What Canadian Business Is Saying About Trudeau’s Mini-Budget

(Bloomberg) -- Canadian business was the focus of Prime Minister Justin Trudeau’s federal budget update Wednesday that outlined C$16.5 billion worth ($12.5 billion) of new support over six years, including C$14 billion in tax breaks on new investment.

The fiscal update -- the most extensive set of revised projections outside the annual budget -- came amid widespread calls to address the country’s waning competitiveness.

Here is now business groups reacted to the plan:

Perrin Beatty, CEO of Canadian Chamber of Commerce

• “They didn’t go all the way in terms of accelerated write-offs for capital investment,” he said in an interview, “but they went much of the way, and given the constraints on them, this will be certainly helpful”
• Business reaction will be “for the most part, at least moderately positive”
• Nevertheless, “there is a rising degree of frustration” in western Canada, he told BNN Bloomberg Television

Dan Kelly, Canadian Federation of Independent Business president

• “We are pleased that the government has chosen to introduce these incentives as they will encourage new business investment and boost innovation while helping them to maintain their competitiveness with their American counterparts,” he said in a statement

Dennis Darby, CEO of Canadian Manufacturers & Exporters

• “CME is encouraged by the positive breakthrough announced today and will continue working with the government on restoring Canada’s business competitiveness through comprehensive taxation reform and addressing labor and skills shortages,” he said in a statement

Goldy Hyder, Business Council of Canada president

• “I was frankly pleasantly surprised,” he told BNN Bloomberg television
• “What it says to me is that the government does understand what it means to be in a competitive environment globally, and not taking any actions would have been crazy.”
• “Businesses are going to be able to invest in our economy”

Brett Wilson, chairman of Canoe Financial

• The budget update doesn’t have any answers for Alberta’s troubled oil industry, he told BNN Bloomberg television
• Trudeau “is frustrating Alberta, he isn’t acknowledging what we need, and that is solutions for the made-in-Canada discount”

--With assistance from Josh Wingrove.

To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net;Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Stephen Wicary

©2018 Bloomberg L.P.