Manufacturing companies are asking Quebec to limit the planned increase in Hydro-Québec rates for industrialists and SMEs, in order to face the new Trump administration.
Already opposed to the idea of financing the enhancement of Hydro-Québec’s energy capacities, the members of Quebec Manufacturers and Exporters (MEQ) consider the timing all the more ill-chosen now that the new American president threatens to impose customs tariffs of 25% on all Canadian exports.
“We can’t control what Donald Trump does, but that’s one of the only things that the Quebec government itself controls,” says the new president and CEO of MEQ, Julie White.
For some members of his association, energy represents more than half of activity costs.
As part of its 150 billion investment plan to increase Hydro-Québec’s capacities, the Legault government promised to limit rate increases to 3% for residential customers, while increasing them from 4% to 6 % annually for businesses.
These new fees would therefore be added to the customs tariffs that future President Trump threatens to impose next week.
It is difficult, in this context, to compete with American companies, argues the CEO of the MEQ. “If our electricity rates are no longer competitive, it’s clear that we’re shooting ourselves in the foot. We have to maintain our business environment,” says Julie White.
Her association is not opposed to an increase, she assures, “but it must be controlled and it must remain competitive”.
-100,000 jobs at stake
On Wednesday, after a meeting with his provincial and federal counterparts, François Legault declared that around 100,000 jobs are at stake in Quebec if Donald Trump carries out his threats.
Without being able to confirm this forecast, Mme White also speaks of “tens of thousands” of jobs at risk.
Moreover, a survey conducted by the MEQ last December among some 300 Canadian companies (including around a hundred in Quebec) reveals that 40% of them plan to “reduce the size of teams or put recruitment efforts on hold” .
Worse, 20% have already implemented a hiring freeze, in anticipation of the economic shock.
Other measures
Already, the Minister of the Economy, Christine Fréchette, has promised to help businesses that will be affected, as Quebec did during the pandemic.
In addition to electricity rates, Julie White proposes in particular to increase the innovation tax credit (C3I), which had been improved to help businesses during the health crisis.
Since the end of the pandemic, Quebec has halved this financial boost which could go up to 40% for the purchase of manufacturing equipment, electronic equipment or management software packages.
