VIDEO: Province Reduces Red Tape in Auto Sector

Ontario is reducing red tape in the auto industry.

Speaking at the Automotive Parts Manufacturers Association Conference at Caesars Windsor on Wednesday, Minister of Economic Development, Job Creation and Trade Todd Smith has announced some regulation changes designed to reducing barriers.

The province will exempt auto plants from having to be regulated as a gas station when they only need to fill their vehicles with a few litres of gas.

It is also increasing the threshold for companies to do construction projects around the plant, from $50,000 up to $250,000, without having to notify the Ministry of Labour.

Smith says every piece of red tape the province gets rid of, is another dollar saved and another job created.

"Today's announcement really is all about removing some of that over-regulation that is making it difficult for the auto manufacturers  and those in the sector to be as competitive as they possible can be."

He says every little bit matters pointing out some of the regulation are just "nuisances" that end up costing time and money.

"I think it is going to save millions of dollars," he says.


Ontario Minister of Economic Development Todd Smith speaks at the Association of Parts Manufacturers Association conference in Windsor. June 12, 2019 (Photo by AM800's Teresinha Medeiros)


APMA President Flavio Volpe likes the changes.

"This government has made a commitment to talk to us about all of the smaller incremental pieces while we work on the bigger ones," says Volpe. "We may not land a Chinese automaker, we may not land a French automaker, there is no reason we can't spend the two-three years in between making changes like these really simple ones."

He says small changes, add up.

"This minister has charged his department and other departments, energy and labour, to say while we are all hanging around waiting for the lottery win, why don't we try to make 10, 20, 30 dollars at a time and we like that."

The auto sector employs over 100,000 people directly in Ontario in auto assembly and part manufacturing.  It contributes almost $14-billion to Ontario's economy.