OTTAWA — The Canadian Construction Association (CCA) is praising several initiatives unveiled by Finance Minister Bill Morneau in the federal government’s fall economic statement, which was tabled in the House of Commons Wednesday.
In particular, the CCA highlights measures that include a new tax write-off that allows manufacturers to immediately recoup the full cost of machinery and equipment, as well as a new capital cost allowance that is meant to encourage businesses to invest in assets that drive long-term growth by allowing them to deduct the costs of those investments sooner.
The CCA states the faster depreciation of equipment will improve productivity.
“Many of our firms are capital intensive and the depreciation will free up significant funds that the firms will use to improve their productivity through innovation, technology or equipment purchases,” a release reads.
The federal government also committed to introducing prompt payment legislation, which the CCA states is “a clear demonstration that the government is listening to the members of the construction industry.”
The economic statement also outlined a new commitment to Canada’s export-enabling infrastructure, which the CCA said is “an endorsement of the role construction plays in strengthening both Canada’s domestic economy and in opening doors for Canadian firms to markets around the world.”
Innovation and funding for entrepreneurs, apprentices and workers was also welcomed by the association.
“CCA has been advocating for prompt payment, accelerated depreciation, support for attracting under-represented segments into construction as well as for increased funding for innovation and infrastructure,” said Mary Van Buren, CCA president, in a statement. “These commitments by the government are essential to enabling Canadian construction firms to compete more effectively in Canada and around the world.”
The Daily Commercial News will have more details as well as construction industry reaction on the fall economic statement in an upcoming article.