Federal government signals its commitment to ensuring Canada’s competitiveness in Fall Economic Statement
The Chemistry Industry Association of Canada (CIAC) enthusiastically welcomes measures put in place to ensure that Canada is a competitive environment for industry investment in its Fall Economic Statement today.
“These measures, complemented by those recently announced in Ontario and Alberta’s enhancements to the Petrochemicals Diversification Program and Petrochemical Feedstock Infrastructure Program, help make the case that Canada is, once again, providing a competitive business environment and is open to investments in the chemistry sector,” said Bob Masterson, President and CEO of CIAC. “With over $20 billion in new investment opportunities currently under consideration in our sector, measures such as these will help turn those prospects into reality.”
In particular, CIAC is pleased to see the government’s commitment to increasing the depreciation schedule for capital assets for manufacturers and processing equipment to 100 per cent and allowing that to be immediately deductible in the year it is put into use, as was outlined in CIAC’s submission to The Standing Committee on Finance and Economic Affairs last August. In addition, we are encouraged to see the Accelerated Investment Incentive will allow for quicker expensing of assets that are not covered under the manufacturing and processing equipment guidelines.
“Canada has world-class, low carbon resources to support chemistry manufacturing,” continued Masterson. “Historically, Canada has attracted approximately 10 per cent of the total chemistry investments made in North America, but recently this share has plummeted to two per cent. That’s why we’ve been steadfast in our message that urgent action was needed to ensure that Canada can compete with other jurisdictions for the next wave of industry investment.”
CIAC is also pleased to see that an additional $800 million in funding has been allocated to the Strategic Investment Fund which has been valuable in attracting chemistry investment to Canada. The recommitment to National Trade Corridors Fund is also important to ensure market access for the anticipated increased production in the chemistry sector. Additionally, innovation funding supports the federal government’s commitment to working with industry and other stakeholders to address plastic pollution and create a circular economy for plastics.
“CIAC is also encouraged by the Minister’s commitment to establishing an External Advisory Committee on Regulatory Competitiveness, and a supporting Annual Regulatory Modernization Bill. We believe the government can and should do a better job of considering competitiveness when developing and implementing its regulatory agenda,” concluded Masterson.