The Canadian government is considering the possibility of extending debtor-in-possession financing to Chrysler LLC and General Motors Corp. if they seek bankruptcy protection, Industry Minister Tony Clement said Thursday.

"Of course we are, yes," Clement told reporters after question period in the House of Commons.

He said a company that's restructuring under bankruptcy protection needs to have a financier for debtor-in-possession funding. He said it's "pretty clear" that banks won't be the financiers, so there's a suggestion that U.S., Canadian and Ontario governments should take on the role.

"That is a bridge that we have not crossed yet. But obviously we are looking at all the permutations and combinations," he said.

He also said Chrysler and the Canadian Auto Workers have made progress on talks for the labor union to make concessions on pay.

"We are pleased that progress is being made. They are still working hard at it," he said.

He said many other pieces must fall into place for a restructuring plan that goes far enough to qualify for government aid, so he's sticking with the month-end deadline to announce what the "go-forward" plan would be. He said he gets updates almost every hour on how things are unfolding.

"That's why I think we should concentrate on the April 30th date as the most probable and reasonable to get all of this together or not," he said.

In an e-mailed statement, Chrysler reiterated that its viability will be enhanced through an alliance with Fiat as it would expand its global competitiveness.

"As we move forward in this process, we believe it's important to keep all options open," the statement said. "Chrysler will continue to work through the end of the month, based on the direction given by the Presidential Auto Task Force, to secure the support of the necessary stakeholders and reach a successful conclusion that the Administration and U.S. Treasury deems appropriate."

A CAW spokesman said negotiations with Chrysler are progressing.

-Nirmala Menon, Dow Jones Newswires; 613-237-0668; nirmala.menon@dowjones.com

(Andy Georgiades contributed to this article.)