Mr. Speaker, this Conservative government fully understands the very real needs of workers and communities that are feeling the impact of economic challenges.
While the Canadian economy remains strong, we are mindful of the challenges before us: global uncertainty, volatile markets and the difficulties confronting some of our traditional industries such as manufacturing and forestry. This is exactly why we have aggressively moved to support Canada's and Quebec's traditional industries.
Budget 2008 continues to build on the significant pre-emptive steps taken in the 2007 fall economic update and during winter 2008 to lower taxes for people and businesses, pay down debt, and provide targeted support to struggling communities.
To date, we have introduced $9 billion in tax relief, mostly broad-based for manufacturers and processors, and that will be by 2012-13.
We are also providing $1 billion for the community development trust to help provinces like Quebec assist in one-industry towns facing major downturns, communities plagued by chronic high unemployment, or regions hits by layoffs across a range of sectors such as manufacturing and forestry.
In budget 2007, we brought in a $1.3 billion temporary accelerated capital cost allowance for investments in machinery and equipment. In budget 2008, we extended that measure three years on a declining basis, which will provide the manufacturing and processing sectors with an additional $1 billion in tax relief.
University of Manitoba economics professor John McCallum, has applauded this initiative, noting, “Anything that is an incentive to invest in assets that make manufacturers and others more competitive is a good thing. This budget does that--”.
We are further supporting Canada's job creators by increasing the capital cost allowance rate 10% for buildings used in manufacturing and processing and to 55% for computers. Budget 2008 additionally provides greater accessibility to the enhanced scientific research and experimental development tax incentive program and additional funding to improve the administration of this program.
In budget 2008 we are also extending the targeted initiative for older workers to 2012, providing $90 million to a federal-provincial employment program that provides employment activities for unemployed older workers in vulnerable communities in order to encourage workforce participation.
We are also bringing forward numerous measures to specifically assist the forestry sector, such as: providing $10 million over two years to Natural Resources Canada to promote the forestry sector in international markets, investing $127.5 million in the forest industry long term competitiveness initiative to support innovation and assist the forestry sector to shift toward higher value products to tap into new markets, establishing a $25 million forest communities program that will assist 11 forest-based communities to make informed decision making on the forest land base, concluding a softwood lumber agreement, and restoring access to the U.S. market resulting in over $5 billion in duty deposits returned to Canadian producers.