 An 8-Point Plan For A More Competitive Canada
By Ian Howcroft
President, Canadian Manufacturers & Exporters
There is one issue that demands to be front and centre in the federal election campaign—the economy. We need to address key issues that are critical to making the 21st century belong to Canada.
That’s why CME, on behalf of the 2.5 million voting Canadians employed by its member companies, has created an 8-point plan that it is encouraging all parties in this federal election to adopt into their election platforms. These priorities must form the economic foundation of the 41st Parliament as well.
1 Lower taxes on those businesses that are investing in new products, new technologies and the skills of their employees. Maintain currently legislated targets for reducing corporate tax rates. They will help 120,000 businesses, large and small alike, to invest, create new jobs, and grow.
2 Extend the two-year straight-line depreciation for investments in manufacturing and processing machinery and equipment. The Accelerated Capital Cost Allowance encourages companies to invest in technologies that are essential in improving productivity and environmental management.
3 Encourage innovation and the commercialization of new products and technologies. Canada’s Scientific Research and Experimental Development tax credit should be fully refundable and the processes for application and approval should be simplified. Tax credits should be considered to encourage workplace training, new market development and improvements in productivity, energy efficiency, and environmental management. Better ways to transfer knowledge from research labs to businesses need to be found.
4 Help businesses develop and take advantage of international opportunities. We need to fight protectionism and negotiate meaningful market access, investment protection and tax agreements with other countries, particularly with Europe, India, and Latin America. We need a clear and coherent strategy to improve business relations with China. And, we need to effectively enforce our trade rules.
5 Enhance the competitiveness of North America’s integrated supply chains. We need to accelerate efforts aimed at streamlining regulatory requirements at the Canada-US border and improving external security. We also need to find ways of minimizing regulatory differences across Canada as well as with our largest trading partner, the United States.
6 Improve the quality and availability of skilled workers. We need to increase support for applied skills, trades, and technology programs in Canada’s school and college systems and make it easier for business visitors and skilled immigrants to enter, work and stay in Canada.
7 Strengthen Canada’s energy and logistics infrastructure. We need to ensure that Canadian households and businesses have access to secure, stable and cost-competitive energy. We need to build the energy transmission, transportation and communications infrastructure necessary to enable global commerce.
8 Improve regulatory efficiency. We need to modernize legislation, eliminate unnecessary regulatory differences, simplify compliance requirements, streamline regulatory decision-making on the part of government and, ensure effective enforcement of evidence-based regulations.
About CME
Canadian Manufacturers & Exporters (CME) is Canada’s leading trade and industry association, and the voice of manufacturing and global business in Canada. For more information, visit www.cme-mec.ca.
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