Canadian Manufacturers & Exporters

Canadian Manufacturers & Exporters

November 27, 2008 17:20 ET

CME Applauds Measures to Strengthen Credit Defer Pension Contributions

OTTAWA, ONTARIO--(Marketwire - Nov. 27, 2008) - Today's federal economic statement gave Canada's manufacturing and exporting sectors some much-needed oxygen and short-term breathing room, according to Canadian Manufacturers & Exporters.

Based on recommendations by CME, the federal government announced in today's economic statement, an injection of an additional $350-million in equity to support to both Export Development Canada and Business Development Canada.

"These are good measures but the key will be to ensure that Canadian companies can get access to the funds quickly," said CME President, Jayson Myers. "The government recognizes that liquidity is a major concern for manufacturers and exporters in every sector across Canada. These measures are a good start. If conditions deteriorate, the Government cannot wait until the budget to take further action."

The deferral of pension contributions will also mean short-term savings for manufacturers and many other cash-strapped Canadian businesses.

"I am however very concerned that the government is still underestimating the impact that financial turmoil will have on Canadian manufacturers and exporters," adds Myers. "Based on what we hear from businesses on the front lines, the forecast for economic growth next year is highly optimistic. It will be important for the government to take additional steps to backstop liquidity if conditions continue to deteriorate.

"We hope that the government will provide a more robust and concrete plan in the federal budget," Myers adds. "The government must ensure that the financial meltdown does not transform itself into an industrial and economic meltdown. We need government at the table with Canada's largest business sector as a dedicated partner to ensure that we get it right. This includes strategic infrastructure investments and policy measures that improve the long-term strength and competitiveness of the Canadian economy.

"We look forward in the budget to tax measures that we have been calling on the government to make for a long time to encourage the investments in technology, skills, and innovation that manufacturers and exporters require to survive and grow in the future."

Contact Information

  • Canadian Manufacturers & Exporters
    Jeff Brownlee