Chemistry Industry Association of Canada

November 19, 2008 16:08 ET

CCPA: Speech From the Throne Helps Manufacturers

Provinces Urged to Follow Lead

OTTAWA, ONTARIO--(Marketwire - Nov. 19, 2008) - Canada has the unique potential to build synergies between the service, resource development and manufacturing sectors to create a strong and diverse economy. To prepare Canada's manufacturers for the next round of growth, support from all governments is needed.

In its Speech from the Throne, the Government of Canada has pledged "To further reduce the cost pressures on Canadian business, our Government will take measures to encourage companies to invest in new machinery and equipment."

The Canadian Chemical Producers' Association (CCPA), along with other manufacturers, has been advocating such measures.

Specifically, we have asked that the Federal Government install the accelerated capital cost allowance for new investments in machinery and equipment as a long-term focus of an upgrading strategy. "This is not a tax reduction, but a deferral that profiles the tax reductions faster over a multi year period. To make it useful, it must be in place for at least five years so companies making the investment decision today know that they will receive the tax benefit when the investment is actually made in facilities and equipment" said Richard Paton, President and CEO of the CCPA.

Today, we are calling on all provinces to match this move by the Federal Government. An accelerated capital cost allowance will lead to new spending by companies in Canada. These investments will lead to new jobs, greater productivity and a higher level of competitiveness for the future.

Contact Information

  • Canadian Chemical Producers' Association
    Michael Bourque
    Canadian Chemical Producers' Association
    Richard Paton
    613-237-6215 x231