Speech Article from
Archived - Investing in Business Growth and Productivity Funding Announcement for Patriot Forge
Member of Parliament, Brant
January 20, 2015
(Speech time approximately 7 minutes, 30 seconds)
Check Against Delivery
Good morning ladies and gentlemen, friends and guests, and thank you Minister Goodyear, for that introduction.
(C'est un grand plaisir d'être ici avec vous aujourd'hui)
I would like to thank Patriot Forge for hosting today's announcement, and for providing us the opportunity to tour the new facility, which was very impressive.
It is a pleasure to be here to deliver some great news for Patriot Forge and for the Brantford area.
Brantford is a diverse and growing community. In fact, according to Statistics Canada, Brantford was the 3rd fastest growing census metropolitan area in Ontario between 2006 and 2011, while other communities were struggling to attract workers.
It is home to satellite campuses of a number of post-secondary institutions including Wilfrid Laurier University, Nipissing University, Mohawk College and Conestoga College.
It also has a strong base in manufacturing.
As Minister Goodyear pointed out, the manufacturing sector is a big part of Canada's and Ontario's economy.
In fact it employs nearly 1.7 million Canadians, so we are making specific efforts to help manufacturing businesses succeed.
In support of the manufacturing sector, our Government has negotiated trade agreements that are growing market opportunities.
It has removed tariffs on machinery and equipment, making Canada the first tariff-free zone for manufacturing inputs in the G20.
And it has renewed the accelerated capital cost allowance in 2013, giving $1.4 billion in deferred taxes to Canadian manufacturers that invest in machinery and equipment.
And today, I am pleased to announce yet another contribution to a company here in Brantford that has a big impact in this region.
Patriot Forge, as those of you who work here know, has been around since 1926, and is one of the largest die forging companies in Canada.
The Government of Canada, through FedDev Ontario, is providing Patriot Forge with up to $10 million in repayable funds to help it expand here in Brantford.
[Pause for applause].
The FedDev Ontario contribution will assist in financing a total project cost of $63 million with the vast majority going towards sophisticated forging equipment including a state-of-the-art 5,000-ton press.
And—the project is expected to create 75 new full-time jobs while underway, then another 86 jobs within five years of project completion.
Furthermore, it will also allow for Patriot to meet the demand for larger, more complex parts, increase productivity, as well as create benefits for suppliers in southern Ontario that work with the company.
What will this mean for the future of Patriot?
The project will position Patriot to come close to doubling the plant's output capability, and will help it be more competitive with international companies in the same field.
This contribution will be delivered through FedDev Ontario's Investing in Business Growth and Prosperity 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.
You may be 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.
Our Government believes that it is support like this that will enable our southern Ontario businesses to grow and become sustainable over the long-term.
Ladies and gentlemen, under the leadership of Prime Minister Harper, we have been setting the right macro-economic conditions to ensure Canadian businesses succeed by lowering taxes, cutting the corporate tax rate from over 22 percent to 15 percent, and removing the federal capital tax.
We are also making life more affordable for Canadian families with our recent Family Tax Cut, so that families can have more money in their pockets, to spend on their priorities—as a family.
As Prime Minister Harper stated, "Our Government is fulfilling its promise to balance the federal budget and we are now in a position to help families budget theirs."
These same sentiments extend to our focus on economic growth. We remain dedicated to providing the right resources to the individuals and businesses in this region to create jobs, stay competitive, and prosper long-term.
Thank you et merci.
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