CHECK AGAINST DELIVERY
Good day ladies and gentlemen.
In the final days of 2008, the Bush administration announced that it would be putting together a rescue package for troubled North American automakers. That decision required our Government to act. The North American auto sector is a totally integrated industry. As such, it requires an integrated approach. Therefore, to maintain Canada's share of the industry – which is roughly one-fifth – our Government committed to providing our share of the support package.
This was a difficult choice to make, but the reality is this: the previous US Administration's decision to support the restructuring of Chrysler and General Motors left two options for Canada, either participate in the restructuring of these companies – which directly and indirectly account for literally hundreds of thousands of jobs – or stand idly by as they are completely restructured out of Canada. We judged the second alternative to be unacceptable, and far too risky in the current economic environment.
And so in close cooperation with the US Treasury and now the Obama Administration, the Government of Canada set very strict conditions that the companies would have to meet in order to receive support to help them to restructure and renew. Together, we've been working to ensure that all stakeholders, including unions, management, bondholders and financial institutions make the difficult decisions necessary to re-establish viable companies.
This has not been an easy process for anyone involved. In fact, in March our Government rejected the initial plans that were put before us. But since then, further concessions have been made by all stakeholders. Today, I'm announcing that the Governments of Canada and Ontario will partner to support GM Canada's restructuring efforts. This assistance will include "border-blind" support to GM's network of suppliers. General Motors is by far the largest consumer of auto parts in Canada.
In return for this support, all stakeholders have committed to making difficult concessions. Labour costs and benefits will be dramatically reduced, dealerships will be rationalized and the product line will be retooled to reflect evolving consumer demand.
Ladies and gentlemen, today's announcement is a regrettable but necessary step to protect the Canadian economy during the worst global recession in half a century. Indeed, these actions will account for the greatest part of the increase of this year's projected federal deficit. I wish there were an alternative, but the alternative to what we are doing today would be vastly more costly and more risky.
I want to acknowledge once again Premier McGuinty for the outstanding cooperation between our Governments on this important issue. The decisions made by his Government have been, I understand, equally difficult, but they have been taken in the best interests of all of Canada, and we appreciate it. I'd also like to recognize the efforts of federal Industry Minister Tony Clement and his officials who have spent countless hours working on this with their Ontario counterparts, as well as with companies, stakeholders and the Obama administration.
Lastly, I want to thank stakeholders, particularly GM's workers, who have come together and made some very difficult choices for themselves and their families. We know that you have made difficult sacrifices. We know that these decisions were not easy, but we are committed to working with you to ensure a better future for all of us. Because, as I have said before, in these extraordinary times, the Government of Canada will take whatever actions are necessary to protect Canadians and our economy and to position Canada to emerge stronger than ever.
