$1 billion loan to Brazilian mining giant called "corporate welfare" 
Should the Canadian government be loaning $1 billion to a Brazilian mining giant that allegedly broke its promise to save Canadian jobs?
The Canadian Taxpayers Federation says "no," and is accusing Export Development Canada of engaging in "corporate welfare."
EDC, a Crown corporation with a mandate to "develop Canada's trade," announced Monday that it is lending $1 billion to Vale (S.A.) of Brazil, the second biggest mining company in the world. "Of the potential USD 1 billion in funding, up to USD 250 million will be made available for capital expenditures for the Long Harbor nickel processing plant in Newfoundland and Labrador, and another USD 250 million will be available for several projects slated for development in Ontario," EDC said in news release.
The deal has angered workers at the company's nickel mine in Sudbury, where the company has been battling the mine's employees in a 14-month strike. Vale bought Sudbury-based Inco in 2006, but after promising not to cut any jobs for three years after the acquisition, the company slashed more than 400 jobs in Canada.
The Canadian Taxpayers Federation says "no," and is accusing Export Development Canada of engaging in "corporate welfare."
EDC, a Crown corporation with a mandate to "develop Canada's trade," announced Monday that it is lending $1 billion to Vale (S.A.) of Brazil, the second biggest mining company in the world. "Of the potential USD 1 billion in funding, up to USD 250 million will be made available for capital expenditures for the Long Harbor nickel processing plant in Newfoundland and Labrador, and another USD 250 million will be available for several projects slated for development in Ontario," EDC said in news release.
The deal has angered workers at the company's nickel mine in Sudbury, where the company has been battling the mine's employees in a 14-month strike. Vale bought Sudbury-based Inco in 2006, but after promising not to cut any jobs for three years after the acquisition, the company slashed more than 400 jobs in Canada.
Union officials protest outside the Canadian headquarters of Vale Inco last fall Credit: National Post
The Canadian Taxpayers Federation is also decrying the loan to Vale, but for different reasons. The CTF says it makes no sense to lend taxpayers' money to a firm that "already has so much excess cash."
"If corporate welfare worked at creating jobs, every Canadian would have two by now. This loan should be scrapped and fast," CTF Federal Director, Kevin Gaudet, said in a statement.
**SPAM**
