As part of the pre-budget consultation process, CIAC recently submitted its recommendations on the 2018 Ontario Budget to the Standing Committee on Finance and Economic Affairs. The chemistry industry is the fastest growing manufacturing sector in North America. There is an urgent need for action that the 2018 budget could address in concert with the federal government to ensure Ontario does not miss out on investment opportunities in the future.
The global chemistry industry is a story of innovation and incredible growth that is well in excess of global GDP growth rates. Bold, timely and co-ordinated action by the Ontario and federal governments is urgently needed for Canada to capture the existing opportunities.
Key recommendations include:
- Maintain the chemistry sector as a priority sector within the Province’s economic development strategy, and its eligibility for investment support within the Jobs and Prosperity Fund and other investment attraction initiatives
- Implement CIAC recommendations provided in the Red Tape Challenge Chemical Manufacturing consultation to streamline and modernize outdated, redundant and unnecessarily costly, complex and time-consuming regulations
- Advocate for and match federal measures to:
- At minimum maintain the historical advantage in the combined federal/provincial CIT rate for manufacturing and processing to address the impact of upcoming U.S. CIT cuts.
- Make the 10-year extension of the Accelerated Capital Cost Allowance (ACCA) permanent for manufacturing and processing and broaden the coverage of eligible capital assets to signal Canada is welcoming new investments in value-add resource upgrading.
- Introduce a 100 per cent ACCA for a minimum of one full business cycle of seven years to specifically apply to upgrading resources into manufactured products.
There is an urgent need for action in the 2018 Ontario Budget to ensure Ontario does not miss out on investment opportunities in the future. Only a competitive business environment and a welcoming public policy environment will attract our fair share of new investment and create the high value, long-term sustainable jobs that the chemistry sector generates.
You can view the submission here.