Thank you, Mr. Rajotte and members of Parliament. My name is Roger Larson. I work for the Canadian Fertilizer Institute.
I'm here today to speak on behalf of the Business Tax Reform Coalition, which includes nine associations: our own, the Chemistry Industry Association of Canada, the Canadian Plastics Industry Association, the Canadian Steel Producers Association, the Canadian Association of Petroleum Producers, the Forest Products Association of Canada, the Rubber Association of Canada, the Mining Association of Canada, and the Canadian Petroleum Products Institute.
Collectively we represent manufacturers that have production of over $320 billion, exports of over $210 billion, and direct employment of 1.4 million people. The significance of the coalition is that we have a consensus on the most important issues for our sectors.
We thank the committee for the opportunity to make our recommendations.
Given the global challenges faced by the Canadian resource-based manufacturing and exporting sectors, the Business Tax Reform Coalition believes that the Standing Committee on Finance should focus on policy measures that will ensure that the Canadian industry is equipped to take on what will surely be tougher competition in uncertain economic conditions.
We need policies that encourage investment. Manufacturing needs a clear, competitive advantage over competing international jurisdictions if it is to attract the necessary capital to make new investments in greener and more productive technologies and to create jobs for Canadians.
An extension of the accelerated capital cost allowance for no less than five years will send the only signal that matters to investors. It will encourage the necessary turnover in capital stock and the acquisition of the best available technologies for improving productivity and achieving environmental goals, which are key challenges for Canada. And it will stimulate additional investment, with zero long-term impact on Canada's tax revenues.
As well, Canada’s Department of Finance needs solid advice and analysis to support value-added resource upgrading and manufacturing. The most senior independent economic policy advisory position within the federal government, the Clifford Clark visiting economist post at Finance Canada, carries the rank of assistant deputy minister. Understanding that global competition is crucial, we therefore recommend the appointment of a resourced-based manufacturing specialist as the next Clifford Clark visiting economist.
In conclusion, we urge the committee to recommend the extension of the accelerated capital cost allowance for no less than five years to help Canadians compete in the global marketplace for new investments. Developing an investment advantage will deliver on a number of policy objectives, including productivity and environmental performance, and it will encourage the development of value-added product chains so that Canada can secure its role in the global marketplace. This step, along with maintaining the announced corporate tax reductions to 15% in 2012, will support the long-term competitiveness of Canadian resource-based manufacturing and processing industries.
Thank you.