Ottawa, Queen’s Park Head To U.S. To Talk Auto Bailout
Posted November 19, 2008 12:00 pm.
This article is more than 5 years old.
With the auto industry on the brink of collapse and tens of thousands of jobs on the line, federal and provincial officials headed to Detroit Wednesday and Washington Thursday to figure out Canada’s role in any bailout agreement.
Federal Industry Minister Tony Clement has been hinting at a joint Canada-U.S. bailout agreement. While his provincial counterpart Michael Bryant wants Canada to step in and protect the big three – General Motors, Ford, and Chrysler – before the Americans do and then use its assistance plan to negotiate with them over jobs.
The automakers revealed for the first time on Tuesday just how much they want from the government. General Motors is seeking between $10 and $12 billion, Ford is asking for roughly $8 billion and Chrysler, $7 billion – for a total of about $25 billion.
Last week, Ontario Premier Dalton McGuinty expressed concern that a U.S. aid package may be tied to the repatriation of jobs from Canada and Mexico.
But even if there is a bailout for the auto industry, the Premier warned the sector will still be scaled down, and there will be job losses in the province.
“I think we’re going to end up with a smaller auto sector in the province of Ontario and fewer jobs than we have at present,” he cautioned Wednesday. “Even if we work as hard as we possibly can to put together a support package…that’s just the way the economy is working at present.”
The CAW has predicted that the collapse of any of the Detroit automakers could cost as many as 70,000 jobs in Canada and has criticized Finance Minister Jim Flaherty for not doing enough to help.
Flaherty, for his part, says Ottawa has already promised up to $450 million for the auto industry.
Michael Bryant has not said whether Ontario would contribute to any aid package. But in one report, he stressed that there would be no unconditional handouts from either Canada or the province to the auto sector.
