Chrystia Freeland on Asian Infrastructure Investment Bank, PBO's VW plant report – June 14, 2023

Summary

The Canadian government has halted all activities at the Asian Infrastructure Investment Bank following a resignation by a Canadian citizen who raised serious concerns. The Prime Minister has ordered an immediate review of the allegations and Canada's involvement in the bank. Additionally, the government is confident in its investments in green industrial policy, including Volkswagen and Stellantis, to secure Canada's position in the global green economy. The Prime Minister addresses discrepancies in the PBO report regarding the tax treatment of the Volkswagen investment and emphasizes the importance of transparency and access to information.

Takeaways

• ⏹️ The Canadian government has halted all government-led activity at the Asian Infrastructure Investment Bank (AIIB) following a resignation by a Canadian citizen who raised serious concerns about the bank.
• 🔍 An immediate review of the allegations and Canada's involvement in the AIIB has been instructed by the government, with no predetermined outcome.
• 🌐 The government is focused on limiting strategic vulnerabilities to authoritarian regimes and is clear about the means by which they exercise influence.
• 🚗 The government is confident in the value of investments in Volkswagen and Stellantis, aiming to level the playing field with the United States and ensure Canada's competitiveness.
• 💼 The Prime Minister expressed full confidence in his cabinet, emphasizing their teamwork and mutual support.
• 💡 The government's intention with investments in Volkswagen and Stellantis is to counteract the U.S. Inflation Reduction Act (IRA) and prevent investment drain from Canada.
• 📊 The Prime Minister disagreed with the Parliamentary Budget Officer's (PBO) conclusion on the tax treatment of the Volkswagen deal, suggesting a different approach.
• 📰 The government is concerned about the impact of layoffs in the news industry on the Canadian news landscape and democracy.
• 💬 The Prime Minister is open to working with the Treasury Board and the Minister of Justice to improve the access to information system.
• 💰 The PBO's inability to estimate the economic impact of production subsidies due to confidentiality clauses was acknowledged, with the government emphasizing the importance of confidentiality in negotiations.

Q & A

What was the reason for the Canadian government to halt all government-led activity at the Asian Infrastructure Investment Bank (AIIB)?

The Canadian government halted all government-led activity at the AIIB due to the resignation of a Canadian citizen who raised serious concerns regarding the bank.

What immediate action has the Canadian government taken following the resignation from the AIIB?

The Canadian government has instructed the Department of Finance to lead an immediate review of the allegations raised and of Canada's involvement in the AIIB.

What is the Canadian government's stance on limiting strategic vulnerabilities to authoritarian regimes?

The Canadian government is clear about the need to de-risk economies by limiting strategic vulnerabilities to authoritarian regimes, and the review of the AIIB situation is part of this approach.

How does the Canadian government view the investments in Volkswagen and Stellantis?

The Canadian government is confident in the value of the investments in Volkswagen and Stellantis, seeing them as part of a broader green industrial policy aimed at creating jobs and growth.

What is the government's response to the PBO's analysis regarding the cost of subsidizing Volkswagen?

The government maintains that the Volkswagen investment is fully accounted for in the budget and disagrees with the PBO's conclusion about the tax treatment of the investment.

What is the government's strategy to ensure Canada's competitiveness in the green economy?

The government's strategy involves making investments like those in Volkswagen and Stellantis to level the playing field with the United States, particularly in response to the IRA tax credits.

How does the Canadian government plan to address the differences with the PBO regarding the tax treatment of investments?

The government intends to proceed in a way that the treatment of its incentives is comparable to the non-taxable IRA tax credits, to ensure Canada remains competitive.

What is the government's reaction to the layoffs at CTV and the potential impact on the news landscape in Canada?

The government is saddened by the layoffs at CTV and views it as a loss for Canada, recognizing the importance of experienced journalists for the country.

Is the Canadian government considering waiving confidentiality clauses to allow the PBO to estimate the economic impact of production subsidies?

While the government has been responsive to the PBO's requests for information, it also emphasizes the need for some confidentiality to secure the best deals for Canada.

What is the government's position on the funding request by the Access to Information Commissioner to deal with the backlog?

The government is open to working with the president of the Treasury Board and the Minister of Justice to ensure the access to information system is effective, but the decision on funding was not explicitly confirmed in the script.