Ontario taxpayers gave $163M to Liberal Party's biggest corporate donor

The biggest corporate donor to the Ontario Liberal Party is also one of Ontario's biggest recipients of taxpayer-funded corporate subsidies.

Research by CBC News reveals that GreenFieldSpecialty AlcoholsInc. and its related companies havereceived more than $160million in government support since the Liberal government created a dedicatedfund for the ethanol industry.

Further research by CBC News also shows that GreenField,companies and its founder havedonated more than $480,000 to the Ontario Liberal Party in the same time period.The political contributions make GreenFieldthe biggest corporate donor to the Ontario Liberals since Kathleen Wynne became premier in 2013.

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The government of Dalton McGuintymandated that every litre of gasoline in the province must contain 5 per centethanol, starting in 2007. At the same time his Liberal government alsocreated the $520-million Ontario Ethanol Growth Fund. That funding helped kickstartthe building ofthe six ethanol plants in the provincethree of which are owned by GreenFieldand annuallysubsidizesethanol producers'operations.

GreenField is a privately-held company headquartered in Toronto. The ethanol maker calls itself "the leadingspecialty alcoholsproducer in Canada." It has three Ontario plants:at the St Lawrence Seawayport ofJohnstown, in the southwestern Ontariotown ofChatham, and at Tiverton, near the Bruce nuclear generating station.

The payouts to GreenField over the years are contained in Ontario'sPublic Accounts. Data compiled by CBC Newsshow that the company has received$163,658,109from provincial taxpayers over the years.

Ontario GovernmentPayments to GreenField Specialty Alcohols

2006-07:$1,296,151

2007-08: $4,333,851

2008-09: $9,252,961

2009-10: $23,314,313

2010-11: $24,942,894

2011-12: $30,276,474

2012-13: $31,903,360

2013-14: $17,416,416

2014-15: $10,691,919

2015-16: $10,229,770

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Total:$163,658,109

More than 90 per cent of that money $148 million came from the Ethanol Growth Fund. The rest was a $15 million grant for the company to make investments at its plants.

Data from Elections Ontario compiled by CBC News show GreenField's donations to the Ontario Liberal Party total $480,889 since 2007, but really ramped up once Kathleen Wynne became Premier in 2013.

Donations to the Ontario Liberal Party fromGreenFieldcompaniesand founder

2007: $23,765
2008: $7,900
2009: $26,350
2010:$19,095
2011: $22,900
2012: $20,000
2013: $102,149
2014:$182,580
2015: $56,225
2016: $19,925
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Total: $480,889

Included in the tally of contributions to the Liberals are donations in the name of several arms of GreenField Specialty Alcohols,as well as itschairman and founder Kenneth Field.Among other donations,Field personally gave $10,000 to Kathleen Wynne's successful run for the Ontario Liberal party leadership in 2013.

GreenField'stotaldonations frequently topped the maximum allowed of $9.975because it made separate donations under each of its corporate arms.In 2014 alone,Elections Ontario records show the following donations to the Liberals, totaling $182,580:

2014 Donations to Ontario Liberal Party

$9,975: GreenFieldSpecialtyAlcoholsInc. (General Election)
$9,975: GreenFieldEthanol (Johnstown)Inc. (General Election)
$9,975: GreenFieldEthanol (Hensall) Inc. (General Election)
$9,975:GreenfieldHensallG.P.Inc. (General Election)
$9,975: GreenFieldSpecialtyAlcoholsInc. (byelections)
$9,975: GreenFieldEthanol (Johnstown)Inc. (byelections)
$9,975: GreenFieldEthanol (Hensall) Inc. (byelections)
$9,975: GreenfieldHensallG.P.Inc. (byelections)
$9,975:KennethField (byelections)
$9,975: GreenFieldSpecialtyAlcoholsInc. (annual period)
$9,975: GreenFieldEthanol (Johnstown)Inc. (annualperiod)
$9,975: GreenFieldEthanol (Hensall) Inc. (annualperiod)
$9,975: GreenfieldHensallG.P.Inc. (annualperiod)
$5,025:KennethField (annualperiod)

$47,880: donations of $1,330 each to 36 constituency associations or candidates

"Any inference that GreenField has made donations for an inappropriate purpose iswithout merit," said company CEO Bob Gallant in an email to CBC News."Our company proudly supports politicians of all political stripes, at all levels of government (federal, provincial and municipal) who support the ethanol industry."

Elections Ontario data indicateGreenFieldhas donated $90,350 to the Progressive Conservatives since 2007 (but just $33,500 of that since 2013) and nothing to theNDP.

During the same time period, while the Harper Conservatives were in power,GreenFieldreceived $263 million from the federal government through the ecoEnergy for BioFuels program. Corporate donations to federal political parties are banned.

The Wynne government says the process for doling out the millions of dollars inethanol subsidies is "non-partisan"

"Ministry officials evaluate which companies receive funding," saidChristina Crowley-Arklie, communications advisor to Agriculture Minister Jeff Leal, in an email.

She said the $520-million Ontario Ethanol Growth Fund (OEGF) "has created more than 300 skilled jobs while generating $635 million in capital investments."

NDP leader Andrea Horwathraised the GreenField donations during Question Periodon Monday,

"It's worrisome when you continue to see these companies that are donating significant amounts of money to the Liberal party then receive a significant amountof money in grants," Horwath told reporters at the Legislature.

PC leader Patrick Brown questioned "disproportionate donations" by companies that stand to benefit from taxpayer handouts. "It seems like every few days there's a new example and it highlights why the government's crossed the line," Brown told reporters.

$520M fund a 'safety net' for industry

GreenField's CEO describes the fund as a "safety net" for Ontarioethanol producers, with payoutsdetermined by aformula based on annual production, foreign exchange rates and commodityprices.

And he credits the Liberal government for creating the fund to kickstartthe ethanol industry in the province."Without the OEGF, the ethanol would have been imported from the United States and Brazil," said Gallant.

Finance Minister Charles Sousa defended the taxpayersubsidies to ethanol companies as helping the economy.

"It's a tremendous industry," Sousa told reportersMonday at the Legislature."It'sbolstering the agricultural industry in a huge way and it's alsoproviding a cleaner environment."

Other Ontario ethanol producers have contributedmoney tothe parties and received government funding since 2006, but none of them hascontributed anywhere near asmuchto the Liberalsas GreenField.

The Suncor Energy Products Inc.ethanol plant nearSarniais the largest in Canada and produces more fuel ethanol than GreenField's three plants combined. Suncorhas received $189.5 millionfrom the provincial government, according to data inthe Public Accounts.

Since 2006, Suncorhasgiven $103,595 to the Liberals, $77,650 to the PCs and $15,870 to the NDP, according to Elections Ontario data.

IGPC Ethanol Inc., located in Aylmer,has received $91.8 million from the province. The company hasdonated $20,000 to the Liberals and $7,060 to the PCs.

The ethanol and biodiesel lobby group, theCanadian Renewable Fuels Association of which GreenField and IGPC are members has donated$87,815 to the Liberals and$25,275 to the PCs.

Wynne has promised to ban corporate and union donations effective next year.