OTTAWA, March 19 /CNW Telbec/ - Manufacturers spoke. The government
listened. Canada's largest business sector is a major winner in Budget 2007.
"This budget is good news for Canada's manufacturers and exporters, as
well as for the economy as a whole," says Perrin Beatty, President and CEO of
Canadian Manufacturers & Exporters. "CME has led the fight for smart policy
decisions that reflect the needs of Canadian industry in the 21st century. The
budget shows the government is listening. It will help our manufacturers and
exporters -- the economic engine of the country -- be more productive and
Budget 2007 contains a number of the ingredients in CME's recipe for a
strong manufacturing sector, including the temporary introduction of a
two-year write-off for investments in manufacturing and processing machinery
"This measure is vital to the prosperity of the industry," adds Beatty.
"Accelerating the Capital Cost Allowance will help manufacturers cope with a
rising dollar, boost cash flow, and allow them to make the investments they
need to remain competitive."
Other elements that CME successfully pressed Ottawa to include in the
Budget include an accelerated write off for buildings used in manufacturing
processing; elimination of the withholding tax on interest on US investments
in Canada; strategic investments in infrastructure, innovation, and workforce
development; reduction of the federal paper burden on business; and
development of a global commerce strategy.
Two important issues where Budget 2007 is silent include improving the
SR&ED tax credit system and enabling employers to assist in skills training.
CME will continue to press for action in these areas.
"This budget empowers Canadian manufacturers to be more competitive,
today," Beatty adds. "Canadian manufacturers can now take advantage of better
tools to help them strengthen their businesses and their bottom lines."
For further information:
For further information: Jeff Brownlee, CME, (613) 238-8888 ext. 233