$620 million to counter the loonie’s rise

The press conference was held in Fordia’s head office, a perfect example of the type of business targeted by the plan. This announcement comes at a time where the Canadian dollar is slowing down, but the damages it inflicted over the past year forced the government to act immediately. Quebec’s exportations diminished by 4% since the beginning of the year and more specifically decreased by 7.1% towards the United States.

“The economy is changing rapidly and it can be seen by the rise of the Canadian dollar and the price of oil. The international competition is also more intense,” said Mr. Charest. “All that combined has a brutal effect on our economy.” The premier also reminded that the manufacturing sector makes up 19% of the province’s economic activity and that one out of six jobs is related to the field.

In 2008, companies that pay income tax in monthly or quarterly instalments will be able to defer payment until the end of the year. The government estimates that this measure will allow manufacturers to access $500 million in additional cash flow at minimal cost to the public treasury. The capital tax credit, available to companies that invest in new equipment, has been boosted from 10% to 15% and now accounts for $30 million. The government also increased the capacity of intervention of the taxed funds by $28 million and instituted a 30% refundable corporate income-tax credit for worker training.

Furthermore, a network of expert advisers will be established at a cost of $51 million and a manufacturer’s council, co-presided by Economic Development Minister Raymond Bachand and former Rolls Royce Canada president Pierre Racine, will be formed.

“Our industries are highly concerned by this subject, especially in a time where some economic sectors are hurt. We need to be more competitive on the international level to allow our industries to perform in the exportation market.”

(Photo: Martin Alarie)