Investor confidence

Background

• Raising the level of investor confidence in Canada is key to preserving a healthy and competitive national economy. In 2017, Statistics Canada released data showing direct investment into the country was $33.8 billion – the lowest level since 2010 and well short of the record high of $126.1 billion back in 2007.

• Delays to major infrastructure projects, the imposition of the federal carbon pricing program and many of the proposed changes to environmental legislation in the form of Bill C-69 have eroded investor confidence in Canada.

• Mandatory obligations on workforce make-up and other social procurement goals under Community Benefits Frameworks threaten the ability of many contractors to participate in a fair, transparent and competitive bid process. CCA has continued to provide extensive feedback from membership on the issue of community benefits to PSPC as well as Infrastructure Canada.

• A lower American corporate tax rate and less project risk, combined with the increased costs of doing business in Canada, make the U.S. more attractive for business investment.

CCA message

• CCA represents many small businesses that employ Canadians working on key infrastructure projects. The success of these businesses is crucial to the economic development of Canada. Major projects, such as those in the energy, water and transit sectors, require a strong and growing construction industry to keep us on track towards building a better Canada.

• CCA regularly advocates for sensible sessions to today’s environmental challenges. Meeting environmental requirements that support sustainability and respect climate change has become a growing responsibility for contractors, delaying if not threatening construction projects and increasing the cost of doing business. Policies must be reasonable and achievable to minimize the environmental barriers to business opportunities.

• CCA supports the removal of any policy and/or legislative challenges that may impede investment, employment, innovation, technology in construction. The focus should be on working with industry rather on creating policies that are not sensitive to the realities of the industry and threaten the fair, transparent and competitive bid process.

• The Canadian construction industry firmly believes in giving back to the communities in which we live, work and invest. The efforts of our industry through the #CDNConstructionGives campaign, the hundreds of initiatives and charitable works of membership in local communities, and our years-long implementation of a diversity strategy should signal to the federal government the industry’s commitment to community benefits without the need for a formal legislative lends. CCA also believes that such legislation has the potential to dilute the competitive bidding process on federal government contracts and tenders.

• Establishing rebates and tax credits to companies who adopt newer “green” technologies, applying carbon tax at the pump prior to the provincial, excise and GST taxes, and excluding anti-idling devices from GST are only a few such exemptions the federal government should consider in order to help the construction industry remain competitive.