Prime Minister Harper will continue implementing our Manufacturing Strategy to protect our fragile economy and create jobs. The Conservative government’s smart and prudent policies are creating an environment where manufacturers are able to invest in new facilities, new products and new jobs. A re-elected Conservative government will continue with our plan to grow the manufacturing sector as outlined in our Manufacturing Strategy[1].

A re-elected Conservative government will also build on its proven record by creating a new Manufacturing Technology Demonstration Fund to support large, pre-commercial projects in the advanced manufacturing sector.[2]

This program will provide non-repayable grants to a select number of major projects in the automotive, information and communication technology, steel, aluminum, and machinery and equipment sectors. Up to $100 million in funding will be provided over five years, beginning in 2017-18.

Successful private sector partners will involve an "anchor firm" collaborating with small- and medium-sized firms, universities and colleges. Projects will be evaluated according to their potential to help Canada become a world-leader in the selected technology area, the degree to which the project builds on Canada's existing capabilities, assets or natural advantages, and the extent to which the project involves Canadian suppliers and small- and medium-sized enterprises and positions them for future opportunities in global supply chains.

Through this new Fund, Canada will benefit from a number of new, major industrial R&D mandates, increased business investment in R&D, strengthened technological capacity in advanced manufacturing, and new supply chain opportunities for small- and medium-sized Canadian firms. This initiative will complement our Conservative government's strong record of support for the manufacturing sector, including recent investments in the auto sector through the Automotive Supplier Innovation Program, and the Technology Demonstration Program for the aerospace sector.

The Manufacturing Technology Demonstration Fund will keep Canada competitive with our global peers, such as the United States, Japan, Germany, Korea, and the UK. Through this new investment, a re-elected Conservative government will ensure our manufacturing sector remains competitive, captures new customers in the global marketplace, and participates in "reshoring" of manufacturing mandates from other countries.

These initiatives will translate into new, high-quality jobs across the country and keep Canada’s economy moving forward.

THE ISSUE

Canada’s manufacturing industry is a key pillar of the Canadian economy that provides good, well-paying jobs for hardworking Canadian families all across the country. Accounting for more than 10 percent of GDP, manufacturing is a high-skill, high-tech sector employing more than 1.6 million Canadians – almost all of them in full-time and high-wage jobs. In 2014 alone, manufacturing companies invested $14.7 billion in the Canadian economy.

Collectively, the manufacturing sector pays $1.85 billion weekly in salaries to Canadian workers, more than any other sector in the Canadian economy, public or private. These jobs bring an array of benefits to communities across the country.

To ensure our manufacturing sector remains a major source of investment and job creation in Canadian communities, Prime Minister Harper’s Conservative Government has been implementing its Manufacturing Strategy. The goal of the strategy is to ensure that manufacturing remains as vital to Canada’s 21st century economy as it was transformational to Canada’s 20th century.

Our long-term, low-tax, balanced budget plan for manufacturing includes[3]:

Lowering taxes and eliminating tariffs to make it easier for manufacturers to invest in advanced technology and equipment.
Helping Canadians acquire the skills and training they need to take advantage of new opportunities in the sector.
Opening new markets for manufacturers to find customers and sell their products.
Making strategic investments to encourage research and development and the creation of new products and technologies.

And our Manufacturing Strategy is working. In spite of the challenges this sector has faced in the global economy, sales in Canada have now rebounded and are up more than 20 percent since 2009.

In fact, Statistics Canada reported this week that manufacturing sales rose 1.7% to $52.2 billion in July, as sales in the motor vehicle parts and motor vehicle assembly industries increased. That gain follows increases of 0.7% in May and 1.5% in June. The outlook for the manufacturing sector is bright.[4] Canadian manufacturers today are well positioned to capitalize on new opportunities and expand their businesses – both here at home and in new markets around the world.

THE CHOICE

The global economy is weak and in turmoil. The Canadian economy is stronger than other countries’ economies but is vulnerable to external instabilities and needs to be protected. Prime Minister Harper’s low-tax, balanced budget plan for the manufacturing sector will protect Canadian jobs and growth in the face of global uncertainty.

This stands in stark contrast to the Liberal and NDP plans for the manufacturing sector. Justin's strategy for manufacturing in Canada is to give up on it. When speaking about Southern Ontario, one of the most manufacturing-intensive regions in Canada, Justin has said “A large part of it [his strategy for the region] is transitioning away from manufacturing-based employment as a driver in the economy…”[5] This irresponsible approach would put the jobs of 1.6 million Canadians at risk, and irreparably damage Canada's economy.

Mulcair and the NDP are committed to massive business tax hikes, payroll tax increases, and carbon taxes that would make it unaffordable for Canadian manufacturers to operate and drive Canadian manufacturing jobs out of the country. Mulcair says that businesses need to pay higher taxes. But, when asked what the tax rate was, he didn’t know. Canadian families who rely on high-quality jobs in the manufacturing sector will suffer as manufacturers lay off workers to pay for Mulcair’s tax hikes. Canadians can't afford Mulcair's dangerous anti-business proposals.

Justin’s and Mulcair’s CPP payroll tax hikes alone would drive up costs for manufacturers, raise taxes on their workers, and ultimately destroy jobs. According to Statistics Canada, the average salary for a Canadian working in the manufacturing sector is $55,545 per year.[6] Under Justin’s plan this means that annual CPP payroll taxes per worker would go up by $1,901 ($951 per employer and employee). Under Mulcair’s plan this means that CPP payroll taxes per worker would go up by $3,006 ($1503 per employer and employee). The result is a manufacturing plant with 170 employees such as Anchor Danly could see its payroll taxes (excluding the employee share) increase by over $150,000 each year.

Only Stephen Harper’s Conservative Government can be trusted to support Canada’s manufacturing sector and keep Canada’s economy moving forward.

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