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In a global recession, that has cost many Canadians their jobs and their livelihoods, the federal government has a moral obligation to protect Canadians by any means necessary. Corporate tax incentives have proved ,in the past, to produce low or no results in stimulating the local economy as companies have aggressively continued the practice of outsourcing their production to low cost geographies such as India and China at the cost of Canadian employment opportunities. There is no guarantee of any kind that the companies that receive tax cuts will use it to create job opportunities for Canadians. In the context of a Canadian recession the Federal Defense Minister Peter MacKay made an announcement from CFB Val Cartier in Quebec, that the contract for 1,300 military trucks has been awarded to Navistar Defence LLC to be built at their Garland Texas facility.
Highlights
The announcement came as a surprise when many GM facilities in Canada are closed for the month of January 09 for cost cutting purposes and while Navistar Defense has a truck facility in Chatham Ontario that has recently announced the layoff of 700 employees. That is in addition to tens and thousands of jobs being lost every month in Ontario.
When Navistar was questioned as to why the 1,300 trucks could not be built at their Chatham Ontario facility, their spokesman Roy Wiley replied: The plant in Chatham builds larger trucks. It is not clear how larger the trucks are and if the Federal Government could change the order for larger trucks so that they could be built in Ontario.
At a time when the parliament is resolved because of the fear of defeat by the opposition parties a decision to purchase foreign goods and products seems untimely opportunistic and inconsiderate of many Ontarians who lost their industrial jobs. Assurances have been made by Peter MacKay that Navistar will generate one dollar of economic activity in Canada for every dollar it receives. The new trucks are needed to replace the vehicles that are still around from the 1980's. Assurances are not guarantees and Defense Minster carefully did not use the word "Guarantee" which means it may or most probably may not happen due to uncertainty of the global economic situation. MacKay goes on to say, that "we'll have mechanics working on the trucks. The supplies, the parts and the gas that are used in conjunction with the trucks will obviously be Canadian". At a time when the parliament is resolved because of the fear of defeat by the opposition parties a decision to purchase foreign goods and products seems untimely opportunistic and inconsiderate of many Ontarians who lost their industrial jobs. How can a government justify production of a product in a foreign country while the same company has a facility in Ontario and Canadians are in dire need of more job opportunities in the country. |
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