QUESTION PERIOD — Innovation, Science and Economic Development
Transfer Payments
November 21, 2024
Leader, on March 15, 2021, Justin Trudeau announced that his government was granting $50 million to Lion Electric. At the time, Minister Champagne said that this subsidy would support the creation of good jobs and Canada’s prosperity.
Since then, Lion Electric has cut its workforce and is now on the verge of bankruptcy. Its shares have fallen from US$35 to US$0.22, which means that the company has lost 94% of its value and is now a penny stock that will be delisted from the New York Stock Exchange.
Senator Gold, does the government consider the money that it loaned to Lion Electric to be lost? Is it planning to invest more money in that project?
Thank you for the question. In today’s world, and especially in a world transitioning toward an economy that is less and less reliant on oil and gas and is focused on other sources of energy, it’s always a risk. It’s unfortunate that the company is now in a much more precarious position. I don’t have any information about the government’s intentions with respect to this company or what it plans to do, but it’s unfortunate that the Government of Canada’s investments, like other investments the provinces made for the same reasons, aren’t always as successful as these governments hoped they would be.
Lion Electric’s directors and officers are being sued in U.S. courts. It’s alleged that they lied when Lion Electric was listed on the stock exchange, which happened at the same time as the government loan. Its directors and officers made a significant profit when the company was listed, pocketing millions of dollars for themselves.
Is this another example of Liberal corruption, Senator Gold? Will the government give the Auditor General and the RCMP a mandate to investigate this affair?
It is not the government’s intention to tell the Auditor General what to do. I won’t comment on the innuendo about corruption. Again, I have no comment to make.
