HomeMy WebLinkAboutThe Lucknow Sentinel, 1986-10-01, Page 5a
Auto pact protection
needed to secure future
To the ealor:
Perth M.P. Harry Brightwell, recently
hosted a meeting of Perth County auto
parts manufacturers, auto dealers and of-
Ficials from the Federal Department of
Regional and Industrial Expansion.
The meeting was designed to air the con-
cerns of local auto manufacturers .nd
dealers regarding the future of the Cana-
dian automotive industry.
Data ftom the Cana. Tan Motor Vehicle
Manufacturers Association (MVMA)
shows how important this Canadian in-
dustry is to Canada, and particularly to
south western Ontario.
The auto industry accounts for one of
every seven manufacturing jobs and for 10
per cent of manufacturing exports.
Direct auto employment of 130,000
generates 44,00O other jobs in auto
manufacturing component production and
spin-off effects throughout Canada,
Auto manufacturing, for instance, ac-.
counts for 14 per cent of iron foundry pie -
duction, 11 per cent -of rubber, 7 per cent of
machine. shop production, 9 per cent of
wire products, 6 per cent of carpeting 'and
fabrics, 6 per cent of processed aluminum
goods, 9 per cent of glass products and 20
per cent of steel shipments, •
Spending on goods and services is. $13
billion per .year or over $1,000 for every
•person in Canada per year.
In addition, investment since 1980 is a
further $12 billion, -
The key to the strength of the Canada's
auto manufacturing and its spinoff effects
is the auto pact.
In Canada the auto pat requires 60 per
cent Canadian content. Also, production to
sales ratio requirement of 1:1 means
$10,000 in Canadian production re-:
quirements for each $10,000 in sales in'
Canada.
In the IJS. the auto pact requires 50 per
cent North American content Compliance
with these requirements eliminates 'cross
border (Canada -U.S.) duty.
Cat companies in Canada operating
under the auto -pact are American Motors;
ChryslerFord, General Motors and
Volvo.
Importers of vehicles are not required
by the 'governments of Canada and the
U.S. to comply with rules of the auto pacts.
Importers currently account for a minori-
ty of -vehicle sales about 30 per cent
With 428,000 jobs created by 70 per cent
TO
of the 'market, each I per cent
mathematically cquld. be said to mean
about 6,000 jobs in Canada, the majority of
which are in Ontario.
A number of import companies are now
moving in Canada with kit assembly of
their products.
They plan to bring in their own parts,
and some of their own workforce, without
falling under the guidelines of the auto
pact. In short, they wish to sell in our coun-
try, but not provide additional jobs in the
marketplace.
These companies are Hyundai, Honda
and Toyota. Each 1 per cent increase in
• their sales will result in the loss of 6,900°
jobs in Ontario - jobs for people who may
be your friends and neighbours, '
The auto industry in Canada has shown
it can manufacture better products with
better efficiency than the importers.
A survey of auto engineers in the world
• rates Mercedes No. 1, G.M. No. 2 and Ford
• No. 3, with Asian importers trailing.
• Asian vehicles have performed poorly in
government sponsored crash tests and in
some countries last only, one third as long
• as North American produced vehicles.
In addition, North American dollar sales
per employee are 50 per cent higher than
Japanese importers and 200 per 'cent
higher than Korean importers,
These are two ways that we as Cana-
dians can keep these 428,000 jobs intact
and possibly increase them.
One, as consumers, is to buy products
built by companies concerned.. about
• employment in Canada - those companies
that fall under the auto pact:. AMC),
o Chrysler, Ford, GM, Volvo.and Suzuki (in
• 1!T1189)e. other is to apply pressure to our
governments to put pressure on these
.other companies not following auto pact
"guidelines.
Let's keep our country strong.
Chris West^
St. Marys
Eater's Note; Mr. West is the owner of
Downtown Pontiac -Buick in St. Marys.
To the Editor:
The Lucknow Block Parents would like
to thank all those who took part in the child
finger -printing program that was held
Saturday September 27 at the ,Lucknow
town hall. Approximately 140 youngsters
had their fingerprints documented. A
special thank you is extended to Constable
Andy Burgess of the Kincardine detach-
ment of the OPP.
Thank you for making this event a
success.
The block parents will be holding a bake
sale on Saturday October 18 at the
Lucknow Legion from 11 to 3. Anyone
wishing to become ablock parent please .
contact Marguirete Sanderson or Barb
Helm,
Hospital hires consultant
Approval for the hiring of a consultant to
conduct a $23,000 tole study of the Wing -
ham and District Hospital was given by
the hospital's board of governors 'Wednes-
day. ),
The decision testi) ted from a
management committee recommendation
which was included in the committee's re-
port presented at the September board
meeting by Dr. Brian Hanlon, committee
chairman.
Dr. Hanlon, who is iso board vice.
chairman, told board m rnbers the study
would concentrate on th . 1,1 al's needs
and the direction in which the institution
should proceed. He said the study is a
worth*hile project,
The firm recommended by the
management committee to undertake the
study had indicated it could do so as °early
as this fall, Dr. Hanlon said.
The consulting firm of David Coulson
and Associates of Toronto was given the
board's approval to prepare wjuit Exeeu.
tive Director Norman Hayes termed a
"strategy plan based on what they can find
out in terms of the demographics of the
area,"
Mr, Hayes said the study could look at
areas in the hospital which are not now
cost effective and make suggestions based
on the findings. The hospital's maternity
and intensive .eare units were two such
areas, he said.
° De, Hanlon pointed out to board mein.
bete' thaf 6ieri if the study did pinpoint an
area of service as not being cost effective
it would not necessarily mean that the hos-
pital would discontinue that seryiee,
Instead; the hospital could ' choose to
continue that service "simply as a serviee
to the community,'he said.
The last role study for the hospital was
done in 1977 at a cost of $8,000 and some
board members pointed out Wednesday
that the hospital has followed the direc-
tions which were laid out in that study.
However, they also felt that since there
are no more directions from the 1977 docu-
ment on which to act, the time for a new
role study is now.
LtlegMAT Seatine17 We,
esdoy, October 12 19S6—Page 5
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