Archived - Chapter 2
Progress Achieved to Date
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The first phase of Canada’s Economic Action Plan provides over $13 billion to create and protect jobs in the regions, communities and industries of the Canadian economy that have been most affected by the global recession. This support is addressing the economic challenges faced by traditional industries such as forestry, agriculture and manufacturing, which continue to play important roles in the economies of many regions and communities across the country.
In addition to providing targeted relief, Canada’s Economic Action Plan is helping industries bolster their competitiveness and position themselves for long-term success, both within Canada and in the global economy. Ensuring the long-term prosperity of Canadian businesses will strengthen Canada’s position on the world stage and help to create new opportunities and high‑quality jobs for Canadians in all regions of the country.
|(millions of dollars—cash basis)|
|Support for Industries|
|Tax and tariff relief|
|Accelerated capital cost allowance for computers||340||355||695|
|Tariff relief on machinery and equipment||76||81||157|
|Subtotal—Support for Industries||1,093||1,246||2,339|
|Support for Communities|
|Helping all regions prosper||596||830||1,426|
|Strengthening partnerships with Aboriginal Canadians||135||186||321|
|Subtotal—Support for Communities||731||1,015||1,747|
|Total—Supporting Industries and Communities||1,824||2,261||4,086|
|Federal support to auto sector||9,155||9,155|
|Total—Supporting Industries and Communities||10,979||2,261||13,241|
|Ontario component of auto sector support||4,578||4,578|
|Total—With provincial contributions||15,557||2,261||17,818|
|Notes: Totals may not add due to rounding. The stimulus value reflects projected cash expenditures. The budgetary impact may be somewhat smaller because some of these expenditures relate to construction and renovation costs of federal assets (for which only depreciation is recorded on a budgetary basis) and loans to third parties (where there is a budgetary impact only in the event that there is a risk of loss).|
Support for Communities: The Government is continuing to deliver support to vulnerable communities through initiatives such as the $1‑billion Community Adjustment Fund. Over 1,850 projects are now either completed or underway across Canada under the Fund.
Working for Canadians
Support for Communities
The Government has taken significant actions to enable the development of strong Canadian communities. These include:
- Establishing the $1-billion Community Development Trust in January 2008 to support provincial and territorial initiatives aimed at assisting vulnerable communities.
- Providing $1 billion over two years for the Community Adjustment Fund, as part of the Economic Action Plan, to support economic diversification in communities affected by challenges facing local industries.
- Providing $500 million over two years through the Economic Action Plan for the Recreational Infrastructure Canada program to support the construction of new recreational facilities and upgrades to existing ones in communities across Canada.
- Establishing the Federal Economic Development Agency for Southern Ontario with over $1 billion over five years, as part of the Economic Action Plan, to support economic development in southern Ontario communities.
- Providing $50 million over five years through the Economic Action Plan to establish the Canadian Northern Economic Development Agency, and allocating a further $90 million over five years to renew the Strategic Investments in Northern Economic Development program, to strengthen economic activity in northern communities.
- Providing close to $50 million per year in permanent resources through Budget 2010 to strengthen the activities of the regional economic development agencies in promoting growth in communities across Canada. Budget 2010 also provided $11 million per year, on an ongoing basis, for the Community Futures Program to help create new economic opportunities and promote innovation in rural communities.
- Providing $1.9 billion over five years starting in September 2008 for the Affordable Housing Initiative ($125 million per year), the Residential Rehabilitation Assistance Program ($128 million per year) and the Homelessness Partnering Strategy ($135 million per year). In addition, the Economic Action Plan provided $2.1 billion towards the construction and renovation of affordable housing units, and up to $2 billion in low‑cost loans have been made available to municipalities.
- Encouraging individuals to make a sustained commitment to public transit use through the introduction of the Public Transit Tax Credit.
Examples of Community Adjustment Fund Projects
- Over $850,000 was provided to support the construction of the Fundy Ocean Research Centre for Energy in Parrsboro, Nova Scotia. The $1.9-million facility will house research labs for tidal and wind energy innovation, as well as interpretive exhibits and educational programming demonstrating leading-edge tidal technology. This project created 10 local jobs in the Parrsboro area and provides multi‑use space to serve the needs of community residents.
- The Association des pêcheurs propriétaires des Îles de la Madeleine received $134,000 for a pilot project to test a lobster traceability and identification system designed to allow consumers to recognize locally caught lobsters and facilitate the industry’s eco-certification process. This project will help Quebec lobster fishers and the seafood processing industry remain competitive and maintain jobs.
- The Town of Caledon in southern Ontario received $7 million to expand its community centre, fulfilling a significant local need for increased access to recreational facilities. Work to complete the expansion included the construction of a new 36,200-square-foot addition containing a new ice pad, changing rooms, improved spectator viewing and public amenities. The new facility also incorporates green technologies to increase the building’s energy efficiency. The project created approximately 52 full‑time‑equivalent jobs.
- The Sudbury Airport Community Development Corporation received $600,000 to build a large state-of-the-art hangar facility, attracting new businesses and providing additional amenities to existing clients. One new company has leased space and two existing clients will use the facility to improve their operations. The project created over three person-years of employment during the construction phase, and a new tenant has hired four aircraft maintenance engineers and one supervisor.
- Canoe Creek Hydro Company Ltd. received a $2.5-million repayable contribution to help fund the construction of a run-of-the-river green hydroelectric facility in B.C. This project was completed on schedule and created over 14 person-years of employment for local construction contractors, forest industry workers and Tla-o-qui-aht First Nation community members. Two Tla-o-qui-aht First Nation members employed under this project are to be trained for long-term positions as operators at the facility.
The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is making strategic investments to support job creation and economic growth in the region. For example, $44 million was provided to the National Research Council’s Industrial Research Assistance Program over two years to support research and development–intensive small and medium-sized enterprises in the region. In addition, the Government is investing $50 million through the Business Development Bank of Canada so businesses in southern Ontario will have greater access to venture capital. Further, through the Southern Ontario Development Program, FedDev Ontario has supported projects such as the Canadian Manufacturers & Exporters’ SMART Program, the Applied Research and Commercialization Initiative and MITACS Inc., a national research network that connects Canadian businesses and organizations with the next generation of skilled workers.
Working for Canadians
Economic Development Initiatives in Southern Ontario
- ViXS Systems, based in Toronto, received $750,000 from the National Research Council’s Industrial Research Assistance Program to continue developing innovative video-networking processors for Blu-ray multimedia players and recorders, which make it easier to decode, transcode and encode multiple formats of digital high-definition and standard-definition video content for reprocessing, distribution and playback.
- Skjodt-Barrett Foods Inc. (Mississauga, Ontario), a supplier of custom developed food products, received a contribution of up to $395,000 for the purchase of new equipment to facilitate expansion of the company’s product lines. This project has resulted in the creation of six full-time and six part-time jobs and was funded under the food and beverage intake of the Southern Ontario Development Program, delivered by FedDev Ontario.
- Mespere Lifesciences Inc. in Waterloo, Ontario, received more than $122,000 to support research into a pain-free, portable way to allow physicians to monitor the pressure of blood near the heart in real time. This innovative research and development project will assist the company in commercializing state-of-the-art technology that makes diagnostic testing and health monitoring non-invasive and less costly.
Budget 2009 increased the Government’s support for economic activity in the North by providing $50 million over five years to establish the Canadian Northern Economic Development Agency (CanNor) and $90 million over five years to renew the Strategic Investments in Northern Economic Development program. Since its launch, CanNor has invested in infrastructure, job creation and community development, enabling the residents of the North to take advantage of economic opportunities.
Automotive Sector: The automotive sector has faced significant challenges over the past two years. The governments of Canada and Ontario, working closely with the government of the United States, have taken significant steps to help the automotive sector overcome these challenges, including jointly supporting the restructuring processes of Chrysler and General Motors through loans and debtor-in-possession financing.
Of the $3.7 billion committed to Chrysler by Canada and Ontario, $2.9 billion has been drawn upon to date. Chrysler emerged from bankruptcy protection on June 10, 2009. As additional consideration for providing loans to Chrysler, Canada and Ontario received a 2‑per-cent equity stake in the restructured firm.
All of the $10.8 billion committed to General Motors by Canada and Ontario has been disbursed. General Motors emerged from bankruptcy protection on July 10, 2009. Canada and Ontario received a combined 11.7‑per-cent ownership stake in the restructured General Motors, as well as US$403 million in preferred shares. By April 20, 2010, General Motors had completed the repayment of its entire $1.5‑billion interim loan from Canada and Ontario ahead of schedule. General Motors also announced in October and November 2010 the addition of new shifts to its Oshawa facility that will secure over 1,300 jobs.
The Government of Canada has begun to reduce its ownership in General Motors. In the initial public offering by General Motors in November 2010, Canada sold over 35 million shares at US$33 per share, which resulted in gross proceeds of US$1.15 billion. This sale reduced Canada’s ownership stake in General Motors to 9.34 per cent. On January 14, 2011, General Motors announced it would inject US$2 billion worth of stock into its company pension plan, resulting in Canada’s ownership stake in General Motors being reduced to 8.98 per cent.
The support provided by the governments of Canada and Ontario to the automotive sector has helped to save jobs in hard-hit communities.
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Support for the Aerospace Sector
The aerospace sector is a leading employer in the high technology sector. Since 2006, the Government has taken significant actions, including through the Economic Action Plan, to promote the competitiveness of the aerospace sector. These include:
- Establishing in 2007 the Strategic Aerospace and Defence Initiative to support advanced research and development projects by the aerospace and defence industries, with about $900 million available over five years. In 2009, an additional $200 million over four years was provided to the program.
- Providing the Canadian Space Agency with $110 million over three years, as part of the Economic Action Plan, to support the development of advanced robotics and other space technologies.
- Participating in the Joint Strike Fighter program, which represents an unprecedented opportunity for Canadian firms to participate in the global supply chains that will define the aerospace and defence sectors for the next 40 years. Through Canada’s purchase of the F-35 aircraft, Canadian companies will be guaranteed access to competitive opportunities in the Joint Strike Fighter partnership, including an estimated $12 billion in potential industrial opportunities for work on the aircraft platform.
- Reinvesting in the Canadian Forces through the acquisition of
C-17 Globemaster aircraft, C-130J Hercules tactical transport aircraft and CH‑47F Chinook helicopters, bringing over $5 billion in direct and indirect Industrial and Regional Benefit opportunities to Canada’s economy, primarily to the aerospace sector.
- These investments help to create or maintain highly skilled Canadian jobs, encourage public and private partnerships, and keep Canada at the forefront of the international aerospace industry.
Forestry: The global economic downturn and the collapse in the U.S. housing market have created challenges for the forestry sector. Under the Economic Action Plan, $170 million over two years was available for Natural Resources Canada to support market diversification and innovation initiatives in the forestry sector, including research and demonstration projects on new forest products and initiatives to help forestry companies market innovative products internationally to protect and create jobs.
Since the release of the Economic Action Plan, the Government has announced the creation of a $1-billion program to support environmental improvements for the pulp and paper industry. The Pulp and Paper Green Transformation Program is enabling pulp and paper mills in all regions to reduce greenhouse gas emissions while helping them become leaders in the production of renewable energy from biomass, improve their competitiveness and create and sustain jobs.
These actions are in addition to the substantial financial support provided to the forestry sector by Export Development Canada.
Working for Canadians
Support for Forestry
The forestry sector is an important contributor to the Canadian economy, forming the economic base in many regions. Canada’s forest product companies have encountered intense competitive pressures, including greater competition from low-cost producers, higher input and energy costs, a variable Canadian dollar and low productivity.
Since 2006, the Government has put in place significant support, including through the Economic Action Plan, to help the forestry sector address these challenges and become more competitive. These include:
- Providing nearly $44 billion in financial services to Canada-based forestry companies through Export Development Canada since 2008. Over the same period, the Business Development Bank of Canada has provided over $420 million in loans to Canadian forestry firms.
- Negotiating the Canada-United States Softwood Lumber Agreement in 2006, restoring access to the United States market and resulting in the return of over $5 billion in duty deposits to Canadian producers.
- Providing $200 million through Budget 2006 to combat the pine beetle infestation.
- Providing $170 million over two years, as part of the Economic Action Plan, to support market diversification and innovation initiatives in the forestry sector. These activities built on the $127.5-million Forest Industry Long-Term Competitiveness Initiative announced in Budget 2006 to help the forestry sector shift toward higher-value products and tap into new markets.
- Establishing the $1-billion Pulp and Paper Green Transformation Program in June 2009 to support capital projects in the forestry sector that offer demonstrable environmental benefits.
- Providing $100 million over four years through Budget 2010 for the Investments in Forest Industry Transformation Program to support the development, commercialization and implementation of advanced clean energy technologies in the forestry sector.
Tourism: In 2010–11, the Marquee Tourism Events Program will provide support to events across Canada, such as the Charlottetown Festival, Carnaval de Québec, Niagara Wine Festival, Red River Exhibition and Pacific National Exhibition in order to stimulate the economy and help promote Canada as a global destination of choice. In total, the Government has allocated about $90 million to support more than 100 marquee tourism events that deliver world-class programs and experiences in support of tourism and the visitor economy.
The Government of Canada is also providing up to $8 million through the Canadian Tourism Commission for additional promotional activities in priority international markets for the Canadian tourism industry.
Our vast National Parks and numerous National Historic Sites help attract a large number of visitors from abroad each year, generating significant economic activity and bringing our natural heritage closer to Canadians. Canada’s Economic Action Plan provides Parks Canada with $150 million over two years to build and upgrade facilities, including visitor centres and campgrounds, as well as roads at National Parks and National Historic Sites throughout the country. For example, improvements were made to the city of Québec’s Cartier-Brébeuf National Historic Site of Canada, which was fully landscaped as part of the re-naturalization of the Lairet River that flows through it. The $1.5-million project also provided an interpretive information booth for visitor reception and a bicycle path. Since its completion, the project has received a Canadian Society of Landscape Architects Award of Excellence.
In June 2010, the Government of Canada signed an Approved Destination Status agreement with China, giving the Canadian tourism industry the ability to market Canada directly to the Chinese tourism market.
Agriculture: Over the past two years, the Government has worked closely with farmers, the agri-food industry and the provinces and territories to deliver on the agricultural measures in the Economic Action Plan.
- To date, $307 million has been allocated to multi-year initiatives under the Agricultural Flexibility Fund. New initiatives will be announced as the Government works with industry, provincial and territorial partners to help the sector adapt to pressures and improve its competitiveness.
- Investments in cattle processing plants to help improve their operations under the Slaughter Improvement Program will ramp up in 2011–12, the last year of the program. Budget 2010 provided an additional $10 million in funding. It is anticipated that $22 million will be spent in 2010–11. The remaining $9 million in funding allocated for this fiscal year will be spent in 2011–12. To date, total funding of $54 million has been approved for 18 projects.
- Since the new Canadian Agricultural Loans Act took effect in the summer of 2009, 3,567 loans, totalling $192 million, have been granted. Of these loans, 288 have been registered to beginning farmers for a total of $26 million and 65 loans have been issued for amounts greater than $250,000.
In addition to these Economic Action Plan measures, the Government has provided targeted assistance to producers affected by the economic downturn and disasters through the Advance Payments Program. This program, which is aimed at providing short-term cash flow to producers, issued $2.7 billion in advances to producers in 2008–09 (of which over $2.0 billion was interest-free) and $2.0 billion in 2009–10 (of which over $1.6 billion was interest-free). Due to the economic downturn and severe weather conditions, several commodity groups have been granted stays of default, which allow the producers additional time to repay their advances.
The Government also continues to advance the long-term competitiveness of the sector through various programs that aim to support business risk management, expand market access for Canadian producers, promote environmentally sustainable agriculture, and enhance the safety and security of Canada’s food system.
Working for Canadians
Examples of Support for Agriculture
- Projects funded under the five-year Agricultural Flexibility Fund include up to $5.4 million to develop and enhance information systems and improve the quality, safety and value of Canadian beef and genetics. In addition, $94.8 million has been committed over five years to projects in partnership with the governments of British Columbia, Alberta, Saskatchewan, Quebec, New Brunswick, Nova Scotia, Ontario, Newfoundland and Labrador and Prince Edward Island. For example, up to $10.0 million for the Initiative d’accompagnement des secteurs dans leur développement will support producers’ associations or groups in Quebec in the strategic planning and implementation of measures at the sectoral level that promote innovation, adaptation and the value chain.
- Under the Slaughter Improvement Program, the Government has committed $1.5 million for Holly Park Meat Packers Inc. in Ontario to allow the firm to redesign its facility and purchase and install new equipment and technology, providing the opportunity to develop new products and access niche markets. Holly Park has also used this investment to develop and implement training on new procedures required to become a federally inspected facility.
Small Business: Canada’s small and medium-sized companies are an important engine of our economy, driving innovation, productivity, job creation and economic growth. Recognizing this, the Economic Action Plan allocated $200 million over two years to the Industrial Research Assistance Program to enable it to temporarily expand its initiatives for small and medium-sized enterprises. The National Research Council moved quickly to fully commit the entire $200 million allocated in 2009–10 and 2010–11 to help firms innovate and to hire new post-secondary graduates. Over 90 per cent of projects have been completed. In 2010–11 alone, support through the National Research Council has benefited more than 1,080 firms supporting over 4,700 jobs, in addition to creating employment opportunities for almost 1,000 new graduates in 745 firms across Canada.
Working for Canadians
Examples of Support for Small Business
Through the Industrial Research Assistance Program (IRAP), the Government is helping small and medium-sized companies to invest in research and innovation and create high-value jobs. For example:
- Redlen Technologies Inc. in Saanichton, British Columbia, received a contribution of $747,355 to support the company in refining a process that produces the sensitive semiconductor detectors used in medical diagnostic camera equipment. Since detectors are more sensitive and less expensive to produce, more hospitals have access to the equipment to assist in detecting diseases earlier and more accurately.
- IntelligentNano Inc. in Edmonton received a $257,000 contribution from IRAP to help develop a medical device that uses low intensity pulsed ultrasound (low power high frequency pressure waves) to stimulate cell propagation. This technology will enable health care providers to better treat a myriad of diseases and conditions, such as Parkinson’s disease, spinal cord injury, heart disease, diabetes and arthritis.
- Memory Experts International Inc., based in Saint-Laurent, Quebec, received a $350,000 contribution from IRAP to help develop USB devices with a secure portable desktop solution that allows workers to work anywhere and at any time in a secure environment.
In addition, the tax system provides considerable support to small business through a lower corporate income tax rate, incentives for investors, enriched financial support for research and development, and simplified compliance.
Since 2006, the Government has introduced a large number of tax measures to support investment, innovation and growth by small businesses, including:
- To help small businesses retain more of their earnings for investment, expansion and job creation, the lower small business tax rate was reduced to 11 per cent from 12 per cent in 2008. The amount of income eligible for this lower rate was increased from $300,000 to $400,000 in 2007, and then to $500,000 in 2009.
- To spur investment in small businesses, Budget 2007 increased the Lifetime Capital Gains Exemption on qualified small business shares to $750,000 from $500,000, the first increase in the exemption since 1988.
- Support for research and development through the Scientific Research and Experimental Development Tax Incentive Program was enhanced in Budget 2008. The amount of expenditures eligible for the higher, refundable tax credit was increased to $3 million and eligibility was extended to medium-sized companies by increasing the taxable capital and income limits.
Budget 2010 included several measures to help Canadian small and medium-sized companies grow their businesses, including:
- Elimination of tax reporting under section 116 of the Income Tax Act for many investments, such as those by non-resident venture capital funds in a typical Canadian high-technology firm.
- Building on the Government’s success in fulfilling its Budget 2007 commitment to reduce the paperwork burden on Canadian businesses by 20 per cent, a new Red Tape Reduction Commission will review federal regulations and reduce the cost of compliance for small businesses.
- A new private sector Advisory Committee on Small Business and Entrepreneurship to provide advice on how to further improve business access to federal programs and information.
- A new Small and Medium-sized Enterprise Innovation Commercialization Program, which will provide $40 million to help federal departments demonstrate new products developed by small and medium-sized companies.
Shipbuilding: The Economic Action Plan provided $175 million to the Canadian Coast Guard to purchase 98 new boats and to repair and refit 40 existing large vessels. As of November 30, 2010, $119 million has been spent on various projects, including the construction of 50 new small craft and over $61 million in repair and refit projects for large Coast Guard vessels. A further $56 million will be spent by the end of 2010–11.
Working for Canadians
Support for Shipbuilding
- Contracts for all of the 60 new small craft, totalling $13.3 million, are in place. To date, 50 boats have been delivered to the Canadian Coast Guard in Victoria, British Columbia, Halifax, Nova Scotia, and St. John’s, Newfoundland and Labrador.
- Five of 30 environmental response barges have been delivered. The remaining barges will be delivered to the Canadian Coast Guard before March 31, 2011.
- Two of five 47-foot motorized life boats have been delivered. The remaining vessels will be delivered before March 31, 2011.
Culture: The Government has delivered unprecedented levels of investment in Canada’s cultural industries, creating jobs and supporting the creative economy. In the last two years, the Government has charted a course that will allow our creative industries to navigate the changing technological and economic landscapes, with over $335 million in support for culture and the arts.
- In 2009–10, the Canada Cultural Spaces Fund spent its $30‑million allocation in cultural infrastructure funding and in 2010–11 committed $26 million, supporting 140 cultural infrastructure projects across Canada.
- In 2009–10, the Canada Arts Training Fund supported 27 organizations for a total of $6 million and, in 2010–11, the Fund is investing in 34 organizations for a total of $12 million, to support the highest-calibre institutions in Canada to train the most talented emerging artists for professional careers.
- $13.9 million was transferred to Canada Post as of March 31, 2010, which helped more than 1,000 magazines and community newspaper companies mail 169 million copies of their publications to Canadian readers in all regions of the country. In 2010–11, the redesigned program, the Canada Periodical Fund, disbursed $15 million to 928 Canadian magazine and community newspaper titles in June 2010 to help them distribute publications to Canadians.
- In 2009–10, a $100-million investment in the Canadian Television Fund supported projects, in partnership with the broadcasting industry, to produce high-quality, distinctively Canadian television programs, including the Canadian drama series Flashpoint. In 2010–11, the Canadian Television Fund was merged with the Canada New Media Fund to create the Canada Media Fund. $100 million in funding for the Canada Media Fund will continue to support investments in digital and television production projects.
Working for Canadians
Support for Culture
- $2.5 million to the Manitoba Children’s Museum in Winnipeg, Manitoba for renovations. The renovated space will include an art and exhibition centre, a welcome centre and a dedicated collections storage room.
- $1.8 million to the Royal BC Museum for a full upgrade to the electrical system of the exhibits building as well as a fire pump controller connected to the emergency system.
- $1.5 million for the first phase of an expansion project to provide interior and exterior improvements to the Beaverbrook Art Gallery in Fredericton, New Brunswick.
- $1.2 million to the Maison Saint-Gabriel in Montréal, Quebec, for expansion to house the visitor services area, as well as other exhibition and animation areas.
Mining: Canada’s rich mineral resources represent significant economic opportunities. Promoting the exploration and development of these resources offers important benefits in terms of employment, investment and infrastructure, especially for rural and remote communities. Canada’s Economic Action Plan supports mineral exploration activity and jobs across Canada by extending the temporary 15-per-cent Mineral Exploration Tax Credit to flow-through share agreements entered into during the period from April 1, 2009 to March 31, 2010.
Working for Canadians
Support for Rural Canadians
Since 2006, the Government has taken action to support the rural economy and made investments that improve the quality of life of rural Canadians. The Government has provided support to important sectors of the rural economy:
- Supporting the Competitiveness and Long-Term Profitability of the Agricultural Sector—Since 2006, federal spending on agriculture has increased significantly. Budget 2006 increased Agriculture and Agri-Food Canada’s budget by $500 million per year on an ongoing basis. A further $2.1 billion has also been provided under other measures, including:
- $1.0 billion for adjustments to income stabilization programming.
- $600 million to set up AgriInvest accounts.
- $190 million for the Agricultural Flexibility Fund.
- $300 million to support an exit strategy for tobacco producers.
- Building a Competitive Fisheries Sector—The federal government continues to promote the economic well-being of the commercial fishing industry and small coastal communities, including through:
- $22 million for regulatory initiatives in support of the aquaculture sector.
- $200 million in support of small craft harbours to accelerate the repair and maintenance of core commercial fishing harbours.
- $25 million for the construction of the Pangnirtung harbour in Nunavut.
- $7 million for the establishment of a Catch Certification Office to expand market access for fisheries.
- Supporting the Transformation of the Forestry Sector—The Economic Action Plan provided $170 million over two years for forest innovation and market development. In addition, the Government introduced the $1-billion Pulp and Paper Green Transformation Program to support innovation and environmentally friendly investments in Canadian mills.
- Promoting Competitiveness and Environmental Responsibility in Energy and Mining Operations—The Major Projects Management Office was created to streamline and accelerate the federal regulatory review process for new projects in energy and mining, creating investment and new jobs in rural communities. Going forward, more than $400 billion is forecast to be invested in major natural resource projects across Canada over the next 10 years.
The Government has also taken action to improve the quality of life of Canadians in rural areas.
- Physical remoteness means greater costs for transportation and infrastructure for rural communities. Under the Economic Action Plan, $15.7 billion has been spent to modernize a broad range of infrastructure including roads, bridges, public transit, parks, water treatment facilities and harbours. The $500-million Communities Component Top Up of the Building Canada Fund targets infrastructure spending for communities with populations of less than 100,000.
- As part of Canada’s Economic Action Plan, $225 million was provided to Industry Canada over three years to develop and implement a strategy to extend broadband coverage to as many unserved and underserved households as possible. The biggest component of this strategy is the Broadband Canada: Connecting Rural Canadians program. By March 31, 2012, over 200,000 additional households in rural and remote regions are expected to have broadband access.
- Through the Knowledge Infrastructure Program, the Government is supporting repair, maintenance and construction projects at rural colleges such as the Northern Lights College in Dawson Creek (British Columbia), Portage College in Lac La Biche (Alberta), the Strait Area Campus at the Nova Scotia Community College in Port Hawkesbury, and Aurora College in Tsiigehtchic (Northwest Territories). These projects will strengthen the ability of colleges in rural areas to deliver advanced knowledge and skills training. The projects have also supported numerous jobs during the construction period.
- In Budget 2010, the Government provided $11 million per year, on an ongoing basis, for the Community Futures Program. This funding will help create new economic opportunities and promote innovation in rural communities across Canada.
Tax Relief: In addition to supporting key industries, the Economic Action Plan includes permanent and temporary measures that build on broad-based tax reductions passed by Parliament in 2007 that are lowering the federal general corporate income tax rate to 15 per cent in 2012. As a result of these reductions, in addition to other tax changes introduced since 2006, Canada has an overall tax rate on new business investment that is substantially lower than that in any other G-7 country.
Tariff Relief: The Economic Action Plan is helping Canadian firms create jobs, modernize their operations and better compete globally through the elimination of all remaining tariffs on imports for industrial manufacturing. A first phase of tariff relief, focusing on machinery and equipment, was implemented in Budget 2009, providing $88 million per year in average duty savings. Budget 2010 implemented a second phase of tariff relief, eliminating all remaining tariffs on industrial inputs, which will provide $300 million in additional annual savings to Canadian businesses.
With these measures, the Government is making Canada a tariff-free zone for industrial manufacturers, a first in the G-20. These initiatives will increase investment, create jobs, foster innovation and productivity, and increase overall prosperity.
|Dollars Spent1||Stimulus Value||Stimulus Committed|
|(millions of dollars—cash basis)|
|Support for the automotive sector2||9,155||–||–|
|Support for Industries|
|Forestry (marketing and innovation)||59||108||88|
|Agriculture flexibility program||6||73||64|
|Investments in cattle processing plants||8||22||22|
|Extending the Mineral Exploration Tax Credit||70||-15||-15|
|Reducing taxes for small businesses||45||80||80|
|Industrial Research Assistance Program||98||100||100|
|Canada Youth Business Foundation||10||–||–|
|Canada Business Networks||14||15||15|
|Canadian Tourism Commission||20||20||20|
|Marquee tourism events||48||50||50|
|Canada Prizes for the Arts and Creativity||–||25||–|
|Canada Arts Training Fund||6||13||12|
|Community newspapers and magazines||14||15||15|
|Canada Media Fund||100||100||100|
|Dollars Spent1||Stimulus Value||Stimulus Committed|
|(millions of dollars—cash basis)|
|Tax and Tariff Relief|
|Temporary 100-per-cent capital cost
allowance rate for computers
|Tariff relief on machinery and equipment||76||81||81|
|Subtotal—Support for Industries||1,093||1,246||1,187|
|Support for Communities|
|Helping All Regions Prosper|
|Community Adjustment Fund||417||578||567|
|Federal Economic Development Agency
for Southern Ontario
|Eastern Ontario Development Program||10||10||9|
|Strengthening economic development
in the North
|Strategic Investments in Northern
|Promoting energy development
in Canada’s North
With Aboriginal Canadians
|First Nations and Inuit health programs||131||170||170|
|First Nations child and family services||4||16||16|
|Subtotal—Support for Communities||731||1,015||906|
|Total—Supporting Industries and
|1 For tax and tariff measures, value of tax and tariff stimulus provided is estimated.|
2 Includes $250 million which was disbursed to Chrysler on March 30, 2009.
3 $66.8 million was also reallocated from the Infrastructure Stimulus Fund to Parks Canada for additional projects. These funds are also fully committed.