Thank you.
And good morning, everyone.
It's a pleasure to be here at PackEx.
My visit with you today got me thinking about just how pervasive packaging is in our daily lives. So from the time I got up this morning, I paid attention to the packaging that I encountered. And although it's the end product that most people pay attention to, your product—packaging—is ubiquitous.
From my morning coffee to my breakfast cereal to my dry cleaning—everything is packaged in some form, no matter how large or how small. Your products are everywhere.
When we talk about globalization, there is no better example than this industry. Advancements in packaging have made it possible to ship anything, anywhere, at any time of year.
And that requires ongoing breakthroughs. Your excellence in innovation and new production technologies is what makes Canadian-made products world-class.
Of course, advances in packaging are being driven by many factors—from environmental considerations to transportation advances, and from health and safety precautions to consumer demands.
Plastic, for instance, has been an extremely useful invention for the industry, and in recent times there has been a concerted effort to reduce the amount being used—meaning lower costs and happier consumers.
Thin wall packaging is another good example of a game changer. Same packaging, 30 percent lighter—again resulting in less material, less cost to transport and less product left over after use.
Technology adoption and greater investment in sophisticated machinery and equipment not only are directly linked to these breakthroughs but also provide the basis for a successful, competitive advanced industry.
As it stands, manufacturing accounts for almost 11 percent of our GDP. It employs close to 1.8 million Canadians. And almost all of them occupy full-time jobs.
These numbers tell an important story. Manufacturing is integral to Canada's economy. And our government is committed to this sector.
That is why we have focused on establishing the right economic fundamentals to allow companies to focus on their businesses.
It begins with lower taxes. In 2007, the corporate rate was more than 22 percent. Today, it is 15 percent. We've removed the federal capital tax. We're reducing red tape, and we are adopting common sense solutions to business irritants—leaving businesses with more time to run their operations and create jobs.
Specifically for manufacturers, through previous budgets, our government has committed to eliminate all remaining tariffs on manufacturing inputs and on machinery and equipment used for manufacturing by 2015. This tariff relief will apply to more than $7 billion in annual imports and provide more than $410 million in annual duty savings for Canadian businesses.
This initiative makes Canada the first tariff-free country for industrial manufacturers in the G20. It also helps bolster competitiveness, productivity, investment and innovation, and it is expected to result in the creation of up to 12,000 jobs over time.
Complementing these measures, Economic Action Plan 2013 identified manufacturing as one of our government's four key priorities. In doing so, the plan provides $200 million over five years for a new Advanced Manufacturing Fund. The fund, which will be delivered by the Federal Economic Development Agency for Southern Ontario, focuses specifically on Ontario, where the sector is the backbone of the provincial economy. The fund will support investments by manufacturing firms in activities that create new and innovative products or production methods.
As Minister of State for FedDev Ontario, I know how much of a difference this will make and I am excited about its prospects. The agency has already been a great help to many businesses. Earlier this year, FedDev provided a repayable contribution of up to $500,000 to Günther Huettlin Manufacturing in Belleville to install three high-speed production lines. The firm manufactures wicket, zipper and drawstring bags.
Another recent example is GreenMantra Technologies in Brantford. Our government provided GreenMantra with $750,000 to complete final commercialization testing of its proprietary technology to produce industrial waxes from recycled plastics. The waxes produced will be used in such products as asphalt, wood products, adhesives and polishes.
In addition, our action plan committed to extending the temporary accelerated capital cost allowance for new investment in machinery and equipment. This will provide manufacturers with $1.4 billion in tax relief to buy the new tools needed to make their operations more productive and globally competitive.
And the time is certainly right for investment. Export Development Canada (EDC) forecasts continued growth for the packaging industry's exports to the United States.
With consumer demand on the rise, the EDC also believes there is a major growth opportunity right now for R&D investments in environmentally friendly production methods.
Our government has also embarked on an ambitious trade strategy to increase Canadian exports to global markets. For one, our Global Commerce Strategy is making Canada a partner of choice for international businesses and improving access to global markets, capital, technologies and talent.
Our ongoing trade efforts include the negotiation of new agreements with nine countries, representing over 100 million potential customers. We are currently in negotiations with some 50 other countries, including a Comprehensive Economic and Trade Agreement with the European Union, as well as a trade agreement with India.
These regions represent market access to over 1.7 billion people and thousands of job opportunities. The prospects for manufacturers are growing rapidly as we speak!
Finally, we are addressing skills shortages—an issue that the Canadian Chamber of Commerce has called the number one barrier to competitiveness. So in Economic Action Plan 2013, our government introduced the Canada Job Grant. This will provide up to $15,000 in combined federal, provincial, territorial and employer funding to help individuals get the skills training they need for the jobs that Canadian businesses need filled.
By combining these measures with those from previous budgets—such as a hiring credit for small employers, an initiative to help older workers gain new expertise, and strengthened support for foreign credential assessment—we are moving in the right direction.
These measures—taxes, trade policy and skills development—are all vital for Canada's manufacturing sector.
So we are creating the right environment, the winning conditions, for businesses to succeed. But there still exists the need to increase competitiveness and productivity.
And we know that innovation is the best remedy. Since 2006, our government has invested more than $9 billion to support science and technology and the growth of innovative firms. Guided by our science and technology strategy, we are redefining the way governments, business people and the research community band together to drive economic activity through science.
At a time when discovery is increasingly dependent on collaboration, our government is helping Canada play a leadership role through initiatives that bring the private and public sectors together, creating a supportive climate for start-ups, and attracting and retaining world-class expertise.
We are improving the links between public research and private sector needs through programs that help companies partner with universities and colleges. And we are focused on the conditions necessary for a healthy knowledge-based system—supportive marketplace frameworks, engaged citizens, highly skilled people and sound infrastructure.
Today, more than ever, successful commercial breakthroughs come from companies in partnership arrangements, whether with other firms or with knowledge institutions. This is a significant change from 40 or 50 years ago, when invention generally came from large firms acting on their own.
To promote business innovation, Economic Action Plan 2013 provides funding totalling $466 million. This includes:
- $121 million for the National Research Council of Canada (NRC) to transition into an industry-focused research and technology organization;
- $20 million through NRC's Industrial Research Assistance Program for a pilot initiative to help small and medium-sized enterprises access research and business development services at universities, colleges and other not-for-profit research institutions; and
- $325 million to Sustainable Development Technology Canada to continue to support the development and demonstration of new, clean technologies.
Ladies and gentlemen, as I have outlined, our government supports the success of our manufacturers. We have introduced measures that inspire innovation, create jobs and drive economic growth. These initiatives are designed to stimulate the economy and create one of the most inviting investment climates in the world.
We have strong economic fundamentals that are the envy of the world, and we will remain focused on making it is easier for all businesses to grow, create jobs and prosper.
I wish all of you a productive and successful week.
Thank you.
