Thank you, Mr. Chair.
Good afternoon, members of the committee.
My name is Karl Blackburn and I am the President and Chief Executive Officer of the Quebec Employers Council, the QEC. With me today is Norma Kozhaya, Vice-President of Research and Chief Economist.
Our organization was created in 1969 and is a confederation of almost 100 sector-based associations and a number of member companies that represent the interests of over 70,000 employers of all sizes and in all regions of Quebec in the private and parapublic sectors.
In general, the QEC welcomes the introduction of the federal budget with plans to invest in productivity and the green transition. The QEC is particularly pleased with the tax incentives for manufacturing zero emission technologies and for companies that invest in clean energy equipment. The ecological transition and greening of our economy can also be sources of profitability, competitiveness and wealth for Canada as a whole.
Innovation comes out ahead in this budget since there are both significant and diversified funds that support investments. I am thinking, in particular, of the creation of the Canadian Innovation and Investment Agency and the Canada Growth Fund, which we will learn the details of in the fall.
On that subject, however, I must point out that the luxury items tax that was presented in the budget sends a signal that is inconsistent with the measures I have just listed. In addition, it might have a negative impact on the Canadian aerospace sector, to the benefit of foreign manufacturers.
I want to stress two elements in particular. First, the mechanism providing for payment on delivery followed by a rebate on export of an aircraft will have a significant impact on the working capital of Canadian firms in the aerospace sector. Second, the proposed 90 per cent threshold for the business use exemption is much too high, compared to what exists in other regulations.
On a more positive note, the proposed shift to the green economy provides a significant incentive for business. The amounts provided encompass a wide range of structuring measures, including measures to support decarbonization projects. I would also note certain measures associated with training and the investments to expedite immigration procedures.
Before concluding, I am going to address a few matters that we believe deserve particular attention. First, some projects deserve a boost from the federal government, and in particular incentives for experienced workers, given the labour shortage situation and the extension of assistance programs in certain economic sectors experiencing problems.
Finally, the federal government should quickly initiate a discussion about controlling deficits and the public debt load with the extension or creation of relatively hefty social programs.
Mr. Chair, Norma Kozhaya and I look forward to answering questions from members of the committee.
Thank you for your attention.