Greater Kitchener Waterloo Chamber Says Modest Steps Help Region

Kitchener – The 2008 federal budget was announced and outlined the government’s intentions for the upcoming year. Focal points included extension of the accelerated capital cost allowance for manufacturers, more investment in municipal capital infrastructure, and a commitment to reduce the federal debt.

Finance Minister Jim Flaherty took a conservative approach to this budget drawing attention to some of the major issues facing Canada’s communities including competitiveness and infrastructure investment.

The accelerated capital cost allowance was encouraged by local manufacturers through the Chamber’s pre-budget submission. An extension from 2 to 5 years means an additional $1 Billion dollars will be available for investment in new machinery and equipment. As well, in an effort to keep the Canadian auto sector at the cutting edge, 250 Million was announced for an Automotive Innovation Fund to expand research and development related to the auto industry.

“The Finance Minister showed fiscal prudence and touched on all the right expenditures in a small, but effective way,” said Todd Letts, President & CEO. “We encourage our local MPs and MPPs to work together to ensure infrastructure and transit investment announced today is made in Waterloo Region.”

Approximately $500 Million is being designated to support capital investments in public transit. This is of particular interest to Waterloo Region given its current Light Rapid Transit proposal. No particular mention was made of our regional proposal. A permanent commitment was made via the Gas Tax Fund, meaning $2 Billion in 2009 will be available for infrastructure investment. This is important given the estimated $123 Billion infrastructure deficit across Canada. In the Chamber’s 2007 pre-budget submission, we highlighted the need for debt reduction and personal income tax reduction. $10.2 Billion dollars will be allocated toward the reduction of the federal debt in 2007-08.

Minister Flaherty recognized the importance for Canadian’s to save for the future. To support this he announced a program that will start in 2009 which will allow Canadians to contribute $5000 a year to a tax free account.