Canada (like most other developed countries) has a hard time attracting/keeping auto manufacturing jobs due to high labor and tax costs. To counteract these competitive disadvantages, provincial governments often offer car companies tax holidays and other incentives. The problem with these handouts is that they do not guarantee a long-term presence by the bought-off manufacturers. Exhibit A: GM got handouts worth nearly $250m in provincial tax money (and about $200m in federal funds) for its Beacon project aimed at revitalizing its Canadian production facilities. Now, a few short years later, they're cutting some 1400 jobs at their Windsor transmission factory, with another 900 lost due to production cuts at the Oshawa truck plant. Having spent some $7b on various automaker subsidies without receiving a single job guarantee, Ontario Premier Dalton McGuinty is coming under fire. "The more money this government invests in a company, it seems the more jobs are lost," says Progressive Conservative MPP Bob Runciman. But McGuinty ays he "doesn't regret" giving the money to GM (at least until the next election). Report on Business tells us that GM is set to ask the Ontario government for another $140m to build transmissions at its St Catharines plant. Oh, and don't expect GM to offer any job guarantees, either.
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fool me once shame on you, fool me twice…..
Twice?! Ontario politicians have been shovelling money towards the rich to bribe them into staying there for decades. Along with all the other Canadian provinces.
It’s called socialism. Sadly, it’s done in America, too.
Capitalistic ‘free society’ only “works” for the working stiffs. As in, “here’s yer pink slip.” “I haven’t even been written up or warned or done anything wrong.” (shrugs) “Bye”. 1 week later: “Oh you worked there for one day shy of a year. You and your family get 2 cents unemployment. A month.”
So I moved to the UK out of total disgust. And stayed there for seven years.
Ontario gave GM $235-million to retain 900 jobs, Ford $100-million to retain 4,000 jobs and Chrysler $76.8-million to retain 5,200 jobs. GM has since slashed 5,500 jobs, Ford 2,700 and Chrysler 2,000.
GM’s money was conditional on retaining 16,000 jobs in the province. It is down to 14,850. Spendthrift Premier McGuinty says the request for another $140-million is not affected nor is GM required to reimburse taxpayers.
Wonder if the politicians dont give them SFA will they be pulling up the tent tomorrow?
Afterall Canusktan is still a place to off load the mdeical costs ( is kind of free but the wait could outlast your incubation time.)
Autoworkers must be declared a protected species, or perhaps designated a national treasure. They are the highest expression of our civilization and all taxpayers in Ontario must do their share to ensure they have jobs at their current rate of pay. After all, they’ve always been there to help me when times were tough.
Excuse the sarcasm, it’s better than the obscenity laced contempt that was my first impulse.
Gee, maybe our government should pour some money into these companies also.
It seems like that would be a great waty to improve the economy.
Brilliant.
Bunter
Government has no business in business. Case in point.
menno; socialism? Are you serious? I can’t think of anything less socialist than the corrupt government funneling tax money to private corporations owned and controlled by the wealthy.
Dalton McGuinty should take a page from DiVito’s Larry the Liquidator and rename his party “OPM Posse”.
Excuse the sarcasm, it’s better than the obscenity laced contempt that was my first impulse.
You and me both. My industry was subjected to a severe meltdown, and across the country the lay-offs measured in the hundreds, if not thousands. Not a peep from anyone. No handouts. Nothing. But hell if you are a carmaker…just tell the pols how many zeros to add. How they achieved and sustained this hallowed status is beyond me.
Also, Blowfish? You are seriously misinformed.
NickR
Please tell me which part is misinformed?
Didnt the Bricklin burnt us before?
Doesn’t the OHIP is cheaper than US’s HMO or whatever u call them?
We have these Autopac, Nafta agreement which are quite convoluted.
Look at the soft wood lumber tariff in BC, did we got long end of the deal?
Blowfish, no offense intended, I was just referring to the comment on wait times…they can be long, but for the most part they will rush you in if it’s imperative. Peace. I agree with you on all your other comments though.
Isn’t extortion a crime? The mob wishes it could extract money this efficiently and in these quantities.
7 billion cumulative huh? Work that out on a per job basis…those are some expensive jobs, eh?
I presume rpn453 was being extremely sarcastic.
Socialism for the wealthy, and screw the rest of us. That’s how it works.
If we want to change it, we have to change it by voting in people who aren’t in the pockets of the wealthy – well, DUH.
That involves not bothering to waste your vote on the two major parties (or is it three in Canada?)
I presume that rpn453 was being extremely truthful but incorrect. Ford and GM (and until recently Chrysler as part of Daimler/Chrylser) are not “private corporations owned and controlled by the wealthy”. They are private to be sure but they are owned and controlled by the stockholders, which could be you and I, depending on which mutual and pension funds we are invested in. Unfortunately, the owners (stockholders) of Ford and GM have not done due diligence in demanding changes of these companies. Should they go down the owners (stockholders) will probably be looked upon as ‘victims’ by the media just like those who took out mortgages they could not hope to pay back (yes, some were misled by lenders, but many of them gamed the system to their advantage and now they’re crowing that the ‘big bad’ mortgage lenders took advantage of them).
Ontario is still chugging along quite nicely thank you. The only lesson to be learned from this is perhaps the provincial government should limit its handouts solely to Japanese auto manufacturers. Theys they don’t lose market share and bleed money, which is what plant closures are a result of after all.
menno, you said “It’s called socialism. Sadly, it’s done in America, too. … So I moved to the UK out of total disgust. And stayed there for seven years.”
You moved to the UK to get away from socialism? Isn’t that like moving from Iceland to Finland for a warmer climate? Best I can tell, Thatcherism is dead. As will be British culture in a few decades.
NickR,
In emergencies, the Canadian system works great, most of the time. I almost had my bowel explode due to lack of doctors and an unwillingness to use imaging equipment, but hey, once they figured out I could be near death at any minute, the got right on it. Nevermind the full day of them screwing around.
OTOH, I would hate to be sitting around for 6 months in my later years waiting for a hip or heart surgery that is not an emergency. Can’t leave the country, can’t work, can’t really live until they get to you.
So, in this case, he isn’t misinformed according to my experience and information.
Most folks in Canada worry if we open up two tiered medical system, no doctors in right mind would work for the public med system.
Because of singular system we do have to wait, or you can fly south to have hip or anything done in a few days instead of you’re lucky enuf to out last the waiting time.
Now a new trend to have operations done in India, where it can be done with fracton of what it will costs here. Uncle Sam’s citizens are doing that already.
And some nights if being so looky the Emerg can go beyond SRO ( standng room only) the Ambulance could travel around town trying very hard to find anybody to take you.
Solly Nick if your age is not half way across you no need to worry about all these waiting time yet.
None the less we’re still much cheaper than US Medical, because they practice defensive medicine, do everything under the Sun one is th milk you dry, two is to have adequate defense ( no stone unturned )incase you got screwed up badly.