Federal Governments Explanation to Taxpayers For Auto Bailout In Canada...

This is seemingly the governments form letter they are sending to people who are voicing their opinions about the crisis. So in all fairness I will show it. I highly doubt he wrote this to me personally..............

Thank you for your e-mail regarding the crisis facing the automotivesector in Canada.
Canada?s automotive industry operates in a highly integrated NorthAmerican marketplace. In this context, the recent liquidity crisis,together with the downturn in economic activity and the significant fallin automotive sales, represent considerable challenges for the Canadianautomotive industry. These challenges are compounded by the majorrestructuring efforts already faced by the industry in light of thevolatility of fuel prices and the growing investments required for newgreener vehicles.
The Government of Canada has already set a solid foundation for astronger, more innovative Canadian automotive sector, based on fourpillars: a competitive economic framework; North American integration;support for R&D; and an Automotive Innovation Fund to make Canada a leaderin cutting-edge and fuel-efficient technologies.
In recognition of the urgency of the current difficulties facing theindustry and the critical importance of the auto sector to the Canadianeconomy, on December 20, 2008, Prime Minister Stephen Harper and OntarioPremier Dalton McGuinty announced that the governments of Ontario andCanada would jointly provide $4 billion in loans, payable to GeneralMotors of Canada Limited and Chrysler Canada Inc. through ExportDevelopment Canada (EDC)
Prime Minister Harper and Premier McGuinty have indicated that there willbe conditions attached to this financing. The two governments willexercise oversight of taxpayer money as part of their ongoing duediligence. All stakeholders in the auto industry will be expected to dotheir part to reduce structural costs and ensure a viable auto industry inCanada. The government has also been clear that this support will becontingent on a commitment by the industry to long-term restructuring toensure a sustainable and competitive industry in Canada. They areexpected to provide detailed plans to the government by February 20, 2009,indicating how they intend to do this.
Prime Minister Harper announced two additional steps the federalgovernment will take to support the overall competitiveness of the autoindustry: automotive suppliers will have greater access to accountsreceivable insurance through EDC to compensate for the reducedavailability of credit; and the Government of Canada will create a newfacility to support access to credit for consumers, with particularattention paid to improving the accessibility of car loans and dealerfinancing. Details on this latter initiative have been provided in Budget2009, which allocates $12 billion for a Canadian Secured Credit Facilityto support financing of vehicles and equipment.
The government is committed to ensuring a competitive, sustainableautomotive industry and an environmentally sound future for Canada.
I appreciate receiving your views on this matter and trust that thisinformation is helpful.
Yours sincerely,
Tony Clement