Mr. Chair, I thank the member for his question.
I am very proud of the fact that the economic fundamentals of this country are strong. I am very proud of the fact that the government anticipated the economic slowdown this year. I am very proud of the fact that our government anticipated that the U.S. housing sector would, in fact, go into recession and that we took steps in advance.
Yes, we had the very helpful advice of the industry committee of which the hon. member is a member. We had its strong advice with respect to the proposed accelerated capital cost allowance. We took its advice. The member for Edmonton—Leduc was chair of the committee. This was important advice. We brought in the two year writedown on the accelerated capital cost allowance and then extended it in budget 2008 going forward for three more years on a declining basis. This is a great help to industry in Canada.
Why is this important? Just as the industry committee had noted, and the member knows this through his very helpful participation in that committee, if we are going to have a sustainable forestry industry in Canada, and if we are going to have a sustainable auto sector and auto parts sector in Canada, they must be sophisticated technologically.
How can these companies afford to move forward and acquire the technology that they need? They can do it if we help them in the federal government and make sure that we make manufacturing and processing equipment more affordable. This is helped also by the appreciation of the Canadian dollar vis-à-vis the U.S. dollar because it makes a lot of this technology priced in U.S. dollars more affordable.
That is why we are seeing an increase in the acquisition of modern technology, machinery and equipment. Because we take the longer term view, we applaud business for taking advantage of this tax change, so they can get this machinery and equipment so that in the longer term they will be sustainable, competitive and be able to provide long term job security for Canadians.