The revival of Ford's defunct Windsor, Ontario engine plant may hinge on Prime Minister Stephen Harper's electoral ambitions. Here's the deal.. Each time the Canadian dollar rises, the divide grows between Canada's two most prosperous provinces. On one side we have Conservative Alberta, Harper's home turf, whose petro-success has strengthened the Canadian loonie. On the other side we have Liberal Ontario, the former industrial powerhouse, whose fortunes and competitive advantage have diminished in direct proportion to the loonie's ascent. In the past, Harper has rejected the call for manufacturing subsidies, pissing off Ontario no end. However, this time, an election looms; Harper needs votes in Ontario. Signaling a possible shift in government policy, Harper's industry minister Jim Prentice has hinted that Ford's Windsor plant may be eligible for a chunk of the $350m hardship fund earmarked for Ontario. The Globe and Mail reports that Prentice has pinned the chances of Ford receiving the money on just how much Ontario's provincial government, led by Liberal Dalton McGuinty, cooperates. And if neither Ford nor Dalton play by Harper's rules, well, GM is also lined-up to receive some that loot to build a six-speed transmission plant in St. Catharines, Ontario. Realpolitik, eh?
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My recollection of free market enterprise vs say, communism, was that business sank or swan without government “assistance”. The buying of votes wasn’t exactly covered in economics, it was more likley to be discussed in political science. The more I hear from our primary “leaders” (Harper, Dion, and McGuinty), the more people like Jack Layton start to make sense. Scary stuff.
Jack Layton will never make sense, except in a Lutz-ian world, where money grows on trees and reality is whatever will get you a sound bite in the national news.
Well it really isn’t communism, persay, but it is a means of allowing your on shore businesses to better compete against other off shore, government backed up businesses. It’s only playing the same game our Asia “friends” are using by suplimenting their goods into our market place. Will we ever really get a chance to compete on an equal footing with Japan and have the ability to readily export automobiles to that country? It’s doubtful, because of government sponsored, sanctioning against American or Canadian built vehicles. But we live with it as our two North American governments allow it to contimue.
justjim…
I’d say you haven’t been listening too closely to Harper, Dion or McGuinty, but then you might be forgiven if you were from out west…
All the US states have subsidies and tax breaks for industry. This is not unusual.
And to suggest that the NDP is the “least Marxist” party is only hillarious in its absurdity.
I used to work in Windsor as a bartender. Some of my most regular costumers were Ford engine plant employees on their “liquid-lunch” break.
I don’t have much problem with tax-breaks to encourage business, but straight-up hand outs only delay the inevitable. As soon as the hand-outs stop, the company leaves.
So for all the skeptics out there, where exactly do you suppose the money for the handouts comes from? The government just prints more right? Anyone here in Canada remember John Manley wanting tax breaks for…the NHL? I don’t mind heading off to work every day so that part of my paycheque can be doled out accordingly. Ya think?
Ford closed the Windsor engine plant less than two months ago. It wants $60-million from the government to reopen it. That’s thinly-veiled extortion.
General Motors says it will permanently layoff 900 St. Catherines workers. Chrysler has announced 3,300 Ontario job cuts. Undoubtedly they are monitoring Ford’s trip to the taxpayer money tree.
There’s nothing like free money to grease capitalism’s wheels!
Please take a deeeeeep breath.
Now, I want you to relax, and think objectively. Detach from your emotions a moment. Become purely analytical.
Ready? A system of government where private property and capitalism are the apparent methods of control, but where the state actually maintains to itself the power to redirect wealth and resources is called fascism.
Breath again.
No, there are not a bunch of people running around Canada in jack boots killing people because of race or religion. That was nazism. Everyone’s brains turn off when you use the word fascism, but it has a meaning, and the folks who are for it never use it. They hide it, deny it, and change the subject (most often with clever demagoguery).
Harper is no better, or worse than the alternatives because Canada has lost the respect for private property needed to have a proper society. It’s a miracle the place is still as nice and livable as it is. The government there has been redistributing wealth for decades, and even when they realize how stupid they were, they do it AGAIN!
And, they wonder why the kids will steal a car because they are too cold to walk.
John Manley wanting tax breaks for…the NHL
no different down here buddy. millionare owners of football teams are always trying (and succeeding) to taxpayers to build them stadiums AND guarantee profits.