Budget 2008: "Disadvantage Canada"

Manufacturers, and car companies in particular, down on the budget. The Canadian Manufacturers and Exporters turned Flaherty’s theme of “Advantage Canada” right around on him:

The federal government may tout its budget as Advantage Canada, but for the nation’s largest business sector, it’s putting manufacturing at a competitive disadvantage.

“Disadvantage Canada, that’s what this budget represents for Canada’s manufacturing and exporting sectors,” said CME President Jay Myers. “We were very specific in what the nation’s most innovative industry needed and we received recycled ideas and pocket change at a critical time when we needed tangible solutions. It’s disappointing.”

Here’s the Automotive Parts Manufacturer’s Association. They’re not so happy, either:

Automotive Parts Manufacturers Association(APMA) applauds the Government of Canada’s efforts to increase competitiveness for manufacturers stemming from its Fall 2007 statement reducing corporate taxes and yesterday’s Budget which provided a modest extension to the accelerated depreciation of capital equipment by one year. We further acknowledge that funds have been allocated to the auto sector to research “green auto” initiatives and are encouraged by the suggested scientific research and experimental development program improvements.

However, fundamentally, we are disappointed in yesterday’s budget as it did not address the more immediate issues facing the majority of our member companies, the small and medium sized enterprises.  Many of the measures are good for the long term, but do nothing for a company that is not profitable in the short term.

APMA’s President, Gerry Fedchun commented, “…tax reductions are only good if you are profitable!  Our smaller members are not profitable today so they do not benefit from this.  In fact, without immediate intervention for our sector, there will be more plant closings in the near future.” 

APMA is part of the Canadian Manufacturing Coalition and we are supportive of their initiatives.  We look forward to continuing our work with government to ensure that Canada will have a strong and vibrant automotive parts manufacturing sector in the future.

APMA is Canada's national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry. APMA’s members account for approximately 90 per cent of Canada’s $32 Billion (2006) industry, employing 88,000 workers

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