By Edward Niedermeyer
May 14, 2008 -
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.
Subscribe to Newsletter18 Responses to “ Ontario Premier: “No Regrets” Over $250m GM Handout ”
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May 14th, 2008 at 11:57 am
fool me once shame on you, fool me twice…..
May 14th, 2008 at 12:08 pm
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.
May 14th, 2008 at 12:42 pm
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.
May 14th, 2008 at 12:52 pm
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.)
May 14th, 2008 at 1:21 pm
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.
May 14th, 2008 at 2:04 pm
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
May 14th, 2008 at 2:24 pm
Government has no business in business. Case in point.
May 14th, 2008 at 2:56 pm
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.
May 14th, 2008 at 4:21 pm
Dalton McGuinty should take a page from DiVito’s Larry the Liquidator and rename his party “OPM Posse”.
May 14th, 2008 at 8:43 pm
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.