TORONTO: The Canadian Taxpayers Federation (CTF) today released a list of questions for Prime Minister Harper, President Obama and Premier McGuinty in response to widespread reports that the Canadian and US government will respectively take 2% and 8% ownership in Chrysler with the UAW taking 55%.  

CTF Federal Director, Kevin Gaudet said “Prime Minister Harper and Premier McGuinty should not be putting even more taxpayer money at risk by having the government take an ownership stake in a failing company like Chrysler. Taxpayers have lost more than enough already.” 

“Can you imagine two worse organizations to run a company than unions and government; and together no less? One is interested solely in maximizing salaries for themselves, the other is solely interested in maximizing votes for themselves,” continued Gaudet.   

“We have joked about MPs voting in the House of Commons on how many cup holders should be installed in a new Dodge Caravan. Unfortunately, the joke is now on taxpayers,” said Gaudet.

Prime Minister Harper and Premier McGuinty are holding a press conference in Toronto at 2 p.m. today. Many questions present themselves that should be answered today by Mr. Harper and Mr. McGuinty regarding the new ownership stake taxpayers will have in this failing firm:

1. What happens to the $750-million already ‘lent’ to Chrysler Canada since December 2008?
2. What happens to the reported $1-billion in outstanding tax liabilities to the Canadian government?
3. What happens to the $76.9-million conditional grant from the Ontario government in 2005, given that Chrysler has likely breached the secret conditions of the grant?
4. What happens to the $46-million contribution from the federal government in 2005?
5. How much more money is being provided and in what form over what period of time; grants, loans, equity purchases?  What will be the provisions of such taxpayer contributions?
6. For an equity position will taxpayers get a seat on the Board of Directors, the Executive Compensation Committee, and the Collective Bargaining Committee?
7. Will the government release the risk assessments undertaken for any of the financial dealings with Chrysler including any equity position assumed?
8. How much is at risk if Chrysler seeks bankruptcy protection through Chapter 11 in the U.S.A. and/or CCAA in Canada?
9. Should an equity stake be assumed and a stock consolidation occurs will government have their stake protected increasing their percentage of ownership?
10. Will Chrysler release the executive compensation for its Canadian executives annually? Mr. Lasorda made over $20-million in 2007 and no other executive compensation is released. 
11. Will Chrysler be made subject to Freedom of Information as are some Crown Corporations?
12. Will there be a new Fedreal Minister of Chrysler?

Gaudet concluded, “government is throwing good money after bad with Chrysler. They should cut taxpayer losses and get out of the bailout business.”
 

By: Kevin Gaudet
Posted: April 29, 2009
Topic: Federal

Contact the regional director Gregory Thomas for further information.

Type: News Releases

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