Tim Hudak, head of the Progressive Conservative Party of Ontario, has criticized the “corporate welfare” system, arguing that the province is being held “hostage” by the automaker.
“Should we pay a nine-figure ransom to Chrysler? Of course not,” he said, according to quotes posted by The Globe and Mail. “We should use the money to lower taxes so all companies can create jobs, not handouts for the very few.”
The dispute centers around Chrysler’s Windsor and Brampton facilities, which already employ 8,000 workers. The company has expressed interest in expanding one or both of the factories, with total investments reaching as high as $2.3 billion.
Chrysler CEO Sergio Marchionne has not been shy in calling for incentives from the provincial and federal governments, making it clear that the company is considering other options if the package is deemed insufficient.
Liberal Party member Kathleen Wynne argues that such incentives are standard practice and necessary for Canada to maintain and attract jobs.
“The reality of that environment is competing with other jurisdictions that are working in partnership with business to invest in the future,” Wynne said.
Although thousands of jobs are potentially at stake and Chrysler has already received significant incentives in Canada, the sheer size of the company’s alleged demands has raised eyebrows and continues to spur debate.
Chrysler and Canadian legislators are still believed to be involved in ongoing discussions regarding the expansion plans.
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