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Open Letter to Prime Minister Paul Martin
I am writing to you on behalf of the Toronto Automobile Dealers? Association and our customers across Canada.
Over the past few weeks, we have seen gas prices escalate to unthinkable levels. I am not alarmist by nature, but I feel that we are facing a full-blown energy crisis if current trends continue.
I don?t blame your government for world events and circumstances. I do, however, blame the oil companies for taking advantage of this catastrophe by continuously raising prices. But, you and your government have a responsibility to Canadians to intervene when situations get out of control. I?m sure you agree!
Customers are visiting new car dealerships every day, complaining about the present situation and wondering if they will be able to afford to drive their vehicles. Some are deciding to put off buying a car until gas prices stabilize. This fear and frustration among Canadians is real.
The unprecedented rise in fuel costs, if left unchecked, will almost certainly affect sales and drive us into a recession. Fewer vehicle deliveries will result in reduced production and could result in massive layoffs, not to mention the spillover affect it would have on other sectors of the economy.
The taxes your government collects on goods and services would be greatly impacted. When government revenues decline, important social programs that enhance the quality of life for all Canadians, have to be curtailed or eliminated.
The automotive sector is one of the most important in Canada. One in seven Canadians is either directly or indirectly employed in the automotive industry; in Ontario, that figure climbs to one in six. In fact, this sector is the single biggest contributor to Canada's manufacturing Gross Domestic Product (GDP) ? 12% nationally; and over 20% in Ontario alone.
In many jurisdictions, local new car dealerships are one of the largest employers in town. Personnel laid off at dealerships do not have portable skills that can be easily transferred to other occupations. As a result, the loss of jobs would have a devastating affect upon the local economies.
Mr. Martin, you and your Finance Minster, Ralph Goodale, have been criticized recently for not doing enough to help consumers to alleviate the burden of rising fuel costs. Some of that criticism has been fair. However, I do believe that you have the best interests of Canadians at heart, and that you are committed to ensuring that the Canadian economy remains healthy and strong. After all, when Canadians prosper, the government prospers.
Some experts have suggested imposing a temporary freeze on gas prices, which would cushion the blow of recent price hikes and allow your government time to study the issue more closely. Others have suggested utilizing some of the federal government?s rising surpluses to reduce gas taxes. What you decide to do about rising gas prices is, of course, of paramount importance to Canadians.
Before a gas crisis cripples our economy and livelihoods, we need our elected officials to make tough decisions. In fact, your handling of the gas price issue could affect the outcome of the next election. Good, timely decisions, now, would go a long way towards ensuring a better tomorrow for Canadians.
A true test of leadership is the ability to recognize a problem before it becomes a crisis. I urge you to heed this call to action and provide the kind of leadership that the retail car industry, our customers and all Canadians deserve.
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Paul Stern is President of the Toronto Automobile Dealers Association and is a new-car dealer in Toronto. E-mail comments to president@tada.ca
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