A $1-million provincial grant for auto parts maker Brose announced Thursday will support 20 new positions at the London plant — and those people are already on the job.

With a provincial election looming, Premier Kathleen Wynne travelled to London Thursday to make the announcement at the south London plant that makes seating systems.

Wynne said the grant would “create and retain” 710 jobs at the plant but only 20 of the positions are new. Management said that hiring has been done.

Wynne defended herself against charges by Tory Leader Tim Hudak of paying “corporate ransoms” to automakers such as Chrysler that are asking federal and provincial grants to support expansion and overhaul of their plants.

“I can’t say often enough or strongly enough how wrongheaded that is . . . not partnering with the auto sector is just ridiculous and demonstrates a total lack of understanding of how the Ontario economy functions,” Wynne said.

Reacting to the announcement, Elgin-Middlesex-London MPP Jeff Yurek said the Wynne government is handing out cheques when it should be lowering taxes and energy prices and balancing the budget.

“I don’t think people expect the government to bankroll every business in this province,” said Yurek, whose riding includes the Brose plant.

Wynne said Ontario has to compete with handouts offered by U.S. states and other foreign jurisdictions.

“There are many jurisdictions that would be happy to see us leave the field. We are going to make sure we are part of the game,” Wynne said.

Brose general manager Steve Wilkins said the provincial grant is helping the company buy the latest technology such as laser welding machines. He said without the grant the plant might have a tougher time competing to win contracts and hire more staff.

“It’s a question of what our head office in Germany would have allowed us to do. Without it, who knows what would have happened?”

Kapil Lahkotia of the London Economic Development Corp. said Brose has expanded substantially over the years, more than doubling its original employment of 300 and investing $200 million. He said the provincial grant will enhance the company’s competitiveness.

hank.daniszewski@sunmedia.ca

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