April 4, 2007
Manitoba's Manufacturing Success Exceeds National Average: Selinger
Budget 2007 continues to build a positive economic environment to support Manitoba’s strong manufacturing sector, Finance Minister Greg Selinger said today.
“Manitoba manufacturers shipped $14 billion worth of goods last year, an all-time record reflecting the strength of the province’s manufacturing sector despite the competitive pressures of a high Canadian dollars and a slower U.S. market,” said Selinger.
Manufacturing accounts for approximately 12 per cent of provincial output and 11 per cent of employment in Manitoba, the minister noted, adding that additional co-operative measures with government and the manufacturing sector are expected to strengthen competitiveness and productivity.
He said innovative tax credits have helped the sector succeed and new measures in Budget 2007 are designed to help build future successes including:
· introducing a new 10 per cent Green Energy Manufacturing Tax Credit to encourage new and expanded manufacturing of machinery and use of equipment to produce renewable energy;
· renewing and enhancing the Manufacturing Investment Tax Credit by increasing the refundable portion to 50 per cent from 35 per cent;
· supporting a parallel, short-term federal incentive that allows manufacturers and processors to write off machinery and equipment at 50 per cent per year;
· reducing the general corporation income tax rate, which will drop to 13 per cent July 1, 2008, and to 12 per cent one year later, subject to balanced budget requirements; and
· phasing out the corporation capital tax by 2011, subject to balanced budget requirements, to help manufacturers invest in new technology for their businesses.
“Capital investment in manufacturing grew by 16 per cent in Manitoba last year, with a further
30 per cent increase expected this year,” the minister said. “This level of activity is high compared with national growth of only 0.1 per cent in capital investment for manufacturing in 2006.”
30 per cent increase expected this year,” the minister said. “This level of activity is high compared with national growth of only 0.1 per cent in capital investment for manufacturing in 2006.”
Other measures to improve Manitoba’s overall competitive advantage include reducing red tape and moving towards single window service delivery, expanding BizPaL, an Internet-based, one-stop shop for accessing permits and licences for business, streamlining tax filing and remittance, and introducing online filing for the Manitoba retail sales tax.
The minister also noted that reductions in personal taxes will help industry attract and retain qualified and professional staff. In addition, the tuition tax rebate will help encourage youth to put down roots and establish their careers in Manitoba and is expected to be a powerful recruitment tool for business in a highly competitive job market, he said.
“Highway investments, particularly in PTH 75 to the U.S. border, ensure Manitoba’s manufactured goods travel safely and quickly to markets south along the mid-continent trade corridor and to other provinces to the east and west,” said Selinger.
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