Mr. Speaker, manufacturers and dealers of Canadian vehicles are disappointed with the government. The feebate policy in the budget levies a tax on Canadian made, advanced technology engines, a tax that will cost GM, Ford and DaimlerChrysler $55 million.
The government announced this policy without consulting the industry, without realizing that the policy will punish Canadian manufacturers.
These levies will have an adverse effect in that consumers will keep their older vehicles longer, vehicles not as environmentally friendly as today's vehicles. The levies also penalize those who require larger vehicles for their families.
The measure does nothing to combat rising emissions. Canadians who want to purchase more fuel efficient, alternative fuel vehicles can do so but the infrastructure required to fuel those vehicles does not exist.
Experts note that feebates cost consumers more with little benefit to the environment and hamper our vital auto industry. The government should immediately address this flawed policy.