ONTARIO’S BUDGET 2017 RECOGNIZES CHEMISTRY AS A STRONG SECTOR IN THE ECONOMY
The Chemistry Industry Association of Canada (CIAC) congratulates the Minister of Finance, Charles Sousa, on delivering on his commitment to achieve a balanced budget in fiscal year 2017-18 and invest in health, education and infrastructure.
While the budget did not outline any new programs for the manufacturing sector, it did recognize that “chemicals manufacturing, including the production of basic organic and inorganic chemicals, synthetic resins and fertilizers, as well as an emerging biochemicals cluster, employs almost 45,000 workers and generates over 1 per cent of GDP” (pg.11).
“As the home of Canada’s largest chemistry manufacturing cluster, CIAC is pleased to see the budget recognizes Ontario’s chemistry manufacturing sector is strong and growing,” said CIAC’s president and CEO Bob Masterson. “However, while CIAC recognizes the importance of fiscal discipline and good stewardship of public finances, only economic growth will deliver new jobs, generate the needed revenues to fund programs and provide greater prosperity for all Ontarians.”
Key highlights for the chemistry industry are:
Expanding International Trade – U.S. Engagement
Through a number of proactive steps to support businesses so they can continue to strengthen this longstanding and mutually beneficial economic tie with the United States.
Supporting Businesses through the Jobs and Prosperity Fund
A 10‐year, $2.7‐billion fund that helps the government partner with businesses to enhance productivity, innovation and exports.
Supporting Ontario’s Manufacturing Sector
Through a number of existing measures such as maintaining the Corporate Income Tax rate on income from resources, manufacturing and processing at 10 per cent and the accelerated depreciation rate for manufacturing and processing machinery and equipment to the end of 2025; and helping manufacturers manage electricity costs.
Climate Change Action Plan
The province forecasts cap and trade proceeds of $1.8 billion in 2017-18 and $1.4 billion annually starting in 2018-19. No new details were included in the budget for programs for industry to lever the proceeds for businesses or on the post 2020 cap and trade regulation.
The chemistry sector is the fastest growing manufacturing sector in the United States. Over CAD 300 billion in investments have started or have been announced in the current business cycle, principally in the U.S. Gulf Coast and but also expanding into the Midwest U.S. regions. “Ontario has an opportunity to benefit from this investment wave but we will need to work hard to win,” said Masterson.
CIAC will continue to work with the province on a number of priorities to support the chemistry sector.
The Chemistry Industry Association of Canada (CIAC) is the voice of Canada’s $53 billion chemistry industry and represents more than 50 members and partners across the country. Members of CIAC are signatories to Responsible Care® – the association’s U.N.-recognized sustainability initiative.