Federal Aid Of $3.4 Billion For Canadian Car Industry Hinged On U.S. Assistance To Detroit 3

December 15, 2008 10:19 a.m. EST

Ottawa, Ontario (AHN) - Canada's government is poised to offer $3 billion plus in financial assistance to the Canadian mining and forestry industries in January following the release of a $3.4 billion bailout package for the car manufacturing industry based in Toronto.

Aside from the three industries, Industry Minister Tony Clement said Sunday other sectors under financial stress are scheduled for assistance when the new Harper administration unveils its budget on Jan. 27.

But the auto industry help will be hinged on the U.S. federal government first assisting the Big 3 in Detroit, Michigan, Clement said. In a news conference Clement sad a pre-condition to Ottawa's help will be the restructuring plans of the Canadian production facilities of General Motors, Ford and Chrysler.

Clement said, "It's absolutely not a blank check... we have to protect the interests of the taxpayer. This is about conditional support based on their long-term plans, based on them working with the parts suppliers, based on the unions being at the table, based on the United States continuing to be part of the solution."

The planned $3.4 billion assistance is proportional to the American bailout package of $14 billion, based on the share of North American car production. But the final amount will depend on what the U.S. federal government will approve, Clement said.

NDP leader Jack Layton commented that the near vote of confidence on the second term for the administration of Prime Minister Stephen Harper has spurred the Tories to act swiftly on the economic issues facing the nation.