In 2017, Statistics Canada released data showing direct investment into the country was $33.8 billion – the lowest level since 2010 and well short of the record high of $126.1 billion back in 2007.
Delays to the expansion of the Trans Mountain pipeline, the imposition of the federal carbon pricing program and many of the proposed changes to environmental legislation in the form of Bill C-69 have eroded investor confidence in Canada. A lower American corporate tax rate and less project risk, combined with the increased costs of doing business in Canada, make the U.S. more attractive for business investment.
What can the government do?
CCA is urging the federal government to Remove any further regulatory delays to the Trans Mountain expansion project.
Regulatory delays have impeded progress on a pipeline that could deliver nearly triple the amount of crude from Alberta’s oil sands to British Columbia’s coast, increasing the value of Canadian oil and providing benefits to Canada through job creation and investments in capital projects. CCA strongly believes that restoring investor confidence is key to preserving a healthy and competitive national economy. While CCA welcomed news that a decision was reached to green light the Trans Mountain expansion project, it is crucial that the government remove any regulatory challenges to the pipeline’s construction. Any further interruption may impede investment, employment, innovation and technology development.
CCA recognizes that climate change poses a real threat to the global environment, however, is asking that the federal government offer certain exemptions to the heavy construction sector.
Establishing rebates and tax credits to companies who adopt newer “green” technologies, applying carbon tax at the pump prior to the provincial, excise and GST taxes, and excluding anti-idling devices from GST are only a few such exemptions that would help the construction industry remain competitive.