Encouraging News for Local Businesses in 2007 Federal budget

March 20, 2007
Delta, B.C. (March 20, 2007) The federal budget announced yesterday includes a number of features that promise to benefit Delta businesses now and in the next few years.

Delta Chamber of Commerce Maria DeVries says: “Our members told us in a recent survey that the most important issue among those affecting businesses in Delta was the South Fraser Perimeter Road, part of the Gateway project for the Lower Mainland. While we are advocating about some concerns we share with other organizations regarding the Road planned to run through Delta, we are concerned that only $100 million has been earmarked specifically for that portion of the overall project. Transportation, both the need for improvements to better serve businesses and the impact on our community, is one of our top concerns.”

Related to the workforce and environmental protection the new federal budget reflects a step towards encouraging greater use of public transit by increasing a previous investment in a public transit tax credit. Of the Delta residents in the workforce, over 70 percent of them commute to work outside the community. While that is encouraging, DeVries said, what Delta really needs is more bus service to go with that tax credit. The Delta Chamber of Commerce has been advocating for that with Translink for some time, not only for those commuting outside of Delta, but for the businesses and the 10,000 people working on Annacis Island and 8,000 working at Tilbury business park.

Another priority for members of the Chamber of Commerce, according to DeVries, is a strategy developed in collaboration with Delta Corporation and other partners in the community around expanding and investing in business. With that strategy in mind it is good news that through the new federal budget, the lifetime capital gains exemption is proposed to increase from $500,000, where it has sat for almost 20 years, up to $750,000. That should prove to be a good incentive for farming, fishing and small business operations, which all happen to be represented in Delta. DeVries says: "The many manufacturers and processors in Delta may be able to take advantage of the new accelerated capital cost allowance claims that can be made on eligible machinery and equipment by way of a new investment incentive. Also encouraging is the increase from 4 percent to 10 percent in the capital cost allowance rate for buildings used for manufacturing or processing in Canada and from 45 to 55 percent for computers. These incentives will help this sector upgrade physical plant and apply information systems to become more competitive."

In Delta and the rest of the province labour shortages are becoming a serious challenge. While it is still early days in a process to relieve that problem, DeVries recognized that this new budget calls for transfer of $500 million to provinces and territories in a process yet to be determined that will encourage employers to provide more training for their workers. Another $500 million or so will go to existing federal labour market programs to assist businesses in hiring youth, older workers and persons with disabilities. Finally, the Working Income Tax Benefit promises to make work more rewarding and attractive for people already in the workforce by increasing incentives to stay employed. It is also designed to encourage up to 60,000 people across the country to enter the workforce when they have, in effect, been penalized by taxation by doing so.

Reducing the paper burden on small business to comply with federal business regulations by 20 percent over the next year-and-a-half, she added, is a welcome advance for its potentially significant cost reduction impact.

"Agriculture is an important part of our economy in Delta," says DeVries. "It is encouraging that additional funding for farm support programs will be made, on top of funding promised in last year's federal budget. Part of that funding is an immediate one-time payment of $400 million to address rising costs of production. We hope to learn in more detail over time how Delta farmers will be able to benefit from this support."

"Fishing is another important industry in Delta. The federal budget is investing $39 million over two years to increase fisheries science research programs to strengthen fisheries management and resource conservation. Also, a significant part of our community is related to water and waterways. As part of the new National Water Strategy, the federal government is pledging $19 million over two years to help clean and protect Canada’s oceans and support greater water pollution prevention, surveillance and enforcement."

The Delta community will be pleased to hear that at least $15 million, and likely more based on population, will come to this province from the Canada ecoTrust for Clean Air and Climate Change to help target real reductions in greenhouse gas emissions and air pollutants. Some Delta businesses, such as those at the Tilbury Industrial Park have already demonstrated a progressive, collaborative approach in this area. DeVries added that she hoped that the impact of the new federal budget will contribute to that momentum where Delta has shown this kind of leadership.

Founded in 1910 the 500-member Delta Chamber of Commerce is a non-profit association which cultivates a healthy environment for business, industry and commerce, and collaborates with governments and interest groups to achieve a sustainable community in Delta, British Columbia. In 2005 it was awarded Chamber of the Year by the BC Chamber of Commerce.

For more information, contact:
Maria DeVries, President
Delta Chamber of Commerce
Tel. 604.946.4232