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Economic Action Plan 2012

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Economic Action Plan 2012 JOBS GROWTH AND LONG-TERM PROSPERITY ECONOMIC ACTION PLAN 2012 Tabled in the House of Commons By the Honourable James M. Flaherty, P.C., M.P. Minister of Finance March 29, 2012 Budget2012_BW_TitlePage_EN.indd 1 12-03-26 2:50 PM ©Her Majesty the Queen in Right of Canada (2012) All rights reserved All requests for permission to reproduce this document or any part thereof shall be addressed to Public Works and Government Services Canada. Available through your local bookseller or by mail from Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 Orders only: 1-800-635-7943 (Canada and U.S.A.) Fax: 613-954-5779 or 1-800-565-7757 (Canada and U.S.A.) Internet: http//publications.gc.ca Cat. No.: F1-23/3-2012E ISBN: 978-0-660-20189-4 This document is also available n the Internet at www.fin.gc.ca Cette publication est aussi disponible en français. Chapter 1 – Introduction ................................................................. 11 Chapter 2 –Economic Developments and Prospects .......... 23 Highlights ....................................................................................................... 25 Introduction ................................................................................................... 26 Global Economic Developments and Outlook .................................................. 26 Canada’s Recent Economic Performance ........................................................ 32 Financial Market Developments ...................................................................... 38 Commodity Prices ........................................................................................... 40 Canadian Economic Outlook—Private Sector Forecasts................................... 41 Risk Assessment and Planning Assumptions.................................................... 43 Chapter 3 – Supporting Jobs and Growth 3.0 – Supporting Jobs and Growth .................................................... 47 Introduction ................................................................................................... 49 3.1 – Supporting Entrepreneurs, Innovators and World-Class Research .................................................................... 51 Highlights ....................................................................................................... 53 Creating Value-Added Jobs Through Innovation .............................................. 53 Support for Research, Education and Training ................................................. 54 Creating Value-Added Jobs Through Innovation ............................................. 55 Helping High-Growth Firms Access Risk Capital ............................................... 60 Increasing Direct Support for Business Innovation ........................................... 61 Doubling the Industrial Research Assistance Program............................... 61 Supporting Innovative Businesses in Western Canada .............................. 62 Supporting Private and Public Sector Research Collaboration ............................ 63 Integrating High-Quality Researchers Into the Labour Market ................... 63 Strengthening Knowledge Transfer and Commercialization ....................... 65 Forestry Innovation and Market Development Support ............................. 66 Supporting Innovation Through Procurement .................................................. 66 Refocusing the National Research Council ....................................................... 68 3 Scientific Research and Experimental Development Tax Incentive Program ......... 68 Simplifying the Tax Credit Base ............................................................. 69 Increasing Cost-Effectiveness................................................................ 69 Enhancing Predictability ....................................................................... 70 Contingency Fees ................................................................................ 71 Support for Research, Education and Training ................................................ 72 Supporting Advanced Research ..................................................................... 72 Promoting Post-Secondary and Private Sector Research Collaborations ...... 73 Investing in Genomics Research ............................................................ 74 Investing in Mental Health Research ...................................................... 75 Promoting Cost-Effective Health Care ..................................................... 76 Advancing Knowledge and Treatment of Spinal Cord Injury ...................... 76 Diversifying Canada’s Medical Isotope Supply ......................................... 76 Supporting Leading-Edge Researchers ................................................... 77 Investing in Leading-Edge Research Infrastructure .......................................... 77 Canada Foundation for Innovation ......................................................... 77 Supporting Canada’s Ultra-High Speed Research Network ......................... 79 The Canadian High Arctic Research Station ............................................. 79 Extending Canada’s Participation in the International Space Station Mission .......................................................................... 79 Revitalizing Natural Resources Canada’s Satellite Station Facilities ............. 80 Supporting Atomic Energy of Canada Limited .......................................... 80 International Education Strategy ................................................................... 81 3.2 – Improving Conditions for Business Investment ................ 83 Highlights ....................................................................................................... 85 Responsible Resource Development ............................................................... 85 Investing in Our Natural Resources................................................................ 85 Expanding Trade and Opening New Markets for Canadian Businesses ................ 85 Keeping Taxes Low for Job-Creating Businesses .............................................. 86 Improving Economic Conditions for Farmers and Fishermen ............................. 86 Strengthening Business Competitiveness........................................................ 86 Further Developing Canada’s Financial Sector Advantage ................................. 86 Improving Conditions for Business Investment .............................................. 87 Responsible Resource Development ............................................................... 88 Modernizing the Regulatory System for Project Reviews ................................... 89 Major Projects Management Office Initiative ................................................... 94 Consultation Under the Canadian Environmental Assessment Act ...................... 97 Supporting Responsible Energy Development ................................................. 97 4 Strengthening Pipeline Safety ....................................................................... 99 The Northern Pipeline Agency ....................................................................... 99 Amending Mining Regulations ....................................................................... 99 Investing in Our Natural Resources .............................................................. 100 Supporting Junior Mineral Exploration .......................................................... 100 Supporting Offshore Oil & Gas Exploration .................................................... 101 Assessing Diamonds in the North ................................................................ 101 Expanding Trade and Opening New Markets for Canadian Businesses .......... 101 Canada’s Leadership on Trade .................................................................... 102 Canada’s Trade Plan for Jobs and Growth ..................................................... 102 Canada-U. S. Border and Regulatory Action Plans .................................. 103 Deeper Canada-China Ties .................................................................. 103 Canada-EU Trade Agreement .............................................................. 104 Canada-India Trade Agreement ........................................................... 104 Trans-Pacific Partnership .................................................................... 104 Active and Ongoing Engagement in the Asia-Pacific Region ..................... 104 Canada in the Americas ...................................................................... 105 Deeper Canada-Africa Ties .................................................................. 105 Deepening Canada’s Trade and Investment Ties in Priority Markets: A Refreshed Global Commerce Strategy ......................................................................... 106 Trade Measures to Support the Energy Industry ............................................ 107 Export Development Canada ....................................................................... 107 Streamlining Canada’s Trade Remedy System............................................... 108 Foreign Trade Zone Programming ............................................................... 108 Increasing Travellers’ Exemptions ............................................................... 108 Tax Relief for Foreign-Based Rental Vehicles ................................................
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