Jun 03, 2008 - 04:18 PM

By Jillian Follert

DURHAM -- An announcement that General Motors plans to close Oshawa's truck plant and scrap thousands of jobs next year has many people looking to the federal government for answers.

Oshawa Mayor John Gray was quick to say Tuesday that there isn't much to be done at the municipal level and that action must come from the feds, while officials at Local 222 of the Canadian Auto Workers (CAW) union have held two events in the last two weeks, calling on the top level of government to stem manufacturing job losses.

Politicians of all stripes agree Tuesday's announcement is a concern, but have differing views on what caused it and how to stop it from happening again.

Here's what a few of them had to say:

Jim Flaherty, Minister of Finance and Whitby-Oshawa MP

Why it happened:

"The reason the truck plant is being closed is because of reduced demand. It has to do with the housing market in the U.S, volatility in the world credit markets and rising fuel costs," Mr. Flaherty said. "This weakness doesn't have much to do with fair trade or Korea, it has everything to do with people in the U.S. losing equity in their homes. They don't want to spend money on large items."

What now?

"We will be putting $250 million into an Automotive Innovation Fund," Mr. Flaherty said, noting this money will help attract new products to the GM plants in Oshawa. "We need vehicles that are more fuel-efficient and more environmentally friendly, things like hybrid cars or the new Volt electric car, anything that is technologically innovative."

Colin Carrie, Oshawa MP

Why it happened:

"This is due to a rapid shift in U.S. consumer demand. Now they want smaller cars, not trucks, because of rising fuel costs," Mr. Carrie said. He said fair trade was not a factor in this announcement, because most Asian and Korean imports to Canada are compact or sub-compact cars, which do not compete with trucks.

What now?

"We will fight to get a new product into the Oshawa facility," Mr. Carrie said. He pointed to the Harper government's new auto action plan, which includes sustaining sound fiscal and economic framework policies, supporting integration of the North American auto sector, investing in research and development and creating an Automotive Innovation Fund.

Jack Layton, federal NDP leader

Why it happened:

"Fair trade is a big part of the issue, as well as the escalating Canadian dollar, thanks to things like the Harper government's promotion of oil sands."

What now:

"The answer is a green car strategy like the one I announced years ago, something that will support research and development and provide incentives to customers who buy lower emission cars," Mr. Layton said, referring to the NDP's green car industrial strategy unveiled in 2003. The strategy calls on the government to mandate that vehicle fuel-efficiency be improved by 25 per cent by 2010 and that significant GST rebates be given to consumers who purchase alternative-fuel vehicles.

 Mark Holland Ajax-Pickering MP

Why it happened:

Ajax-Pickering MP Mark Holland believes three major factors have led to the closing of the GM truck plant. They are: "The state of the economy when it comes to vehicles overall" (for example, the slowness of the economy, and less people are purchasing large vehicles while more are buying fuel-efficient and economy cars); "The ball has been dropped in the manufacturing sector" (for example, the federal government uses language that says Ontario is not the best place to invest, which is counterproductive); and "There's really been unwillingness (of the federal government) to step in and help."

What now:

"I think it has to start with the federal government," Mr. Holland said, adding simply providing money for capital won't fix the problems in the manufacturing sector. "The government has to understand this is a real crisis." He said productivity has to be improved, and "the number one way you get at productivity is improving the process." He said simply changing the way companies conduct business can greatly improve efficiency.