By KELLY LOUISEIZE
Thunder Bay community leaders have put forward a special package that could secure Bombardier’s long-term future in the North.
Thunder Bay community leaders have put forward a special package that could secure Bombardier’s long-term future in the North.
They are calling on Premier Dalton McGuinty to change provincial tax policy toward the Canadian light-rail industry in order to entice Bombardier to re-invest in the local plant.
Officials arranged a meeting with his office to discuss a strategy package developed by Lakehead University and Confederation College.
Before Bombardier invests any further, they want government assurances that financial support will flow into the facility, not forever, just until the plant gets on its feet, says Jim Johnson, Ambassador Northwest spokesman. He has become the unofficial economic development representative for the project.
Johnson is a lawyer working behind the scenes with business leaders pushing to bring more development opportunities to the northwest.
“If the government does not show interest in this company, why would this world-wide company be concerned when they are looking at cutting costs?” he asks.
Cost-cutting has forced Bombardier to close seven plants internationally in the last five years.
They bought the Thunder Bay facility in 1992, when it was the provincially owned Urban Transportation Development Corp., under the conditions that Queen’s Park would award contracts to the plant.
But the government wants to terminate the contract agreement saying it has “expired,” Helene Gagnon, Bombardier spokeswomen says. So, some repositioning on behalf of the company is occurring in an effort to “show the government (how) important the Thunder Bay plant and the network of suppliers (are) in Canada.”
In the meantime, Thunder Bay is doing their part to support the transportation company by introducing a strategy package. One of the prime objectives of the package is to create government support for mass-transit manufacturing. If approved by the ministry the company would consider creating a transportation centre of excellence, much like their hub in Europe.
“It is an exciting idea and project,” Gagnon says.
There are no guarantees things will work in their favour, but “everyone is really working together to keep this plant for the future.”
The plant is looking to win a Toronto Transit Commission project currently up for grabs.
“There is some potential for light rail cars for either Toronto or other cities,” she says.
Signs indicate mass transit will be in high demand and will only become more of an issue as congestion and pollution in large centres grow.
“If you think about the budget, strategic investment in Ontario industries makes absolute sense,” especially because a portion of the funding will come from taxpayers, says Mayor Lynn Peterson.
Other countries support light rail domestic manufacturers through legislation. That puts Canadian companies on unequal footing, Johnson says.
For instance, a company cannot sell into the United States if 60 percent of development is not homegrown. That is why Bombardier has two American plants. The same general policies apply in Europe and Japan. Mexico gives a 10 percent credit to manufacturers developing in the country, Johnson says.
“In the mass transit industry there has to be the same rules.”
Japan manufacturers should not be able to compete for Canadian projects while Canadian manufacturers are prohibited by law from bidding on Japanese contracts, for example. The Thunder Bay facility competes with foreign companies in their own country. To Johnson, that’s just plain wrong.
The potential centre of excellence could house research and development, maintenance, technology transfer, knowledge networks and information initiatives that can be shared between students, staff and organizations, according to Lakehead president Fred Gilbert.
“It is so much easier to develop an existing industry rather than developing a new one,” Gilbert says. “So it is essential we hang on to Bombardier ... and do what we can to assist.”
The government has no problem throwing $500 million into the auto industry, but when it comes to Northern Ontario economy, “they quickly forget,” Johnson says.
“If this plant was located in Downsview, do you really think we would be having this problem?
This is a Northern Ontario issue and the premier is going to have to face that fact.”
