Dealers Applaud Success of Economic Action Plan

CADA Urges Government to Stay the Course on Business Tax Reductions

OTTAWA, Feb. 8 /CNW/ - The Canadian Automobile Dealers Association (CADA) is applauding the federal government for its handling of the recession and implementation of the Economic Action Plan, credited with helping steer Canada through one of the worst economic downturns in recent memory.

"Canada withstood the impact of the recession better than almost any other country," observed CADA President and CEO Richard Gauthier. "For this we can thank the resourcefulness of the Canadian people and the thousands of businesses across the country, but also a sound regulatory environment and a federal government that was prepared to act when the going got tough in 2008 and 2009."

"Thanks to federal programs like the Canadian Secured Credit Facility, the emergency automotive assistance package, and other targeted economic measures undertaken by the federal government, Canada is now better placed than all of its G7 counterparts to resume economic growth in 2011," continued Gauthier. "Further, it is absolutely essential to the continued vigor of the recovery that previously-announced business tax reductions be fully implemented in the years to come."

Fully implementing the business tax reductions passed in the 2007 federal budget, as presented in CADA's White Paper on Tax Reform, 2006, will be essential to laying the foundation for self-sustaining growth, and to providing businesses across Canada with the certainty they need to make long term plans and investments in the Canadian economy.

Retail automotive sales bounced back in a very positive fashion in Canada in 2010, with the overall market up almost seven per cent over 2009. To kick off 2011, there is a sense of renewed optimism for an industry and an economy that only a year and a half ago was in a very different position. Dealers are selling more vehicles and manufacturers have moved to solid profitability and are paying back government loans years ahead of schedule.

Canada has now recovered the vast majority of the jobs lost during the recession, and our unemployment rate stands at several percentage points lower than in the United States. This fact alone means that consumers will be in a better position to support growth in 2011 through renewed consumer spending, much of which was put on hold during the worst of the downturn.

"Much has been made about the soundness of Canada's banking system throughout the past two years, as other countries' banks have wobbled under toxic loans and regulatory upheaval," said Gauthier. "We fully support this view. Prudent federal regulation has indeed created in Canada a very stable banking system. As such, we support the government's approach of the upcoming Federal Bank Act review as a technical exercise, not one that will lead to wholesale changes in the way in which we regulate banks in this country," Gauthier concluded.

The Canadian Automobile Dealers Association (CADA) is the national association for franchised automobile dealerships that sell new cars and trucks. Our more than 3,000 dealers represent a key sector of Canada's economy. Through our dealers, we are represented in nearly every community and those dealers collectively employ over 130,000 people across the country.

SOURCE CANADIAN AUTOMOBILE DEALERS ASSOCIATION (CADA)

For further information:

Emily Reid, CADA Public Affairs
Toll free: 1-800-465-3054 Tel:  613-230-2079 Email: ereid@cada.ca

Organization Profile

CANADIAN AUTOMOBILE DEALERS ASSOCIATION (CADA)

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890