BRAMPTON, ON, Sept. 18, 2013 /CNW/ - The Honourable Jim Flaherty, Minister of Finance, today led a cross-country series of events highlighting the Government's support for Canadian manufacturers to create jobs and growth, both at the national and local levels.
Minister Flaherty spoke at Hydroform Solutions in Brampton, Ontario, to highlight the local benefits of the temporary accelerated capital cost allowance, as did his colleagues at manufacturing facilities in Winnipeg, Calgary and Richmond, British Columbia.
"Our Government is committed to helping Canadian manufacturers create jobs and growth across Canada and right here in Brampton," said Minister Flaherty. "This measure builds on our strong record of lowering taxes and supporting Canada's manufacturers by helping them make the additional investments needed to improve productivity and create jobs."
Economic Action Plan 2013 announced $1.4 billion in additional support to the manufacturing and processing sector through a two-year extension of the temporary accelerated capital cost allowance for new investments in machinery and equipment. The 50% straight line depreciation rate is being extended to include investment in eligible manufacturing or processing machinery and equipment in 2014 and 2015.
Rob Wildeboer, Executive Chairman of Martinrea and Chair of the CEO Manufacturing Advisory Committee, said, "We appreciate the efforts of our governments in supporting a critical economic sector for our country. Advanced manufacturing, of which automotive is a sterling example, is critical to the future of Ontario, our country and our people, providing good jobs and opportunities. Our company, and others like us, has benefited from the accelerated capital cost allowance, the lowering of corporate tax rates, the freezing of Employment Insurance premiums and other initiatives which are both welcomed and appropriate. They create jobs for our people."
The temporary accelerated capital cost allowance will allow businesses in Canada to meet current economic challenges and improve their long-term prospects by adopting new and innovative technologies to increase productivity, helping them to compete globally while creating jobs in all regions of Canada.
"The two-year extension of the temporary accelerated capital cost allowance is a cornerstone of Canada's Economic Action Plan to support manufacturing competitiveness," said Jayson Myers, President and CEO of Canadian Manufacturers & Exporters—the country's largest trade and industry association. "It provides companies with the capital needed to invest in productivity improvements and take on the challenges of an increasingly global marketplace."
By allowing a faster write-off of eligible investments, the temporary accelerated capital cost allowance provides concrete support to the manufacturing and processing sector. More than 25,000 businesses have taken advantage of the temporary accelerated capital cost allowance to make new investments in machinery and equipment since the measure was first introduced in 2007.
Investment in machinery and equipment by Canadian manufacturers has risen strongly over recent years, growing by 11.1 per cent in 2010 and 24.8 per cent in 2011, greatly outpacing that in the United States over the recovery.
"Since 2006, our Government has lowered taxes, made Canada the first tariff-free zone for industrial manufacturers in the Group of 20 (G-20), eliminated unnecessary regulatory burdens, and improved conditions for business investment," said Minister Flaherty. "These steps have established a solid foundation that has allowed Canadian businesses to create jobs and drive economic growth."
SOURCE: Finance Canada
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