INDU Committee Report
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APPENDIX A
SUMMARY OF RECOMMENDATIONS
MADE BY WITNESSES
|
Policy Issue |
Recommendation |
Witnesses |
|
Monetary |
§ Encourage the Bank of Canada to relax its interest rate policy to reduce the upward pressure on the Canadian dollar |
Canadian Auto Workers Union |
|
Taxation |
§ accelerated depreciation for equipment and technology investments
§ accelerate capital cost allowance system
§ capital cost allowance rates: match useful life of assets to economic realities § go back to two-year write-off capital cost allowance system § reduce taxes on business investment
§ reduce taxes on capital gains § accelerate planned reductions in corporate income tax § make SR&ED tax credits more accessible
§ ensure meaningful advantage in the overall corporate tax rate with respect to the United States § corporate income taxes should be reduced to 17% from 21% over four years § take steps to ensure a highly competitive tax structure (e.g., marginal effective tax rates) § reduce marginal tax rates on personal income for low to modest income families ($25-45 000), and evaluate “claw backs” (reductions in GST/child benefit allowances due to income increases) § increase threshold for highest rate to $150,000 from $118,000 § harmonize provincial retail sales tax with the goods and services tax (GST) § introduce tax relief for work relocation expenses § if government provides incentives for people to buy vehicles, it should take a technology-neutral approach |
Fédération des travailleurs et travailleuses du Québec Canadian Manufacturers and Exporters and Canadian Apparel Federation and Forest Products Association of Canada Canadian Chamber of Commerce Canadian Manufacturers and Exporters and Canadian Plastics Industry Association Global Insights Inc. and Forest Products Association of Canada Global Insights Inc. Global Insights Inc. Canadian Plastics Industry Association and Canadian Textiles Institute and Canadian Apparel Federation and Aerospace Industries Association of Canada Canadian Council of Chief Executives Canadian Chamber of Commerce Association of International Automobile Manufacturers of Canada and Forest Products Association of Canada Canadian Chamber of Commerce
Canadian Chamber of Commerce Association of International Automobile Manufacturers of Canada and Canadian Council of Chief Executives Canadian Manufacturers and Exporters General Motors of Canada Ltd.
|
|
Trade |
§ focus on regional and bilateral trade agreements that provide effective market access § Canada needs to keep focused on the importance of the multilateral trade regime and keep making an active contribution to bringing down barriers globally § continue to press for liberalized trade environment
§ withdraw from free trade negotiations with South Korea § identify a solution that will achieve a sustainable manner of opening up South Korea’s automotive market imports (e.g., market metric approach, with tariff snap-backs) § LDC rules of origin need to be revisited § all custom duties on fabric should be removed as long as these fabrics are not produced in a commercial way in Canada § improve implementation of trade rules at our borders to protect against importation and exportation of counterfeit products § enforce trade rules and protect intellectual property rights to maintain domestic and U.S. confidence in our trading partnership § work closely with counterparts in U.S. on issues surrounding Western Hemisphere Travel Initiative |
Canadian Manufacturers and Exporters Canadian Council of Chief Executives
Canadian Chamber of Commerce
Canadian Auto Workers Union Canadian Vehicle Manufacturers Association
Canadian Textiles Institute Apparel Manufacturers Institute of Quebec
Canadian Manufacturers and Exporters
Canadian Council of Chief Executives
Canadian Manufacturers and Exporters
|
|
Labour Skills |
§ speed up processing of skilled immigrant workers and selection of those with needed skills § ensure the work permit system responds to labour needs § need to enhance efficiencies in getting people into the country to fill labour needs; more resources focused on target areas (e.g., Asia) § better integrate immigrants and Aboriginal people into workforce § improve recognition of credentials
§ facilitate more effective integration of immigrants into appropriate employment by more effective certification policies, and reduce the inter-provincial barriers to certification of trades and professions § put in place a national, coordinated, streamlined accreditation system, starting with a focus on up to 10 “crisis sectors” with most severe skill shortages § introduce ways to offset employee training costs against other payroll taxes (e.g., Employment Insurance program) § training leave within the Employment Insurance system § Place more emphasis on continued upgrading and provision of skills § federal government, provincial governments and private sector should increase commitment to employee training § revise the Employment Insurance policy § increase the incentive for inter-provincial migration to more promising labour markets § increase investment for higher education § increase funding for apprenticeships § tax incentives for SMEs, recognizing their role in providing apprenticeships and training that usually end up benefiting larger organizations § consider incentives to enhance training opportunities for certain companies, especially focusing on small and medium-size enterprises § Reintroduce Program for Older Worker Adjustment (POWA) |
Canadian Manufacturers and Exporters Canadian Manufacturers and Exporters Canadian Manufacturers and Exporters
Canadian Chamber of Commerce Canadian Chamber of Commerce Canadian Chamber of Commerce and Canadian Wood Council
Conference Board of Canada
Canadian Manufacturers and Exporters
Fédération des travailleurs et travailleuses du Québec Bank of Canada Global Insights Inc.
Global Insights Inc. Global Insights Inc.
Canadian Chamber of Commerce Canadian Chamber of Commerce Association Québécoise de l’Aérospatiale
Canadian Chamber of Commerce
Fédération des travailleurs et travailleuses du Québec |
|
Energy Framework |
§ develop an energy strategy to support a competitive business environment § consider energy from a continental perspective § develop a national policy on energy and resources § provide incentives and expertise to industrial producers to support energy efficiency § develop an energy framework which ensures adequate feed stock for manufacturing and the stabilization of energy prices |
Canadian Chamber of Commerce Canadian Chamber of Commerce Canadian Auto Workers Union and Fédération des travailleurs et travailleuses du Québec Fédération des travailleurs et travailleuses du Québec Canadian Plastics Industry Association |
|
Industrial |
§ federal government should encourage reduced subsidization of manufacturing sectors § continue offering support for strategic major investments in the auto industry by participation in the Canadian Automotive Partnership Council § government loan guarantees § direct subsidies for new equipment § use money from Canada Pension Plan to fund capital investments for SMEs § procurement policies for Canadian content, which could be used along with marketing programs to promote Canadian products to Canadians § continue programs under Canadian Apparel & Textiles Industries Program (CATIP) § implementation of an outward processing program for the textile industry (imported apparel made with Canadian textiles would enter Canada duty free) § Opposed to the recommendation for outward processing § TPC should continue with adequate resources and recognizing the changing nature of R&D investment through the R&D continuum § programs should reserve a portion of funding for SMEs (e.g., aerospace). § government and funding agencies should distinguish between different phases of R&D, and treat each differently. § provide support for organizations to deal with U.S. regulations International Treaty on Arms Regulations (ITAR) § Promote the use of wood in non-residential construction |
Global Insights Inc.
Canadian Auto Workers Union
Fédération des travailleurs et travailleuses du Québec Fédération des travailleurs et travailleuses du Québec Fédération des travailleurs et travailleuses du Québec Apparel Manufacturers Institute of Quebec
Apparel Manufacturers Institute of Quebec Canadian Textiles Institute
Apparel Manufacturers Institute of Quebec Aerospace Industries Association of Canada
Association Québécoise de l’Aérospatiale Association Québécoise de l’Aérospatiale
Association Québécoise de l’Aérospatiale
Canadian Wood Council |
|
Regulatory |
§ Speed up regulatory approvals (in pharmaceutical industry) § implement Bill C-212 § eliminate regulatory and paper burden § institute a regulatory review process: measure regulatory burden, institutionalize measurement and reporting § regulatory regime should enable labour mobility and minimize disincentives to relocation § follow recommendations from 2004 external advisory committee report on smart regulation § simplify, rationalize and evaluate the current regulatory framework § regulations should have net accounting (economic, environmental, health, etc.) § Review Competition Act to ensure the application of merger review more fully accounts for economies of scale |
Canadian Manufacturers and Exporters Canadian Federation of Independent Businesses Canadian Federation of Independent Businesses Canadian Federation of Independent Businesses
Canadian Council of Chief Executives Canadian Chamber of Commerce and Canadian Wood Council Conference Board of Canada Conference Board of Canada
Forest Products Association of Canada |
|
Inter-provincial Trade and Infrastructure |
§ develop a binding dispute resolution mechanism for inter-provincial trade § need a national transportation infrastructure strategy, including discussion of public-private partnerships § enhance the physical infrastructure at the Canada-U.S. border |
Conference Board of Canada Canadian Chamber of Commerce
Canadian Auto Workers Union |
|
Security |
§ Security & Prosperity Partnership initiative should remain a top priority |
Canadian Chamber of Commerce |