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Coalition Calls on Canada's New Government to Address Manufacturing Crisis

November 13, 2006 ( Ottawa, ON )

Today the Canadian Manufacturing Coalition (CMC) made public a letter to Prime Minister Stephen Harper calling on his government to address the manufacturing crisis developing in Canada.

“Manufacturers across Canada are facing unprecedented challenges today, and unless they are addressed, the wealth creating capacity of the Canadian economy is at stake,” said Coalition spokesperson Jayson Myers, Chief Economist of Canadian Manufacturers & Exporters. “Manufacturing industries are not looking for handouts; they are looking for a more level playing field with the rest of the world and a more attractive investment environment in Canada: we need the federal government to let manufacturers use their earnings more effectively to boost competitiveness and productivity,” he added.

Canada’s manufacturers want the new Government of Canada take immediate practical steps that will enable them to innovate, compete, and grow. The Coalition specifically recommends:

  • A two-year write-off (CCA) for investments in new manufacturing, processing, and associated information and communication, energy, and environmental technologies;
  • The Government maintain its commitment to lower the federal corporate tax rate to 18.5 percent by 2011, and undertake to reduce it by a further 1.5 percentage points, to 17 percent, by 2012;
  • Improve the SR&ED tax credit system to make the credits refundable, exclude them from the calculation of the tax base, provide an allowance for international collaborative R&D, and extend the tax credit to cover costs for patenting, prototyping, product testing, and other pre-commercialization activities;
  • Introduce a training tax credit creditable against EI premiums; and,
  • Effectively enforce the federal User Fee Act, to increase accountability and to require Departments to set internationally competitive regulatory process standards as initial steps towards a more effective, timely, and cost-efficient regulatory regime.

“Adopting these measures will demonstrate the government’s commitment to building a more competitive and prosperous economy,” said Myers, “letting businesses invest their revenues in this way will enable Canadians to enjoy strong economic growth, high-value and high-paying jobs.,” he concluded.

The Canadian Manufacturing Coalition is an industry group representing some 22 manufacturing associations across Canada. Every major sector is represented by the coalition including automotive, aerospace, mining, forestry, and consumer products. For a complete list of coalition members please see the attached letter to the Prime Minister.

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The Canadian Manufacturing Coalition is an industry group representing some 22 manufacturing associations across Canada. Every major sector is represented by the coalition. For a complete list of the current coalition membership please see the attached letter to the Prime Minister.