Apple is the largest company in the world by market capitalization, they also just reported record growth and a plan to spend $100 billion to buy back shares from the public while increasing dividends by 16%.
So why is Justin Trudeau giving Apple your money?
Trudeau was in the Saguenay region of Quebec on Thursday announcing that the Government of Canada will make “an investment of $60 million in support of Elysis.” Right about now you are rightly asking what Elysis is.
This is a new company started by Apple along with two of the biggest, and richest mining companies in the world, Rio Tinto and Alcoa. The plan from these three industrial giants is to develop new technology to produce a zero-carbon smelting process for aluminum.
I have no problem with the idea, and if successful, it could become highly profitable but why do these massive companies need $60 million from Canadian taxpayers plus another $60 million from the Government of Quebec?
By comparison Apple is dropping $13 million into the $188 million research project and Rio Tinto and Alcoa will put in a combined $55 million. Notice that the federal government is putting in more money than all the rest and won’t even profit if this works.
Apple could have funded the whole thing themselves and considered it a rounding error on their balance sheet. In the quarter that just ended on March 31, Apple posted $61.1 billion in revenue.
Rio Tinto recently reported record profits as well and while Alcoa reported a loss, their balance sheet over all remains strong.
None of these companies needed government money for this.
Any single one of these companies could have funded this project on their own, Apple uses a lot of aluminum and has more cash than it knows what to do with. Rio and Alcoa are competitors but know the future of their industry would be brighter with this tech. They all have reasons for doing this, but the government?
What is in it for the feds?
According to the PM’s news release, this is about creating jobs, thousands of jobs, according to Trudeau. Yet his own news release says it will create 100 direct jobs at Elysis.
That means each job of the $188 million project will cost $1.8 million or from the federal government, Trudeau is handing over $600,000 per job. The money comes from the Strategic Innovation Fund which hands out “repayable and non-repayable contributions” to all kinds of companies the government finds favour with.
Meaning we may never see a penny from this, even if it is successful. Quebec could do quite well though, they got a stake in the company with their $60 million investment.
Read this related story, while Trudeau funds these companies and more, still no cash for veterans.
DONT FORGET THIS COVERS HIS ASS FOR ALLOWING THE ALLIMINUM SMELTER IN THE SAME REGION TO BUILD WITHOUT WITHOUT ADAMM ENVIRINMENTAL ASSESSMENT, THIS IS A CYA
[…] Only a Liberal would think you need to subsidize the biggest company on earth, but Trudeau is doing that. […]
You forgot Brian, creating QUEBEC jobs. There, fixed that for you. No where else in the country matters to PM Soy Boy’s Fiberals, just largesse and subsidization of this country’s petulant spoiled brat of confederation
The earth financial goons taking care of themselves
I can’t believe what I just read !!
O M G
If they succeed they will absolutely require Hydro Quebec sized energy and Canadian supply lines.
This I don’t understand because aluminum is smelted electrically. Hydro Quebec already has “low carbon” elecricity.
no matter what I say about this nothing will change .. when this boy was sitting in Whistler a few years back, sucking hi weed down .. this sort of gift to a private corporation would not have flown with him .. how does one get so STUPID and wasteful with a countries money.
Really quite simple Lawrie. Once you accept that he’s not on our side, everything he does makes perfect sense!
[…] to a recent article by Brian Lilley, the federal government is providing large amounts of aid to some of the most profitable companies […]
[…] to a recent article by Brian Lilley, the federal government is providing large amounts of aid to some of the most profitable companies […]
Will it never end?
[…] [ May 11, 2018 ] Justin Trudeau just handed tens of millions of your tax dollars to the richest … […]
[…] Justin Trudeau gave 60 million taxpayers money to a company owned by Apple reports Brian Lilley. […]
Surely this largesse has nothing whatever to do with the federal by-election to be called in that riding for this spring.
This has to end and it will. Unfortunately we have to wait untill the next federal election.
If any of you are upset by this any other action taken by the Hairdo who would be King’ you need to remind everyone what an incompetent PM we have. Repeat until Oct 2019( unless our dictator is told to change thatt as well)!
Stupidities such as this will continue to take place unless we can manage to somehow change our entire system of government. We obviously need greater control over government spending. We also need to ensure our government makes decisions that ensure the health and well being of the people. Right now it is obvious they put corporate profits above our health and well being.
If you remember the video of Justin Trudeau stating that only Quebecois were worthy, and the balance of the White European Colonists, he had no use for. So if the best Prime Ministers have come from Quebec. Justin Trudeau truly doesn’t like White European Canadians, and he doesn’t even try to hide it. What a sorry excuse for a Prime Minister, I hope that after October 21, 2019 there will be something left over from our once great country.
[…] prime minister was in Saguenay announcing a $188 million research project backed backed by Apple. The feds are putting $60 million of your tax dollars, Apple is putting in $13 million and the Quebec government $60 […]
In spite of your excellent analysis, I’m still asking what’s in the deal for the federal government??? But seems to me that there was a report that Apple was investing in that new aluminum smelter in a Quebec riding that JT. hoped his party would win. Is there anything to this? (Bill Donaldson seems to think so).
The feds get nothing for their $60 million, Quebec gets 3.5% for their $60 million. Apple is putting money in but has no ownership stake. The rest is owned by Rio Tinto and Alcoa.
As for this being about the “buy” election, it is about this and more. Read here https://brianlilley.com/justin-trudeaus-buy-election/
Thank you, you are correct this is not owned by Apple. I hate Apple and Trudeau but this a great example of playing loose with the facts.
Good luck with that. If they i) can crack that smelting issue ii) I’ll give them $10 billion. Neither are going to happen. As Brian notes, $60 million squandered on a feel good but physically improbable cause yet nothing for veterans