More Pre-Budget Consultations For Canadian Businesses

by Mike Godfrey, Tax-News.com, Washington

Friday, January 27, 2012

Canadian government ministers have continued to hold pre-Budget consultations, engaging with representatives of small and medium-sized businesses and the information and communications technologies sector.

Two separate round table discussions were held on January 25, as the process of consulting on Finance Minister Jim Flaherty's forthcoming Budget continues. Gary Goodyear, the Minister of State for Science and Technology, met with representatives from small and medium-sized businesses, while Christian Paradis, the Minister of Industry, spoke with the information and communications technologies sector.

Goodyear pointed out to the business leaders that while the government's programmes to encourage business research and development (R&D) are among the most generous offered among industrialized nations, Canada continues to lag behind other countries in private sector investment in R&D. He did, however, stress that the Harper government intends to address this issue.

It will act on the advice of the independent R&D expert panel set up in October, 2010, which was charged with conducting a comprehensive review of all federal support for business-related R&D and with recommending ways this support could be improved. The panel reported back in October, 2011.

According to Goodyear, the panel's advice generated many useful discussions and produced thoughtful responses from both the business and research communities. He pledged to respond to the panel's recommendations at a later time, telling the gathering "stay tuned".

"Our government's top priority remains the economy. Today, as the Prime Minister promotes trade in Davos, my colleagues and I are consulting with Canadians across the country on Canada's Economic Action Plan. These consultations will help to decide how to invest Canadians' hard-earned tax dollars to create jobs and growth while keeping taxes low and returning to a balanced budget," Goodyear added.

Paradis's roundtable is the latest in his series of pre-Budget discussions, having chaired discussions earlier this month in Montréal. The Minister's primary focus is to engage private sector stakeholders on how best to ensure that Canada's economy continues to produce jobs and growth in a difficult global economy.

He said: "Budget 2012 will maintain our focus on jobs and economic growth while reducing the deficit and returning to balance in the medium-term. Making Canada a world-leading digital economy remains one of my main priorities and will result in our economy becoming more productive and globally competitive."

Cross-country consultations with members of the government will continue in the weeks before Budget 2012.