François Legault Defends Forgivable Loans as Quebec’s New Government Ends the Program

François Legault has stepped in to defend a business-support program created under his government, after Quebec’s new Parti Québécois administration announced it was ending the initiative. The former premier took to social media to explain why he believes forgivable loans can help attract investment and strengthen the province’s economy. The program was introduced in 2019 by Legault and then-economy minister Pierre Fitzgibbon. It provided loans to companies, with some or all of the money eligible to become a grant if recipients met agreed conditions. Those could include creating jobs or keeping a head office in Quebec. The program has distributed about $1.1 billion among a limited number of businesses, according to the report. New Economy Minister Stéphane Paquet confirmed in an interview with the publication’s parliamentary bureau that the government is shutting it down. He described the program as an overly generous arrangement, arguing that some companies received substantial support while others got none. The Parti Québécois has said it intends to offer less direct assistance to businesses and instead reduce taxes across the business sector. Legault’s defence rests on the idea that Quebec is competing with jurisdictions around the world for investment. He argued that incentives can help draw businesses to the province, boost productivity and narrow the gap in wages and wealth between Quebec and the rest of Canada. As Legault explained it, a loan could turn into a grant only when an investment generated economic benefits. He said the grant would be paid after several years from the returns created by that investment, and maintained that those benefits would not exist without the government’s help. His comments offer a pointed response to the new government’s decision to scrap a signature policy of his former administration.