Sure. I'll just go through my recommendations quickly, then.
Having a marginal effective tax rate that is slightly better than the U.S. is likely not enough to attract foreign investment to Canada, as opposed to the large U.S. market. The government needs to continue to look for ways to enhance the competitiveness of the Canadian corporate tax environment.
AIAMC would also support the idea of federal government discussions with the provinces with separate provincial taxes, with a view to encouraging harmonization of the provincial retail sales taxes with the GST, if it makes sense. Such a move would assist investment by reducing tax on business and capital goods and on intermediate materials.
The government should attach a high priority to ensuring sufficient cross-border road and rail infrastructure to accommodate current and future trade volumes, so as to remove the border from the investment equation when investors are considering the three NAFTA countries.
Globally, countries are acutely aware of the importance of a local auto industry as an engine for economic growth and prosperity. Countries such as China and Korea have detailed long-term plans for the cultivation of their domestic industry. Canada needs its own detailed long-term strategy for its auto industry if it hopes to retain the industry over the course of the long term. Such a strategy needs to be equally cognizant of those who are actually manufacturing parts and assembling vehicles here now and those who potentially could do so in the future.
While public funds may be necessary as a demonstration of interest in attracting automotive investment, they should not be utilized to pick winners or losers among ambassadors.
The last recommendation I have is that the government needs to work to ensure that Canada retains its positive image regarding the high quality of life that is afforded skilled workers. Investment decisions can sometimes be swayed by the fact that its jurisdiction has a low crime rate, good health care facilities, reasonable housing costs and housing availability, which makes it easier to attract a skilled labour force that has significant discretion over which country they would like to work in.