Mr. Speaker, on September 9 Volvo announced it was shutting down its vehicle assembly plant in Halifax on December 18, 1998.
The federal government is acutely aware of the importance of this plant to Halifax. On October 5 the Minister of Industry wrote to Volvo to express the disappointment and regret of the Government of Canada with its decision and the loss of the 223 jobs.
The closure is part of Volvo's worldwide restructuring strategy and the plant is not being moved to Mexico as the NDP questioner implies. Volvo has acquired a Mexican bus and coach manufacture which will be the primary business. I understand it will also produce a limited number of vehicles, around 1,000 for the local market.
Volvo's Halifax plant built vehicles for the Canadian market and never sold those vehicles in Mexico. Volvo's plans for Mexico are completely unrelated to the closing of the Halifax plant. Closing of the Volvo plant has absolutely nothing to do with Bill C-11 and obviously the member does not understand what is in C-11.
I wish to point out that the federal government has done its part by ensuring that the business climate in Canada is favourable and conducive to the continued prosperity of the automotive assembly industry. The fact is that Canada remains a very competitive location for vehicle manufacturing.
Volvo itself remains a major transportation company in Canada with $1.8 billion in annual sales and more than 4,600 employees across the country.
The Government of Canada will continue to work with the local organizations in the Halifax region, with Volvo and with the Canadian Auto Workers, CAW, to find a solution.
Mr. Walter Fitzgerald, the mayor of the Halifax Regional Municipality, has formed a task force which includes the province of Nova Scotia, the Greater Halifax Partnership group, the CAW, and the federal government through ACOA to explore alternative uses for the facility and to ensure that the port of Halifax is in Volvo's future transshipment plans in North America.
We will continue to support all stakeholders seeking a positive solution to this announced closure.