2015 Economic Action Plan a boon to Canadian aerospace: AIAC
Ottawa - Essential funding for the Canadian space industry and a program to develop the Canadian supply chain were included in today's federal Economic Action Plan (EAP), which was praised by the Aerospace Industries Association of Canada (AIAC) for its leadership on the important contributions the industry makes to Canada's economy.
The government committed $30 million over four years, starting in 2016-2017, to the Canadian Space Agency to support research and technology development through the ARTES program at the European Space Agency. They also announced the extension of Canada’s participation in the International Space Station (ISS) mission until 2024.
“The inclusion of these measures, which follows on the heels of announcements by Industry Minister James Moore of a national Space Policy Framework and the creation of a Space Advisory Board, is another step as we continue to work with the government on a long term vision for Canada’s future in space,” said Jim Quick, President and CEO of AIAC.
The EAP also announced $6 million in government support to work with AIAC and provincial and regional stakeholders to create a national supply chain development initiative. The funding will go towards setting up the program according to government-approved criteria and standards and running the first cohort of applications, after which the program will be funded entirely by industry.
“A national supply chain initiative will have a significant long-term impact on the industry’s ability to grow individual companies and help them scale the supply chain faster than they have in the past. This is good news for Canadian companies, their employees, and our economy,” said Mr. Quick. “This also marks another key milestone in the implementation of the Emerson Report, and once again points to the tremendous support the government has offered to Canadian aerospace companies throughout the Aerospace Review and implementation process.”
Other Economic Action Plan initiatives that will benefit the Canadian aerospace and space industries include:
- A long-term extension (10 years) of the Accelerated Capital Cost Allowance for investments in manufacturing and processing machinery and equipment;
- $2.5 million per year starting in 2016-17 to Industry Canada to increase the analytical capacity needed to support the Defence Procurement Strategy (DPS);
- A one-time investment of $65 million to business and industry associations so that they can work with willing post-secondary institutions to better align curricula with the needs of employers;
- $42 million over five years to expand the footprint and resources of the Trade Commissioner Service;
- Starting in 2018-2019, an annual escalator of 3% to National Defence’s budget, providing $11.8 billion over 10 years; and
- A reduction in the small business tax rate from 11% to 9% by 2019.
“All of these initiatives and measures once again demonstrate the leadership the government has shown when it comes to making Canadian aerospace stronger and more competitive,” said Mr. Quick. “We thank the government for their support and look forward to continuing to work closely with them to ensure that Canada’s aerospace companies continue to grow and drive our economy in the coming years.”