Mr. Speaker, I am delighted to be back in the fall sitting of this beautiful House. I am sure I can speak for all my colleagues. We have enjoyed travelling about our ridings meeting with constituents from, in my case, coast to coast to coast.
I would also like to say an official welcome to the pages. This is an exciting time, a chapter in their life, and I hope they leave here with the passion that we have for this place.
I am pleased to have the opportunity to respond to the comments of the hon. member for Calgary Shepard regarding taxation. Our government understands the importance of small businesses to the Canadian economy, and that is why we are working hard to support our small businesses.
In January, the small business tax rate actually went down from 11% to 10.5%. The small business deduction has always included rules intended to prevent access to the same deductions among partners of the same corporation or partnership. The clarification of these rules will ensure that the application of the guidelines reflects the initial intent of the small business rate and will continue with a taxation framework that is supportive of SMEs.
Small and medium-size enterprises are crucial to the continued growth of our economy as well as to the creation of wealth and jobs for Canada. To put things in context, SMEs account for 99% of all businesses in Canada, represent 90% of the private sector workforce, and contribute about 40% to the GDP.
Recognizing the important role of SMEs and the hard-working middle-class Canadians who own and work for them, this government is committed to creating a strong business environment that ensures opportunities for growth within Canada and within our global market.
Prior to budget 2016, this government held many consultations across the country to ensure that all Canadians' voices would be heard. Therefore, the government is confident that the current tax environment supports growth and job creation for all small businesses, including health care professionals and small manufacturers.
As the Government of Canada continues to support small businesses in becoming more competitive in the global economy, I would like to highlight some of the initiatives that clearly enable SMEs to grow and thrive.
Our budget 2016 made available $800 million to support innovation networks and clusters to help businesses work more strategically and accelerate growth.
To assist firms in realizing their full potential, the government has launched the accelerated growth service to better coordinate support for high-potential firms to help them grow and increase their global competitiveness. Business advice and guidance are the keys to success for all SMEs.
The budget provided additional funding of $50 million to the highly successful IRAP, the industrial research assistance program. This support will increase the number of companies served by the program's highly qualified industrial technology advisors nationwide.
Throughout the development of the innovation agenda, we are encouraging creative entrepreneurs to innovate and to grow.
Consultations for the innovation agenda were launched in June, and innovation round tables have taken place across the country from coast to coast to coast throughout the summer. In the coming months, the ideas will inform the government's work to position Canada as a global leader of innovation in all fields.
For Canada to be globally competitive, we must continue to take a proactive approach to ensure we are best supporting our small and medium-size enterprises.
Our ongoing efforts and additional measures will catalyze further growth, innovation, and success for these critical companies in all areas of our country.