 |
| Image credit: barrie.ca |
Why are Canadian taxpayers still subsidizing the oil and gas industry which is making handsome profits?
According to CSIMarket (csimarket.com), in the second quarter of 2022, the net profit margin for the oil and gas production industry was 31.43%, significantly above the industry average; and the gross margin for the industry was 86.46% in the same period.
Both the federal and provincial governments provide financial support to fossil fuel companies through various means, such as tax breaks, direct funding, and public financing. A report by Environmental Defence estimated that in 2023, the federal government provided at least $18.6 billion in support to the fossil fuel and petrochemical industries. This includes $8 billion in loan guarantees for the Trans Mountain pipeline and $7.4 billion in public financing through Export Development Canada.
Here are a few ideas for a more compassionate and less environmentally harmful use of $18 billion from the federal government than lining the pockets of fossil fuel company shareholders:
- Affordable housing
- Childcare subsidies for single parents
- Education
- Healthcare, Pharmacare and Long Term Care
- Improved Disability Benefits
- Universal Basic Income (UBI)