Mr. Speaker, I thank the hon. member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup for the opportunity to outline the extensive support that this government has delivered for the manufacturing and forestry sectors. This government acknowledges that these sectors are important components of our economy and we have advanced both broad based and targeted tangible measures to demonstrate our commitment to help these sectors succeed.
Indeed, since 2006 we have provided over $9 billion in support for the manufacturing and forestry sectors. Measures include support for workers and communities, such as the recently announced $1 billion for the community development trust. This important program will help provinces and territories assist one industry towns facing major downturns, communities plagued by chronic high unemployment, or regions hit by layoffs across a range of sectors, including manufacturing and forestry.
Reaction to this announcement has been very positive. British Columbia's Liberal forestry minister, Rich Coleman, has called the trust very good news. Manitoba's NDP premier, Gary Doer, also praised the trust, remarking he was “very pleased with the flexibility because it allows us to target in Manitoba some of the industries that are under pressure”.
We have also moved to create a more competitive tax system to help manufacturing and forestry businesses be successful and sustain that success.
Indeed, the tax reductions announced by this government, the majority of them broad based, will result in over $8 billion in tax relief for manufacturers and processors over the period of 2006-07 to 2012-13. This includes tax reductions totalling about $2.5 billion in this and the next five years. The October 2007 economic statement included reducing the general corporate tax rate to 15% by 2012. A budget 2007 measure allows manufacturing firms to write off their investment in machinery and equipment much more quickly. There are permanent faster writeoffs for computers and buildings used in manufacturing to better reflect the useful life of these assets. These are important measures that will go far in ensuring that our manufacturers can thrive in a competitive global marketplace.
For instance, referring to this government's action to lower corporate rates to 15%, Jayson Myers, who is president of Canadian Manufacturers & Exporters and chair of the Canadian Manufacturing Coalition, stated the following:
The reduction in the federal corporate tax rate is an extremely important step in sustaining Canada's ability to retain and attract business investment. It keeps us in the game as countries around the globe are lowering their tax rates to do the same. This reduction is important to the long-term competitiveness of the Canadian economy.
These are not band-aid solutions but measures in the best interests of the economy and job creation. We are leaving more money in the hands of manufacturers to invest in new technology to become more productive and competitive.