March 30, 2011
FOR IMMEDIATE RELEASE
PRIME MINISTER ANNOUNCES PLAN TO EXTEND ACCELERATED BUSINESS WRITE-OFFS
Rick Dykstra says plan would encourage investment, jobs and growth
St. Catharines – Conservative candidate Rick Dykstra applauded today’s announcement by Prime Minister Stephen Harper that a Conservative government would extend the accelerated business write-offs for investment.
“This all about spurring growth and creating jobs in our community”, said Dykstra. “Manufacturers are looking for ways to grow and reinvest in their businesses and this extension will make it that much easier for them to do so.”
Since taking office in 2006, the Conservative Government has implemented a plan to encourage businesses to invest, grow and hire more Canadians. Last week’s budget, the Next Phase of Canada’s Economic Action Plan, outlined a low-tax plan for jobs and growth to complete the recovery and create jobs.
Prime Minister Stephen Harper pointed out that among the new measures is a two-year extension of the accelerated capital cost allowance treatment for investment in machinery and equipment by Canadian manufacturers. This will help Canadian companies make the necessary investments in machinery and equipment to improve their productivity and create new and better jobs.
According to the Canadian Manufacturers and Exporters, the accelerated capital cost allowance boosted investment by more than 11 per cent between 2006 and 2009. Manufacturing companies employ 1.8 million Canadians.
The Next Phase of Canada’s Economic Action — a low-tax plan for jobs and growth — extends the accelerated capital cost allowance for Canadian manufacturers for two additional years.
Extending this measure will save Canadian manufacturers more than $600 million in 2012-2013, and an estimated $2.5 billion over the next five years.
The two-year write-off will promote investment in critical new machinery and equipment to complete the Canadian recovery and create jobs.
Support for these investments will translate directly into more and better jobs for Canadian workers.
Stakeholders strongly supported the inclusion of this measure in the next phase of Canada’s Economic Action Plan.
Over 50 national organizations, including the Canadian Manufacturers and Exporters, the Chemistry Industry Association of Canada, and even the Canadian Labour Congress, endorsed the extension of the accelerated capital cost allowance.
In addition, a Conservative government will allocate $80 million in new funding over three years for a pilot initiative, delivered through the Industrial Research Assistance Program, to support collaborative projects between colleges and small- and medium-sized businesses.
These projects will be a unique partnership between Canada’s colleges and Canadian businesses, and will help Canadian businesses adopt new information and communications technologies so that they are more competitive in a global marketplace.
In addition, the next phase of Canada’s Economic Action Plan sets the stage for Canada to become a leader in the creation, adoption and use of digital technologies and content; in other words, to become a leader in innovation and production.
Contact: Karen Moncur – 905-933-0743