OTTAWA (Staff) – The $1.6 billion program designed to compensate prairie farmland owners for the loss of the Crow transportation subsidy has given Ottawa a chance to collect some old debts.
Last week, auditor general Denis Desautels noted it has allowed the federal government to collect more than $17 million in lingering debts owed by farmers who suddenly came into some money.
When the initial $1.2 billion interim payment was sent out, $10.8 million was withheld from close to 5,000 landowners to cover debts they owed to the government.
Another $6.6 million will be collected from others after the infusion of cash gave the government leverage to negotiate a debt repayment schedule with some delinquent debtors.
The more than $17 million was owed to Revenue Canada for income tax, and to agencies including the Canadian Wheat Board, Farm Credit Corporation or the Prairie Farm Rehabilitation Administration.
