TECK BAILOUT, GOVERNMENT BACKSTOP OF FORDING LOANTeck will of course be one of the first mining company's to be helped by the Canadian government, as it is Canada's largest and most important mining company. The government has an interest in backstopping it should the Fording Loan be defaulted on. See article below.
Canada’s Clement Says Forestry, Mining May Get Aid (Update1)
By Kevin Bell
Dec. 14 (Bloomberg) -- Canada’s Industry Minister TonyClement said the forestry and mining industries are beingconsidered for assistance in next month’s budget as the Canadianand U.S. governments move closer to helping U.S. automakers.
“We’ve got a number of industries in distress,” Clementsaid on CTV’s “Question Period” today. “Other industrialsectors, other extraction sectors, are on the table for ourbudget coming out on Jan. 27.”
Clement said financial help for General Motors Corp.,Chrysler LLC and Ford Motor Co. remains the top priority. Theminister announced Dec. 13 that the Canadian government and theprovince of Ontario will provide aid for the strugglingcarmakers if the U.S. government provides its own support.
“I am optimistic” that the U.S. will provide a rescuepackage, said Clement. “The Bush administration has made itpretty clear that they think a rescue is necessary to save theentire industry.”
Clement said he expects the U.S. will act within days.
Finance Minister Jim Flaherty is consulting with allCanadian premiers in advance of next month’s budget to determinewhat help may be needed, Clement said. He cited the forestry,mining and retail industries as among those that are mostaffected by the economic recession.
Canada’s contribution to an auto bailout will beproportional to Canada’s 20 percent share of North Americanproduction, Clement said last week. That would amount to $2.8billion if the U.S. provides $14 billion.
Canada will demand “a heck of a lot of oversight” overany money provided to the carmakers, he said. “The taxpayershave to know they can get their money out of this, that themoney is going to be returned to the treasury,” he said.
To contact the reporter on this story:Kevin Bell in Toronto at kbell2@bloomberg.net