Good morning ladies and gentlemen, friends and guests.
I would also like to thank Thomas Bruendl, President of Starlim North America, and Vijai Lakshmikanthan, Vice President of Starlim North America, for hosting this event today, and for leading a tour of your facility here in London.
London, as you know, is a very welcoming and diverse community with a great reputation for service excellence. It's a pleasure to see an industry leader, like Starlim North America, showing its commitment to manufacturing such high-quality silicone products, with great care and efficiency.
As a Member of Parliament for the London region, it makes me very proud to be standing here to witness the renewed commitment to strengthening our manufacturing industry and supporting the innovative companies that are helping to make our economy stronger.
Building a healthy economy and a thriving workforce is a big concern for this region of Ontario and a big priority for our Government. London has dealt with its share of challenges emanating from the global economic recession – the worst in our lifetime. It hasn't been easy, but this hard working community has persevered and remains strong in the areas of health care, education, manufacturing and business services.
The London region is seeing strong signs of growth in employment. In fact, in London alone, we have gained 10,000 more jobs since last March.
Manufacturing is a big part of our economy here in southern Ontario and across Canada. Our manufacturing sector has generated sales of $621.7 billion in 2014, including $286.6 billion in sales for Ontario alone.
In London, manufacturing provides a living for 30,000 Londoners and their families.
As my colleague, Joe Oliver, stated on Tuesday, our Government will fulfill its promise to balance the budget in 2015. Canada's Economic Action plan will continue to implement strategies for prudent fiscal management, including a low-tax plan for jobs, growth and security.
Our Government remains focused on supporting and strengthening the manufacturing sector. We are proud to introduce, in the Economic Action Plan 2015, support in the form of a 10-year tax incentive that is expected to reduce federal taxes for manufacturers by $1.1 billion.
Our Government is proposing extending the accelerated capital cost allowance for machinery and equipment used in manufacturing and processing.
Providing the new incentive over a 10-year period gives businesses greater planning certainty for larger projects that take time to fully realize, including those with multiple phases.
When Canadian companies invest in state-of-the-art equipment and structures, they increase their productivity and competitiveness.
And what is good for Canadian manufacturers is good for Canadians, as they employ close to 1.7 million people all across the country in good jobs that pay well.
The new Economic Action Plan will also further support Canadian businesses with a proposal to reduce the small business tax rate to 9 per cent by 2019. This would be the largest tax rate cut for small businesses in more than 25 years.
Other incentives under this plan include additional financing through the Business Development Bank of Canada for women-owned businesses, and an online platform to encourage networking for companies led by women entrepreneurs. The Government will also provide $14 million over two years to Futurepreneur Canada, to help provide mentorship opportunities and resources for young people looking to start their own businesses.
We are giving Canadians the tools they need to create new products, and ultimately new jobs.
A crucial part of this growth is supporting innovative and adaptable companies that have the capacity to produce high-quality products and extend their reach into new markets.
Starlim North America is a great example of a smart, transformative company that is mindful of the needs of the diverse industries it supports.
With this in mind, I am pleased to make an announcement in support of growing the vital life science, industrial and auto sectors here in London.
Today, on behalf of the Prime Minister Stephen Harper, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is providing Starlim North America with up to $4 million to expand its facility and acquire new equipment and technologies to diversify its client base. Starlim North America will also leverage an additional $15 million towards this project.
This funding will allow Starlim North America to make important upgrades and improvements to its manufacturing capabilities, which will support growth for the company in the life science, automotive and industrial sectors. It will help the company to branch into new sectors, like energy and food processing.
This is great news for London, as it will help diversify this region's economy and will boost the vital manufacturing sector in southern Ontario.
This project will also be highly beneficial to the supply chain that supports the distribution of these products.
Most importantly, Starlim North America anticipates creating up to 20 skilled jobs here in London, plus further growth within two years of the project end date.
This contribution is through FedDev Ontario's Investing in Business Growth and Productivity Initiative, which is aimed at helping our businesses to expand their operations, invest in productivity improvements and compete globally.
Our Government believes that it is support like this that can help our southern Ontario businesses to grow and remain sustainable over the long-term.
Congratulations to Starlim North America. I'm looking forward to seeing all the great developments that will come from this project. I wish all of those involved the best of luck and continued success.
