ORAL QUESTIONS - AUTOMOTIVE INDUSTRY
JUNE 3, 2008

Mr. Jerry J. Ouellette: My question is to the Premier. Premier, I could stand here today and blame your government for the impact on the auto sector over and over again, but it's not going to resolve one issue, and that's the issue of jobs and support for the number one industry in the province of Ontario. Premier, you've mentioned the plan that you have in supporting the auto sector and how it's going to ensure that we have jobs for future generations in the number one employer. Today's announcement at General Motors in Oshawa is only the beginning. We’re going to see five or seven times the number of those announcements coming forward as the support industries for that particular industry announce their layoffs.
Premier, the plan isn't working. Do you have an alternative form or way to support the auto sector in the province of Ontario?


Hon. Dalton McGuinty: Let me first of all say that our hearts go out to the workers affected by today's announcement from GM. My friend opposite will know that GM has decided, because truck and SUV sales have plummeted by 40% in the last year alone, that they are closing plants: two in the US; one in Mexico, which is rather extraordinary; and one here in Ontario.

We will do everything we can to lend support to those workers and those families. We understand that this is a particularly difficult time, but I'm also mindful of the advice I received from a worker recently in Windsor. When I said, "What can we do for you?" he said, "Keep fighting for the auto sector in Ontario." We intend to do exactly that.


Mr. Jerry J. Ouellette: Premier, certain sectors of the plan don't appear to be working. For example, the taxation of ethanol is one small method of deterring the sale of ethanol-w hich supports the E85, which is 85% ethanol-a method of deterring the sales of technology-leading advantages that General Motors and the other Big Three would have in the province of Ontario. Small things like that or just-in-time delivery service, with the cost of fuel, are not necessarily the way to go.


What I'd mentioned before in this Legislature was that we need alternative methods to support just-in-time delivery service such as having taxation for warehousing to make it more cost-effective, because bringing goods in from other jurisdictions may not be the way to go. We need to think outside the box and find alternative methods to support this. Do you have some other plan that we can look at and work on with you to make sure that the number one employer in the province of Ontario stays the number one employer?


Hon. Dalton McGuinty: I appreciate and do not doubt for a moment the sincerity of the offer coming from this particular member. But I can tell you, from day to day, it's hard to know where the Conservative Party is coming from on this score. Their single, most important economic priority is that we cut taxes, corporate taxes in particular. I can tell you, in talking to GM right now, they're not paying corporate taxes because they're not making a profit. They were paying capital taxes until we eliminated capital taxes for them, and they voted against that. So it is difficult, from time to time, from day to day, from question period to question period, to know where they are coming from on this score.


I can say that we will continue to work with GM. Because we have invested together with them in their new Beacon project, which is a new flex plant, that means we are at the front of the line when it comes to landing a new car manufacturing investment in Ontario.


Mr. Jerry J. Ouellette: Premier, we've brought forward a number of alternatives. I've raised this issue in the Legislature on a number of occasions going back years. I have brought forward things such as the fuel-consumption tax as a method to reduce the taxation on some aspects, as a gesture to the auto sector, and particularly the truck plant in Oshawa, as one way of support.

In a previous government, one of the Premiers came forward with an all-party committee to address issues called the alternative fuel committee. Would you consider looking at an all-party committee on the auto sector and the number one employer on how we can move forward in making sure that it remains the number one employer in the province of Ontario?

Hon. Dalton McGuinty: We're pleased to give real consideration to this idea, but I must say that when we spoke with the auto manufacturers, they told us that their number one concern was capital taxes. They told us their second concern was business education taxes. We've also come to understand that, at the beginning of the 21st century, in a world where one of the states was prepared to put up $1 billion to land a new key investment, we have got to be at the table.


I would prefer to be at the table together with a strong partner in the federal government, so that we can work together to further strengthen the auto sector in Ontario. But until that day comes, I'm more than prepared to work with my colleague opposite, to continue working with the CAW and to continue to work with our auto manufacturers to ensure that we have a bright and vibrant future for our auto sector in the province of Ontario.