Canada sets Dec. 5 deadline for automakers plans
By Allan Dowd
VANCOUVER, British Columbia, Nov 28 (Reuters) - The Canadian and Ontario governments told the Big Three automakers on Friday to submit restructuring plans by Dec. 5 if they want to receive taxpayer assistance from Canada.
In letters to Ford Motor Co (F.N), General Motors Corp GM.N and Chrysler LLC, the governments said they understood the industry's economic importance but needed know how their Canadian operations would be made viable for the long term.
"Before we consider committing taxpayer dollars, the government needs to see solid, sustainable plans from the automakers as they pertain to Canadian operations," federal Industry Minister Tony Clement said in a statement.
The U.S. government has given the companies until Dec. 2 to submit restructuring plans for their American operations, the letters noted.
The Dec. 5 deadline also could be significant to the survival of the minority Conservative federal government.
The Conservatives are on the brink of being toppled over opposition party complaints that the fiscal update unveiled on Thursday did not have any financial stimulus packages for the weak economy.
Prime Minister Stephen Harper announced on Friday that Parliament will not vote on any no-confidence measures until Dec. 8. That would include the fiscal update bill.
Harper made the announcement before the letters to the automakers were released.
The opposition parties have complained that Canada is lagging behind the United States and risks having Washington develop an aid package for the industry's U.S. plants at the expense of Canadian jobs.
Canada and the U.S. have been discussing the industry's situation and Finance Minister Jim Flaherty has said officials planned to meet again soon.
The letters ask the automakers to answer several questions including the effects of restructuring on Canadian suppliers and distributors, about the global competitiveness of their Ontario plants and how they will ensure production of energy efficient cars in Canada.
The companies are also asked about their Ontario Pension liabilities.
The letters were signed jointly by Clement and Ontario Economic Development Minister Michael Bryant. Ontario, Canada's largest province, is home to nearly all of the country's automobile production. (Reporting Allan Dowd, Editing Carol Bishopric)
