"Green Shift" = Guelph Shutdown

Been thinking long and hard about how the Liberals "Green Shift" (TM, but not by the Liberals) will play in the current by-elections, especially in Guelph. After looking at some hard facts, and using some common sense, I've come to the unmistakable conclusion that Dion's Green Shift will be devastating to the Guelph economy. In short, "Green Shift" equals Guelph Shutdowns.

Guelph has a vibrant automotive industry, both on the supply and production side. Though no cars are produced there, quite a number of folks who live there work at the Cambridge Toyota plant, so that has to be factored into any discussion of how the Green Shift will play out in the by-election. As for the supply side, Guelph is home to Linamar Corporation, a major parts supplier to almost every automotive producer in the world. They have dozens of factories throughout the City, and their international Head Office is located in town.

Even a cursory glance at the Liberal's "Green Shift Tax" (the "New GST" as Peter Mackay put it somewhere the other day, I love it!) should start ringing alarm bells in the heads of Guelph voters. But just in case it doesn't, here's the relevant facts...

If the "Green Shift Tax" is ever implemented, there will be an immediate increase in the cost of everything... that fact is undeniable. But the hardest hit sectors will be manufacturing, specifically on the materials procurement side.

Just stop and think about it for a second... the use of oil and coal, both forms of carbon, will be taxed. Burning of coal is a major requirement in the production of raw materials like steel, and oil forms the main building blocks of plastics.

Compaines will be directly taxed on their consumption of carbon based products. On top of that, there will be the added transportation costs related to moving the raw materials, and again for the finished goods. Add on top of that the added costs of power to run the plants, and you're forced to admit that there's going to be an added cost per unit of production. These facts are undeniable.

Now factor in the "global economy" in the context of auto-part production. When an auto manufacturer is looking for parts, they put a contract out for bids. Various part producers bid on contracts, coming up with a final dollar figured based on their cost per unit of production.

If Linamar's costs have gone up, so does their cost per unit... and so does their bid. Some American company underbids them, and low and behold, Linamar doesn't get the contract. And if Linamar isn't winning as many contracts due to their increased production costs, what do you think is going to happen to the employees of these now idle plants?

That's right... Linamar starts cutting shifts. People lose their jobs. And all of a sudden, there's a whole lot of folks in Guelph out of work. And why, pray tell, are they unemployed? Thanks to Frank and Dion's new Carbon Tax... that's why.

It's simple economics folks. Cost of production goes up, jobs start going elsewhere. Then of course, to add insult to injury, since Toyota's cost of production here in Canada will be on the rise, they might just start building more of their US cars in the US of A... meaning even more job cuts in Guelph. Which is why I've come up with my new little slogan... "Green Shift" = Guelph Shutdown.

But what does Liberal candidate Frank Valeriote have to say about the "Green Shift"? Well, he seems to like it. Guess he hasn't really stopped and thought about how it will affect Guelph for the average working Joe. Here's a quote from him in the Guelph Mercury on Dion's Carbon Tax...

"We have to support existing industry and our existing manufacturing base, but we must also help them diversify into a stronger, specialty niche, which is our knowledge-based economy"

You catch the code-words in that statement? He said, for all intensive purposes, "I know that my leader's Carbon Tax will cost Guelphites their jobs"!!! Read it again... "BUT we must also help them diversify". Folks, that's code for "We know there's going to be job losses at first, but then we're going to help them find new jobs in the new Carbon Tax economy".

But here's the question... what if it's your job that's on the line? Yea, sure, they're promising other jobs, but are we talking months or years before these new "Green Economy" jobs come on stream? Who in their right mind would vote to be unemployed for a while?

Also, did you notice the phrase we've heard time and time again, from Mr. Dion, and now from Mr. Valeriote? They keep talking about new jobs in "our knowledge-based economy". Translation? They mean non-manufactring jobs folks, plain and simple.

But wait, there's more! Don't forget all the lost non-auto-sector jobs, the trickle down jobs that will be directly affected as Guelph's economy grinds to a halt. Then of course there's the coresponding collapse of property values in the area, as the unemployed try to offload their houses and move to areas where there's work... which, of course, will be in short supply because the Carbon Tax will have had similar effects across the country.

Sound pretty negative? Yea, I don't like the sound of it either. That's why I'm doing my best to make sure that everyone who will listen realizes that Dion's Green Shift is quite possibly the WORST policy proposal that this country has ever seen.

So, you can see why I opened this post with the graphic I did. Thanks to "Blue Zone" for posting it the other day.

For those of you voting in the Guelph by-election, DON'T vote to make Guelph a "Carbon Tax/Job Free Zone". Remember...

"Green Shift" = Guelph Shutdown