The strong Canadian dollar is a concern for Canadian industry and makes it imperative that the government have policies to help business compete, Industry Minister Maxime Bernier said on Tuesday. "Yes, the dollar is kind of a concern for the industry, all the industry, because we are a country that exports...and all the entrepreneurs are exporting all across the globe.
And so when the dollar is strong, they must be more efficient, they must innovate, they must be more productive," he said. "But as a matter of fact it's the global economy of our country that shows that our country's strong, and we have the good policy for our country."
He was speaking to a news conference as he reviewed a series of government incentives to manufacturers, for example a measure in the March budget to allow two-year write-offs for certain manufacturing equipment. "I cannot predict where will be the dollar in a couple of days or months from now, but what I can do is assemble the right policies for being sure that entrepreneurs are able to compete," the Conservative minister said.
The Canadian dollar is near a 30-year high, and Canadian Manufacturers and Exporters President Perrin Beatty said that without the new government measures the large companies he represents would be in major trouble. "The dollar is putting serious pressure on the competitiveness of Canada's industrial base. That's why the measures the accelerated capital cost allowance, for example, in the federal budget are absolutely critical. Without that, we would be in quite a grave situation," he said.
He said it was key that all parties had come together in the House of Commons industry committee to set the survival and prospering of Canadian manufacturing as a priority. Jayson Myers, chairman of the Canadian Manufacturing Coalition, said the accelerated write-off for machinery and equipment, which will infuse C$1.5 billion ($1.4 billion) in new cash into the sector, is important to help in that adjustment.