McGuinty Budget not Supporting Domestic Auto Manufacturers

Queen’s Park - Jerry Ouellette, MPP Oshawa, today questioned the McGuinty government in the Ontario Legislature over the lack of support for the domestic auto industry.

While the recent provincial budget proposes to double the retail tax rebate for hybrid-electric vehicles, Mr. Ouellette pointed out that currently, there are no hybrid-electric vehicles manufactured in Ontario.

Mr. Ouellette says, “I am disappointed the government has not offered the same incentive for made-in-Ontario products. In fact, the Oshawa-built E85 Flex-fuel Impala produces approximately 60% less greenhouse emissions than electric-hybrids”.

With the removal of the excise tax exemption on ethanol blended into gasoline, ethanol will be subject to the same tax treatment as gasoline at the pump.

Responding to questions from Mr. Ouellette, Minister of Finance, Dwight Duncan, refused to acknowledge the automotive sector was experiencing a crisis and the two policy changes announced in the budget would negatively affect the local auto industry.

“With the recent restructuring announcements in the local auto sector I am disappointed the McGuinty government is creating a disincentive to buy made-in-Ontario vehicles”, added Mr. Ouellette.