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malek
drinks your milkshake!

Registered: Nov 2001
Location: Montréal
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| quote: | Originally posted by Moral Hazard
"Canada's New Government," |
Another great decision was made by this "new govt" and it may have slipped under the radar in the ROC.
The Army wanted to buy 30 brand new Coach buses via a public tender, the winning company is SETRA, a German company.
SETRA outbid one, MCI from winnipeg, of the two canadian companies who build these kind of buses (the other is Prévost in Montréal) by a measily 2,000$ a bus! The total contract is valued at 15 million$
So to save 60,000$ over a 15 million$ contract, provincial and federal govts lost much much more on income and other taxes.
SETRA won't pay a dime in taxes here. Moreover, parts and service will have to be imported from Germany while we have two great companies doing just that here.
Was that really smart when 240,000 manufacturing jobs were lost in Canada in the last 4 years ?
just found it:
German company gets defence deal
JOE FRIESEN
July 17, 2007
WINNIPEG -- Workers at a Winnipeg bus plant are furious after the Conservative government chose a German company for a $14-million Defence Department contract.
Winnipeg's Motor Coach Industries lost the contract to Setra, a German-based subsidiary of DaimlerChrysler, after the rival company submitted a slightly lower bid.
"Our concern is that the Feds should be buying Canadian, especially when we're talking about a minimal difference between these two bids," said Brian Short, spokesman for Local 1953 of the International Association of Machinists and Aerospace Workers.
Motor Coach Industries was told the difference between the two bids was less than $2,000 a unit on a contract to build 30 buses at a cost of nearly $500,000 each.
Pat Martin, the MP for Winnipeg Centre, said he can't believe the government doesn't have a "made in Canada" procurement policy for defence contracts, particularly given the billions of dollars in spending that have been promised over the next few years.
"We're sending the message that if you want a good bus for your country's armed forces, do what we do, buy German," Mr. Martin said.
"[Stephen] Harper's been dining out on the falsehood that all this military procurement will be good for the Canadian economy. ... Well, how do you explain this?"
The contract was awarded by the Ministry of Public Works and Government Services. A spokeswoman said in an e-mail that the government supports the Canadian manufacturing sector, but chose the bid that offered the best value to the Canadian taxpayer.
The government's Canadian content policy applies only when there are three qualified Canadian bidders, she said. In this case, only two bidders had manufacturing plants in Canada, Motor Coach Industries and Quebec-based Prevost, so the bidding was opened up.
The Department of Defence already operates 13 of Motor Coach Industries' J-Model buses. The department will now have to buy parts and supply technical and maintenance support for another brand of vehicle, and will lose the tax dollars and related spending on Canadian supplies for the manufacturer, the company said.
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[/IMG]http://i54.tinypic.com/ngycqo.png[/IMG]
Last edited by malek on Jul-19-2007 at 04:40
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Jul-19-2007 04:35
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Lilith
Meowsies!

Registered: Nov 2000
Location: Maximum Security twilight home for cats
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| quote: | Originally posted by EvilTree
In other words, if Yank economy die, so will Canadian economy. |
The US economy is immensely robust, it's essentially been 'bomb-proofed' since the great depression and while it can be bitten, dented and kicked around the place a bit. I'm not sure if you can actually 'kill it' 
But they are aware since that time there's a couple of other players in the world who are starting to size up to them and shape up. For all the fuss made over China, India and the EU, they're still fairly small compared to the US by itself, not with anyone else, just themselves.
US-Canada, would be an immensely strong market.
Now, should this go through you'd be wise to check out who's profits are affected by cross border traffic of goods and buy some shares in them if the actual deal goes through to completion. Those companies should turn a larger profit, which would be nice you think and sell.
No, you don't sell
You buy your Canadian companies while they're cheap and you keep them while they're making a profit, because the first sign a couple of money'ed up yanks comes sniffing around looking for a bargain, those prices will sky rocket.
Then, you can exercise your prerogative of actual ownership of something Canadian (rather than the squealing indignity of national pride) and you can either bleed them white for your shares or you can hang onto them as they return your dividends.
No ideals, no faux-ownership, flag waving, I'm in it for the t-shirt and bumper sticker pseudo pride bollocks you crazy kids go on with, buy Canadian if the deal goes through.
If you get rich, send me flowers booze. 
Last edited by Lilith on Jul-19-2007 at 05:49
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Jul-19-2007 05:43
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Fir3start3r
Armin Acolyte

Registered: Oct 2001
Location: Toronto, ON, Canada
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| quote: | Originally posted by malek
Another great decision was made by this "new govt" and it may have slipped under the radar in the ROC.
The Army wanted to buy 30 brand new Coach buses via a public tender, the winning company is SETRA, a German company.
SETRA outbid one, MCI from winnipeg, of the two canadian companies who build these kind of buses (the other is Prévost in Montréal) by a measily 2,000$ a bus! The total contract is valued at 15 million$
So to save 60,000$ over a 15 million$ contract, provincial and federal govts lost much much more on income and other taxes.
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Yes and logistically, to ship those buses from Canada, the $60,000 would get eaten easily.
We're splitting hairs here anyways and you're right, the government could have probably ponied up the shortfall.
Problem is, we don't know the details of the tender unless you can find it?
___________________
"...End? No, the journey doesn't end here. Death is just another path...one that we all must take.
The grey rain-curtain of this world rolls back, and all change to silver glass...and then you see it...
...white shores...and beyond...the far green country under a swift sunrise."
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Jul-19-2007 06:57
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