-plus, so she can requisition additional monies out. There is no information on the corporation. There is nothing there,” Marshall said later during a debate among senators.

“As parliamentarians we should be very concerned that we have a section of a bill that talks about $2 billion to buy shares of a corporation that doesn’t exist. Not only that, we don’t know anything about the corporation,” she added. All we’re depending on is a couple of pieces of paper called the backgrounder. If it’s so important, put it in the bill so we can debate it.”

Information for this briefing was found via the Senate of Canada, the Department of Finance, Twitter, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.