Newmarket-Aurora MP Lois Brown today confirmed that the Government of Canada has launched a consultation process on how to best implement the Canadian Secured Credit Facility (CSCF).

The CSCF was announced in Canada’s Economic Action Plan with an allocation of up to $12 billion to purchase term asset-backed securities backed by loans and leases on vehicles and equipment.

“A lack of credit availability, including that for new vehicle purchases, was identified as a major issue in my Pre Budget Consultations in Newmarket-Aurora,” said Brown. “Access to financing by businesses and consumers is essential to facilitating our economic recovery. The new $12 billion Canadian Secured Credit Facility is an important step towards helping the competitiveness of the auto industry and contributing to its long-term sustainability.”

The CSCF is intended to ensure continued access to financing for the purchase and leasing of automobiles, capital equipment, medical equipment and other similar assets. The facility will be priced on commercial terms to minimize the risk to taxpayers.

The new credit facility follows through on the commitment made by Prime Minister Stephen Harper on December 20, 2008 that was part of a joint federal-provincial support package for the auto industry. That support, including the availability of up to $4 billion in loans to auto manufacturers, was designed to assist the entire automotive supply chain including dealerships. The government has since received restructuring plans from General Motors and Chrysler which are currently under review to ensure conditions are met that will sustain the long-term viability of the auto industry in Canada. “Any loans extended to the auto manufacturers will be done with extreme care and designed to be repaid in full,” added Brown.

The Department of Finance and the Business Development Bank of Canada will jointly conduct the consultation process. Those interested in participating in the consultation are invited to refer to the document titled “Consultation on the Canadian Secured Credit Facility” at www.bdc.ca and to forward their comments to cscf@bdc.ca by March 6, 2009.

Lois Brown is a member of the House of Commons Standing Committees on Transport, Infrastructure and Communities, and Foreign Affairs and International Trade as well as the Vice-Chair of the Conservative Party Auto Caucus.