Automotive bailout: Ontario ministry of education
Summary :
Table of Contents
- Introduction
- Background of the financial crisis
- Stimulating economic growth within Canada
- The Economic Action Plan
- The financial bailout package for General Motors
- Recommendation: Province of Ontario
- Focus: Skills and education training
- Conclusion
- References
Abstract
General Motors (GM) is requesting a significant financial bailout from the federal government of Canada in order to protect its operations from insolvency. The company claims that it requires an immediate influx of $6-7 billion from Canada to counter the economic downturn and fiscal loses associated with the global credit crisis, and the reduced demand for its automotive products [CBC News, 2009]. If they do not receive the necessary funding, they are threatening to close production plants in ontario which would have an adverse impact on the ontario labor market and would lead to a dramatic increase in joblessness and unemployment in Canada. The consequences of these layoffs and manufacturing plant closures would significantly impact the economy in ontario, and incur a runoff effect throughout Canada. As such, the provincial government of ontario is reviewing the request in order to consider whether we support and recommend a federal bailout for the automotive sector. In my capacity with the ontario ministry of education, I am presenting this brief to comment upon and recommend the conditions from which we, as members of the provincial government, support this bailout and will discuss the specific recommendations and concerns related to post-secondary education, technical training, and skills transition which are necessary to counter layoffs this economic shift will generate.
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