Manufacturers Applaud Government Action to Boost Investment and Reduce Cost
TORONTO (April 11, 2019) – The 2019 Ontario Budget was another step forward for this government in addressing the uncompetitive landscape that Ontario manufacturers operate in. “Ontario’s overall strategy to drive manufacturing growth by focusing on the three pillars of reducing the cost of doing business, supporting innovation, and driving investment is the right approach.” said Dennis Darby President & CEO.
SKILLED AND LABOUR SHORTAGES
“We were pleased to see the government took measures to address the skills gap, one of manufacturers top challenge, by supporting employer engagement in training, reform the apprenticeship program, and completing curriculum reform to focus on STEM skills,” stated Darby.
55 per cent of manufacturers, according to CME’s Management Issue Survey are looking for the government to create more programs to help solve the issue.
ENCOURAGING INVESTMENTS AND INNOVATION
“Manufactures also welcome the commitment to fully matching the federal Accelerated Cost of Capital Allowance (ACCA) tax measures retroactively to November 2018 and to boost innovation through procurement reform, review the provincial R&D support mechanisms, and create new investment support mechanisms,” added Darby.
These measures come as capital investment growth in Canada since 2011 is two and a half times lower than the OECD average and more than three times slower than in the US.
COST OF DOING BUSINESS
“We were pleased the government is moving to reduce the cost of doing business through a review of industrial electricity costs, continued red-tape reduction, and WSIB premium reductions. However, we were disappointed that no action was taken to reduce industrial property taxes in the province,” said Darby.
CME is calling on the government to reduce overall industrial tax rates. While the announced Municipal Property Assessment Corporation (MPAC) reforms are a good start, Ontario industrial property tax rates will remain significantly higher than residential and commercial rates in the province and remain massively uncompetitive compared to Ontario’s neighboring jurisdictions.
Outside of these commitments, CME was also happy to see the government’s support for industry by standing up with us on issues such as US protectionist Buy America measures and steel and aluminum tariffs, opposing the federal government’s Bill C-69, and encouraging development in Ontario’s Ring of Fire. CME is supportive of the government’s focus on reducing deficits and growing the economy and look forward to work with the government to implement these measures.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports
For more information, please contact
Stefi Proulx Director of Communications Canadian Manufacturers & Exporters C: 613-292-6070 | email@example.com | @CME_MEC