Canadian Feds Discuss GM Bailout
Canadian finance minister Jim Flaherty awakes!. After years of ignoring calls from Ontario's Premier Dalton McGuinty to subsidize Ontarian jobs, brushing off accusations of inaction vis-à-vis the steady outflow of Ontario's manufacturing jobs to lower-cost areas, Flaherty could hold back no longer. Call it a Shakespearean twist of fate, but of all of the 308 electoral districts in Canada, Flaherty has the misfortune of representing the federal electoral district of Whitby-Oshawa, right where GM Canada lives– the epicentre of Ontario's ailing manufacturing. Flaherty opened the newsday by announcing a $250m bailout of GM Canada. Except he didn`t call it a bailout. CBC reports the Flaherty will make money– set aside under an "environmental investment fund"– available to GM to help it pursue green technology. The move, another possible knee-jerk reaction to the closure of GM-Oshawa, has caught even Dalton McGuinty by surprise. (Dalton hasn`t decided whether to be pleasantly surprised or to, in typical provincial fashion, say it is not enough. Though the conditions of the deal aren't finalized,) Flaherty hinted heavily that the money should be used to replace truck production by smaller car production. Well duh.
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