QUESTION PERIOD — Innovation, Science and Economic Development
Transfer Payments
December 3, 2024
Senator Gold, just before the holidays, the Lion Electric company, on the brink of collapse with only two weeks left to find new investors, laid off 400 of its employees. The Mayor of Saint-Jérôme, Marc Bourcier, is accusing Justin Trudeau and the federal government of breaking promises and failing to adequately invest in Lion Electric and its buses despite the availability of a $2.75-billion Zero Emission Transit Fund. Are non-emitting means of transportation like electric buses not considered a federal government priority?
Thank you for the question and for highlighting this important program. Canada wants to become a world leader in the manufacture of electric vehicles to decarbonize the economy and reach net zero by 2050. To clarify, the Zero Emission Transit Fund was designed to support public transit and school bus operators’ plans for electrification, support the purchase of 5,000 zero-emission buses and build associated infrastructure, including charging infrastructure and facility upgrades. Eligible recipients include provinces and territories, municipal or regional governments, transit agencies, public bodies such as school boards, private school bus operators and private accessible transit providers, such as paratransit services, not individual companies as such.
From what I’ve read, you still managed to invest $30 million in Lion Electric, and the provincial government invested $177 million. Isn’t it time to give the company another boost? If the company goes bankrupt, especially considering that it sells its products to the U.S., it will be a disaster for our reputation in the electrification industry, and for everything to do with after-sales service and parts.
The government is aware of the challenges the company is facing. As you said, the Government of Canada and the Government of Quebec have both provided support to Lion Electric. I believe the government is working with the Government of Quebec and the company to monitor the situation closely.
