Speech Article from  Federal Economic Development Agency for Southern Ontario

Archived - Investing in Business Growth and Productivity Funding Announcement for Koss Aerospace

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Speaking Points

The Honourable Bal Gosal
Minister of State for Sport, and
Member of Parliament, Bramalea—Gore–Malton

Mississauga, Ontario

January 14, 2015

Speech length: approx. 5 minutes

Check Against Delivery

Good morning ladies and gentlemen, friends and guests, and thank you Minister Goodyear, for that introduction.

I would like to thank Mr. Cajic and Koss Aerospace for hosting today's announcement.

We've just toured the facility and I was lucky enough to see behind the scenes on the production floor.

It is a pleasure to be here to deliver some great news for Koss Aerospace and for Canadians.

As Minister Goodyear pointed out, the manufacturing sector employs nearly 1.7 million Canadians, which is why our Government remains committed to supporting manufacturing businesses to ensure their success.

That is why our Government, under the leadership of Prime Minister Harper, has negotiated trade agreements that will expand market opportunities and create jobs. We have eliminated tariffs on machinery and equipment, making Canada the first tariff-free zone for manufacturing inputs in the G20. We have also renewed the accelerated capital cost allowance in 2013, providing $1.4 billion in deferred taxes to Canadian manufacturers that invest in machinery and equipment.

Since Ontario's economy is a critical part of Canada's economy as a whole, our Government created the Federal Economic Development Agency for Southern Ontario. For those of you who may not know, FedDev Ontario, as it is better known, delivers programs and services to strengthen this region's economy and position the region to compete globally.

One of FedDev Ontario's programs is the Investing in Business Growth and Productivity initiative, or IBGP initiative, which is aimed at helping our businesses to compete globally. This will not only result in increased profits for these companies, it will also accelerate economic growth and job creation here at home.

I'm sure many of you are aware that Canada's investment in machinery and equipment as a share of GDP remains among the lowest of its peers. As a key driver of productivity, it's an area we want to focus on. Our companies are also smaller than counterparts in other countries, making it difficult to invest in the tools and processes that will help them to grow.

IBGP will increase business adoption of new technologies and processes to improve productivity.

And it will increase business capacity to participate in global markets, diversify markets and integrate into global value chains.

The initiative will also leverage the expertise of not-for-profit organizations to help businesses in these areas.

Since its inception, our Government, through FedDev Ontario, has funded hundreds of partnerships and projects in southern Ontario. This includes more than $107 million for 53 projects in Peel Region alone. Even more importantly, this funding is projected to leverage more than $172 million in additional investments.

And today, I am pleased to announce yet another contribution to an innovative company in this region.

FedDev Ontario is providing Koss Aerospace with a repayable contribution of nearly $5 million.

[Pause for applause]

Koss Aerospace is an important manufacturer in our community, in Canada and abroad. Our Government's investment will assist Koss Aerospace in purchasing new equipment in order to manufacture larger structural aerospace components more efficiently and cost-effectively, for both Canadian and international aerospace manufacturers.

I am also pleased to note that the project is expected to create 25 new full-time skilled positions.

Our Government believes that it is support like this that can help enable our southern Ontario businesses to grow and remain sustainable over the long-term.

Congratulations again. I'm looking forward to seeing Koss Aerospace's new processes take shape. I wish all of those involved the best of luck and continued success.

Thank you.

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