Speaking Points
The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario
Woodstock, Ontario
February 19, 2014
Check against delivery
Introduction
Thank you very much, and good day, ladies and gentlemen. C'est un grand plaisir d'etre ici avec vous aujourd'hui. I must first thank MP Dave MacKenzie who worked with the Woodstock District Chamber of Commerce to help organize this event.
I am pleased to be with you today to outline some of the key points of Economic Action Plan 2014 as presented by my colleague, Finance Minister Jim Flaherty, last week. As business owners, Chamber members and entrepreneurs, I know that I am speaking to an audience that has a vested interest in the success of our economy.
Folks, I am proud of the success that our Government has had in steering the Canadian economy through some rough waters, to the point where we are now the envy of many G-7 countries. Canadians have trusted us with the economy, and we have delivered.
Low taxes; positive and targeted measures for economic growth and families; and balanced budgets—that's the right combination and right path for economic growth.
Consider the following:
Since the depths of the recession Canada has led the G-7 in job creation.
Both the International Monetary Fund and the Organisation for Economic Co-Operation and Development expect Canada to be among the strongest growing economies in the G-7 this year and next.
Coming out of the recession, Canada had a triple-A credit rating with a stable outlook—which was and still is virtually unmatched among our peers. We have the best net debt-to-GDP ratio among G-7 nations.
Since 2006, Canada's tax competitiveness and overall business environment have been significantly improved, with the result that Canada now offers the lowest overall tax rate on new business investment in the G-7.
The competitiveness of Canada's business tax system is supported by third-party analysis. The KPMG publication Competitive Alternatives 2012 concluded that Canada's total business tax costs are the lowest in the G-7 and more than 40 percent below those of the United States.
However, Canada is not immune to external economic developments.
The world economy is still fragile—one needs to look no further than Europe and the emerging economies to see that.
Here at home, household debt is still higher than we'd like to see. There are still too many Canadians looking for work, and too many employers looking for workers.
There is still work to be done.
And that is why Economic Action Plan 2014 marks the next chapter in job creation and economic growth, and returning to a balanced budget.
Budget Highlights
Working together with all interested parties, our Government will play a role in ensuring that Canada's labour force is well positioned to meet future challenges and opportunities. To this end, we have introduced a number of initiatives that will:
- Support apprentices in skilled trades;
- Help older workers and persons with disabilities access jobs;
- Create paid internships for young Canadians entering the job market; and
- Launch the Canada Job Grant and an enhanced Job Matching Service.
Our Government also continues to invest in businesses because we know that a healthy and competitive business environment grows the economy and raises our standard of living.
Friends, we recognize that taxes absorb dollars that would otherwise be used by business owners to seize opportunities for growth and create new jobs.
As a result, further tax relief for small businesses will be a priority for our Government following the return to balanced budgets.
Over the next year, our Government will also continue its ambitious approach to reducing red tape through a combination of system-wide reforms and targeted action on issues that were frustrating businesses and stifling innovation.
I am pleased to note that according to a 2014 study by PricewaterhouseCoopers, Canada is the only G-7 country to rank among the top 10 countries based on the overall ease of complying with tax obligations.
Economic Action Plan 2014 will also help foster trade, both internationally and within Canada.
Canadian firms access foreign markets to increase sales, and rely on global supply chains to maintain their competitiveness. Canadian consumers benefit from international trade through increased choice and lower prices.
The Budget also announced measures that will help reduce barriers to internal trade. Consumers and businesses benefit from a strong and integrated domestic market, where goods and services move freely across provincial and territorial boundaries.
That's why our Government will work to develop an Internal Trade Barriers Index to better identify measures currently restricting trade and to gain a better understanding of their impact. We will also pursue opportunities to revitalize the Agreement on Internal Trade, in collaboration with provinces and territories, in order to strengthen the internal market for the benefit of Canadian businesses and consumers.
Other measures that will support our businesses include:
- Further enhancing the Canada Accelerator and Incubator Program to provide entrepreneurs with intensive mentoring and other resources to develop their business; and
- Making a major investment of $500 million in automotive sector support as this sector is among Canada's leading employers and exporters, and is a key driver of our economy, especially here in Ontario.
Since Ontario's economy is critically linked to that of our nation, our Government created the Federal Economic Development Agency for Southern Ontario, better known as FedDev Ontario, in 2009 to help workers, communities and businesses in all areas of southern Ontario—from Ottawa to Windsor and everywhere in between—overcome the significant challenges they were facing.
Like much of Canada, our region was hit hard by the global economic downturn. It was clear that this region needed its own home-grown approach to deal with the effects of the worst downturn since the Great Depression, and position itself for the future.
Since its creation in 2009, FedDev Ontario has invested more than $1.1 billion in the region. This has resulted in partnerships with more than 5,300 organizations and helped to attract more than $1.5 billion in additional investments from almost exclusively non-government sources.
Together, we have supported businesses, manufacturers, organizations and communities in southern Ontario.
Here in the Oxford region, we have committed $15.7 million to 40 projects, leveraging a total of $16.9 million in additional investments.
We have made positive impacts with projects like our $2.48-million investment in North American Stamping Group's Woodstock manufacturing facility. This investment is bringing jobs back to the Woodstock area and is resulting in high-value auto parts exports for international markets and a more competitive auto manufacturing sector. Over the past two years, we have also invested over $730,000 in improvements to infrastructure in Oxford communities through the Community Infrastructure Improvement Fund.
I can tell you that our efforts so far have helped put thousands of people in southern Ontario back to work, while improving the economic climate for innovation, entrepreneurship and collaboration. We are now ready to build on the solid ground work that has been laid with renewed funding over the next five years.
Southern Ontario Prosperity Initiatives
Ladies and gentlemen, I'd like to tell you about the four new Southern Ontario Prosperity Initiatives, or SOPIs, which represent a total of more than $530 million in available funding.
It is my hope that this new programming will help our region face the economic realities I've heard so many of you talk about: increasing globalization, fierce competition, constantly evolving technology and shifting consumer demands.
Each initiative builds on what we've done so far, and responds to a specific challenge we are facing based on extensive research regarding the current economic landscape.
The SOPIs will assist in the creation and growth of southern Ontario businesses.
As you are very well aware, new businesses in Canada have a tough time raising funds and accessing the expertise and connections of the investment community. To help address these issues, the Agency has re-launched its successful Investing in Business Innovation initiative. It provides funding for early-stage businesses and angel organizations. It will also support not-for-profit organizations delivering services to entrepreneurs.
Once a business is up and running, it needs support to take it to the next level, to keep up with the competition. Canada's investment in machinery and equipment as a share of GDP remains among the lowest of its peers, and as a key driver of productivity, it's an area we want to focus on. The Investing in Business Growth and Productivity initiative will help businesses to expand facilities, adopt new technologies and processes to improve productivity, and increase capacity to participate in global markets.
While Canada ranks high in innovation and scientific discovery, we are less effective in converting research, new ideas and technologies into products and services that fare well in commercial markets. We need to tackle this gap between innovation and commercialization in southern Ontario.
To this end, the SOPIs will cultivate partnerships.
The Investing in Commercialization Partnerships initiative is aimed at creating business-led partnerships with public sector organizations, encouraging a knowledge transfer that will help the region develop globally-competitive products and services.
It will also help develop innovation platforms, which are structures or services that partners can use to test, refine or develop applications to help bring products from lab to market.
An existing example is the Southern Ontario Water Consortium, a partnership that is enabling businesses, universities, municipalities and not-for-profit organizations to develop, test, and pilot market-driven water technologies that are in high demand both regionally and around the world.
Now, we are aiming to build on these successes and encourage businesses to capitalize on regional assets, and put to use the power of research and educational institutions in their communities.
And we all know that our communities in southern Ontario have their unique assets.
The SOPIs will build stronger communities.
Without stronger communities, it is difficult to attract opportunities for economic growth.
The Investing in Regional Diversification initiative encourages the not-for-profit and private sectors to team up on projects that build on regional strengths and local expertise, to help diversify local economies. It will help create business infrastructure such as incubators, as well as build more capacity in specific industries and sectors.
Economic Action Plan 2013 also included $200 million over five years for the Advanced Manufacturing Fund in Ontario. Known as the manufacturing heartland of the nation, our province will benefit from support to help our manufacturers develop projects that demonstrate product, process, and technological innovation.
In short, all of these initiatives will help our workers, businesses and other organizations remain here in Ontario as they strive to grow and prosper.
Conclusion
Of course, I've only had time today to highlight a few of Economic Action Plan 2014's many important proposed initiatives, as well as provide you with a very general overview of FedDev Ontario programming.
I urge you to visit www.budget.gc.ca to look over the Budget in detail to learn more about how it will make our economy stronger and benefit Canadians.
I also urge you to visit www.FedDevOntario.gc.ca for initiative guidelines and application details.
So in closing, let me repeat that our Government is absolutely committed to keeping taxes low, helping fuel job creation, and promoting economic growth—goals that have underpinned our Government from day one and goals that matter to Canadians. We will also eliminate the deficit in 2015.
Maintaining focus on these goals is the best way to ensure that Canada is prepared to weather any future economic storm that may arrive from outside our borders.
It is also the best way to ensure that Canada's future, and southern Ontario's future, is a prosperous one.
Thank you.
