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.

"That is a bridge that we have not crossed yet. But obviously we are looking at all the permutations and combinations," Clement told reporters after Question Period in the House of Commons.

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

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 see how things are likely to go.

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

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