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Ontario Budget Must Rev the Engine: CME

Published by Brad Fougere on January 29, 2015

For immediate release

TORONTO – Ontario Budget Must Rev the Engine

Canada’s economic growth forecast has shifted the focus back to southern Ontario’s manufacturing heartland. Canadian Manufacturers & Exporters is calling on the Wynne government to promote the image and importance of manufacturing and to implement a multi-faceted skills and innovation strategy.  

“Ontario’s best chance of meeting fiscal targets and stimulating economic growth is to rev up the manufacturing sector,” CME Ontario Vice-President Ian Howcroft said in advance of CME’s pre-budget presentation at Queen’s Park, today. “The first order of business is to improve the environment for manufacturing investment which demands no tax increases.”

The low dollar and strengthening US market picture creates the right conditions for growth in Ontario’s most important sector. However, any new taxes introduced could put the Canadian economy at risk. Though well intentioned, the Ontario Retirement Pension Plan is just one example of new mandatory cost to employers that makes Ontario less competitive in the near term (set to come into force in 2017).

“Raising taxes or introducing new taxes would be a huge mistake and could disrupt the fragile opportunity to re-invigorate the sector and economy,” said Howcroft.

Recently announced, the $2.5 billion jobs and prosperity fund has great potential to spur growth and stimulate innovation & productivity. CME is calling for a re-capitalization of the CME SMART Program with a particular emphasis on helping SME’s deal with innovation, productivity and advanced manufacturing and technologies. 

“SMART funding supplies Ontario’s manufacturing sector with globally competitive processes and production equipment that will ensure the future of industry in Ontario remains strong,” Howcroft said.

The lower dollar also has the effect of making purchases of machinery and equipment more expensive since these are typically priced in US dollars. Therefore it is critical for government to continue to encourage M&P investment that starts with the extension of the accelerated write-off for manufacturing and processing equipment. 

Other measures in the recommendations included reducing electricity rates for manufacturers, continued investment in employer sponsored training such as the Canada-Ontario Jobs Grant initiative, and elimination of red tape that acts as a significant drag on investment.

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The Pre-Budget Submission may be viewed in full here.

Canadian Manufacturers & Exporters (CME) is Canada’s leading trade and industry association and the voice of manufacturing and global business in Canada.

CME’s membership network accounts for an estimated 82% of total manufacturing production and 90% of Canada’s exports.

For more information, contact:

Ian Howcroft                                        Paul Clipsham

Vice President                                     Director of Policy

CME Ontario                                        CME Ontario

416-419-6119                                      416-388-6711

Found in: Ontario budget

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