August 15th, 2014

NDP Economic Development Critic calls for answers on Cisco deal

Ontario NDP Economic Development Critic Wayne Gates, MPP for Niagara Falls, called on the Liberals to release their full agreement with Cisco Canada following the company’s announcement it would be laying off 6,000 workers. 

“For years now Ontario’s unemployment rate has been above the national average, but the Liberals keep writing cheques to corporations and hoping for the best. The Liberals keep insisting they’re being open and transparent, but the job commitments and clawbacks with Cisco Canada are being kept secret.  It’s time to put their money where their mouth is and release the full contract,” said Gates. In December 2013, the Liberals announced they would give Cisco Canada $220 million to support the company’s investments; then two days ago the company announced it would be laying off 6,000 workers.Gates noted that a redacted copy of the Cisco contract received by New Democrats under the Freedom of Information Act had key information removed, such as the yearly job commitments and the “clawback” provisions that detail what happens if Cisco doesn’t create the promised jobs. “Ontarians deserve to know what will happen if any of these 6,000 job losses are in Ontario, and what guarantees do people have that they won’t see $220 million go up in smoke?”“Ontarians deserve accountability and transparency.  People don’t want to see another Navistar or Kellogg’s happen in their community. They don’t want to see public dollars go to companies closing up shop, leaving people out of work,” continued Gates. Navistar received $32 million in public money before putting more than 1,000 people out of work in Chatham.  Kellogg’s received $4.5 million before closing its London plant putting nearly 500 people out of work.