Chemistry Industry Association of Canada

March 27, 2009 14:14 ET

CCPA Reaction to Ontario Budget 2009

OTTAWA, ONTARIO--(Marketwire - March 27, 2009) - The Canadian Chemical Producers' Association (CCPA) has been calling for specific measures that favour manufacturing competitiveness and the return of investments to Ontario manufacturing.

1. A key request has been the harmonization of provincial and federal sales taxes. CCPA and its member companies are delighted with the decision to harmonize the PST with the GST, as it will result in greater competitiveness with other jurisdictions where chemical products are manufactured. The ability to compete will help to preserve jobs in Ontario and allow companies to grow in the future.

2. CCPA has also been advocating lower corporate taxes, as Ontario based companies were at a disadvantage with many other manufacturing provinces and US States. The new Ontario Budget, with its reduced corporate taxes, will give companies competing for investment dollars an important advantage. (When the federal government announced last fall that it would reduce its corporate tax rate to 15%, it called on the provinces to match that with a reduction to 10% for a combined federal/provincial rate of 25 percent that Canada could promote as a "Brand 25" advantage to attract investment).

3. In the short term, infrastructure spending will help stimulate the demand for made-in Ontario products and if spent on critical infrastructure like roads, bridges and sewers will lead to a competitive advantage over the long term.

"Because of the investment-friendly budget introduced by Finance Minister Dwight Duncan and Premier Dalton McGuinty, the business of chemistry in Ontario has just received a tremendous boost, as have all manufacturers," said Richard Paton, President and CEO of the CCPA, adding: "It is a strong signal to the market: invest in business-friendly Ontario."

CCPA is the principal voice of the Canadian industrial chemistry value chain. CCPA represents 60 companies and Responsible Care Partners, from family owned operations to affiliates of global chemical companies. Canada's basic chemicals and resins industry generates $27 billion annually, and is Ontario's third largest exporter.

Contact Information

  • CCPA
    Julien Lavoie
    Public Affairs
    613-237-6215 x 239
    or
    CCPA
    Michael Bourque
    Public Affairs
    613-290-1011
    www.ccpa.ca