Budget 2013-2014 – Press Release No. 2 of 4 – A Government that Takes Action by Focusing on Private Investment
Quebec City, Nov. 20, 2012 – “To accelerate economic growth, the government is building on private investment,” said the Minister of Finance and Economy, Nicolas Marceau, the occasion of the tabling of the 2013-2014 budget of the Government of Quebec. “A prosperous economy is probably the most successful way to improve the lives of all. It is now in private investment to take over public investment. Public investment are important, but we must agree that the effort made by Quebec taxpayers has reached its limit. It must therefore redouble our efforts to create conditions conducive to private investment. To this end, the budget includes a series of initiatives. ‘
A new tax holiday for major investment projects
in order to maintain and enhance the attractiveness of the Quebec tax environment with regard to private investment, the Minister presented two important steps. He first announced the introduction of tax holiday for major investment projects, the C2I. It will apply to companies that will approve the next three years for new investment projects of at least $ 300 million. These projects will be part of a strategic business areas that are manufacturing, including processing of mineral resources and the wood, distribution centers or value-added processing and data hosting.
This will allow companies to benefit, for a period of ten years, a tax holiday on corporate income and leave Fund contributions of health services in relation to their investment project.
Extension of Tax Credit Investment
addition, the Minister announced that the tax credit for investment, available for all regions, will be extended for two years until 31 December 2017. In addition, the rate will be improved five percentage points for firms in certain regions resources.
“This tax credit will allow 3,000 companies from all regions of Quebec, more than 2,500 SMEs, investment in machinery and equipment at the cutting edge of technology. They will be able to increase their productivity and stand out on the market, “said the minister.
Creation of the Bank of Quebec’s economic development
order that Quebec businesses can obtain financial and technical support flexible and tailored to their needs, the Minister announced that the Government will implement the Bank of Québec’s economic development.
“The creation of the Bank will improve the action of the state in economic development.Better coordination will optimize the support offered by the government. It will be easier for companies to get help. It will leverage all regions of Quebec. Companies will have easier access to the full range of services aimed at them, ranging from support to the financing solutions, “said the minister.
The Bank will manage the fund regionalized development, which will have a budget of at least $ 500 million annually for the development of all regions.
To these are recurrent, will add a total of $ 250 million for two funds for economic diversification aimed at supporting the Mauricie and Centre-du-Québec and Asbestos.
“I work with the Minister for Industrial Policy and Economic Development Bank of Québec,me Elaine Zakaïb, the implementation of these initiatives, “said the minister.
Support for free trade with the European Union
The Minister noted that for sustained growth of the economy, it should boost exports. To facilitate access to foreign markets, the government actively participate in negotiations surrounding the free trade agreement with the European Union. “This agreement will give Quebec companies new opportunities in a market of 500 million people,” he said.
Industrial strategy for the development of transport and technologies
The Minister noted that the manufacturing sector was a pillar of the economy and a symbol of creativity Quebec. “To support investment in a strong manufacturing sector and modern, the Government will adopt an industrial strategy that will place special emphasis on SMEs. This policy will build on already developed areas of excellence in Quebec as well as the development of transport and clean energy, a promising avenue for the future, “he said.
To support the development of a greener industry, he announced the creation of a fund of $ 200 million will be for the development of clean technologies and transportation electrification.
Support the biopharmaceutical industry
“Over the years, Québec has established favorable conditions for the development of biopharmaceuticals. However, in recent years, the business model of the industry has changed dramatically. Support of the Government of Québec to the sector must adapt to this new context, always with the aim of promoting research activities in Québec, “said the minister.
He noted that the 15-year rule, introduced in 1994, has contributed significantly to the growth of the biopharmaceutical industry in Quebec. However, large pharmaceutical companies are adopting new ways of doing outsourcing for research. This situation leads to the closure of several research centers and, consequently, a significant reduction in spending on research in Quebec and the loss of jobs with high added value. In this context, the 15-year rule no longer meets the objective of promoting research in Quebec.That is why the minister has announced its abolition.
In addition, to support research activities in Quebec, he announced that tax credits for research and development for major biopharmaceutical companies will be improved from 17.5% to 27.5%. In addition, the Government will establish a matching envelope $ 125 million over five years. This envelope will be used to finance projects of research partnerships with pharmaceutical companies in key niches in which Quebec has strengths.
“We make sure that companies in this sector continue to develop and create quality jobs in a key area of innovation in Quebec,” stated the Minister.
A national policy on research and innovation
investment in innovation is central to the government’s economic vision. He wants to make Quebec one of the most innovative companies in the world, a company dedicating at least 3% of GDP investment in research and development. To do this, the Minister of Higher Education, Research, Science and Technology, Pierre Duchesne, announcing in 2013 a national research and innovation. It will, among other aims to highlight the results of public research for all Quebecers.
To facilitate the transition to future national policy, the government set aside $ 69 million, which will continue in 2013-2014 activities of the Quebec Strategy for Research and Innovation, which will expire in March 2013. This money will help fund global research and development performed in the field of higher education partners, and whose value is more than $ 2 billion per year in Quebec.
The exploitation of our natural resources for the benefit of all
“The mining potential of Quebec is huge and several companies in Québec and abroad, want to exploit. However, the basement belongs to all Quebecers. We will therefore make changes to plans that govern the use of these non-renewable resources, so that Quebecers derive maximum wealth, respect for the environment and communities. But we want to make these changes in an orderly and responsible for ensuring the stability of the mining sector. We will consult with industry and stakeholders concerned about this issue so that the changes made are for the benefit of all, “the minister argued.
“With the cooperation of the Minister of Natural Resources, M me Martine Ouellet, we will continue to work to propose a scheme that optimizes the performance of these resources for Quebecers, “he added.
Valuing the forest sector
The Minister also stressed that natural resources should be a lever for economic development in all regions of Quebec. That is why the government intends to encourage local processing of natural resources. To this end, it shall adopt a charter of wood that will encourage the use of wood products value.
In addition, the Minister noted that the bonus tax credit for investment will also support the forestry sector. So that help is available quickly, he announced that Investissement Québec and, when established, the Bank of Quebec’s economic development fund in advance 85% of the value of the tax credit.
“I also mean today my intention to challenge the federal government to finally do his part, he has demonstrated a deep injustice in leaving the forest industry, its workers and communities affected by the crisis, “said the minister.
Sustainable prosperity for all
“Our economic vision based on the belief that we must invest to ensure the enrichment of the Quebec nation. This vision implies that Quebec offers a challenging business climate, favorable to projects creating wealth and jobs, and ensuring contractors and predictable government action free of surprises. To accelerate growth, the government must act to promote private investment and innovation in strategic sectors. We pledge to keep Quebec a competitive tax system that encourages private investment. Our government is laying the groundwork for today’s solid and lasting prosperity for all, “concluded the Minister.