There were ups and downs in terms of capital investment when the accelerated capital cost allowance measure was implemented by the previous government. Normally, in economics, when the rate of industrial capacity exceeds 80%, we expect to start seeing more significant investments, especially for modernizing plants and increasing their capacity. At this time, the industrial capacity is generally 84%, but there has not been as much investment as there should have been. I should point out that many of our manufacturing companies belong to U.S. firms. Many firms invest that money outside Canada.
Some aerospace companies, for example, have invested in new plants in the United States even though the rates of capacity in Canada have been below 60%. This means that, in many sectors, the environment in Canada does not seem to be very attractive for investments.
A second factor has been identified by the Institute for Competitiveness & Prosperity. That Ontario organization said that, for many foreign companies that receive funding in Canada, the money from global profits is in Canada because of taxation rates that have been lower than elsewhere. So that factor can also play a role.