Good idea, bad idea

Commentary by Jeff Burgar

It doesn’t help Canadians Merill Lynch analysts predicted last week oil may drop to a measly $25. Three weeks ago, Detroit’s Big Three automakers were looking for $25 billion in U.S. government money. Last week, they drove to Washington (in some very nice hybrids they said) to make a case for $34 billion. At the same hearings, a Moody’s expert said the bill to fix the auto industry could be as high as $125 billion. Still lots cheaper than collapse he said. Now, when you actually add up the value of Ford and General Motors, the stock market value of these companies is barely on the upside of $7 or $8 billion. Chrysler, being a private company, can only be guessed at. The investment company which bought Chrysler from Daimler paid $7 billion. In government numbers, these are all pretty small potatoes. America’s banks were given $300 billion with another $300 billion on the way. They didn’t even have to go through the hoops the car people are now jumping through. Somewhere along the line, if a rescue package happens, Canada should pitch in. Auto manufacturing is a big industry in this country too. We can use that $34 billion number ($42 billion in Canadian bucks) as a good start. Canada, being a tenth the size of America, puts up $4.2 billion Canadian. With Harper’s government in shreds, Ontario already says it is ready to step up alone. Should Alberta join in too? Perhaps put half, $2.1 billion from the Heritage Fund, into a rescue package? The reasons? Well, it’s said over and over again we have to diversify our Alberta economy away from energy. You can see why with oil prices bouncing around like a refund check from Enron. This might be the best time ever to get a say where the next new, billion dollar car factory will be built. It promotes Canadian unity. We help Ontario and one day, they might help us. Maybe even help elect a Western Canadian prime minister again. It serves national interest and national security. Both Canada and America need manufacturing industries owned, controlled, engineered and directed in these countries. There’s precedent. Think Pacific Western Airlines. There’s a kernel of an idea here, right?

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