Montréal, February 3, 2016 – As part of prebudget consultations conducted by Quebec’s Minister of Finance, Carlos Leitão, the Board of Trade of Metropolitan Montreal emphasized the importance of driving the economy of the Montréal metropolitan area, Quebec’s economic engine.
Ensuring competitive taxation for businesses
Against the backdrop of an aging population and stiff competition to attract talent and businesses, we need to make our tax system more competitive. It needs to do more to encourage work, investment and productivity.
“The Board of Trade asks the government to quickly adopt and enact the entirety of measures recommended in the report of the Quebec Taxation Review Committee,” said Michel Leblanc, President and CEO of the Board of Trade of Metropolitan Montreal. “The measures in the report, in addition to generating economic benefits of close to $2 billion in GDP and creating over 20,000 jobs, are zero cost for the government. As such, the government needs to increase the consumption tax and reduce corporate and personal income taxes to stimulate the growth of businesses.”
“Now that the government has some financial leeway, it needs to respect its commitment to allocate 50% of any surplus to reducing the tax bill,” Michel Leblanc said. “We cannot forget that Quebec is the most highly taxed territory in North America, and this is a significant check on our ability to attract head offices and talent.”
Improve access to talent
Access to qualified labour that responds to the needs of businesses is a critical issue for a knowledge-based economy that is facing an aging population. It is essential to take action on a number of fronts, including strengthening the education system and improving the selection, integration and retention of qualified immigrants.
“The government needs to commit to improving funding to universities and colleges and to invest in primary school infrastructures,” Mr. Leblanc said. “Education is the driver of our economy and must be a priority for the government.”
“The government must also find the money necessary to improve the integration of immigrants to the job market,” Michel Leblanc said. “The unemployment rate among the city’s immigrants is too high. The government needs to maintain its support to key organizations in the city that promote contact between local businesses and organizations and unemployed immigrant workers.”
Invest in the city’s strategic infrastructures
Major public infrastructure projects, in addition to updating and modernizing infrastructures, stimulate economic activity and increase our economy’s productivity.
“The Government of Quebec needs to quickly enter into agreements with the federal government to claim its share of the New Building Canada Fund,” Michel Leblanc said. “It also needs to leverage strategic public transit projects for the city, such as preferential measures for buses, extend the blue line of the metro as soon as possible and finish implementing the Pie-IX BRT. It also needs to complete major road projects such as rebuilding the Dorval interchange and improving road access to the Port of Montréal via highway 25.”
Foster business internationalization
In a context of low investment and sluggish consumption, our economic growth increasingly depends on the performance of local businesses on the international scene.
“The government needs to take advantage of the drop in the value of the Canadian dollar and more solid American growth to send a clear signal and put in place an effective strategy to encourage businesses in Quebec and Montréal to export, particularly south of the border,” Michel Leblanc said. “It also needs to increase the budget for the Export Program to $25 million, which is currently $17 million, or, at the very least, reinstate the program’s 2014-2015 budget of $19 million.”
The Board of Trade’s detailed prebudget recommendations can be consulted by clicking here.
About the Board of Trade of Metropolitan Montreal
The Board of Trade of Metropolitan Montreal is made up of over 7,000 members. Its mission is to be the voice of Montréal’s business community and to promote the city’s prosperity. It is involved in key areas of economic development, advocating a philosophy of action based on engagement, credibility, proactivity, collaboration, and innovation. The Board of Trade also offers a range of specialized services to individuals and to businesses of all sizes to support them in their growth at home and abroad.
– 30 –
Source:
Guillaume Bérubé
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Phone: 514 871-4000, extension 4042
gberube@ccmm.qc.ca
Facebook: www.facebook.com/chambremontreal
Twitter: @chambremontreal
Follow the discussion: #ccmmqcca