I will carry on.
We know that budget 2025 is reinforcing Canada as one of the most tax-competitive jurisdictions for new business investment in the G7. We're going to make Canada one of the best places in the world to invest. The name itself, the productivity superdeduction, as the member for Whitby pointed out.... I'm not sure where it came from, but it is very collective of the measures in the motion.
Paired with a suite of accelerated depreciation tools, we're going to make it easier and more affordable for Canadian businesses, large and small, to invest in modern machinery, technology, clean equipment and innovation.
If we take a look at the various components outlined in the budget, there is an accelerated investment incentive and immediate expensing, and we're going to boost productivity and attract investment. This new government of ours is introducing a productivity superdeduction, so through a set of enhanced tax incentives covering all new capital investment, we will allow businesses to write off a larger share of their costs for these investments right away. This will make it easier for businesses to invest and grow.
I also attended a budget consultation over the summer in Charlottetown, P.E.I., and we met with various seafood processors, agriculture and agri-food processors, farm groups and fishers groups. I was so pleased to see this included in the budget because it was something that was brought up to us at that meeting: the importance of reinstating the accelerated depreciation to 100% for investment in those very vital industries for Atlantic Canada and the area I represent.
If we take a look at other measures that are in this motion, we're going to be reinstating the accelerated investment incentive. The government is restoring accelerated writeoffs so that businesses can recover the costs of new investments more quickly. This is going to improve the cash flow for these businesses, and it's going to strengthen the business case for modernizing equipment and facilities.
As for manufacturing and processing equipment, they will be able to immediately deduct the full cost of new machinery and equipment—a 100% writeoff in the first year. This is going to support all those industries I previously mentioned, such as food processing, advanced manufacturing, marine, aerospace and agri-food processing. This will help drive automation, precision manufacturing and global competitiveness.
Then we look at another item that's getting incentivized, which is the immediate expensing for clean energy and zero-emissions technologies. Budget 2025 is going to expand this to include clean energy generation, energy conservation equipment and zero-emissions vehicles and related infrastructure, and it will support the transition to a low-carbon economy while lowering operating costs for all businesses.
In my region of Atlantic Canada, we have a shortage of electricity, so incentivizing clean energy is going to help with windmill expansion. We're also going to need expansion of solar energy, and we will look to more hydro development transmission cables. All this stuff is going to be incentivized by the productivity superdeduction.
We also have in here the immediate expensing of productivity-enhancing assets, which are things like patents, data, digital infrastructure, and computers and software. This will encourage companies to adopt digital tools, artificial intelligence and modern data systems, which are key drivers of productivity.
We also have the immediate expensing for Scientific Research and Experimental Development, or SR and ED. This will allow firms to fully expense their capital expenditures tied to innovation and R and D. It will also make it more attractive for Canadian companies to develop and commercialize new technologies here at home rather than abroad.
We will be able to manufacture items that we can market around the world, which aligns with the Prime Minister's commitment that we will be exporting 50% more around the world in 10 years' time.
Why is this important? It is because we're stimulating competitiveness and productivity. We're lowering Canada's tax burden on investment.
These measures reduce the METR on new business investment by more than two percentage points. This will give Canada the lowest METR in the G7. A lower METR means we're more competitive in the investment climate, we lower the cost of capital for Canadian firms and we offer stronger incentives to invest in equipment, technology and innovation.
We're also crowding in private investment with this measure. By reducing the after-tax cost of buying new machinery and technology, Canada can generate billions in additional private sector investment. This strengthens Canada's productivity position at a time when global competition is intensifying.
We're also supporting academic growth and middle-class jobs. We heard from the Governor of the Bank of Canada at this committee several weeks ago. He spoke of Canada's having a stagnant growth rate and having to improve productivity. This measure is directly targeting that productivity. We should be able to produce higher wages over time, more efficient businesses, stronger economic growth and better global competitiveness for Canadian industries.
The Governor of the Bank of Canada told us here at committee that higher wages also improve affordability for Canadians. These are all good measures that are tied together. Then you have a local economic impact. For a region like mine in Atlantic Canada, these measures are going to help modernize our food processing facilities, and they're going to support the clean energy expansion in rural communities, which is badly needed in my province of P.E.I. We're going to strengthen our agri-food producers, processors and manufacturing. We're also going to encourage tech adoption and digital transformation for small and medium-sized businesses. This supports eastern P.E.I. to benefit directly from new investment and job creation.
Budget 2025's productivity superdeduction positions Canada as a global leader in investment competitiveness, and it's making it easier and more affordable for businesses to invest now. We are laying the foundation for stronger long-term growth, higher wages and a more productive Canadian economy.
We can relate that to the industry I came from. I was a dairy farmer for 40 years before I offered to run in the previous election. What I've seen from that industry is a real need for business people to adopt new technology. New technology comes at a high capital cost, particularly in agriculture. Most agricultural operations carry a larger than normal debt load. For 2024, I think the statistics show that the average debt load of a farm increased by 14%. Agricultural commodities are trading well, but we're in a world in which the cost of labour has gone up a lot and the cost of inputs has gone up. By offering accelerated tax breaks to all industries, particularly agriculture and agri-food processing, we're going to see farmers adopt more technology to address labour shortages and to address the need to be competitive in the world market.
For instance, in the dairy industry, robotic milking is becoming the norm rather than an infrequent investment. We're seeing many farms across Canada change over to robotic milking, which lessens the labour demand for a fairly intensive commitment on a dairy farm.
In my region, we also have a lot of seafood processors. Labour availability is a challenge to them. Pretty well every processor I visited over the summer spoke about the need for accelerated depreciation to help them modernize and bring in new technology for their fish processing plants.
I'm pleased to see this measure in the budget. I'm disappointed that we weren't able to get consensus on the member for Whitby's motion today. I think a study of the BIA while the House works through the process of bringing the bill here for implementation would be time well spent.
I would also like to encourage members opposite to reconsider. We'll be more than willing to stop debate if we can move to agreement on a BIA study.
Thank you, Madam Chair.