RICHMOND, BC, Sept. 18, 2013 /CNW/ - The Honourable Alice Wong, Minister of State (Seniors), 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 Wong spoke at VanGear in Richmond, British Columbia, to highlight the local benefits of the temporary accelerated capital cost allowance, as did her colleagues at manufacturing facilities in Winnipeg; Calgary; and Brampton, Ontario.
"Our Government remains focused on creating jobs and strengthening the economy right across Canada including here in Richmond, B.C.," said Minister Wong. "That is why we are creating measures like this one to support new investment in machinery and equipment for manufacturing and processing, which leads to more productivity, growth and job creation."
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 prepare for growth well into the future," said Janet Davie, Controller of Richmond-based VanGear.
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 Wong. "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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