Ontario Budget 2007
Building on success

Seizing the opportunities of economic strength

Since 2003, more than 327,000 net new jobs have been created in Ontario, personal incomes have increased by more than 14% and companies have invested more than $126 billion in business expansion.

This steady growth has enabled the government to introduce a balanced budget for 2007–2008 plus make strategic investments in key priority areas.

Maintaining a competitive business environment

A number of new Budget initiatives will further strengthen the business case for Ontario as a premier investment location for manufacturers and knowledge-based companies.

• Business Education Taxes will be cut by more than $460 million over seven years, lowering operating costs for more than 500,000 businesses in 321 communities.
• The Budget proposes to eliminate the capital tax by July 1, 2010 – eighteen months sooner than originally scheduled.

Expanding successful investment incentives

Our highly successful Advanced Manufacturing Investment Strategy (AMIS) is being taken to the next level. To bring more small and medium-sized businesses onboard, we have reduced investment project thresholds to $21.5 million invested or 100 jobs created/retained.

Expanding skilled trades training

We are proposing to extend the Apprenticeship Training Tax Credit an additional four years and adding six more skilled trades to the eligibility list: entertainment industry power technician, process operator–power, tractor-trailer commercial driver, exterior insulated finish systems mechanic, information technology (IT) call centre inside sales agent, and IT call centre customer care agent.

Building a green economy

More than $100 million in new initiatives will nurture a greener Ontario and stimulate the development of innovative green technologies for export around the world. These investments include:

• almost $13 million to the Ontario Centres of Excellence, which promotes linkages between academia and businesses to bring energy innovations to market
• more than $18 million to Queen’s University, which is working with the private sector to develop bio-products and bio-materials
• more than $5 million to support the Ontario BioAuto Council, a multi-industry initiative to position the province as a global leader in manufacturing auto parts and other materials from agricultural and forestry feedstocks.

Investing strategically in Ontario’s North

To support the drive to innovate among Ontario’s mining and forestry industries across Northern Ontario, the government is investing $1.7 million in Sudbury’s Northern Centre for Advanced Technology and more than $5 million to help Lakehead University researchers explore new competitive and sustainable development options for Ontario’s boreal forest.

Collaborating with industry leaders

A new Ontario Manufacturing Council will bring together industry and government leaders to chart a strategic vision for Ontario’s manu-facturing sector. The Council will help ensure that Ontario remains on the cutting edge of international competitiveness by identifying the most effective industry/government policy mix in the areas of investment, innovation, trade, market development, energy efficiency, environmental technologies, human resources and regulatory issues.

Ontario economic update

In 2006:

• Ontario’s economy added 95,000 net jobs
• profits as a share of GDP were 11.6%, well above the historical average of 9.9%
• real growth in spending on machinery and equipment was 8.3% (estimate)
• investment in commercial and industrial construction grew by 7.4% (estimate).

Looking ahead:

• economic growth is expected to strengthen further through to 2009. The Ministry of Finance is projecting growth of 2.8% in 2008 and 3.1% in 2009
• interest rates are expected to remain low and inflation is expected to remain below 2.0%
• real investment in machinery and equipment is projected to rise by a solid 6.5% in 2007 and by an average of 5.5% per year in 2008 and 2009.
• Ontario expects to post surpluses of $1.1 billion in 2008–09 and $1.4 billion in 2009–10.

We can help

There’s no better place in the world to do business.

1-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)

E-mail:info@2ontario.com
Or visit us at: http://www.investandtradeontario.com/