Trudeau Announces LEEFF Support for Large Businesses

Today Justin Trudeau announced the Large Employer Emergency Financing Facility (LEEFF) to provide financial support to Canada’s largest businesses. It will be open to for-profit and non-profit companies with annual revenues of $300 million or higher, with the exception of the financial sector. To qualify for LEEFF support the large businesses must be seeking financing of about $60 million or more, have significant operations or workforce in Canada, and not be involved in active bankruptcy proceedings.

There are many conditions attached to receiving LEEFF support. On the employment side these include preserving employment and maintaining investments, committing to existing bargaining agreements, and protecting workers pensions. For the financial part, the large businesses must agree to limits on dividend payouts, stock buy-backs, and executive pay. The environmental conditions include committing to climate-related disclosure agreements and keeping inline with the national climate goals for 2050.

Trudeau says the conditions for LEEFF are meant to support Canadian workers and hold companies accountable. As when any politician speaks, we must be weary of broken promises and virtue signalling. The news reporters at the event pressed Trudeau on the details. A Global News reporter highlighted the difference between limiting and stopping executive bonuses and stock buy-backs, then asked whether any safeguards will be in place to ensure compliance. A CBC reporter noted the difference between tax evasion and avoidance, then asked Trudeau what would happen if the government discovers a large business has been doing everything they can to pay as little taxes as possible.

What do you think?
Do large scale businesses deserve support?
Should executive pay be capped?
Should stock buy-backs be stopped?

How much should large businesses be taxed?