Week of November 26
KENORA – Canada’s economy is strong and growing, creating more jobs for Northerners and Canadians across the country. Wages are increasing, providing people with more money to save and invest. Last week, the 2018 Fall Economic Statement outlined the progress we’ve made and the next steps in continuing to stimulate our economy even further.
When businesses are able to compete and succeed, it leads to more well-paying jobs that support Northerners and their communities. That’s why we introduced over $16 billion in new tax incentives that will make Canadian companies more competitive. The new Accelerated Investment Incentive will allow for the full cost of machinery and equipment used in the manufacturing and processing of goods to be immediately written off for tax purposes.
These changes will encourage businesses to invest in Canada and will apply to businesses of all sizes and across all sectors of the economy. We’re also increasing investment in the clean technology sector that will allow businesses purchasing specified clean energy equipment to write off the full cost in the first year.
To make Canada a more globally connected economy, the Export Diversification Strategy will work to increase Canada’s overseas exports by 50 per cent by 2025. This strategy is long overdue and will make Canada a larger global competitor and less susceptible to unfair tariffs. To increase support for business innovation, we are providing a further $800 million to the Strategic Innovation Fund, including $100 million to support to the forest sector which will benefit companies doing business in the North.
To stimulate our mining sector, we are extending the 15 per cent Mineral Exploration Tax Credit for an additional five years, until March 31, 2024. When interviewed by the Financial Post about the Fall Economic Statement, Pierre Gratton, President and CEO of the Mining Association of Canada, stated: “To be quite candid, it is the most positive economic statement or budget for the mining sector that we have seen in years, without question. If you’re considering your investments around the world, Canada just got a whole lot more attractive.”
We are also committed to making nutritious food more affordable for people who live in the North. To ensure that these families have access to affordable, healthy food, including local food, we will invest $62.6 million over five years, starting in 2019–20, with $10.4 million ongoing, in the Nutrition North Canada program.
The Fall Economic Statement makes sense as it recognizes the importance of investing in our future while ensuring that our federal debt-to-GDP (gross domestic product) ratio continues to decline. It’s also worth remembering that we already have the best ‘balance sheet’ among our key allies, and our Government has made a commitment to maintain our competitive advantage in a rapidly changing world.
By making Canada’s business tax system more competitive, reducing barriers to business growth at home and abroad, and improving the regulatory environment, we are supporting Canadian businesses as they grow and expand into new markets.
As a result, Canada will remain among the fastest-growing economies this year and next, of all the Group of Seven (G7) countries. This is a record that all Canadians can be proud of.
Bob Nault MP
