Prime Minister Harper announces subsidy renewal for auto industry - InfoNews

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Prime Minister Harper announces subsidy renewal for auto industry

Prime Minister Stephen Harper rises in the House of Commons on Parliament Hill in Ottawa, February 28, 2012. THE CANADIAN PRESS/Adrian Wyld
January 04, 2013 - 9:23 AM

TORONTO - Ottawa is extending an auto sector fund the provides a $250-million pool of investment cash for car companies and their suppliers to draw from.

Prime Minister Stephen Harper is at a Ford plant in Oakville, Ont., to make the announcement.

Harper says the Automotive Innovation Fund has helped the auto sector become more innovative, agile and competitive.

The fund, established in 2008 federal budget, requires companies to invest their own money to access government cash.

The five-year renewal comes amid a controversy over government assistance to the auto industry, after GM of Canada said in late December that it will shift production of the Chevrolet Camaro from Oshawa, Ont., to a plant in Michigan in 2015.

The federal and Ontario governments contributed $10.6 billion to the bailout of General Motors during the 2009 recession, when the company restructured under court protection.

News from © The Canadian Press, 2013
The Canadian Press

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