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CANADIAN AUTOMOTIVE PARTNERSHIP COUNCIL DISCUSSES COMPETITIVENESS ISSUES Toronto, May 7, 2007 - Canadian Automotive Partnership Council (CAPC) members met on Friday, May 4, to discuss key issues affecting the ongoing competitiveness of the Canadian auto industry. Don Walker, Co-Chief Executive Officer, Magna International and CAPC Chair said, "I'm very encouraged to see the level of engagement of the federal and provincial ministers and their interest in asking for the industry's input on approaches which would ensure the continued growth and competitiveness of this key industry, while safeguarding the environment. Our members highlighted that over 570,000 jobs and $10 billion in annual tax revenue depend on a healthy automotive sector." CAPC members expressed a range of views on the many issues and challenges faced by the automotive industry in Canada. Members discussed concerns about the pace of progress towards increased regulatory cooperation across North America, the implications of a possible Canada-Korea free trade agreement, the proposal by the federal government to regulate fuel consumption, and the approach to consumer incentives and levies announced in the last federal budget. Members expressed particular concern about the plans of several provinces to establish their own regulations on fuel emissions. CAPC members were unanimous in calling for one national fuel consumption standard, harmonized with the US standard. Ministers Bernier and Pupatello agreed on the need for one national standard and undertook to raise this issue with their federal and provincial colleagues. During the meeting, members noted the accelerated Capital Cost Allowance announced in the recent federal budget and the Ontario government's commitment to support environmental R&D as examples of government actions in support of CAPC's strategy to attract investment and ensure the Canadian auto sector remains strong and internationally competitive. Members also called for increased cooperation across governments and closer cooperation with the US in addressing the key issues raised by the CAPC membership. CAPC recommended that governments ensure a competitive tax regime and business environment, a greater degree of harmonization with the US in setting safety and environmental regulations, as well as a fair international trade regime. The Honourable Maxime Bernier, Canada's Minister of Industry, stressed the significant contribution of the industry to employment and economic growth in Canada and noted that, despite ongoing challenges, automotive sales and investment reached record levels in Canada last year. "Budget 2007 demonstrates the government's commitment to addressing automotive sector interests, in providing generous capital cost allowances, significant investments in gateway and transportation infrastructure and measures to foster innovation and green technologies," said Minister Bernier. The Minister underscored the role of stakeholders in providing input to the development of a Canadian regulatory agenda. "We are committed to ensuring that industry competitiveness is respected and that the health and safety of Canadians is not compromised," added Minister Bernier. "Through our auto strategy, the McGuinty government has leveraged more than $7 billion in new investments that will create thousands of jobs and help position Ontario's auto industry for long-term competitiveness," said Ontario Minister of Economic Development and Trade Sandra Pupatello. "Friday's discussion focused on how we build on this success while helping the industry meet the near-term challenges of a major global restructuring and the need for improved environmental sustainability. We continue to encourage the federal government to develop national initiatives that contribute to the strengthening of our automotive industry," added Minister Pupatello. Roger Martin, Dean of the Rotman School of Management at the University of Toronto, also attended the meeting and led a discussion on Canadian competitiveness. CAPC's seven working groups reported on progress on their priority issues to the council. The working groups are: fiscal/investment policy, human resources, innovation, regulatory compatibility, sustainability, trade infrastructure and international trade. CAPC will meet again in fall 2007. ABOUT THE CANADIAN AUTOMOTIVE PARTNERSHIP COUNCIL The Canadian Automotive Partnership Council is a private sector-led group, which was launched in September 2002. It includes senior executives from industry (vehicle assembly, parts manufacturers, aftermarket and dealers), labour and academia, as well as the industry and economic development ministers from the Governments of Canada, Ontario and Quebec. The mandate of the Council is to identify actions to strengthen the Canadian automotive industry in the short and long term. For more information, please see the CAPC fact sheet outlining the important work being undertaken by the membership at our website. MEDIA CONTACTS: CAPC private sector (for Don Walker): David Paterson, (905) 644-6308 or |
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