Update on jobs and the economy
December 29, 2011

As we look ahead to all that 2012 holds for us, I wanted to follow through on my promise to continue to update you on some of the things I have been working on, on your behalf.  In my 2011 Year End Report (available at www.leonbenoit.ca), I outlined some of the major accomplishments which stood out for me, however there were too many to cover fully and I wanted to address some of the key topics which will continue to be priorities for us over the coming months and years.

As I’m sure you are aware, our Government’s main focus has been, and remains, the economy and jobs. In fact, the Prime Minister continues to show world class leadership. On the economic front we are told repeatedly by other countries that they can only wish that their fiscal house was as strong as ours. The International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD) forecast that Canada’s economy will remain among the strongest in the G-7 this coming year (2012).  Additionally, the World Economic Forum, for the fourth consecutive year, ranked Canada’s banks as the soundest in the world.

Finance Minister Jim Flaherty is working with Finance Ministers from around the globe to try to avoid a repeat of the 2008 economic slowdown. In Canada we continue to work to both lower taxes and spending.  The deficit needs to be reined in and we have a plan to do that.

Since July 2009, Canada has created nearly 600,000 net new jobs and our Economic Action Plan has guided Canada through the worst recession since the 1930s.

 

WE’RE TAKING ACTION TO HELP PROTECT AND CREATE JOBS BY:

  • providing a temporary Hiring Credit for Small Business to encourage additional hiring by those who account for nearly half of private sector job creation;
  • extending work-sharing agreements by up to 16 weeks, so companies can avoid layoffs by offering EI benefits to workers willing to work a reduced work week while their company recovers;
  • extending the Targeted Initiative for Older Workers to support training and employment programs for older workers;
  • supporting the manufacturing and processing sector by extending the accelerated capital cost allowance treatment for investments in manufacturing and processing machinery and equipment for two years;
  • extending the temporary 15 per cent Mineral Exploration Tax Credit for an additional year (until March 31, 2012) to continue to help companies raise capital for mineral exploration; and
  • enhancing the Wage Earner Protection Program to cover more workers affected by employer bankruptcy or receivership.

WE’RE TAKING ACTION TO PRESERVE CANADA’S FISCAL ADVANTAGE BY:

  • reaffirming the Government’s plan to return to balanced budgets without raising taxes, cutting transfers to persons, including those for seniors, children and the unemployed, or cutting transfers to other levels of government that support health care and social services, Equalization, and the gas tax transfer to municipalities;
  • conducting a Strategic and Operating Review to identify savings and efficiencies, as part of our Deficit Reduction Action Plan; and
  • protecting the integrity and fairness of the Canadian tax system by closing tax loopholes.

 

WE’RE TAKING ACTION TO PROMOTE ECONOMIC GROWTH BY:

  • negotiating trade agreements with about 50 countries to open new markets for Canadians;
  • providing approximately $2 billion of predictable, long-term infrastructure funding for municipalities through the Gas Tax Fund; and
  • reintroducing a bill to remove barriers to interprovincial trade.

 

WE’RE TAKING ACTION TO PROMOTE EDUCATION AND INNOVATION BY:

  • helping apprentices in the skilled trades and workers in regulated professions by making occupational, trade and professional examination fees eligible for the Tuition Tax Credit; and
  • enhancing and expanding eligibility for the Canada Student Loan and Grant Program for part-time and full-time post-secondary students.

 

WE’RE TAKING ACTION TO SUPPORT AGRICULTURE & FORESTRY BY:

  • introducing legislation to give Canadian wheat and barley farmers the freedom to market their grain as they choose (Marketing Freedom for Grain Farmers Act, which received Royal Assent in December);
  • announcing the Agricultural Innovation Initiative to support the creation and commercialization of agricultural innovations;
  • extending the Initiative for the Control of Diseases in the Hog Industry;
  • improving the food inspection capacity of the Canadian Food Inspection Agency; and
  • helping forestry companies innovate and tap into new opportunities abroad.

 

Is there more which can be done?  Of course there is.  In contrast to both the Liberal and New Democrat Parties which promised to raise taxes on Canadian families and businesses, we believe a balanced budget is essential to economic growth, and we have a clear, three-point plan to bring the budget back into balance:

  • Winding down extraordinary stimulus spending in Canada’s Economic Action Plan on time and as scheduled;
  • Restraining government spending through targeted measures such as:
  • freezing the salaries of the Prime Minister, Minister, MPs and Senators for three straight years;
  • freezing the budgets of Ministers’ offices, again for three years running; and
  • Launching a comprehensive review of government spending on administration and overhead, including:
    • continuing with and adding to a number of program review processes; and
    • taking action to close unfair tax loopholes.

Certainly, no Department, Agency or Program should assume their funding is set in stone. We made it clear in 2006 that our Government would conduct annual reviews of spending. We also promised to ensure value for money and further to that commitment we have undertaken reviews of government programs and policies to verify that Canadians are getting what they pay for. All federal departments, agencies and Crown corporations, have been asked to identify and to propose efficiencies.  The results of this process will be part of Budget 2012.

I also encourage all constituents to participate in one or more of the townhalls I will be hosting at the end of the month. I want your feedback about what is working, what could be improved, and suggestions about cost-neutral or non-spending steps the federal government might undertake to help create jobs and promote economic growth. Once the dates, locations and times have been confirmed the information will be posted on my website at www.leonbenoit.ca.

Happy New Year!