Winnipeg Free Press

Winnipeg Free Press (Newspaper) - August 11, 1978, Winnipeg, Manitoba Winnipeg of flite press 3340 car phones National Industrial sound no strings attached to some Dree Grants an unknown proportion of Federal incentive Grants Given to help Manitoba companies expand do not carry any stipulations that the recipients either hire More workers or increase their Lynn information officer for Drees Manitoba said incentive Grants Are handed out under four categories but Only two of those categories require that new jobs be in the remaining two financial penalties Are assessed against the recipient if he fails to live up to his Job creation he there is no requirement that a Grant recipient increase his production or Al though its assumed production increases would Gates said that if a firm is expanding its facility and buying More hell increase his if he invests 80 per cent of his own Money in the expansion and he Doest bring it up to optimum i would suggest Hes the if a firm which has expanded finds that its sales have gone sour due to an economic for Dree has no Way of getting its Money All companies which receive Grants Are monitored by Dree for up to three after three a company folds or lays off the Grant Money is not for the period from 1969 to March 484 Grants Worth about million were accepted by Manitoba Grants Are dispensed under provisions of the regional development incentives companies Are required by Dree to prod uce a certain number of jobs if they use incentive Money for either of the following two purposes to build a new Plant or to expand an existing Plant in order to produce a new if the Money is to be used for purposes of modernization of expansion of there is no Job requirement Gates was unable to say at this time what percentage of Grants which have been dispensed carried Job tie said Dree provides information to parliament on the total number of Grants and their but no breakdown is provided on the number of Grants which stipulated that new jobs be the department publicizes the number of jobs which Are expected to be created when Grants Are initially it does not specify which Grants carry penalties if the expected jobs Arent eventually created in the categories which require Job Crea Tion Plant construction and Plant expansion the number of jobs which will be created is estimated by the if a company says it will need 10 additional work ers to operate its new the terms of the Grant will require that the 10 jobs Are in fact he an initial payment of up to 80 per cent of the Grant is made when the new facility goes into after three final payment is made if the workers have been if the Money is withheld and in some the company would end up hav ing to give Back part of the initial Gates As of 163 Dree funded expansion projects in Manitoba had gone through this three year control a total of jobs were created As of the time those projects were according to a Dree this figure would be added to the total number of jobs the program has helped even a year the jobs May have been substantially reduced due to Gates said no ongoing figures Are compiled on employment Levels at former Dree funded he said the Cost of conducting such a Survey would be of Tco Nemie expansion places heavy emphasis on Job creation and production expansion when it issues countless news trumpeting the Agency latest incentive Arants but wha he minister in charge of he department Doest say is the fact that Many of there offers carry no the companies receiving the funds have to increase hiring or expand output the purpose behind the Dree incentive free Prett business writer Paul Moloney takes a look at some of the or Lack of governing my Fly ants which some critics contend represent Little More than a free handout to bus Ness and also puts under the Microscope the use and potential Impact of such incentive offers in a particular Federal funds for City Windowmaker but Industry prospects questioned a Winnipeg company called will mar window industries last year received approval for a Federal government incentive Grant of 000 to help expand its Plant even though the Industry already has a Large amount of factory space sitting according to Industry Norm divisional sales manager for Dashwood industries estimated there already enough manufacturing capacity Here to produce two windows for every one that can be sold in the Prairie in this Rauhaus Felt a Windowmaker would have difficulty securing even a loan from the Banks for expansion Dave an official of the Ca Nadian window and door manufacturers questioned the Wisdom of government expansion subsidies Given the fact that Winni Peg window manufacturers As a group were already Short of he added that window makers Here have misread the potential sales Over the past five to 10 they geared up capacity for a surge in residential construction that didst live up to in this i would think it would be somewhat surprising to me that a new Plant would Start up unless it was producing a product that not currently president of said his company would not be strik ing out into new areas but would be expanding production of its Plant line of aluminium and Wood although the Grant was announced last the new facility wont be brought on Stream until this which Are administered by the department of regional economic expansion Arent paid out Plant goes into commercial at that anywhere up to 80 per cent of the Grant is the balance is held Back for three years and is Only handed Over if All conditions Are according to Dree Milton said window manufacturers on the Prairies have lost business to american made imports Over the past few although the Grant to Willmar might have been aimed at helping to get Back some of this lost he doubted this would work because the companies have lower the Competition has helped cause the present situation of unused capacity so it was unlikely that increasing the Indus try capacity would be the Why dont the existing underutilized plants Knock out the in Milton adding that expanding Plant capacity for this Pur pose was hardly Milton and other sources noted that the window manufacturing Industry must become More competitive through mergers of Small companies into larger units and develop ment of specialized product Dree Grants could impede this goal by propping up firms which otherwise would not grow on their if Grants work to help Cushion the negative Impact of management mistakes or general Ineffie they would be counter prod he on the other highly Success Ful window makers who receive incentive Grants would thus be gaining an unfair advantage Over their com said Stan president of Paramount Glass and Millwork Willmar was a Well financed operation even without Dree Assis Dudeck Why they would be getting a Dree Grant when they have i just dont Dudeck company has never applied for a Grant due to possible 1 continued on Page tax Breaks for Auto parts Industry urged by Wally Dennison instead of trying to outbid the United states with generous incentives aimed at enticing car manufacturers to locate huge plants in this Canadian government officials should be using that tax payers Money to strengthen hundreds of Small industries supplying replacement parts to the Automo Tive says Donald Manitoba division chairman of the automotive Indus tries association of Canada he contends its ludicrous to be come embroiled in a bidding War Canada is certain to and on the other Mckenzie says its far More beneficial for Canada to Grant tax concessions and Export incentives to the so called Automo Tive its called the aftermarket be cause it supplies parts and service to All makes and types of vehicles after they Are sold and on the and generally when they Are beyond the manufacturers warranty explains who is also president of Fogg Brothers and Spear of both Winni Peg based distributing companies serving the the he Points manufactures and distributes parts and assemblies to service 13 million Canadian boats and in both total employment and Dollar the businesses add up to a much larger chunk of the Canadian Economy than the handful of Auto makers and original equipment manufacturers already Here or which the governments might lure to these aftermarket companies Are part of the troubled secondary manufacturing Industry currently fearing further damage if import tariffs Are reduced and from what the aia Mckenzie says theres a Good possibility tariffs on replacement parts could be Cut by so to 60 per cent at the Geneva negotiations updating the general agreement on tariffs and Trade against this it Doest make economic sense to antagonize the americans in a bid Ding War for Assembly and manufacturing the tone of officials on this score recently has been for and Mckenzie agrees with the washing ton position that Ottawa has been undermining the spirit of the Cana Auto pact by negotiating with Ford motor and general motors for major new Ford has already decided to locate a million engine factory in Southern thanks to incentives of million from the Feder Al government and million from Canadian officials Are preparing for a second round of difficult negotiations Over a proposed million pm with Ottawa reportedly offering million and Quebec million to persuade pm to establish the Plant near those Cash offers act against the Auto pacts objective of rationalizing the Industry on both sides of the Mckenzie that not and i dont see How we can win on such a Canada could win a but i bet on the outcome of the not Only should Canada get out of the bidding game and fight to maintain the Tariff status quo in the Gatt Mckenzie also urges the government to drop any notion of renegotiating the Auto replacement parts handled by the automotive aftermarket Arent subject to the Auto agreement and that the Way the Canadian Industry wants Only the products of original car equipment manufacturers Are co in Mckenzie renegotiating the pact would be we have Little to gain and a great Deal to lose As Many americans Industry leaders and politicians dont even want the look at the positive Side of the he since our exports in automotive products have increased from virtually Noth million to about billion in arguing for retention of Tariff Mckenzie says drastically lowering them could result in virtual elimination of the Auto motive aftermarket Industry with perhaps jobs remaining from the now employed across the in if we produced All the parts we we probably would be looking at canadians consume 10 per cent of Auto parts in North but Only produce about seven per Mckenzie Canada should get out of bidding he most replace ment parts manufacturing firms in Canada Are practically All we have is a subsidiary removing Tariff Protection at Gatt would Only result in destroy ing the incentive which inspired american owned firms to establish Here in the first Mckenzie production would be shifted to the ninety three of the 102 product lines distributed by Mckenzie two for Are from subsidiaries of american he advises Canadian officials to be mindful of the fact that Canada comprises Only about 10 per cent of the total North american Market for replacement parts a volume which could be met by adding just six weeks production to already established Parent plants in the its not hard to see Bow removing Tariff production could Spur the american plants to absorb the Canadian Market and close their Canadian Mckenzie sharply slashing or eliminating import duties would jeopardize the health of a swiftly growing Canad an he the replace ment parts Market is on the up surge because people not Only Are keeping their cars but the companies Are continually becom ing More skilled in servicing and rebuilding cars As they for the aia represents More than 250 Auto parts manufacturers and wholesalers employing and doing billion in business across and while Manitoba Mil lion and per cent share of that total appears sea qirits still in Mckenzie its bet Ter to be a Small part of a great big pie than a huge piece of Small that Small Manitoba part trans lates into jobs for he in the 63 aia member companies in the province consist of 48 seven manufacturers and eight Dis Tribu those 48 wholesalers also have 44 Branch locations add up to 92 business Mckenzie he recommends that government officials remember this data when considering How Industrial growth can he encouraged and where to in Vest taxpayers steel supplies tight but Grain bin sales up despite shortage by Jack Francis a shortage of galvanized steel in Canada has prevented Grain bin sales from meeting the massive Poten tial of this years surging demand due to bumper crops and Large Grain according to farm and com Pany it Hast stopped Metal bin makers from increasing their sales Over the previous nor has it stopped the trend to bigger and More sophisticated Grain storage and handling systems on farms in Western several Large firms report storage unit sales More than doubled the 1977 and the Behle Wickes company limited Plant at Brandon was 145 per cent ahead on the general manager Rempel told the free press it was an excellent Sale and also said that if the steel had been available we could have sold a great Deal the Brandon Plant distributed across was sold out in May and the firm was unable to prod uce More because of a tight galvanized steel he production Startup time is november for the next but Rempel was unable to say if plans this fall would include a further sex continued on Page for Sale real estate investment downtown Winnipeg commercial property 100 leased to aaa Cash equity required to full Price of financial information available to interested Contact James Aronovitch leips1c Liv inti phone 9560460 i offer to Purchase All common shares of trans air limited by Pacific Western airlines Price per share this Otter Nill expire at local time september and not conditional upon u minimum number of shares being for the purpose of soliciting acceptances of the we have formed a soliciting dealer group of which we Are the manager and for which we will receive a management members of the soliciting dealer including will be compensated in respect of trans air limited common shares deposited through recommend that shareholders of i ran Sair limited accept the Hor further information or assistance with this Contact the under our own investment dealer or National Trust Dominion securities limited i ;