Gord Brown speaks to the Brockville and District Chamber of Commerce.
Gord Brown, Member of Parliament for Leeds-Grenville received an enthusiastic welcome from about 100 Brockville Chamber of Commerce members at a luncheon on Feb. 20.
According to Brockville’s local newspaper, The Recorder and Times: “There was much praise and a little critical advice…” for Brown.
“A grateful audience was receptive to Brown's presentation outlining government initiatives to fight a global economic situation (that) has deteriorated faster than anyone predicted,” the newspaper report continued.
In his speech, Brown outlined actions the government has been taking during the current economic situation and he reviewed the $23 million in infrastructure funding that was recently announced.
For the complete story from the Recorder and Times visit: http://www.recorder.ca/ArticleDisplay.aspx?e=1446326
Following is the text of the speech:
Thank you for inviting me to be here today. I appreciate opportunities such as this to highlight what our government is accomplishing, especially in these difficult economic times.
I want to provide some background and a Canada-wide overview first, a look at Ontario specific issues, and then focus on Leeds-Grenville.
Since last fall, the global economic situation has deteriorated faster than anyone predicted. The global economy has further weakened since Canadians voted in the election last October and further still since Parliament met in November and December.
As the crisis emerged it was evident that business needed support to see this period through.
That is why over the past few months our ministers met personally with business leaders and workers across the country.
Likewise, Members of Parliament met with their constituents.
I held a pre-budget consultation here in Brockville in early January. I held an open and we also received numerous responses by e-mail, regular mail and telephone.
These discussions, held all across Canada, told us that we must respond with forceful, creative measures that would bring Canada out of this crisis.
More importantly, it was clear that we had to build a base for continued growth in the future.
The Prime Minister met with provincial premiers and they agreed to accelerate infrastructure investments, strengthen financial market regulation, improve competitiveness and ensure labour market preparedness and flexibility to respond quickly when the economy recovers.
The good news is, we were standing on a very solid foundation - the best in the G8.
In the past four budgets, the government has worked to support a competitive marketplace and create an investment climate that enables Canada to successfully compete against the world on the basis of its innovative products, services and technologies.
We’ve taken steps to regulate smarter, and reduce the paperwork burden on small- and medium-sized enterprises.
Enhancements to Canada's Scientific Research and Experimental Development Tax Incentive program are encouraging innovation across all sectors.
We invested almost $4 billion in this tax credit in 2007 alone.
In recent weeks, we have partnered with Ontario to provide conditional financial support to Canada's auto industry.
This assistance will help restructure and renew this vital sector of our economy and ensure that we maintain our share of North American production.
All of our budget decisions flow from Advantage Canada, the long-term plan for the Canadian economy that we introduced in 2006.
You will recall that I spoke extensively about Advantage Canada at a previous Chamber event about three years ago.
This strategy, that we adopted early on, has led us to pay down a significant amount of our national debt, reduce taxes for all Canadians, build a more competitive business environment, invest in worker training and education, and launch the largest infrastructure rebuilding initiative since the Second World War.
Budget 2009, our Economic Action Plan, introduced at the end of January, builds on this solid base.
It recognizes that, in these challenging economic times, we must work harder than ever to seize economic opportunities and run with them—to create jobs, develop new products, and find new markets.
Our plan includes measures to stabilize the Canadian economy, create jobs, and support sustainable growth that will further Canada's competitiveness.
When this new session of parliament began, I was assigned a role on the Industry committee. Hand in hand with infrastructure, this is currently one of the busiest portfolios on the Hill.
It has allowed me a unique porthole to the front lines of the economic action taking place in Canada right now.
I want to quickly touch on two industry-related items and then talk about small business.
First is science and technology.
Science and Technology innovation is at the heart of Canada's value proposition as a player in the international marketplace.
Canada's Science and Technology Strategy was launched by the Prime Minister in 2007.
The Government of Canada has invested more than $7 billion in helping stimulate economic activity through large-scale investments in Science and Technology over the past four budgets.
Of this amount, Budget 2009 accounts for $5.1 billion in investments.
The second area I wish to discuss is manufacturing.
Canada's manufacturing sector directly contributes about 15% of our GDP and employs close to 1.9 million Canadians, mostly in full-time jobs.
We all know the challenges facing this sector.
To help lay a foundation for companies today and in the long-term, the government is taking action on a range of critical measures to improve access to credit, and enable further investments in productivity enhancing machinery and equipment.
Other key infrastructure investments - tax relief measures - investments in science, technology and skills - and targeted industrial support initiatives -will also help to strengthen manufacturers' competitiveness across the country.
Among others, these measures include enhanced resources for the Business Development Bank of Canada and Export Development Canada, as well as new credit facilities to help free up the credit market.
We have allowed a two-year extension on the 50% temporary accelerated capital cost allowance along with measures to provide relief for the purchase of computers and imported machinery and equipment, and assistance for targeted sectors such as automotive, forestry, shipbuilding, and tourism.
The auto sector is especially important for Ontario.
Recognizing what was at stake, the Government of Canada moved quickly, with the Ontario government, to follow a U.S. $17.4 billion loan package with a package of our own, offered to Canadian subsidiaries of GM and Chrysler.
The Canadian offer represents a proportional amount of the U.S. support package and is consistent with Canada's share of the Detroit three's North American production.
We held up our part of the bargain and were ready to provide these loans in December, but GM and Chrysler asked us to defer our negotiations while they worked with the U.S. treasury.
We are committed to ensuring that an orderly restructuring of this industry take place on a North American basis, preserving Canada's share.
It means we need to stand ready with the liquidity support, and if needed, longer-term loans.
I assure you that we will continue to encourage all stakeholders, automakers, unions, but also parts makers, bond holders and other governments, to come to the table with the objective of ensuring a healthy industry going forward.
In case you are wondering about Ford, that company has not asked for anything immediately but rather has asked for us to be ready in case it needs assistance later.
On the small business side, the credit crunch has posed a significant problem.
We have faith in small-sized and medium-sized businesses, and we are already investing in the BDC to provide at least an additional $1.5 billion in financing to help businesses sustain operations and grow.
We are injecting hundreds of millions of dollars into the BDC to increase its lending activities, and this will be complemented by significant funds to top up lines of credit from financial institutions for small-sized and medium-sized businesses.
This injection of funds will allow the BDC to make financing available to thousands of small- and medium-sized enterprises in Canada in all sectors.
In addition, Budget 2009 includes the following spending measures to help small businesses, and to grow and create new jobs.
- It includes $200 million over two years to the Industrial Research Assistance Program, to enable it to temporarily expand its initiatives for small-sized and medium-sized enterprises;
- $30 million over two years for the Canada business network, which delivers single-window access to reliable, up-to-date, and relevant information to businesses;
- $10 million to the Canadian Youth Business Foundation to support and mentor young Canadians who are creating new businesses;
- and increasing the amount of small business income eligible for the reduced federal tax rate of 11% to $500,000 from the current limit of $400,000 as of January 1.
- In addition, small business can also take advantage of the previously mentioned temporary 100 per cent capital cost allowance rate for computer hardware and software acquired after January 27, 2009 and before February 1.
Let me reiterate that I think budget 2009 sets us on the right course.
We will ensure that due diligence is completed and that our actions are accountable to the Canadian taxpayer.
With innovation as our guide, I'm confident that we will be able to navigate through this economic storm.
Canada entered this economic crisis in better shape than most countries and we shall emerge from it even stronger.
Budget 2009 provides gains for Ontario.
It puts the Canada Health Transfer on an equal per-capita basis, four years ahead of schedule.
It sets a limit on the growth of equalization payments and makes new training dollars proportional to the share of unemployment, not based on those who are qualified for employment insurance.
And rumors abound that the Ontario government - and understand that I can not speak for that government – is going to accept the latest request by the Ontario Chambers of Commerce that the GST and PST be harmonized.
I want to talk a little bit more about Leeds-Grenville, the January budget, and last week’s infrastructure announcements.
The budget contained a lot of good news for Leeds-Grenville.
From buildings and bridges, to relief for taxpayers, to help for businesses, communities, industries and workers, to help for homeowners, the budget provides assistance across many sectors to help keep our economy moving.
The plan contains five main elements:
- improving access to financing and strengthening Canada’s financial system;
- action to help Canadians and stimulate spending;
- action to stimulate housing construction;
- action to build infrastructure;
- and action to support businesses and communities.
We will all benefit from $20 billion in tax initiatives this year and over the next five years including an increase in the personal amount from $9,600 to $10,320 and an increase in the ceiling of the first two income tax brackets.
We are raising the level at which the National Child Benefit supplement for low-income families and the Canada Child Tax Benefit are phased-out, which will provide a benefit of up to $436 for a family with two children.
We are also effectively doubling the tax relief provided by the Working Income Tax Benefit will help low-income Canadians over the “welfare wall” and into gainful employment.
And we are providing up to an additional $150 of annual tax savings for low- and middle-income seniors through a $1,000 increase to the Age Credit Amount, for a total savings of $961.
Initiatives for homeowners included in the budget will improve homes and help the economy.
Our plan includes a temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief and reduce the cost of renovations for an estimated 4.6 million Canadian families. The Home Renovation Tax Credit applies to work performed or goods acquired after January 27, 2009 and before February 1, 2010.
A First-Time Home Buyers’ Tax credit will provide up to $750 in tax relief to first-time home buyers.
We have increased from $20,000 to $25,000 the amount that first-time home buyers can withdraw from their RRSP to purchase a home.
With this budget we provide $300 million over two years to the ecoEnergy Home Retrofit program, which is expected to support an additional 200,000 energy-saving home retrofits.
Late last year, the Conservative government took action to give our banks some extra room to lend money by accelerating the transfer of up to $25 billion in mortgages and loans.
This was a good start as it helped to hold off the effects of the global crisis in Canada for longer than many countries but it was inevitable that as our largest trading partner declined, we would feel the effects.
What is important to understand about these actions is that we were able to accomplish them without giving taxpayer money to the banks.
We’re also helping more families get mortgages by expanding the Insured Mortgage Purchase Program.
Our Plan gives banks more flexibility to access cash from the credit market. By doing this banks are then able to lend more to Canadian families and businesses.
As a result, Families and businesses can take advantage of low interest rates and make purchases that stimulate our economy.
The budget supports farmers with a $500 million agricultural flexibility program that will facilitate the implementation of new initiatives, both federally and in partnership with provinces, territories and industry.
It invests $50 million over the next three years to strengthen slaughterhouse capacity across Canada and it amends the Farm Improvement and Marketing Loans Act to help make credit available to new farmers, support inter-generational farm transfers, and modify eligibility criteria for agricultural co-operatives.
One of the under-reported programs announced in this budget is an enhancement to the Work Sharing Program that will benefit Leeds-Grenville.
The global economic downturn is forcing businesses in our community to temporarily lay workers off as a result of production slowdowns.
Canada’s Economic Action Plan is delivering for Canadian families by helping employees stay on the job.
Administered by Service Canada, the Work-Sharing program is being extended by an additional 14 weeks to a maximum of 52 weeks.
The Work-Sharing program works collaboratively with employers and workers to help prevent layoffs during production slowdowns.
Temporary layoffs are hard on workers and their families, they impact company morale and they cost businesses money as valuable employees are lost and retraining costs increase.
Workers who qualify for the Work-Sharing program agree to work a reduced work-week and have the salary they receive from their employer augmented by EI income benefits.
By taking these actions, our plan will help workers and their families get through this difficult time.
Measures like the Work-Sharing program and others will help Canada to emerge from the global economic crisis sooner and stronger than many other countries.
Another program in the budget that was announced at a separate event by Prime Minister Stephen Harper is the Rinc program.
That’s spelled R I N C.
Canada’s Economic Action Plan offers a number of opportunities for communities in Leeds-Grenville, including the exciting new Recreational Infrastructure Canada (RInC) program.
Starting this year, the RInC program will help communities build or renew hockey arenas, soccer fields, tennis and basketball courts, and other recreation centres.
$500 million has been set aside and will provide up to 50 per cent of the cost of these projects.
Facilities that are owned by municipalities, community groups, First Nations and not-for-profit organizations are all eligible for funding under this program.
In addition to providing communities with better recreation centres, the RINC program will also provide substantial stimulus to the economy.
Between contributions from provincial and municipal governments, private-sector investment and fundraising, over a billion dollars will be spent on these projects.
Jobs will be created as engineers, architects, electricians and plumbers, just to name a few, are hired.
Canadian lumber and steel will be bought, and countless sub-contractors will be hired and will in turn go to their local hardware stores to buy the tools and parts that they need.
Beyond the immediate benefits that the RINC program creates for communities, the RINC program will help create new facilities that will be enjoyed generation after generation.
It will also extend the life of many existing facilities that are in need of an upgrade.
Winter sports are uniquely Canadian. From arenas that seat tens of thousands to driveways with dented garage doors, winter sports unite us from coast to coast to coast.
They help us teach our children to lead healthier lifestyles, and about the importance of competition and fair play.
Many of the facilities in Canada and in Leeds-Grenville were built to commemorate Canada’s centennial in 1967 and, after more than 40 years, are in need of repair.
Information about applying for the RINC program will be announced soon.
The exciting part of this program is that the funding decisions will be made locally by the Community Futures Development Corporations.
And speaking of the CFDC’s - budget 2009 announced a guaranteed $10 million per year for two years for the Eastern Ontario Development Program.
This will permit some long term planning, not to mention another $20 million invested in Eastern Ontario economic development over the next two years.
I want to wrap up the formal part of my presentation today by reviewing what we are doing for infrastructure throughout Canada and Leeds-Grenville.
Two years ago we introduced the largest infrastructure program in Canadian history since the Second World War with the Building Canada program.
It was set to distribute $33 billion of federal money to infrastructure projects over seven years.
In Budget 2009, the economic action plan, we added an additional $12 billion to that number.
One year ago the province of Ontario signed onto the Building Canada plan and this past fall we announced that we were taking applications for round one of the program in Ontario.
Last week we announced that 289 infrastructure projects in Ontario will receive funding in the first round.
Leeds-Grenville was a major recipient with seven projects and more than $23 million of federal funding and a further $23 million of provincial funding.
I am thrilled that all the work we have been doing has paid off so well for the riding and I am also pleased that municipalities prepared and submitted their requests for funding and kept me informed about their progress.
Although we received a large portion of the first round funding, there are several major projects remaining in the riding that require funding.
I am continuing to work hard to ensure they receive funding in the next round of announcements.
The government of Canada, in conjunction with the government of Ontario, is delivering results to Ontarians in these difficult economic times by building roads, bridges and water systems.
These important investments will create jobs and help our economy now and for years to come.
Strengthening Ontario's infrastructure backbone will boost the fiscal health of communities and improve the daily quality of life of residents across this province and right here in Leeds-Grenville.
We also recognize that sometimes municipalities have an opportunity to complete infrastructure programs but lack some of the necessary funding, or can not get funding at a competitive rate.
To address the challenges that municipal governments are facing in garnering capital funding for projects during an economic slowdown we are making available $2 billion over two years in direct, low-cost loans to municipalities through the Canada Mortgage and Housing Corporation.
These loans will decrease borrowing costs and permit municipalities to come up with their share of funding where needed and will allow them to invest in municipal housing-related infrastructure projects such as sewers, water lines and neighbourhood regeneration projects.
All of these projects will put us on a more solid footing to tackle our challenges and forge a brighter future that we will all share.
I have covered a lot of information and I’ll be pleased to take any questions now.
Thank you.
