Ontario in a cul-de-sac

The absence of a rescue plan for the auto industry could be catastrophic for the economy. Ontario taxpayers may have to pay an invoice salt if General Motors (GM) becomes insolvent. According to the Minister of Finance of Ontario, Dwight Duncan, the Ontario guarantee pension plans must reimburse any shortfall in a pension fund. But that GM reached $ 4.5 billion last year. To this colossal sum addition, if the insolvency of American manufacturers, huge losses for the province, warns Minister Duncan. The shortfall would reach billions of dollars because of additional income taxes on companies, property taxes and income taxes. It would be like a stake in the heart of Ontario's economy, added the minister. That is why Queen's Park stressed the importance of ensuring the immediate survival of American manufacturers: the collapse of the industry cost more to the province. The conservative opposition in Toronto is simply does not. She was astonished Joyce Salvoline the lack of alternative from the McGuinty government, which it accuses of having all your eggs in one basket. Meeting in Detroit The Canadian Minister of Industry Tony Clement called constructive discussions that he and his Ontario counterpart Michael Bryant have had in Detroit Wednesday with the leaders of Chrysler, Ford and GM. The two men trying to see what Canada can do to help the automotive industry. Tony Clement is open to the idea of helping this sector. The two ministers will be in Washington Thursday to hear details of the proposed rescue of the U.S. government. The future of the American plan is increasingly uncertain, since several members of Congress believe that car manufacturers are responsible for their own misfortunes. Bleak future When Ottawa show in his throne speech opening to help the auto industry after months of denial, loss of jobs in Ontario remain inevitable. Federal Minister of Industry, Tony Clement said Tuesday that the Canadian Auto Workers (CAW) must play a role in the rescue of manufacturers. But the CAW replicate that labor accounts for 7% of the costs of building cars and the union have already done their part: they have accepted this spring reductions of $ 900 million in salaries and benefits. The TCA, however, could find itself isolated as the premier of Ontario, Dalton McGuinty, says that the auto sector is expected to shrink in coming years and that a rescue plan in North America only serve to halt the decline. Dalton McGuinty will meet with the CAW in the coming days to discuss the possibility of obtaining concessions from workers.