Thank you very much.
The Canadian Fertilizer Institute is an industry association representing manufacturers and wholesale and retail distributors of nitrogen, phosphate, potash, and sulphur fertilizers. We note that for the last few years, we've made our presentation to this committee in Saskatchewan because of the importance of our industry to the provincial economy in terms that this is the centre of potash production, and there's significant nitrogen production as well in the province.
Also, I'd like to recognize Al Mulhall, from the Potash Corporation of Saskatchewan. He is here today to observe with us, and I just want to let you know he is here as well.
Our member companies currently employ 12,000 Canadians, mainly in rural communities. The total economic contribution to the Canadian economy is over $6 billion. Canadian fertilizer manufacturers produce 25 million metric tonnes annually. Of this, we export 20 million tonnes to over 70 countries.
Canada's fertilizer industry competes successfully for markets around the world. Increasingly, our industry is facing new challenges from foreign competitors. Fertilizer production in Canada is highly productive. Our nitrogen plants and potash and phosphate mines are among the most modern and energy-efficient in the world, according to international benchmarking studies. But while the fertilizer industry in Canada is enjoying considerable success, federal and provincial governments must continue to make smart decisions to ensure this success is sustained in the long term.
In terms of our recommendations, we believe the government should reduce the tax burden on the fertilizer industry—particularly as it relates to investment decisions—which continues to face higher tax rates than competitors in other countries; develop a national energy strategy that will secure future supplies of natural gas that the nitrogen and potash producers depend upon; implement a Canadian air emissions strategy, with realistic targets and regulations to reduce greenhouse gases and other air emissions while ensuring the competitiveness of our industry; address a skills shortage that is affecting all resource industries—and I understand you've been to Fort McMurray and have heard a lot about that first-hand; and establish transportation policies that will encourage investment in Canada's rail and ocean freight capacity and provide service to shippers at the lowest total cost.
You have the brief, and I believe it has been translated. I'll just highlight a couple of points from the brief in order to give everyone else lots of time.
I'd like to mention in particular that CFI believes governments have a critical role to play in the development of a Canadian biofuels industry, to reduce our reliance on natural gas and other fossil fuels. Fertilizer, and particularly potash, will play a critical role in the production of crops needed for ethanol, biodiesel, and other biofuels. We support the federal government's plan to develop a national biofuel strategy. A number of provinces are already supporting biofuel development. We hope an effective national strategy will emerge, backed by all levels of government.
Again, in terms of taxation, taxation is a critical issue related to the capacity of industry to make the investments that will be required for new technology and capital stock turnover in order to deal with the clean air and greenhouse gas issues that I think are currently seizing the agenda of the federal government. We believe the government must work in partnership with industry in its approach to environmental sustainability. A key component of that cooperative approach is providing incentives for business to meet realistic environmental targets. Reduction targets for the industry must be reasonable, cost-effective, and achievable in practice.
Governments in Canada need to adopt policies that will enable our industry to make the investments necessary to continue reducing greenhouse gas emissions and to contribute to the objective of clean air. Governments should facilitate investment by eliminating barriers to trade; continuing to move to a more competitive corporate tax system; and providing new investment incentives to accelerate technological change, modernize facilities, and upgrade skills. In particular, we'd like to emphasize that an accelerated capital cost allowance should be an important part of the market-based incentives approach in this area.
A couple of weeks ago, the president of CFI made a presentation to this committee on behalf of the Business Tax Reform Coalition, and there was certainly an emphasis from that coalition of industry groups on capital cost allowance acceleration.
I think those are the major points, and I'm happy to answer questions.