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CME 2010 Ontario pre-budget submission

Published on March 02, 2010

CME was pleased to see the Ontario government taking bold steps to address the challenges that are impacting manufacturers and exporters.  In particular, we strongly support the harmonization of the PST with the GST corporate tax rate reductions, significant new infrastructure spending and measures to encourage skills training and development.  These initiatives have helped with the economic recovery and continue to make Ontario an attractive place to invest over the longer term. Read the 2010 Ontario pre-budget submission recommendations.

And we know that we must not become complacent in the knowledge that we have made great strides.  Other jurisdictions have not and will not remain idle.  CME encourages the government to implement additional measures that will free up cash for manufacturers to make investments in innovation, productivity and ultimately hire more people.  Under the present fiscal constraints, it is critical to focus government resources on interventions that drive new investment.  Manufacturing investment has the highest multiplier of any sector of the economy. 

Manufacturers and exporters will evaluate this budget and this government on the net benefit of all activities.  There is a danger that the significant progress that has been achieved on tax reform will be eclipsed by other risks that could dampen investor confidence.  Examples of these include energy (electricity) costs; WSIB unfunded liability, pension reform measures that increase pension costs or the costs of administration; and new regulation and enforcement on health and safety, environment and accessibility.  The government must take action to ensure that the overall business environment is favourable and sufficiently competitive to retain and grow manufacturing investment in Ontario.  

There is a real opportunity for this budget to address priorities that will not cost the government a lot of money and have a significant positive impact on existing and new businesses in Ontario.  Some of these areas include regulatory reform, energy regulation and relaxation of the pension funding rules on a long term basis 

New orders are picking up and fewer companies are reporting additional layoffs.  However, we are also witnessing the re-emergence of issues such as the volatile Canadian dollar and input cost pressures and the restricted access to financing and regulatory burden that threaten to curtail these positive trends. 

Read the 2010 Ontario pre-budget submission recommendations.

Contacts:

Ian Howcroft
Vice President
CME Ontario
905-672-3466 ext. 3256
ian.howcroft@cme-mec.ca

Paul Clipsham
Director of Policy
CME Ontario
416-388-6711
Paul.clipsham@cme-mec.ca

 

Found in: taxation tax reform HST GST budget

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