Legault Boosts Quebec Economy with Deposit Fund's 496 Billion
Prime Minister François Legault has announced plans to utilise the Deposit and Loan Fund to bolster the Quebec economy. The Fund, with a net asset value of 496 billion dollars, is a significant resource for the province, with deposits from various sectors including future retirees.
The Fund's dual mission is to generate optimal returns for depositors and contribute to Quebec's economic development. Legault has instructed the government to ask the Fund's board to increase investments within the province. Currently, around 20% of the Fund's assets, totalling 93.5 billion dollars, are invested in Quebec.
The prime minister's decision comes amidst concerns about government influence over the Fund. Critics point to the 1.3 billion dollar write-off from the C Series project of Bombardier and the subsequent dispute with Boeing. Additionally, previous government-backed projects such as Northvolt, Recyclage Carbone Varennes, and Lion Électrique have resulted in significant losses of public money.
With the appointment of the current CEO, Éric Girard, set to be approved by Legault by June 30, 2025, the prime minister's move to increase the Fund's investment in Quebec could have significant implications. However, excessive political intervention may pose challenges, as noted by credit agency Moody's, potentially impacting asset growth and contributions from depositors.
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