BRIEF FROM THE ASSOCIATION
OF EQUIPMENT MANUFACTURERS
With the stability of a majority government the Association of
Equipment Manufacturers (AEM) hopes that we can strengthen our excellent
working relationship and continue to support parliament as you tackle the
important work of managing a fragile economic recovery.
Recently the Canadian Manufacturers & Exporters (CME) filed a
submission to the Committee for consideration as part of the Pre-Budget
consultations. I wanted to ensure that as you begin the challenging task of
making recommendations for Budget 2012 that you were aware of the strong
support that AEM has for CME’s submission.
Canadian manufacturers, processors and farmers - those who buy and
use heavy equipment - compete on a global
basis. They must continually invest in modern equipment that allows them
to achieve unmatched productivity gains. As well, the companies that make this
equipment face increased competition from emerging markets.
That is why we support the recommendations contained in the CME’s
submission that will set the conditions for Canadian companies to succeed and
grow:
1) Invest more in machinery and
equipment: make the two-year write-off for manufacturing and processing
machinery and equipment a permanent part of the tax system.
2) Increase R&D spending by
improving the current Scientific Research & Experimental Development
(SR&ED) tax credit system.
3) Invest in their workforce by providing an
Employers’ Training Tax Credit creditable
against Employment Insurance premiums.
4) Expand trade by pursuing bilateral trade
agreements and aggressively negotiating
with our trading partners to eliminate trade barriers.
We believe that the four recommendations will allow Canadian
manufacturers to continue to compete in the global market and protect a vital
sector in the Canadian economy employing over 1.7 million Canadians.
The Association of Equipment Manufacturers (AEM) is the North
American‐based
international trade group representing some 800 companies that produce and market
equipment, products and services used worldwide in the agriculture, construction,
forestry, mining and utility sectors. These companies manufacture a wide
variety of equipment, from large earthmovers and agricultural equipment to
smaller hand‐held,
portable and walk‐behind
machinery ‐ designed
to handle a myriad of specialized tasks.
AEM members make the
machines that provide the productivity to feed, build and power the world.