Canada Economy: Government sets up Economic Stimulus Package

By: KeithTimimi   Date: 18 March 2009

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Ottawa, 18 Mar 2009. Canada is taking aggressive action to revive its troubled economy. The Minister of Finance, The Honourable Jim Flaherty, recently expressed his support for Bill C-10. This new piece of legislation will give the economy much-needed immediate economic stimulus.

"Through Canada’s Economic Action Plan our Government is providing the responsible leadership required during these challenging economic times by giving Canadians the necessary tools do deal with the global economic crisis," said Flaherty. "Bill C-10 enables the Government to provide the potent economic stimulus needed to encourage growth and restore confidence in our economy."

The new bill includes better access to financing for businesses and households in Canada. It also includes better benefits for workers, improved employment insurance benefits, tax relief, and better availability of training for employees

The bill has promised C $8.3 billion, or US $6.53 billion, to the Canada Skills and Transition Strategy to train the workforce for a more stable future.

A further C $20 billion (US $15.75 billion) is allocated towards private income tax deductions for 2008-09 and the coming five fiscal years.

It committed C $7.8 billion, or US $6.14 to the residential construction sector to encourage construction and new home starts. Part of this is to improve energy efficiency in new homes.

Federal investment in infrastructure will amount to C $12 billion (US $9.45 billion) over the next two years. This is designed to not only upgrade and improve infrastructure, but create construction jobs during this crisis. Currently, unemployment is at 7.7%, the highest is has been in Canada in more than five years.

Industries that are suffering the most will receive a total of C $7.5 billion (US $5.90 billion). These include forestry, manufacturing, and the automotive sector.

Possibly most significant is the C $200 billion (US $157.59) allocated towards commercial and private lending via the Extraordinary Framework. Financing

"Our responsibility as a government is to protect Canadians during the global recession, to create new, good jobs for the future, and to equip our country for success in the years ahead," said Flaherty. "With the passage of Bill C-10, our Government is providing the economic leadership Canadians deserve."

Najib de las Cruces, EconomyWatch.com


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