CANADA IS OPEN FOR BUSINESS

Serving as an active Member of Parliament in Canada, and Chairman of both the Parliament’s Standing Committees on Foreign Affairs & International Development, and  on International Trade, I have had the unique opportunity to participate firsthand in the changes that our Conservative Government has implemented since taking power.

These changes have made our country more competitive on the commercial scene and more attractive for investors.  But we intend to do more.

Since the Conservatives first came to office in 2006, we have cut taxes and removed barriers that have previously served to not only stifle business development, but to actually drive it away.  

We did this as a minority government, governing with a coalition of parties as we did not have an absolute majority of seats.  That changed with last month’s elections on May 2, when Conservatives won 167 out of the 308 seats in Parliament.  This frees us to cut taxes and remove stifling barriers more than ever.

We will continue to invest heavily in research and development projects which has encouraged private sector innovation, and make it easier for businesses to grow and hire the best people for the job.

As a result of implementing some financial measures such as the elimination of the Corporate Surtax on all corporations, plus the Federal Capital Tax, large corporate entities have made the move and have relocated their businesses to Canada.

We intend to make Canada even more attractive for businesses to locate in Canada.

We are making significant strides to encourage the development of small and medium-sized businesses by increasing the income limit for small businesses to $500,000 from $300,000, and reducing the small business tax rate to 11% from 12%.

Canada has already achieved an overall corporate tax rate of 16.5% on large corporations  after our gradual reduction since 2006 from 21%.  This is one of the lowest rates in the OECD (Organization for Economic Co-operation and Development), as you can see from this chart:

And we are committed to making it lower!  I’m sure you can’t help noticing by comparison that the US corporate tax rate is the OECD’s highest – indeed it is the highest in the entire world.

I have also had a front and center role to play when it comes to reducing the burden of bureaucratic red tape for businesses through my appointment by our Prime Minister Stephen Harper as a member of Canada’s Red Tape Reduction Commission.

As a result of our team’s roundtable discussions held across the country with stakeholders and business leaders, we have achieved an overall cut in the red tape burden for job creators of 20%. But, there is still much more to do, and in our election platform, a commitment was made that when a regulation is added, one will be dropped!

Our Government is not only reducing the tax and red tape burden for businesses, but we are also seeking to offer a helping hand too. We have sought to achieve this goal both through assistance offered towards budding entrepreneurs, as well as grants for research and development in the private sector.

In fact, our Government has made significant new investments in science and research in the last five federal budgets, and Federal spending on science and technology is expected to reach a record $11.7 billion this year. This investment has resulted in Canada leading the pack in its support of higher education research and development as a percentage of GDP in the G7.

Some recent investments in research and innovation include $200 million towards the National Research Council’s Industrial Assistance Program to assist small and medium-sized businesses, and $750 million to the Canadian Foundation for Innovation for leading-edge research infrastructure.

The College & Community Innovation Program’s Applied Tools & Instruments Program also just announced 79 projects totaling $8 million to support the purchase of research equipment and installations to foster and enhance the ability of colleges to undertake applied research.

It is also important to note that one of Canada’s greatest strengths has always come from the ambience of cooperation that it shares with other countries in the world.  

Being directly involved with the Standing Committees on Foreign Affairs & International Development, and on International Trade, I have had the tremendous opportunity to proactively participate in the development of these international relationships.

Since 2006, Canada has signed free trade agreements with eight countries including the European Free Trade Association, Peru, Colombia, Jordan and Panama. We have also inked Economic Partnership Agreements with the Dominican Republic, the Caribbean Community, the European Union, India, and Ukraine. Looking forward, our Government has also entered into Free Trade talks with an additional 45 countries.

The importance of welcoming hard-working immigrants to our country is tantamount to our success, and our Government is proud to further strengthen our immigration policies through our efforts at supporting foreign credential recognition.

To this end we have allocated $50 million through our Economic Action Plan to simplify the process of recognizing the foreign credentials of a number of priority occupations including engineers, physicians and pharmacists.

Of course no discussion of International Trade would be complete without mention of Canada’s unique and prosperous relationship with the United States.

With each of our countries being the other’s largest export market, it is imperative that our two countries continue to develop solid strategies and practices to help cut regulatory barriers to cross-border trade, which will ultimately improve competitiveness on both sides of the border. Indeed, President Obama and Prime Minister Harper recently announced that such a strategy is already in the works.

Having had the chance to bear witness to the plethora of changes that our Conservative Government has made so far to encourage the growth and innovation of private business in Canada, it is truly satisfying to see the dividends that these changes have already delivered for Canada.

Having come through some of the worst economic times the world has experienced, with many countries still recovering, Canada held fast and continues to lead the way.  This is why Canada’s GDP is now growing at double that of the US:  3.9% vs. 1.9%.

With a refreshed mandate from the Canadian people and a majority Conservative government, more than ever we can clearly say that, Canada is open for business!  I welcome you to come see for yourself.

A successful entrepreneur before entering politics, Dean Allison is the Member of the Canadian Parliament for Niagara West-Glanbrook, Chair of the Standing Committee for Foreign Affairs & International Development, and is the favorite to be elected Speaker of the Parliament on June 05.