2018 Fall Economic Statement - What it means for Guelph
November 27, 2018
Fall 2018 Economic Statement
There were many items in this year’s Fall Economic Statement, but I wanted to highlight just a few key areas that will help Guelph in this week’s announcement.
Helping businesses to invest in job creating efforts:
- Businesses can improve competitiveness by allowing immediate write off of for tax purposes, the full cost of machinery and equipment used in manufacturing or processing of goods, which will benefit all sizes and types of businesses. This will help our businesses to compete on the world stage, with the goal of increasing exports by 50% by 2030.
- Increase investment in the clean technology sector by allowing specified clean energy equipment to be eligible for an immediate write off at full cost, to help Guelph businesses to contribute to achieving climate change goals at the same time being more competitive.
- Accelerate innovation by accessing a further $800million over 5 years in the Strategic Innovation Fund. Removing barriers to trade within Canada will provide additional customers, in addition to the export customers we are looking for.
- Lowering the Marginal Effective Tax Rate on new business investment from 17.0% to 13.8%, giving Canada the lowest overall tax rate on new business investment in the G7 (lower than the USA!), to attract new investment to Canada for multinationals with offices here.
Helping build community in Guelph:
- Creating a Social Finance Fund, to assist charitable, non-profit, and social purpose organizations to access new financing, connecting them with non-government investors, making available $755million over 10 years, and an additional $50million over 2 years for social purpose organizations to improve their ability to successfully participate in the social finance market. This could generate $2billion over 10 years, and help create 100,000 new jobs.
- Implementing the $40 billion, 10-year National Housing Strategy, including working with Wellington County on projects to assist more people access affordable housing that meets their needs. We are working on the matching regional housing strategy in Guelph-Wellington to address housing affordability, affordable housing, and homelessness in our region.
- Introducing proactive pay equity legislation for federally regulated workers to promote equal pay for work of equal value. Creating the Employment Insurance Parental Shifting Benefit to support greater gender equality at home and in the workplace. Introducing the new Women Entrepreneurship Strategy, and Apprenticeship Incentive Grant for Women and the Pre-Apprenticeship Program.
Over the next several weeks we will be working with Guelph businesses and organizations on these initiatives. We will also be preparing priorities for the upcoming Budget 2019 that is expected in the spring. It is really gratifying to see the work we are doing together showing up as line items in the economic statement. It has been a dizzying three months, with work on ratifying the trans Pacific trade deal, to add to the trade deal with Europe, and landing on the new NAFTA deal with the USA. Now we will work hard to get as much benefit from these agreements as we can for Guelph businesses and the people working here to create prosperity in our community.