“This was a first-tier issue,” said Michael Sabia, deputy finance minister. The Public Order Emergency Committee is reviewing the federal government’s decision to invoke the Emergency Act on Feb. 14 to end the protests that had gridlocked parts of downtown Ottawa and some border crossings. At the time, the federal government was trying to get the United States to scrap a plan that would have excluded electric vehicles assembled in Canada from a proposed consumer tax credit that would have given an advantage to companies that build electric cars on American soil. Sabia said the protests have tarnished Canada’s image as a place to invest, just as the U.S. is reviewing its trade relationship. The deputy minister said he was hearing from American officials and business figures who questioned whether Canada was a reliable trading partner. “There was no question that these disruptions that came when they were done in that process brought with them the risk that we wouldn’t be able to get the treatment from North America,” he said. The Biden administration eventually expanded the tax credit to cover electric vehicles produced across North America. “Electric vehicles are the future of the automotive industry,” said Sabia. “So if we hadn’t been able to do that, then the particular consequence of that for the auto industry in central Canada would have been very, very serious.” WATCHES | The consequences of a convoy protest could have been “very, very serious”, says the deputy minister:
Consequences of convoy protest could have been ‘very, very serious’, deputy minister says
During testimony before the emergency law inquiry, Deputy Treasury Secretary Michael Sabia says the convoy protests are jeopardizing trade deals with the US and could have led to dire consequences for the auto industry. The Ministry of Finance has not submitted an assessment of the financial impact of the blockades. “Determining the true scale of the economic impact of the blockades is difficult, given that it depends on the length of the holiday and that shipping goods across borders affects almost every industry at some point in their business process,” said a report that the department said. together for the committee. “However, given that the border closure was ultimately relatively short-lived, the ministry believes that the effects were likely to be temporary.”
About 280 accounts were frozen
Sabia told the inquiry on Thursday that he considered various ways to cut off funding to the protesters, but many of those options would require legislative changes that would take time. The state of emergency law gave authorities new powers, including the ability to freeze the finances of those linked to blockades and protests. Figures given to the Commission suggest that around 280 accounts with around $8 million in assets were frozen as a result of the emergency measures. WATCHES | Assistant Deputy Treasury Secretary tells Emergency Act inquiry into frozen accounts
Assistant Deputy Treasury Secretary tells Emergency Act inquiry into frozen accounts
Testifying before an inquiry into the federal government’s use of the Emergency Act, Isabelle Jacques says her office was aware some people affected by the freeze did not attend the self-styled “Freedom Convoy” but insisted the focus was to protesters who were involved in illegal activity. Isabelle Jacques, assistant secretary of state at the Treasury Department, told the inquiry the idea was to prevent people from joining the illegal protests and encourage others to return home. “These people knew what could happen,” he said. Commission lawyer Gordon Cameron asked her if the department considered freezing the accounts would also affect the protesters’ family members. “Who takes responsibility for the fact that these bills were in foreclosure, that people couldn’t pay their rent, that people couldn’t buy their groceries? Who takes responsibility for that?” Gordon asked. “The intention was not to get into the families,” said Zach. Brendan Miller, a lawyer for some of the protest organizers, argued that the financial order to freeze accounts was an act of overreach and that stopping fundraising on crowdfunding platforms violated Canadians’ rights to freedom of expression. Sabia said the Liberal government “made a decision that these activities were illegal”.
