Canada, Ontario agree on conditional auto aid plan

Fri Dec 12, 2008 6:20pm EST
 
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TORONTO (Reuters) - Canada's industry minister said on Friday that the federal and Ontario governments have agreed to provide aid to automakers as soon as the U.S. government approves a rescue package.

Industry Minster Tony Clement told reporters said he expects the U.S. administration to move forward with a multibillion-dollar aid package "very soon" despite the failure of a $14 billion proposal in the Senate.

Clement said the amount of money Canada and Ontario are proposing is based the country's 20 percent share of the auto industry. Based on the $14 billion U.S. proposal, that would amount to $2.8 billion or about C$3.5 billion.

($1=$1.25 Canadian)

(Reporting by John McCrank, writing by Jeffrey Jones; editing by Rob Wilson)

 
<p>A Canadian flag flies from the window of a General Motors vehicle at a car dealership in Toronto December 12, 2008. Canada's industry minister said on Friday that the federal and Ontario governments have agreed to provide aid to automakers as soon as the U.S. government approves a rescue package. REUTERS/Mike Cassese</p>