I would like to go back to the Parliamentary Budget Officer's 2023 report on the production subsidies we're discussing today. I'll read the highlights.
The federal government and the government of Ontario recently announced production subsidies of up to $15 billion for Stellantis-LG Energy Solutions (LGES). Based on the federal government’s estimates, this brings announced production subsidies for Stellantis-LGES and Volkswagen to $28.2 billion by the end of 2032. PBO estimates that federal and provincial government revenues generated from the Stellantis-LGES and Volkswagen EV battery manufacturing plants over the period of 2024 to 2043 will be equal to the total amount of production subsidies ($28.2 billion)—a break-even timeline of twenty years.
It would have taken 20 years for the government to break even. That's an important point. The Standing Committee on Government Operations and Estimates' role is to ensure that public funds are well managed. That means production subsidies must not only create jobs, but also be cost-effective.