MONTAGUE, PE, Nov. 30, 2018 /CNW/ - Canada's recent Fall Economic Statement 2018 showed that the Government's plan is working: more Canadians are employed, wages are growing, and middle class Canadians have more money to save, invest and grow the economy. The Government of Canada knows that Canadian farmers and food processors are key drivers of the Canadian economy. The Statement is the next step in our plan, where we are supporting Canada's competitiveness so that Canadian agriculture and agri-food businesses can grow and create more good, middle class jobs.
Today, federal Agriculture and Agri-Food Minister, Lawrence MacAulay, was in Montague, Prince Edward Island, to highlight the Fall Economic Statement 2018, which provides an update to Canadians on investments and results already delivered by the Government, and lays out the next steps in the Government's plan to grow the economy by investing in middle class jobs.
In the Statement, there were a number of measures that will help Canada's agriculture and agri-food sectors grow, innovate and prosper. These measures include important tax and investment incentives that will drive business growth and increase the competitiveness of Canadian agriculture and agri-food businesses.
Under the new measures, manufacturers and food processors will be able to immediately write off the cost of capital investments like machinery or equipment – including clean technology. And under the new Accelerated Investment Incentive, manufacturers, food processors – and farmers – will be able to write off a larger portion of the depreciation in the year an investment is made. For purchases of buildings, machinery or equipment, the deduction in the first year is up to three times the amount under the previous rules.
The Statement includes a $25 million investment over the next five years to expand support for agriculture and food exporters. This investment includes $12 million over five years for Agriculture and Agri-Food Canada to access new markets for agriculture and agri-food exports as part of the implementation of an Export Diversification Strategy. An additional $11 million over five years is being provided to the Canadian Food Inspection Agency to support market access.
The Government of Canada is also investing an additional $13.6 million over three years to improve transportation data, which will support the movement of all goods, including agricultural products.
Broad measures will be undertaken as well to make sure Canada's regulations are as innovative and efficient as possible, helping businesses to stay on the competitive edge and grow.
In addition, to accelerate support for business innovation, the Government of Canada is providing a further $800 million over five years to the Strategic Innovation Fund, which will support innovative investments across the country in all economic sectors.
"The Government knows that Canadian farmers and food processors are key drivers of the Canadian economy. Through the Fall Economic Statement, we will continue to invest in the Canadian agriculture and food system by increasing market access for exports, supporting innovation and modernizing federal regulations. By keeping Canadian agriculture and agri-food businesses competitive, innovating and growing, we are helping creating more good jobs for our middle class."
- Lawrence MacAulay, Federal Minister of Agriculture and Agri-Food
"Many of the recommendations that CFA made in the 2019 Pre-budget submission to help Canadian farmers were addressed, as well as recommendations by the agri-food economic strategy table. This fiscal update shows that the Federal Government is taking the right steps to increase the competitiveness and efficiency of Canada's agricultural sector. This support is pivotal to achieve the target of increasing agricultural exports to $75 billion by 2025 which was set out in the 2017 Federal Budget"
- Ron Bonnett, Canadian Federation of Agriculture President
Some of the Fall Economic Statement 2018's proposed measures include:
- Improving competitiveness by allowing the full cost of machinery and equipment used in the manufacturing and processing of goods to be written off immediately for tax purposes, and by introducing the Accelerated Investment Incentive to support investment by businesses of all sizes across all sectors of the economy. These changes encourage businesses to invest in Canada. This will help secure jobs for middle-class Canadians.
- Lowering the Marginal Effective Tax Rate from 17.0 per cent to 13.8 per cent, giving businesses in Canada the lowest overall tax rate on new business investment in the G7.
- Increasing investment in the clean technology sector by allowing specified clean energy equipment to be eligible for an immediate write-off of the full cost. This will help achieve climate goals, and boost Canada's global competitiveness.
- Making Canada a more globally connected economy by launching an Export Diversification Strategy aimed at increasing Canada's overseas exports by 50 per cent by 2025.
- Removing barriers to trade within Canada by working with provinces and territories to enable businesses to transport goods more easily, to harmonize food regulations and inspections, to align regulations in the construction sector (including the harmonization of building codes across Canada), and to facilitate greater trade in alcohol between provinces and territories.
- Taking early regulatory action as part of the Government's regulatory review process.
- Accelerating support for business innovation by providing a further $800 million over five years to the Strategic Innovation Fund, which will support innovative investments across the country in all economic sectors. This includes $100 million to support the forest sector.
- Investing in Middle Class Jobs: Fall Economic Statement 2018
- Fall Economic Statement Speech
- Backgrounder: A Strong and Growing Economy for the Middle Class
- Backgrounder: Confidence in Canada's Economic Future
- Backgrounder: Building a Canadian Investment Advantage with Targeted Business Tax Enhancements
- Backgrounder: Continued Progress for the Middle Class
- Notice of Ways and Means Motion to Amend the Income Tax Act and the Income Tax Regulations, and Explanatory Notes
- Real Progress for Canada's Middle Class
SOURCE Agriculture and Agri-Food Canada
For further information: Katie Hawkins, Director of Communications, Office of the Honourable Lawrence MacAulay, 613-773-1059, [email protected]; Media Relations, Agriculture and Agri-Food Canada, Ottawa, Ontario, 613-773-7972, 1-866-345-7972, [email protected]