Canada Can Move to Improve Canadian Auto Situation Despite U.S. Failures
Despite the collapse of the U.S. auto bailout reached by Congress, Canada (and the Province of Ontario) can continue to move forward. My wish list would be:
1) GST Zero-Rating Holiday for 1 year (2009) (could be extended) - help the manufacturers by helping the consumers.
2) Provincial Sales Tax holidays for 1 year (2009) (could be extended) - help the manufacturers by helping the consumers.
3) GST and provincial sales tax holidays are tied to a condition that dealers charge a mark-up of less than $1000 over dealers' cost of the vehicle (so that the consumers truly benefit and so that the holiday relates to low to medium end cars).
4) Employer health tax holiday for Canadian auto manufacturers and Canadian auto parts manufacturers - improve the image of Canada as a great place to operate.
5) Canada pension plan and employment insurance holidays for Canadian auto manufacturers and Canadian auto parts manufacturers - improve the image of Canada as a great place to operate.
6) The Canadian Autoworkers Union pays $1,000 to the applicable Canadian plant from which each Canadian vehicle sold was manufactured to support further employment of Canadian workers. The dealers would provide the Canadian manufacturers with the VIN numbers of Canadian vehicles sold and the Canadian Autoworkers Union would use that information to pay the $1,000 per Canadian vehicle sold to the applicable Canadian plant. Let's face the reality - the CAW can do more to support their workers than the Canadian Government because the Canadian Government is limited by the WTO SCM Agreement.
7) In addition, the Canadian Autoworkers Union will pay for a Buy-Canada advertisement blitz without any government contribution to support the jobs of their workers. If the CAW cannot spend money to support their workers, Canadians should not either.
8) The Government of Canada ends free trade agreement negotiations with Korea - timing is not right for more auto competition.
9) The Government of Canada provides assistance for Canadian research activities by educational institutions and research establishments on green auto technology (this could be structured in a manner that is consistent with the WTO SCM Agreement).
10) The Government of Canada provides assistance to the Canadian auto manufacturing facilities to be used to adapt the existing facilities to new environmental requirements imposed by law and / or regulations in a manner that is consistent with the WTO SCM Agreement.
11) Conduct a thorough analysis of the security measures that have been put in place since 9-11 and determine whether any of the duplication of security that is adding to the burden of manufacturers can be removed and still keep security at acceptable levels.
12) The Government of Canada should offer an amnesty for any Canadian manufacturer (auto, auto parts or other industry) to come forward and report past non-compliance with border laws and determine whether to fund technology to correct any non-compliance.
13) The Government of Canada should provide an income tax credit for used motor vehicles traded in to Canadian scrap dealers who supply the Canadian steel industry - why not help the steel manufacturers at the same time? The Government of Ontario and other applicable provincial governments should match the income tax credit.
14) The Government of Canada should improve counterfeit goods legislation to stop counterfeit auto parts from entering Canada. The Government of Canada should establish a trade remedy similar to section 337 in the United States for the purposes of the auto parts industry having an improved mechanism to protect itself from counterfeit goods.
I will stop there because it always best to also receive surprises at Christmas time.
