FOR IMMEDIATE RELEASE
11 May 2020
TORONTO – Today, the federal government announced additional financial support for big businesses under the new Large Employer Emergency Financing Facility (LEEFF) program, which includes conditions on company employment, shareholder payouts, tax haven use, climate change risk disclosure and more.
Greenpeace Canada Senior Energy Strategist Keith Stewart said:
“There’s no going back to normal. We need to rebuild Canada on fairer, and more climate-resilient foundations. This starts with putting conditions on companies to prepare them to adapt to the new rules after the crisis. There have to be some real teeth in how this is implemented, but it makes sense that companies seeking public support agree to limit dividends and executive pay, forgo tax havens and start aligning their business model with Canada’s climate change targets. Companies funding campaigns to oppose action on climate change should be excluded from the program.”
ENDS
For more information, please contact:
Jesse Firempong, Communications Officer, Greenpeace Canada
[email protected]; +1 778-996-6549
Note:
Greenpeace Canada’s April 9, 2020, recommendations to the federal government on it’s pandemic response package included the following conditions (among others):
- Companies should have or should produce a sustainable business plan that includes a clear and credible direction towards real carbon neutrality in line with limiting global warming to 1.5 degrees Celsius and operating within all planetary boundaries (including zero-waste). For example, support to auto manufacturers should include a requirement for credible plans to phase out production of internal combustion engines.
- Companies receiving bailouts should not have any cash flows to the shareholders (e.g.. no dividends or share buybacks) and no additional cash to management (e.g., no bonuses).
- Companies receiving bailouts should maintain employment levels and pay (in contrast to the 2009 auto bailouts that allowed for massive job losses). Wages and related packages should not be renegotiated to the disadvantage of workers. There should be no disadvantageous change in worker representation on boards or other decision-making bodies.
- Companies receiving bailout should end tax evasion and avoidance. This includes ending the use of tax havens.
- In case of (partial) nationalizations, the bailout should happen at current highly-devalued asset prices or at even more discounted prices. The federal government should also use its ownership role to embed social and environmental objectives within corporate governance.
Government support cannot be accompanied by weakening of environmental and social rules.
