TORONTO, Sept. 23, 2011 /CNW/ - Dramatic deterioration in financial
markets and slowing global growth make it all the more essential that
Ontario's next government be pro-active in attracting and protecting
new jobs for the province, says CAW National President Ken Lewenza.
"With the onset of another episode of financial chaos, it is all the
more important for government to be in the trenches, fighting to create
and protect Ontario jobs - rather than just sitting back and expecting
tax cuts to do the trick," Lewenza said.
Lewenza welcomed today's Liberal platform commitment to create a new
economic development fund for southwestern Ontario, to support
investment and job-creation in the hard-hit region. "Every new
investment we can win in this region is critical for working families
and our communities. This fund will help to cement new projects and
He also pointed to other positive job-creating initiatives being debated
in the campaign, such as the domestic content provisions of the Green
Energy Act, and the NDP's proposal for made-in-Ontario processing of
mineral resources (which would support jobs in provincial mills and
smelters). "Recent events have shown that this economic crisis cannot
be resolved, without a larger and more pro-active economic role for
government. We need active leadership and participation from the
public sector to stabilize our economy and our jobs."
"In contrast, the Conservative platform seems to believe that cutting
taxes and eliminating 'red tape' will capture all the new investment we
need," Lewenza added. "That's misguided at the best of times, but
downright dangerous during a downturn." Tax cuts have little
stimulative power during a recession, because companies and households
save their extra disposable income rather than re-spending it.
Lewenza also highlighted a little-noticed plank in the Conservative
election platform, which promises to end all government subsidies for
private business investment. "Mr. Hudak's position would take
government out of the game altogether, in terms of cementing the
investment deals we must win."
"Mr. Hudak's approach puts ideology before economics," Lewenza warned.
"If this policy were actually implemented, Ontario would never win
another major capital investment by a major automaker. That would be a
disaster for every auto-dependent community in the province."
Aerospace, biotech, and green energy are other key sectors where
government participation in major investments is routine.
"The international reality is that governments have to be at the table,
or else these investments don't happen," Lewenza concluded.
The CAW represents about 125,000 members in Ontario. Additional CAW
Ontario election-related materials and statements can be accessed at: www.caw.ca/en/10559.htm
SOURCE Canadian Auto Workers Union (CAW)
For further information:
please contact CAW Communications: Angelo DiCaro, (416) 606-6311 or John McClyment (416) 315.3202