Federal budget offers short-term relief: CPIA/CME
According to the Canadian Manufacturing Coalition, of which the Canadian Plastics Industry Association is a member,...
According to the Canadian Manufacturing Coalition, of which the Canadian Plastics Industry Association is a member, the recently unveiled federal budget gives manufacturing short-term help, but little in the way of long-term strategy.
The coalition says that longer term incentives are missing from the budget, making it more difficult for the sector to invest in new technologies, markets and skills.
The most important part of the budget, according to the coalition, is the government’s $200 billion commitment to ensure adequate credit and liquidity for consumers and competitive businesses.
“We are also pleased that thet government will extend the two-year write-off for investments in manufacturing and processing equipment up to the end of 2011,” said Canadian Manufacturers and Exporters president Jayson Myers. “This provides a much greater degree of predictability that should help to encourage investment in new technologies.”
The coalition also noted that the broad range of infrastructure projects will benefit manufacturers and exporters both as suppliers and businesses that rely on the logistics, innovation, clean energy and broadband infrastructure highlighted in the budget.
The group voiced some concerns about the speed of the stimulus package.
“Our main challenge now is to act fast to ensure that new credit facilities are in place and infrastructure investments begin to flow,” said Myers. “We can’t wait six months for the money to move. The need is now.”