Task Force on Tax Assistance for the Resource Regions and the New Economy Consultations - Montréal International Recommends Targeted, Consistent Fiscal Measures to Support the New Economy in Greater Montréal



    MONTREAL, Oct. 5 /CNW Telbec/ - As part of the Task Force on Tax
Assistance for the Resource Regions and the New Economy consultations,
Montréal International (MI) will present a brief in which the economic
development organization recommends to the Government of Québec targeted,
consistent fiscal measures aimed at boosting the appeal of Greater Montréal,
particularly to foreign investors.
    "With the parity of the dollar and the globalization of the knowledge
economy, where investment projects are highly mobile, tax assistance is a
strategic factor that allows a region like Greater Montréal to increase its
competitiveness and its ability to attract foreign companies and investment,"
said Mr. Pierre Brunet, Chairman of the Board of Directors of Montréal
International.
    "As well, given the fierce competition exerted by other regions,
particularly in the United States, where offering incentives has increased
significantly in the last number of years, our prosperity depends on our
governments adopting measures to strengthen Greater Montréal's competitive
position in terms of tax assistance," added Mr. Brunet.
    As such, Montréal International proposes a series of steps aimed at
strengthening Greater Montréal's offer and at making it more competitive:

    
    Develop strategies for sectors of the new economy

    - Like the development strategy for Québec's aerospace industry, develop
      strategies to support the other sectors in the knowledge economy,
      particularly Life Sciences and health technologies, as well as
      Information and Communications Technology.

    Support these sectors through targeted measures

     - Link incentive programs to the development issues specific to each of
      the sectors of excellence in the new economy targeted by the
      government.

    Review designated sites

    - Review the tax assistance for businesses in the new economy set up in
      designated sites, based on efficiency criteria.

    Stimulate innovation

    - Make incentives conditional on certain performance standards regarding
      innovation and added value.

    Create a marketing incentive program

    - Better exploit the possibilities created by the Montréal region's
      potential for innovation by developing a new marketing incentive
      program.

    Protect effective tax tools

    - Extend the refundable tax credit for major employment-generating
      projects in the information technology sector beyond January 1, 2008
    - Maintain and strengthen the competitiveness of R&D tax credits
    - Maintain the five-year tax holidays granted to foreign researchers and
      experts
    - Maintain the tax credits for multimedia production
    

    According to Mr. Brunet, the metropolitan region's economic development
is based on a business environment that attracts investment, and in which
incentives play a strategic role. "Companies in the new economy base their
decision to invest on a set of key factors that also includes the availability
of a skilled workforce, the presence of quality infrastructures and the
strength of high-tech clusters. Our governments should make it a priority to
strengthen these fundamental assets," he added.
    Since 2000, Montréal International has been involved in 379 direct
foreign investment projects totalling $5.6 billion. From these investments,
28,186 jobs have been created and 5,459 jobs have been maintained.

    About Montréal International

    Montréal International is a private/public partnership whose mission is
to contribute to the economic development of Metropolitan Montréal and to
enhance its international status. Its mandates include attracting foreign
investment, international organizations and strategic workers, and supporting
the development of competitive clusters in high-technology sectors. Montréal
International is financed by the private sector, the Communauté métropolitaine
de Montréal, the City of Montréal, and the Governments of Québec and Canada.




For further information:

For further information: Céline Clément, Communications Advisor,
Montréal International, (514) 987-9390,
celine.clement@montrealinternational.com


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