The Honourable Jim Flaherty, Minister of Finance, has introduced in Parliament Bill C-45, the Jobs and Growth Act, 2012. The Act implements key initiatives from Economic Action Plan 2012 to help grow Canada’s economy, fuel job creation and secure Canada’s long-term prosperity.
“With Canada achieving one of the strongest economic performances in the G-7 and over 820,000 net new jobs created since July 2009, our Government is on the right track for the Canadian economy and Canadian families,” said Minister Flaherty. “However, the global economy remains fragile, especially in Europe and the United States. That’s why we remain focused on supporting the economy with our pro-growth Economic Action Plan 2012.”
The proposed Jobs and Growth Act, 2012 will bolster Canada’s economy and help improve communities across Canada with initiatives that build a strong economy and create jobs; support families and communities; promote clean energy and enhance neutrality of the tax system; and respect taxpayers’ dollars.
Build a strong economy and create jobs by:
-Extending for one year the job-creating Hiring Credit for Small Business, which benefitted nearly 534,000 employers last year
-Promoting interprovincial trade
-Improving the legislative framework governing Canada’s financial institutions
-Facilitating cross-border travel
-Removing red tape and reducing fees for Canada’s grain farmers
-Supporting Canada’s commercial aviation sector
Support families and communities by:
-Improving Registered Disability Savings Plans
-Helping Canadians save for retirement by implementing the tax framework for Pooled –Registered Pension Plans
Improving the administration of the Canada Pension Plan
-Strengthening the Canadian Environmental Assessment Act, 2012
Promote clean energy and enhance neutrality of the tax system by:
-Expanding tax relief for investment in clean energy generation equipment
-Phasing out tax preferences for the mining and oil and gas sectors
Respect taxpayers’ dollars by:
-Taking landmark action to ensure the pension plans for Members of Parliament, Senators and federal public sector employees are sustainable, financially responsible, and broadly consistent with the pension products offered by other jurisdictions as well as fair relative to those offered in the private sector
-Closing tax loopholes
“Ongoing global economic turbulence and competition from emerging economies mean the Government must act now to build a stronger economy,” said Minister Flaherty. “Delaying needed economic and fiscal reforms would only serve to lead Canada down the same road as the troubled European and U.S. economies.”
Ontario Ahead of Target on Lowering Deficit – Duncan
The deficit projection for the current fiscal year has improved by more than $400 million from the 2012 Budget forecast to $14.4 billion. The province remains on track to meet the 2012 Budget deficit targets in 2013-14 and 2014-15 and for the deficit to be eliminated by 2017-18.
“Despite ongoing global economic uncertainty, Ontario is ahead of its targets for lowering the deficit for the fourth year in a row. We will work with anyone who is willing to work with us to meet the objectives of eliminating the deficit and protecting jobs and public services,” stated Minister of Finance Dwight Duncan.
Ontario is projecting growth in real gross domestic product (GDP) of 2.0 per cent in 2012, 1.9 per cent in 2013, 2.3 per cent in 2014 and 2.4 per cent in 2015.
As of September 2012, Ontario employment was 356,000 net new jobs above its recessionary low in June 2009. Ontario is expected to create nearly 350,000 net new jobs by 2015, reducing the unemployment rate to 6.8 per cent from a high of 9.4 per cent in June 2009.
The fiscal plan provides no funding for incremental compensation increases for new collective agreements. The government is currently consulting on draft legislation that proposes to freeze compensation for executives and managers across the Ontario Public Service, and the Broader Public Sector (BPS) who are eligible for performance pay. It also proposes to ensure future BPS collective agreements are consistent with the province’s goals to eliminate the deficit and protect jobs and public services. The proposed draft legislation would support avoiding increased spending in the BPS of $2.8 billion over three years and help to protect roughly 55,000 public sector jobs.