Canadian chemistry industry lobby weighs in on air-quality and tax measure
The Chemistry Industry Association of Canada (CIAC) has had a busy week, making its positions known on air-quality and tax measures. The group offered support to Canada’s federal, provincial and territorial environment ministers for their adoption the Comprehensive Air Management System (CAMS) proposal at the meeting of the Canadian Council of Ministers of the Environment. According to the CIAC, the CAMS approach was championed by a group of industry, health and environmental organizations. It represents a comprehensive approach to Canadian air-quality management, and sets ambitious standards for all sources of air pollution, including industrial, transportation, agricultural, residential and trans-boundary sources. CAMS establishes baseline industrial emissions standards across the country, and places more demanding requirements on industrial and other sources of pollution, where required, to reduce their contribution to poor local and regional air quality.
On the subject of Canadian tax measures, the CIAC supports a five-year extension of the accelerated capital cost allowance (ACCA) for new machinery and equipment, first introduced in the 2007 federal budget. Unlike a tax cut, the ACCA allows businesses to defer the taxes they pay at the beginning of a project – when cash flow is most urgently needed – until a later date.
“A five-year extension of the ACCA is critical for Canadian manufacturers,” says Richard Paton, president of the Chemistry Industry Association of Canada. “Investing in new machinery and equipment will make our manufacturers more productive and competitive, will foster innovation and reduce emissions, and will ultimately make our manufacturing sector more sustainable.”
The current ACCA (which is only available to businesses once new machinery or equipment is installed) will expire at the end of 2011.
“That time frame is simply too short for many manufacturers to benefit,” said Mr. Paton. “Most large-scale manufacturing projects take around five years from the initial planning and approvals stage, to the point where the machinery or equipment is installed. So without a five-year time frame, the ACCA is failing to ensure that big projects – and the large number of jobs that they promise – get off the ground.”
Comments