CME submitted its 2019 pre-budget recommendations the House of Commons Standing Committee on Finance in August 2018.
A competitive business environment is critical to the success of manufacturing in Canada. Good tax and regulatory policy encourages local companies to invest in their future; it attracts new manufacturing opportunities and new foreign investment; and it puts our businesses in a position to compete and succeed in global markets. To achieve this, CME suggested:
Recommendation 1: That the government take immediate steps to restore Canada’s business tax advantage over the United States.
Recommendation 2: That the government develop a new approach to regulatory modernization that includes a Regulatory Bill of Rights for a world-class system of regulations that are predictable and focused on achieving desired policy outcomes rather than prescribing business processes.
Recommendation 3: That the government increase direct investments in high-potential firms by creating a risk-sharing funding program aimed at improving productivity and accelerating the commercialization of innovative products.
Recommendation 4: That the government expand the size of its Strategic Innovation Fund to $2 billion per year, make the program permanent, and earmark half of those funds for innovations tied to manufacturing. The SIF should also be expanded to include tax credits for process improvements and software purchases, and support should be available to manufacturers on a non-discriminatory basis.
Recommendation 5: That the government reinvest all federal and provincial carbon-pricing revenues back into offsetting the cost of purchasing new technologies and machinery & equipment.
Recommendation 6: That the government work with trade and industry exporters to create a National Manufacturing Export Accelerator Program to assist SMEs become export-ready and fully realize their growth potential.
Recommendation 7: That, provided it does not violate WTO commitments, the government reduce corporate tax payable on business profits generated from exports. To encourage trade diversification, the reduction should be greater for exports to non-US destinations.
Recommendation 8: That the government work in partnership with businesses to address labour and skills shortages in manufacturing