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Support for Auto-sector Enshrined in Throne Speech - No Details

Posted:19/11/2008 21:59 by Heddy Sorour
This afternoon's traditional Throne Speech read by the Governor General introduced the new government's priorities with regard to the new session of Canadian parliament. In the speech a brief mention was made of "further support for the auto and aerospace industries," however Finance Minister Jim Flaherty was reluctant to elaborate on the details of the plan. Flaherty has repeatedly said that any aid given to the auto-sector will be contingent on long-term sustainability. Asked by NTKN whether the government would set any criteria to judge the sustainability of any aid packages Flaherty dodged the question. "Several areas that need to be addressed with the auto-sector and Mr. Clements is doing that right now," he said referring to a meeting in Washington DC that the Canadian Industry Minister, Tony Clements is currently attending. However the answer begs the question whether Flaherty has abandoned his stance on long-term sustainability in favour of a more politically acceptable aid package appealing to the two most populous Canadian provinces. The bulk of the manufacturing industry is located in Ontario and Quebec with the lion's share of the Canadian auto-sector located in the former. This speech can be rejected by the opposition parties and in that event could topple this minority government. However, although Liberal party leader Stephane Dion agreed with both the NDP and the Bloc this speech said nothing new, and did not capture the urgency of the current financial crisis or the distressed domestic economy his party will not oppose the speech at this time. "We will wait for the Fiscal Update next week," said Dion. click here to return to the top of the page
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