BUDGET MOVES ONTARIO IN THE RIGHT FISCAL DIRECTION, CHEMISTRY INDUSTRY SAYS
May 3, 2013
The Chemistry Industry Association of Canada (CIAC) was encouraged by the 2013 Ontario budget, released yesterday. The budget held the corporate tax rate for manufacturing at 10 per cent, and extended the accelerated capital cost allowance by two years, allowing manufacturers to write off the cost of new machinery and equipment more quickly.
“The Ontario government has clearly heard the message that manufacturing is critical to the province’s economy,” says Richard Paton, CIAC’s President and CEO.
“But what is really going to make or break our province’s economic future is the government’s ability to balance its books and reduce debt.”
CIAC recognizes the Ontario government’s efforts to curtail spending, and reduce the deficit to $9.8 billion from the projected $14.5 billion for 2013. However, further steps must be taken to maintain a positive and stable fiscal environment for business in the province. The government currently spends $10 billion annually in servicing Ontario’s debt – a fact that, until addressed, will continue to hamper the province’s ability to improve its competitiveness.
“Ontario’s chemistry industry has the potential to attract up to $2.5 billion in investment over the next decade. Those investments would bring badly needed jobs to the province, and at the same time, bolster revenues,” says Paton.
“But red ink on the province’s books could translate into companies taking their business – and the high-paying jobs that going along with it – elsewhere.”
CIAC looks forward to working with the Ontario government to improve the province’s competitiveness, so that the chemistry industry can continue to deliver its economic and environmental benefits for Ontarians.
The Chemistry Industry Association of Canada represents the interests of Canada’s leading chemistry companies – from petrochemical, inorganic and specialty chemical producers, to bio-based manufacturers and chemistry-related technology and R&D companies. Ontario’s $21-billion chemistry industry directly employs 43,000 Ontarians, and supports another 215,000 jobs in the province’s economy.