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Ontario budget acknowledges challenges for manufacturers

Published by Brad Fougere on May 01, 2014

For Immediate Release

May 1, 2014

Budget addresses energy costs, regulatory red tape, short on details

TORONTO – Ontario’s budget, announced today by Finance Minister Charles Sousa, acknowledges a number of the challenges facing the province’s manufacturing sector and includes several positives, according to Canadian Manufacturers & Exporters Vice President, Ontario Ian Howcroft.

“We give them credit for recognizing a number of our concerns, but, the government falls down on how far they’re going,” said Howcroft, Manufacturers are facing tough economic times and rising energy costs which are hurting their ability to compete globally. “Energy still continues to be a real cost and a challenge for manufacturers in these tight economic conditions,” Howcroft said.

Measures in the budget that will have a positive impact on manufacturers include:  

  • $2.5 billion jobs investment fund
  • New measures to help manufacturers reduce energy costs including the GAM adjustment and surplus allowances for businesses expanding or hiring
  • Regulatory burden reduction

The scant details on how the jobs fund will be spent, the particulars of the mandatory pension program and what business support programs will be continued punctuated the announcement. The limit of one regulatory reduction per ministry per year is also too limited, said Howcroft.

CME has recently held a series of meetings across Ontario to hear from manufacturers on key challenges and priorities.  This has culminated in an Action Plan for Ontario which made a number of key budget recommendations including targeted stimulus such as the SMART program, and the introduction of refundable tax credits for manufacturing investments, training and innovation.  

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

The association directly represents more than 10,000 leading companies nationwide. More than 85% of CME’s members are small and medium-sized enterprises. As Canada’s leading business network, CME touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business and service-related industries.

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

 

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Found in: Ontario budget

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