Friday, April 3, 2009

General Motors (GM) and Chrysler will receive bridge loans from the government of Canada and the provincial government of Ontario, however no more will be forthcoming from either Canadian or US governments unless the companies can reinvent themselves.

“This is a regrettable but necessary step to protect the Canadian economy. We are doing this on the assumption that we obviously cannot afford either in the United States or Canada a catastrophic short-term collapse.” said Stephen Harper, Prime Minister of Canada.

“We cannot, we must not, and we will not let our auto industry simply vanish. This industry is, like no other, an emblem of the American spirit; a once and future symbol of America’s success,” said Barack Obama, President of the United States. “These companies – and this industry – must ultimately stand on their own, not as wards of the state.”File:Sinsheim quer.jpg

Chrysler will receive CA$1 billion and may in fact be eligible for as much as CA$4 billion. If Chrysler succeeds in the next 30 days with a restructuring plan it would be eligible for a US$6 billion loan. A part of Chrysler’s restructuring plan must include a partnership with Fiat within 30 days to appease the US administration. Fiat is a supplier of smaller fuel-efficient vehicles, and the merger will help Chrysler to be viable in the North American market. A Chrysler court bankruptcy would inevitably lead to it being sold off.

As a part of Chrysler’s restructuring plans, Tom LaSorda, the president of Chrysler announced that Canadian operations would fold if it does not receive both the US commitment of $2.3 billion of aid and a new Canadian Auto Workers CAW contract to reduce all-in costs by CA$19 per hour. As a result of this announcement Chrysler’s auto sales volume in Canada dropped 23% compared to March of 2008.

GM has until the end of May to restructure its company to receive up to CA$7.5 billion. As part of the companies restructuring, General Motor’s chief executive Rick Wagoner was replaced Sunday with Fritz Henderson, the current chief operating officer. Henderson spoke out on Tuesday that GM has submitted a restructuring plan which would close five plants, and this may be increased to meet the requirements for financial aid. He is in full compliance with Obama’s auto task force to seek bankruptcy if GM cannot negotiate with their unions, bondholders and others.

GM recently brought forward the “GM Total Confidence” program providing consumer purchase protection for customers who lose their job for economic reasons within the first two years from purchase. As a result of Chrysler’s restructuring announcement in Canada, GM’s Canadian vehicle sales volume fell only 17.3% compared to 2008, an increase from the previous month.

GM must reduce some of its legacy costs which include its pensions and union health care costs. A part of GM’s ailments arose from investing in supplying truck and SUVs during an economy of high gas prices when consumers were demanding fuel efficient vehicles.

Tony Clement, Canada’s Minister of Industry, is hoping that the CAW will support the restructuring process and re-negotiate their agreement. Whereas a United Auto Workers negotiator has said, “I don’t see how the UAW will do anything until they see what the bondholders will give up.”

The Obama administration is looking toward bankruptcy proceedings for the automakers, “as a mechanism to help them restructure quickly and emerge stronger. [It will] quickly clear away old debts that are weighing them down. What we are asking is difficult. It will require hard choices by companies. It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognise that they cannot hold out for the prospect of endless government bailouts.” said Obama.

The auto parts suppliers and IT software exporters in India have already been affected by the declining auto sales. GM and Chrysler software contracts provide US$300 to 350 million a year to vendors in India. As well these two major automakers usually award US$1 billion contracts to auto parts suppliers. “We are worried and closely watching the developments in the US to gauge the impact. The decline in auto sales in the US has already hit the order books of Indian suppliers,” said a Delhi auto parts supplier.

“Going forward, the industry will undoubtedly be smaller, but if our efforts are successful it will be viable and it will support good jobs for Canadians,” said Clements.

Betty Sutton, Ohio’s Congresswoman put forward the CARS act which provides a US$3,000 to 5,000 incentive for those who trade in their vehicle for a fuel-efficient car. “It clearly stimulates the economy, and it gets the consumer into the showroom and gets them buying again. But importantly — and this is what I particularly like about it — it really helps the environment quite a bit in two respects.” said William Clay Ford Jr., executive chairman of Ford Motor Co.

Ford Motor Company has not come forward with requests for assistance.

Since December GM and Chrysler have received US$17.4 billion government loans.

Friday, August 6, 2010

Since last reported, the flooding in Pakistan has spread and has now struck more than four million people. The UN reports it has left at least 1,600 people dead. The floods have been confirmed as the worst in eighty years.

Heavy monsoon rains led to the flooding of the huge Indus River, destroying homes in the north of the country and causing a large amount of damage in the north-west frontier province of Khyber Pakhtunkhwa. Manuel Bessler of the United Nations said: “What we are facing now is a major catastrophe. We are afraid it will get worse.”

Army and government forces have rushed to evacuate hundreds of thousands of people from parts of the Punjab province of Pakistan, where the disaster spread to yesterday, and from Sindh province, where the flood is expected to reach by the weekend.

The flooding is now in its second week and the situation is unlikely to improve any time soon, especially since in many parts of the country there is still torrential rain, with more forecast. In other parts of Pakistan the water has receded, but this leaves a layer of mud and slime and this covers very large areas. For those affected by the floods, disease is the biggest problem now. The insanitary conditions have already caused diarrhoea and respiratory infections. Cholera and other water-borne diseases may appear if sanitary conditions for those displaced by the calamity are not established. Medical supplies are desperately needed for doctors to keep a pandemic or epidemic of a water-borne disease from infecting the victims of the flooding.

Relief has been hardest to provide in the north-west where many bridges and roads have been washed away. Whole towns have been cut off and this makes providing aid to those areas a very difficult task.

Air force pilots have been volunteering to fly aid missions to badly hit areas, transporting medical supplies, clean water and food to where it is needed. The transport planes carry enough foodstuffs to feed one hundred families for a month. Motivation for the missions among pilots is very high, as is the tension in the transport planes as they fly at 36,000 feet over the flood-hit country. Only from the air is the full extent of the damage visible. Pilots have been flying the maximum number of hours allowed and pushing the limits of their endurance to give the victims of the flood food, water and everything they need to survive.

Many foreign governments and aid agencies are contributing to the disaster relief effort. The U.S. Army has been flying relief missions, airlifting people from areas where they are stranded. The first mission involved four U.S. Chinook helicopters landing in the tourist town of Kalam in the Swat Valley, north-west Pakistan. The resort had been cut off for more than a week, according to a reporter there. The Chinooks flew hundreds of people to safer areas lower down. A U.S. Embassy spokesperson said that 800 people had been evacuated and relief goods had been distributed.

The U.S. government pledged 10 million dollars in assistance following the first reports of the disaster. Yesterday the country promised a further 25 million dollars in aid. A spokesperson from the Embassy said: “The U.S. is making a new contribution of 25 million dollars in assistance to flood-affected populations, bringing its total commitment to date to more than 35 million dollars.” The money will go to international aid organisations and established Pakistani aid groups to provide food, health care and shelter to people displaced by the floods.

Malaysia has also decided to contribute US$1 million for relief efforts in the form of humanitarian aid. The Foreign Ministry said the aid was a manifestation of the government and the people’s concern and sympathy. “The government of Malaysia hopes the contribution will help alleviate the suffering of flood victims in Pakistan.”

In Britain, the Disasters Emergency Committee, an umbrella organisation representing 13 of the leading UK humanitarian agencies, has been coordinating relief efforts and has launched an emergency appeal for public donations to help the victims of the crisis. Charities and aid agencies have been quick to respond to the disaster, sending aid and response teams to the worst hit areas. Food, water, shelter and medical supplies have been provided but much more is needed.

Patrick Fuller of the Red Cross (the International Federation of Red Cross and Red Crescent Societies), who has been based in the country for a few days, described the situation on the ground as “desperate” and said the worst hit areas are “totally dependent” on outside help. He said the Red Cross movement is working with local partners to get aid packages, containing cooking tools and shelter such as tents and blankets, to 35,000 families.

The Red Cross alone has distributed 10,000 food packs and 1000 tents across the affected areas so far. However, figures for the amount of aid distributed are constantly changing as this is an ongoing relief effort.

Fuller reported that in Nowshera, which is in the north-west of the country close to the Indus River, “80% of homes have been badly damaged or destroyed, all the mud-brick houses have been washed away.

“In the most remote areas – where roads are cut off – donkeys are making eight-hour hikes to reach people.

“We are trying to move people into temporary camps – giving them timber, roofing sheets and basic shelter – but there is the added complication that many are reluctant to leave whatever homes they have left.”This has also been a problem in the south of the country in Sindh province, where the flood is expected to reach by the weekend. Evacuations have been going on to move people out of the path of the flood but many will not join the mass exodus and have chosen to brave the waters.

“Many people rely on open wells, which have been contaminated, so access to clean water is a problem. We are worried about communicable diseases, like respiratory infections, skin diseases, diarrhoea,” Mr Fuller said.

The charity have been setting up mobile medical teams to better combat disease and infection.

Though the relief effort at the moment is focused on the survival of those hit by the catastrophe, on those who “had their lives swept away in seconds”, the relief effort is expected to last a full six months.

Those who will be most affected in the long term by this disaster will be the poorest. They will have had everything washed away from them so they will have to start from scratch. Sadly, for those living in the poorest areas in the north and centre of Pakistan, the fight for survival is only just beginning and though they may feel they are enduring much at the moment, getting their lives back together after the first stages of this calamity are over is going to be even harder.

The Disasters Emergency Committee has said it has managed to give aid to 300,000 people so far. Many UK charities have been distributing food and medicine, as well as water purification tablets, cooking tools, shelter and hygiene kits. They have been using rafts, boats and donkeys. Brendan Gormley, chief executive of the DEC, said: “These devastating floods have left millions fighting to survive with little food, clean water or shelter.”

The DEC has appealed for donations from the public of the UK to help the victims of this crisis. The appeal is to allow the charities to continue relief work in the worst hit areas of the country.

Following a television appeal by the DEC, £2.5 million was raised and this has enabled the 13 charities the committee represents to reach 300,000 people with emergency supplies.

Friday, November 10, 2006

The New Zealand government has said that it prefers building a new stadium at Auckland’s waterfront to host the grand final of the 2011 rugby world cup, instead of upgrading Auckland’s current stadium, Eden Park.

The preference was made public by the Honourable Trevor Mallard who is the minister for the rugby world cup that will be hosted in New Zealand in 2011.

The new stadium hasn’t yet been confirmed and is awaiting November 24, which is the date when the Auckland council will give the government their views on the two options available to them; waterfront or upgrade.

According to Mr Mallard the waterfront will cost altogether around NZ$497 million compared to the cost of an upgrade of Eden Park of $385 million. However that pricing is only based on concept drawings at this point in time. The government will provide half of the funding for the waterfront stadium but they will only provide funding for the Eden Park upgrade if it was considered to be for regional purposes and not a national stadium.

Mr Mallard said: “The government has decided that a waterfront location is the option that can most meaningfully contribute to the Government’s vision for Auckland as a truly world-class, international city. This has been a finely balanced call with little difference between the two options in terms of cost and construction timelines. Advice from the experts shows that both can be delivered on time.”

The greatest concern facing the government is if they will be able to build the new stadium in time but construction will being in December 2007 to be finished by 2010, and also investigators said that it would be possible. “We have had advice from Australasia’s leading stadium designers, engineers, architects and construction experts. There is a unanimous view that the waterfront stadium is a challenge, but eminently achievable,” Mr Mallard said.

“In making its decision, the government believes that a sports stadium has the ability to contribute to the identity of Auckland and New Zealand. A national stadium will be as much a focal point of Auckland’s landscape as Rangitoto or the Sky Tower. We also believe the construction of an iconic facility such as this will help drive Auckland’s aspirations for the development of the waterfront and CBD.”

Referring to the upgrade of Eden Park, Mr Mallard said: “One of the greatest concerns is that its application for consents has unacceptable uncertainty as to the timing and outcome of the consents within the construction time available. There is also risk around the lack of flexibility in a residential area around construction times, should delays or problems with construction arise.”

The government will also need to pass a special bill that will enable them to build the required options because of consent issues.

The government had also considered these following options: Eden Park (various options), CBD waterfront (various options), North Harbour Stadium, Manukau Harbour (adjoining Westfield station), The former Carlaw Park, Mt Smart Stadium, Avondale Racecourse, The Auckland Domain and Jade Stadium.