In today’s Ottawa Sun, Lorrie Goldstein showcases the inherent flaw of Dalton McGuinty’s economic strategy to save Ontario from continuing down the vortex of manufacturing job losses - there is no accountability.
…McGuinty said yesterday he will be giving more of our money to General Motors, which is now seeking $140 million for a new engine plant in St. Catharines and a research centre in Oshawa.
This despite the $250 million Queen’s Park has already invested in GM, which recently laid off 2,300 auto workers in Windsor and Oshawa.
That’s half the $500 million McGuinty has invested in the auto sector since 2004 through the Ontario Auto Investment Stategy (OAIS).
The premier boasts those funds led to $7 billion in new investment for Ontario, creating or protecting thousands of jobs and making the province the No. 1 auto producer in North America.
Conservative Leader John Tory and the NDP’s Howard Hampton have attacked McGuinty for failing to get job guarantees when these grants were given…
…But how good is the Ontario government, really, at sorting out the winners and losers among American, Japanese and other car manufacturers?
Goldstein suggests that we need an independent, non-partisan body to make these kinds of decisions - Someone like provincial Auditor General Jim McCarter .
I can agree to a point with this plan, but it still doesn’t address some very serious underlying issues. The auto industry is not merely threatened by poor decision-making on the manufacturer’s part regarding gas-guzzlers, etc. There is a very complex situation, involving a perfect storm of the interaction of the high Canadian dollar, high (unionized) labour costs, high provincial taxes and onerous red tape, rising power and fuel costs, a volatile U.S. market, and the unceasing influx of cheaper imports.
Based on the challenges of that set of criteria, McCarter would probably have better luck picking a winner at Woodbine, than handicapping a worthwhile choice from a field of manufacturing contestants.
I suspect what really influences Dalton’s decisions is the optics of who he’s supporting, rather than the nuts and bolts of the bottom line. He’s looking for the biggest political bang for our buck .
And that is what cherry-picking does. It woos the bigger fish at the expense of the smaller ones - and the Ontario tax-paying suckers get to subsidize the OLP in the process.
No wonder Dalton doesn’t want to listen to Flaherty. After all, It’s not really about doing something. It’s about being seen to be doing something.