CALGARY, Sept. 18, 2013 /CNW/ - The Honourable Michelle Rempel, Minister of State (Western Economic Diversification), today participated in a cross-country series of events led by the Honourable Jim Flaherty, Minister of Finance, highlighting the Government's support for Canadian manufacturers to create jobs and growth, both at the national and local levels.
Minister Rempel spoke at Standen's Limited in Calgary to highlight the local benefits of the temporary accelerated capital cost allowance, as did her colleagues at manufacturing facilities in Winnipeg; Brampton, Ontario; and Richmond, British Columbia.
"Our Government is committed to a thriving Western Canadian economy that will contribute toward new opportunities for all Canadians," said Minister Rempel. "By supporting our manufacturers and processors, we are ensuring continued growth and prosperity here in Calgary, and right across the country."
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.
This measure 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.
"This initiative has allowed us to make substantial investments in our operations and to prepare for growth well into the future," said Mel Svendsen, President and CEO of Calgary-based Standen's Limited.
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 Rempel. "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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