Prime Minister Mark Carney came under pressure Wednesday over whether the federal government knew Algoma Steel planned to lay off almost 1,000 workers when he was given $400 million in loans from Canadian taxpayers.
In response to questions from Conservative leader Pierre Poilevre, Carney did not directly say whether he had been informed in advance, but suggested that Algoma Steel would have had to lay off even more workers without the loan.
“These are difficult times in Sault Ste. Marie and our hearts go out to them and their families. As I quote the CEO of Algoma Steel who said, 'It would have been an even darker day if this government had not taken action,'” Carney said.
“This loan, this support, saved two-thirds of those jobs.”
Algoma Steel is working to move away from the US as its main customer after what the company called an “unprecedented event”. tariffs” introduced by US President Donald Trump..
Global News reached out to Algoma Steel for further comment but had not received a response at the time of publication.
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Carney also echoed comments made earlier in the day by Ontario Premier Doug Ford.
“Can I quote the Conservative leader who is actually in power? The Premier of Ontario. “We had a choice. We had a choice: save two-thirds of the jobs or let the company go bust. We have chosen the future. We have chosen the future for Algoma Steel.”
Ontario Premier Doug Ford spoke with Global News earlier Wednesday.
“What the CEO told us [there] would be a drastic change if we didn't add [funding] It will be much more than a thousand people,” Ford said at Queen’s Park.
Ford called Algoma Steel the Titanic, which he said was “sinking there” and the government had limited discretion.
“We either save, like, two-thirds or we save nothing,” Ford said. “And I believe that the company can be saved by allocating funds to maintain it.”
When asked whether more jobs could be saved if the government offered a larger loan, Ford advised Global News to contact Algoma Steel.
In September, the provincial government committed $100 million in funding to Algoma to help it move away from dependence on the United States as its main client.
“This direct support will help Algoma move its operations out of captive U.S. markets and remain a commercially viable and economically stable source of jobs, growth and opportunity in Northern Ontario,” the government said in a statement.
Federal Minister of Industry Melanie Jolie replied on December 1st. to news from Algoma Steel in the House of Commons.
“Obviously our thoughts are with the workers affected by the unreasonable and unjustified tariffs imposed by the White House, and we will continue to work with them as Algoma Steel faces a difficult situation, to say the least,” Joly said.
“We have every confidence in Algoma workers as they work through these challenges and we will make sure we support them as they develop new products as well as access new markets – we will fight for these jobs.”
– with a file from Global's Colin D'Mello and Isaac Callan.
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