Canadian Finance Min: "No Bailout"

Samir Syed
by Samir Syed
canadian finance min no bailout

When the leaders of the G20 meet this weekend, they’ll look to Canada’s conservative but durable banking model as a template for the rest of the world. Since the Liberal reign of Paul Martin as Canada’s Finance Minister, Canada’s been the “Wealthy Barber” of the developed world, deploying bland but solid fiscal policy to great effect. And now, more sense from the current Canadian Finance Minister, Conservative Jim Flaherty. CTVNews reports that Jim isn’t too keen on giving the ailing Canadian auto industry the US-style bailout that’s currently being debated in Washington. Why not? Well sometimes, the story just tells itself: “Nobody wants to see taxpayers’ money taken — and then in effect wasted — where a company is not going to survive … we want to see the plan for survivability,” he said. In order words, before the FinMin spends one cent of taxpayer dollars propping up Canadian production, he wants to see a turnaround plan. You know – the same kind of plan GM has failed to publish ever since it first bled red under its current CEO Rick Wagoner. Don’t hold your breath, Jim.

Join the conversation
4 of 9 comments
  • Troonbop Troonbop on Nov 15, 2008

    Harper's likely behind it and knows better than to please the CAW with other people's money. He's an economist and at least three moves ahead of the idiots of the Canadian left, classical or otherwise. Imagine if the liberals were in power? And, forgive me for scaring my Canadian friends, what if the NDP had the reins?

  • Gardiner Westbound Gardiner Westbound on Nov 15, 2008

    Not to rain on naysayers' parade, a properly managed bailout can work. Renault reported a 1984 deficit of 12.5-billion francs notwithstanding a moderately successful car line. The French government intervened and installed Georges Besse as chairman. He cut costs dramatically, sold off non-core assets and laid off numerous employees, halving the deficit by 1986. Murdered by left wing terrorists in November 1986 (and Wagoner thinks he has it tough), Raymond Levy continued his policies. The company was financially stable by the end of 1987. Renault launched several winning new cars in the early 1990s, including the phenomenally successful Clio, second-generation Espace, innovative Twingo, very successful Laguna and the R19. In the mid-1990s the highly successful Megane was the first car to achieve a EuroNCAP 4-star crash test rating. 1998 saw Renault introduce the well-received Megane Scenic. Renault powered cars won Formula One World Championships in 1992, 1993, 1995, 1996 and 1997. Renault was privatized in 1996 with the government retaining 15.7-percent ownership. Carlos Ghosn, also Nissan CEO, became CEO in 2005.

  • Psarhjinian Psarhjinian on Nov 15, 2008
    Imagine if the liberals were in power? What, like Chretien or Martin? We'd have had less debt, for one. Remember who brought the Federal debt down in the first place? While we're at it, recall what Ontario's debt was after Harris/Eves/Flaherty left, versus what it is under McGuinty's Liberals now. Fair disclosure: I'm a card-carrying New Democrat and don't like the Liberals much, but I think people give the Conservatives far too much credit for their fiscal discipline when, in reality, they let ideology get in the way of pragmatism.

  • Mikey Mikey on Nov 15, 2008

    Right you are eh political.Harper runs the show and Flaherty will do what he is told.Stephen Harper is in Washington chatting it up with President Bush right now. If! and thats a big if, the United States coughs up some aid for the domestics.You can bet Harper will send his messenger boy Flaherty down to the SHWA check in hand. Fair disclosure:I'm card -carrying Liberal.