Canada's Auto Sector Bailout Lacked Proper Oversight: Accountant General's Report Slams Federal Gov't

Canada's auto sector bailout during the financial crisis in 2009 has come for huge crticism by the Accountant General, who, in his latest fall report also slammed several other state services. Auditor General Michael Ferguson said the federal government was flying blind at many points during the bailout of General Motors of Canada and Chrysler Canada. The AG asked why the Parliament still lacked complete information about the assistance and a clear answer whether the bailout was really worth it.

In 2009, during the looming financial crisis, the vehicle sales of both GM and Chrysler were crippled. The auto majors were running out of cash and pleaded with the United States and Canada to keep them liquid. In Canada, the federal as well as Ontario governments stepped in and contributed $13.7-billion to the duo, supplementing the $66-billion bailout from the U.S.

The auditor general's report noted that even though the federal government's contribution "added to the viability of the companies and the competitiveness of the sector in Canada," Ottawa lacked key pieces of information, reported Business Financial Post.

Veterans Difficulties

The AG report also turned its spotlight on some essential services and wondered whether they are "truly meeting the needs of Canadians." The auditor general noted the barriers faced by veterans in getting mental-health services and benefits. They are facing complex application processes and long delays in getting records from the Department of National Defence and the Canadian Armed Forces, reports Cbc. Ca News. The AG took exception to the way the Veterans Affairs Canada is handling the mental health services. It noted that the disability benefits programme, through which most veterans obtain mental health support, "is working slow and the application process is complex."

Canada.com, in a report, noted the AG's scrutiny of the Department of Foreign Affairs, Trade and Development. The AG noted its mandate of rendering urgent assistance to the needy populations. But the quantum of assistance allocated "is often not clearly documented." The Canadian police are in the dark about the number of Canadians detained abroad, including sex offenders who might be returning home. The auditor general asked the RCMP and the Department of Foreign Affairs, Trade and Development to collate information about the number of Canadians arrested, charged, convicted or released from prisons abroad.

North Food Programme

The AG also posed queries about the special programmes to subsidise high cost nutrient food in Canada's north. It said that the needs of eligible communities' have not yet been identified. Aboriginal Affairs and Northern Development Canada do not know whether the retailers are really passing down the full subsidy to the eligible consumers in the north, noted the AG.