I would like to thank you for giving the Chambre de commerce the opportunity to express its views during the pre-budget consultations.
The Chambre de commerce de Québec, whose some 4,000 members are drawn from all sectors of the economy, is the largest organization of business people in Eastern Quebec. As a grouping of the dynamic forces in the region, the Chambre enables the business community to participate actively in the development of the region and to express its opinion on matters with a potential impact on its development. Whether on issues regarding the economy, the workforce, immigration or regulation, the Chambre has always felt duty bound to express and assert its views in the interests of its members.
We have several recommendations which address issues such as assistance to business in the area of interprovincial trade, university funding, corporate family succession, local economic development and income tax.
Assistance to businesses.
In our view the federal government's support to businesses must be increased. In addition to the tax incentives for research and development, a new program should be designed specifically to enhance corporate productivity and competitiveness. With this aim, the Chambre proposes that, for SMEs with fewer than 100 employees, all equipment, machinery and production-related computer equipment to be 100%t deductible in the first year following its acquisition or eligible for a refundable tax credit on the investment, valued at 25% of the cost of the goods.
With regard to workforce training, on which corporate productivity and competitiveness essentially depend, the Chambre proposes that the deductible training expenses of SMEs with fewer than 100 employees be eligible for double the amount invested by the company or for a refundable tax credit equal to 50% of the cost of the training.
In light of the substantial labour force requirements in Quebec, and specifically in the Greater Quebec City area, the Chambre recommends that action be taken by the federal government to promote the hiring of immigrant workers, in particular by facilitating access to work visas.
Since the environment is a concern of the greatest importance in increasing the competitiveness of our businesses, as well as communicating and disseminating new business values throughout the world, the Chamber is asking the federal government to give more credit to companies for their environmental initiatives. Such initiatives could, among other possibilities, take the form of a refundable tax credit for any investments intended to improve the company's environmental performance.
Interprovincial trade.
Since interprovincial trade is all too frequently hampered by restrictive measures which have a detrimental impact on the national economy, the Chambre recommends that the federal government reduce the barriers to interprovincial trade. National conferences on sectoral issues bringing together federal and provincial trade ministers would help to reduce the irritants.
University funding.
As institutions of higher education and advanced research—the true producers of business people and businesses in the new economy—universities occupy a commanding position in the national economy. The Chambre believes that training is a crucial element in corporate competitiveness and accordingly recommends that the federal budget include a substantial increase in the amounts allocated to the university network in order to maintain the quality of teaching and to develop research activities. The Chambre also proposes that federal transfers for post-secondary education revert to the levels that prevailed during the early 1990s.
Corporate family succession.
The tax collected when a business is transferred to the next generation constitutes a major obstacle to the preservation of family businesses. The Chambre accordingly recommends that the Minister of Finance postpone the imposition of the tax when the succession takes place between members of the same family. The Chambre supports the federal government's initiatives to create a capitalization for corporate succession.
Local economic development.
The Chambre recommends that the government maintain the community investment assistance program, which is an important economic lever for launching local projects with impact potential. The program should be continued since it supports the development of targeted intervention strategies and of the tools to sustain them.
Income tax. With a view to increasing the ability of individuals to consume and stimulate the local economy in Quebec and elsewhere in Canada, as well as helping us to remain competitive and retain our workforce and our brains, the Chamber proposes that the government reduce income tax.