Ontario's finance minister says he likes some of the moves in the economic update tabled by his federal counterpart.

"I welcome the commitment to infrastructure money," Dwight Duncan told CTV Toronto on Thursday.

"I welcome the opportunity to continue to work with them, whether it's on the auto file, whether it's on ensuring Ontario gets fairness in health care funding -- all of those issues."

The commitment to infrastructure money consisted of having federal Finance Minister Jim Flaherty, who represents Whitby-Oshawa, say that the government will spend an already-approved $6 billion on infrastructure payments next year.

NDP Leader Howard Hampton criticized the lack of any additional infrastructure spending commitment or other moves to stimulate the economy.

"What I wanted to see is what every other country in the western world is doing. Everyone recognizes that this is a really, really nasty recession, and some are saying it could become a depression," he said.

"And they're taking real action to try to stimulate their economies and to stimulate employment.  We're seeing nothing from the McGuinty government in Ontario and we're seeing nothing from the Harper government federally."

Hampton warned earlier that the closure of two Magna auto parts plants in York region, and the loss of 850 jobs, may be a sign that smaller companies in the sector may be near collapse.

Earlier this week, a Conference Board of Canada report suggested that the auto sector -- located almost exclusively in Ontario -- could shed 15,000 jobs by the end of 2009.

Auto help skipped

Flaherty didn't announce any specific help for the auto sector in Thursday's update, but hinted he will table a major stimulus package in a federal budget now expected for late January -- a month or two ahead of the usual schedule.

That package will definitely provide infrastructure funding and possible auto sector help.

Toronto's Mayor David Miller welcomed Flaherty's attempts to address the credit crisis blamed for much of the current economic malaise, "but there was no significant assistance to automotive industries, construction or other parts of our economy who are facing very serious problems and layoffs because of the credit crisis.

"I think it's very important that as the government addresses the credit crisis to ensure that our manufacturing industries, our construction industries and other places that are being affected have relief, and not just the banking sector."

CTV Toronto's Paul Bliss said Duncan is probably being diplomatic because Ontario still hopes to get help for its beleaguered auto sector from Ottawa.

"Canadians don't want unnecessary bickering between levels of government. So we remain open to working (with the feds)," Duncan said.

Hampton fears one of the automakers could collapse before Queen's Park and Ottawa come through with an aid package, Bliss said.

GM and Chrysler appear to be the companies most in danger of collapse.

Auto sector troubles have shown up in the economies of Windsor and Oshawa, where year-over-year Employment Insurance claims are up about 30 per cent and 96 per cent respectively. 

Flaherty told CTV Toronto the government has already built in an economic stimulus equivalent to two per cent of GDP for 2009, "and that's more than the United States and more than the United Kingdom."

He said the government wants the auto industry to show a plan on how it can survive, "and hopefully there will be a way through this, but it has to be a good use of taxpayers' money."

Federal update

Flaherty mainly targeted government expenditures in his update, rather than spending on stimulus measures.

He predicts the government will run a $100-million surplus this year after selling $2.3 billion in assets and making $2 billion in expenditure cuts.

Flaherty said Canada is in a technical recession that will end by April 1. He predicted a 0.3 per cent growth rate in 2009 -- a forecast at odds with many economists.

One move that enraged opposition parties is the government deciding to end federal subsidies for political parties based on $1.75 per vote received. The subsidy came in when the Liberal government of Jean Chretien changed donation rules in 2003.

The move would also hurt the Tories but positively cripple the other four major parties.

The Conservatives have the best grassroots fundraising machine of all the parties.

The Liberals used to get most of their money from corporate donors and the NDP from unions. Neither has been as successful as the Tories in raising small amounts from donors since reforms were introduced in 2003.

"These are tough times in Canada," Flaherty said, so the government moved to restrain wage growth and to take away a "perk" from politicians -- referring to the party funding measure.

With a report from CTV Toronto's Paul Bliss and files from The Canadian Press