Montréal, February 19, 2016 – As part of prebudget consultations by the Government of Canada, the Board of Trade of Metropolitan Montreal asks the government to strengthen the economies of Canada and its second largest city.
“Greater Montréal accounts for 10% of the country’s economy,” said Michel Leblanc, President and CEO of the Board of Trade of Metropolitan Montreal. “It has highly skilled labour, an entrepreneurial drive that is regaining steam, mature businesses that compete globally and a business base determined to grow its share of the international market. Canada’s economic performance is based in large part on that of its major cities, and Montréal’s businesses have many assets the government should leverage. The government must show leadership in its first budget and take advantage of the relatively solid state of federal public finances to make strategic investments while improving the business environment. It is important to promote corporate investment and do everything possible to increase Canadian exports.”
Immediately confirm strategic support to Bombardier
Bombardier is a strategic player in the aerospace cluster in Canada, concentrated in Greater Montréal. The government must commit to supporting Bombardier now that the C Series’ commercialization phase is beginning. This investment is needed to eliminate any remaining concerns by carriers interested in the C Series.
“It is in the whole country’s interest to see this flagship of Canadian entrepreneurship complete one of the most ambitious commercial innovation projects in Canada in recent decades,” Michel Leblanc said. “The Government of Canada must show economic leadership and grant Bombardier financial assistance of US$1 billion, matching the amount the Government of Quebec invested.”
Beginning in 2016-2017, make strategic investments in infrastructure, particularly in transportation
In the current economic context, it is essential to immediately make investments in strategic infrastructure in the city to stimulate the economy and increase the productivity of Montréal businesses.
“The government has to commit in the next budget to investing in assets in the logistics and tourism chain, sometimes called the Continental Gateway, and in assets underlying the Ontario-Quebec Trade Corridor, to increase the competitivenss of our port infrastructures and reinforce the city’s transportation and logistics industry,” Michel Leblanc said. “It must also invest in upgrading the Port of Montreal and contribute an additional $26 million for completing the passenger terminal.”
“The government must also build reserved tracks for passenger trains along the Montréal-Toronto corridor as a priority,” Mr. Leblanc said. “Reserved tracks for passenger trains between Canadian cities would considerably improve the frequency, reliability and speed of travel, and would increase opportunities between metropolitan businesses. The time has come for the government to study the feasibility of different projects and make a decision.”
Grant increased support for the internationalization of businesses
The drop in the value of the loonie, combined with stronger American growth, offers businesses an opportunity to increase their exports. The government has to put in place initiatives to encourage companies to enter international markets.
“The Board of Trade welcomes the launch of the CanExport program, which will offer direct financial aid of $50 million over five years to small and medium-sized enterprises (SME) that want to take advantage of export opportunities on world markets and increase their competitiveness,” Michel Leblanc said. “We are asking the government to double the amounts for CanExport and make the funds available beginning this year so that SMEs can take advantage of them quickly. It is also essential to increase the number of economic missions to promote Canada and its cities, fostering the international deployment of Canadian businesses.”
Increase the competitiveness of taxation
With low productivity and the rapid aging of the population, particularly in Quebec, it is essential to increase the competitiveness of the tax regime so that it can better support work, investment and productivity.
“The Board of Trade has already expressed its disagreement with the government’s decision to increase taxes for high-income earners,” Mr. Leblanc said. “This measure will limit our ability to attract talent, investment and head offices. We ask the government instead to finance the tax cut for the middle class by reviewing personal tax expenditures or increasing consumption taxes and fees. These measures have a more limited negative impact on wealth creation than a tax hike.”
Stick to the plan to balance the budget by 2019-2020
The persistent, pronounced weakness in the price of oil continues to weigh down the Canadian economy and public finances. The government therefore needs to be vigilant in planning its budget.
“The government must stick to its plan to balance the budget by 2019-2020 and honour its commitment to reduce gross debt to GDP to 25% by 2020-2021 to reassure financial institutions,” said Michel Leblanc. “It also has to ensure that Quebec and Montréal have the means to tackle the challenges posed by public finances and the aging population, and therefore review health transfers. It needs to move from financing per person to financing based on age structure, which differs province to province. Finally, the government needs to step back from its intention to increase pension contributions and benefits (PCB). This initiative would increase the corporate and personal tax burden when Quebecers are already the most highly taxed people in North America.
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.
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Source:
Guillaume Bérubé
Advisor, Media Relations
Board of Trade of Metropolitan Montrea
Phone: 514 871-4000, extension 4042
gberube@ccmm.qc.ca
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