Mar 21, 2008

Ontario sets rules for Canadian transit content

Premier Dalton McGuinty announced yesterday, that all future public-transit vehicles purchased with provincial government funds must include at least 25 per cent Canadian content.

This is a far cry from the Buy America Act, which requires 60% of the components of U.S. transit vehicles to be sourced in America. The act also requires 100% of final assembly be performed in America.

As of this date there is no requirement of federal government funding to be spent on Canadian content. In fact Ontario may have the only government in Canada officially requiring Canadian content on transit funding. It is still not as effective as the "buy Ontario" policy for transit vehicles that used to be in effect.


Nick J Boragina said...

"Buy Ontario" is codeword for "Buy Orion Buses" and would never fly. The only way a "Buy Ontario" scheme would work is if New Flyer and/or Nova were to open a bus factory in the province. "Buy Ontario" only works for rail vehicles because the only major canadian rail-vehicle maker, bombardier, is based in Ontario

Andy said...

The point I was trying to make with the post is the the Americans have more protection on their manufacturing jobs than Canadians do. At one time buying Ontario public transit buses was common.

Nick J Boragina said...

The US has a law that so long as the bus is 60% made in the US, that the feds buy 80% of the bus. Our federal government should make a similar law.

Andy said...

Nick... if that were the case in Canada we would be seeing a lot more hybrid buses on the road. When politicians see the high cost of these buses they soon change their minds about buying them.