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The Issues Surrounding the Debate on Kyoto
I am not an expert versed in the technological issues of greenhouse gas emissions but I am an ordinary citizen and like you the reader am attempting to understand the issues surrounding the debate on Kyoto. I understand Kyoto calls for reduction in various fossil fuels that contribute to the warming of the planet. Planet warming could pose many negative effects on our weather, our ice fields and our life force. I also comprehend that the implementation of Kyoto will have little effect on creating clean air and eliminating smog with its many side effects.
In drafting this article I recognize that critics would say that the article is self-serving on the part of the automobile industry. The automotive industry has in the past demonstrated leadership in addressing environmental issues and continues to support initiatives that reduce the pollutants that are emitted from their vehicles. We believe that we have a responsibility to create vehicles that are more environmentally friendly and we have done that over the past decades. Since the early 70's the automotive industry has reduced tailpipe emissions by over 95%. In fact, today it would take 22 new automobiles to produce the same pollutants that come from 1 pre 1986 automobile.
Manufacturers have spent millions of dollars on research projects to develop vehicles that operate on hydrogen-powered fuel cells that will run vehicles on electricity.
Presently several manufacturers have introduced into the market vehicles that run on gasoline and battery power.
Be that as it may, I feel it is important that consumers should have some idea how the Kyoto accord would impact them, the use of their vehicles and the economy of Ontario.
Our industry has concerns that the Federal government will implement the Kyoto agreement without providing an economic impact statement for consumers and the business community nor provide information on how this accord will affect us in our daily life. Headlines such as 'Auto Parts Firm Slams Kyoto' are appearing in our papers. Ontarians are deeply concerned that Canada (being the tail) is wagging the United States (being the dog). Do I for one moment think that Kyoto is not important' Definitely not! I do however feel that we cannot merely ratify this accord if it will lead to economic disaster for the automotive industry in Ontario.
I would like to share some information about the automotive industry as one of the major economic drivers in Ontario.
One out of every six jobs in Ontario is directly related to automotive manufacturing.
Auto industry represents over 20% of Ontario's total manufacturing GDP.
Automotive related exports account for 22% of all Canadian exports.
The auto industry contributes to a net trade surplus of $20 billion (cars, trucks, engines/parts).
The automotive manufacturers have indicated that the implementation of Kyoto in the absence of its major trading partners the United States and Mexico could result in 40,000 to 80,000 jobs lost in our industry in Ontario.
The estimated job loss does not factor in employment loss in dealerships. As manufacturing objects diminish and sales slow down, downsizing becomes inevitable in our industry. A slow down in the automotive sector could lead to the recession Ontarians experienced in the early 90's.
As a businessman, a husband and a father I find it unconscionable that government officials, as stated by some politicians, are taking the position that such job losses are okay, it's the price to pay for Kyoto. I am sorry, but one job loss is too much, if you are the person or his/her family who will face the terror of unemployment in a changing landscape. Jobs will get scarce in the auto industry and how can an unemployed person be asked to pin their hope to the future promise of politicians for career opportunities yet uncreated'
How will Kyoto affect you and your vehicle?
Some pundits say the price of gasoline will rise to over $1.10 per litre or in excess of $5.00 per gallon.
Critics forget that an automobile is a necessity for travel in Ontario considering the vast spaces in which rapid transportation is not available as it is in Europe.
Our Association has participated in several discussions on Climate Change both from a Federal and Provincial perspective. The reports from those deliberations call for the Federal and Provincial governments to impose economic instruments to change consumers purchasing habits and daily living practices. The report calls for such actions as:
Significant increases in parking fees, encouraging the use of public transport.
Significantly increase the cost of gasoline so people drive less.
Prohibit vehicles from entering into the city centers by declaring car free zones again forcing the use of public transportation.
Road tolls on many major through ways in cities.
Higher licensing fees.
Luxury taxes on larger vehicles with the purpose of forcing drivers into smaller more fuel efficient vehicles.
These are but a few of the economic instruments that I believe will accompany the measures implemented by the governments of the day, to achieve their goal of reducing greenhouse gas emissions by 6% by 2010, from their 1990 levels.
The automobile industry is not opposed to reducing green house gases but the government of Canada and its provincial partners must determine a suitable path whether it be the Kyoto accord or a Canadian made solution which balances our nation's contribution to addressing climate change without diminishing our future economic potential or our competitiveness and productivity as a nation.
As the Kyoto debate continues in parliament the politicians should tell us not only the consequences of greenhouse gas on our climate and why the issue must be addressed, but also how the accord will affect our daily living practices and the cost to us the consumer.
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