TORONTO -

Industry Minister Tony Clement said Monday he finds the pace of discussions between Ottawa, Ontario and struggling automakers "disappointing," and said the two governments have been ready to hand over a promised $4 billion in funding since December.

"I'm signalling to them, let's get a move on, let's finish our discussions and our dialogue, and if you need the money let's flow the money. If you don't need the money, that's fine too, we understand that," Clement told reporters in Toronto.

"The offer was made in good faith by both Ontario and Canada, the offer still stands and ... I'm hoping to see some conclusion of this in the next couple of weeks."

He said there are some "complex legal issues" slowing down the discussions, but didn't elaborate. The companies' U.S. parents are also mired in discussions with the U.S. government over conditions attached to a US$17.4 billion rescue package in the United States.

The companies' Canadian subsidiaries have until Feb. 20 to provide the federal and Ontario governments with a restructuring plan.

Ontario Premier Dalton McGuinty said Monday he expects the automakers will get the loans within days, or weeks.

The only reason the funds haven't gone out the door yet is because both sides want to ensure they get the conditions of the loans right, McGuinty said.

He added that GM and Chrysler didn't misrepresent their positions when they said they needed the funding by the end of 2008 or they could face bankruptcy.

In a related development, Clement also called on the automakers to reduce labour costs, arguing the Canadian auto industry won't survive unless it can compete with both domestic and foreign automakers in the United States.

"I guess what I'm saying is we have to be competitive with the American assemblers, and that includes the Detroit Three, but it also includes the foreign assemblers who are there," he said.

There's a wide range of opinions on the true cost of Canadian employees to the Detroit Three -- GM, Ford and Chrysler.

Tony Faria, an auto industry specialist at the University of Windsor, estimates that once new contracts negotiated by both the CAW in Canada and the United Auto Workers in the U.S. come into effect, Canadian workers will cost $27 an hour more than their American counterparts.

Meanwhile, the CAW argues its members cost less than U.S. employees of GM, Chrysler and Ford because of Canada's public health-care system, higher productivity and other factors.

Labour costs at plants owned by offshore-based manufacturers, primarily Japanese, are usually lower because their employees generally aren't unionized.

CAW president Ken Lewenza said worrying about labour costs masks the larger problems facing the industry.

"Concentrating on the compensation paid to workers, which in Canada is seven per cent of the total cost of an assembled vehicle, is just being totally dishonest with the challenges we have in the auto industry," Lewenza said in an interview.

"Until this global financial crisis and credit freeze is corrected, auto workers are going to continue to face significant layoffs, significant insecurities, regardless of how much we make."

He added that Canadian workers are "very competitive," and CAW members have already suffered sharp pay cuts due to temporary closures at assembly plants.

Clement shouldn't blame labour for the Canadian auto industry's woes when the U.S. is providing funding for research and development into green technology and helping consumers get financing to purchase new vehicles, said Brian Masse, NDP industry and automotive critic.

"The minister has done nothing on this front at all," Masse stated.

Mark Stabile, an economics professor with the University of Toronto's Rotman School of Management, said Clement is setting a precedent by asking CAW members to take a cut, and other industries could see similar pressure if they receive government bailout money.

"Even though there is general support to help the auto industry, there's no question there are going to be a number of other industries that are going to be asking for at least the same thing," Stabile said.

"I think Minister Clement is very aware that he may be setting precedents in what he does here and he needs to be careful."

Also Monday, Clement announced the Business Development Bank of Canada will receive a $350-million injection from the federal government in next week's budget to free up lending to small- and medium-sized businesses.

The funding will include an immediate $250-million capital investment to increase the bank's term lending activities, as well as $100 million to top up lines of credit.

Clement said the investment will act as a lifeline to struggling businesses, including auto-parts makers suffering amid slumping demand for vehicles in the U.S.