John Ivison: the 'slow Bleeding' of Corporate Canada Is About to Get Underway and Only Morneau Can

The chief executive of a large Canadian company said he was at a Vancouver board of trade dinner this week.“The level of foreign investment has never been so low and continues to fall off a cliff. There is a real, genuine, honest, non-partisan concern that Canada is so completely out of touch with the real world,” he said.The CEO said his contemporaries in corporate Canada speculated that a number of companies, including Enbrige, the country’s fourth biggest company by market capitalization, are set to decamp.“The rumour is they’ve been planning to move for a while and the U.S. tax changes sealed the deal,” said the disillusioned CEO.Not so, says the company. “Enbridge does not have any plans to move its corporate headquarters to Houston,” said Suzanne Wilton, a senior communications adviser at the company. The Calgary-based pipeline company bought Houston-based Spectra Energy in a $28 billion deal in 2016, igniting speculation that the company might move lock, stock and oil barrels.Fair enough. But are any discussions taking place about re-locating any functions or personnel among the 3,900 people working in Calgary to Houston, I asked“There is no contemplation of significant moves of functions or groups from our Calgary headquarters,” said Wilton.What does “significant” mean, I wondered. “Can you please tell me how many jobs are going to be re-assigned to the U.S. and in what areas” I asked.“Enbridge has no plans to move our corporate headquarters from Calgary to Houston. There is no contemplation of significant moves of functions or groups to Houston from our Calgary headquarters,” re-iterated Wilton.Such an unconvincing denial suggests an unspecified number of jobs are indeed moving south – something that might soon become a familiar refrain.It is the problem of Canada’s lack of competitiveness – rather than the re-negotiation of NAFTA or the failure to built a pipeline to tidewater – that may be the gravest danger to the future health of the Canadian economy.Jobs, capital and head office functions are not gushing south of the border but a gradual seep is becoming evident.“It’s the slow bleeding of Canada,” said Jack Mintz, the President’s Fellow of the School of Public Policy at the University of Calgary.Another oilpatch giant, Encana, said last month that its chief executive Doug Suttles is relocating from Calgary to Denver but denied there are plans to move the headquarters south, where half of the company’s capital is deployed.There have been suggestions that TransCanada might also be considering a move to Houston – speculation that was denied by the company.The siren call of lower taxes and a less stringent regulatory regime in the U.S. is not confined to the oilpatch. Mintz said he talked recently to a major mining company that is taking a close look at the U.S. tax reforms, with a view to relocating.“It’s one of the biggest changes in the past two decades,” he said.In the past, companies would attempt to keep profits out of the U.S., moving functions like sales and marketing to Canada, in order to escape a federal corporate tax rate of 35 per cent.But the Trump Administration’s move has lowered the federal rate to 21 per cent – a shift that is even more attractive in a state like Texas where there is no state corporate tax.Businesses don’t need to move their brass plate to the U.S. to benefit from the lower rate – they simply shift more of their operating functions.“We are at the beginning of a major reset in how Canadian cross-border tax planning will be done,” said law firm, Oslers, in a note to clients.The reforms make the decision to incorporate in Canada more difficult and reverse the tax advantage Canada has enjoyed in terms of the marginal effective tax rate on investment – the most comprehensive indicator of the tax burden on new investment.(The combined US federal state corporate income tax rate will fall from 39.1 per cent to 26 per cent, slightly lower than the Canadian federal-provincial corporate average of 26.7 per cent. But there are other advantages in Trump’s package, such as being able to write off machinery and equipment investment costs from profits, rather than depreciating them).Dave McKay, RBC’s president and CEO), said this month that investment capital is leaving Canada “in real time” – a flight that will be followed by a loss of talent.“We would certainly encourage the federal government to look at these issues because, in real time, we’re seeing capital flowing out of the country,” he told The Canadian Press.“We see our government going around the world saying what a great place Canada is to invest. Yes, it is a great country, it’s an inclusive country, it’s a diverse country, it’s got great people assets. But if we don’t keep the capital here, we can’t keep the people here.”Statistics Canada revealed this week that the stock of foreign direct investment in Canada remained relatively healthy in 2017 – increasing 1.9 per cent to $824 billion. But that was the slowest pace since 2011, it masks a 12.2 per cent decrease in the oil and gas sector, and, crucially, accounts for a period before Trump’s tax cuts took effect.Mintz advocates dropping the Canadian corporate rate two percentage points to 25 per cent to protect the government’s tax base, while others like TD deputy chief economist, Derek Burleton, have urged the government to initiate broad-based tax reform – eliminating outdated tax credits and scrapping archaic regulations.In the run-up to his most recent budget, Finance Minister Bill Morneau said he was more focused on addressing long-term challenges like fixing the gender gap than “knee-jerk reactions” to the U.S. tax cuts.He said he is confident in the resiliency of the Canadian economy; that growth, employment and consumer confidence are all at satisfactory levels, while measures taken to address personal debt levels have had some success in cooling an overheated housing market.Corporate tax rates would remain competitive and the government is keeping a “close eye” on the U.S. changes, he said.But he was dismissive of the primacy of tax rates as a determinant on investment.“Has the lower Canadian tax rate (federal rates have fallen from 28 per cent in 2000 to 15 per cent today) generated a significant difference in terms of business investment in Canada versus what would otherwise have been the case I don’t think there is clear evidence to support that,” Morneau told Bloomberg last month.It’s true – tax issues are not the only thing that drive investment decisions. But Canada stacks up less and less well when judged by other metrics, given uncertainty over NAFTA, minimum wage hikes, high electricity prices, jurisdictional wrangling over pipelines and carbon taxes, the imposition of new environmental regulations and the widely-held impression that this is a government more interested in taxing than generating wealth.The confluence of all these things means the blood-letting is set to continue until Ottawa wakes up to the fact that we’re now living in a totally different investment world.

pas de données
Articles recommandés
Industrial Machinery and Equipment AddYourTrade
Industrial Machinery & EquipmentDefinition and Usage:Industrial machinery & Equipment in definition is a machine industry or machinery industry, which is a sub sector of the industry that produces and maintains machines for consumers, the industry, and most of the other companies in the economy. This machine industry traditionally belongs to the heavy industry and the equipment's are the machinery associated with it which are used in production.The industry includes equipment's such as power saws, drills, springs, valves, nuts, bolts, polishing and metal-working machines, screws, pneumatic hoses and other basic industrial equipment's though it excludes cables, batteries, motors and small-electrical equipment, which are classified in Electrical Components & Equipment and other electrical equipment's; heavy generators, conveyors and other large-electrical equipment, classified in Heavy Electrical Equipment; and permanently installed machinery, classified in Engineering & Construction and other such examples.Purpose of Industrial machinery & Equipment:The Industrial machinery & Equipment have very specific and very important purpose for their existence. They are the core of industrialization in any developing country. It is the duty of Industrial Machinery and Equipment (IM&E) manufacturers to maintain a commitment to all their innovations so as to retain their leadership in a highly competitive global marketplace. Success in the industry requires tightly integrated processes paired with the ability to continuously assess and improve product designs, manufacturing efficiency, product quality, and service.In this new technological age, capital for equipment spending has reduced a lot, one of the reasons being the capabilities of companies to produce more in less, i.e., producing more goods in less capital investment. This has forced the traditional Industrial Machinery & Equipment industry to search for the new markets and reach out to the new investors and customers to buy their goods and services.Future:The future of this industry which solely depends on needs of other company's needs to sell their product or to manufacture at large level for their own industrial needs make this industry very competitive at every level and it is difficult for new players to enter the game which is already reaching its tipping point. Also with the technological advances, every day the need of these The Industrial machinery & Equipment is going down as equipment's today are easier to repair and last longer than they used to. Thus proper planning and a good online presence is necessary for these companies to succeed in long run. The way upwards is getting stiffer every day and only the fittest and strongest shall survive the climb, which in this case is the manufacturing of industrial equipment's and machinery for other industry's needs·RELATED QUESTIONWhat is the review of CIPET, Chennai?Cipetoffers high quality technical consultancy and advisory service through its technology support services (TSS) .Tss is an intregal port folio ofcipetis highlights it's core competency by offering high quality service to customers in the area of tooling,precision Machine on CNC machines,design and Manufacturing of Moulds,tool and &dies for manufacturing plastic products,CAD/CAM/CAEservices,p plastic product manufacturing through state -of -the-art injection molding machines,blow molding,PET,stretch blow molding,pipe and film extrusion , standardization ,testing and quality control for plastic materials and products ,pre and post delivery inspection(PDI)of plastic product like PVC and PE pipes ,woven sacks,water storage tank,Micro -irrigation equipments,Engineered bamboo boards ,polymer based composite doors etc .Faculties are experienced and they also teach very wellOnly core companies are invited for recruitments toCIPETPlacement for the plastic engineering were good .all the students were able to secure jobs but many opted for higher studyAll the campus ofCIPETbig enough.labs are equipped well with best of instrument,collage library is very good and student can also make use of it.other facilities like classroom,seminar hall and washroom are also goodThere are hostels available on-campus as well as off -campus ,Mess food is damn cheap,food is not vary taste .Placement quite good.
How Can Machinery Tarps Protect Your Farm Machinery and Equipment
Farm tending is a great way to earn a living or have a hobby but it also calls for a lot of investment in terms of tools and machinery. To safeguard this investment it is important to take care of the tools so that they don't wear out or get damaged, causing you to lose money or spend more money on their upkeep. One way to protect your tools, especially large extra big farming equipment, is by using machinery tarps, to help the equipment endure extreme weathers such as freezing cold winters and scorching hot summers. n For the purpose of definition a machinery tarp is usually a heavy-duty vinyl product manufactured with reinforced webbing and double stitching, evenly spaced grommets around the perimeter, and a series of strategically placed D-rings for more load securement options. What make these relatively different to steel and lumber tarps are their size and shape. n Several ways machinery tarps can protect your farm machinery and equipment n Tarps can be used to protect farming equipment that cannot be stored in a shed or barn from elements such as rain, sun, and snow. To protect tools and tractors stored in old drafty barns durable tarp materials are ideal for keeping them dry and rust free. Each day that a tractor or other farming equipment sits in the rain is a risky one, as the tractor will develop rust, slowly and steadily. Exposure to the elements needs to be eliminated with the use of a machinery tarp, which is a cost-effective solution for rural landowners who do not have outbuildings or enclosed barns. Custom fabricated tarps can be perfectly sized for all types of machines and vehicles used on farms including tractors, Utility Task Vehicles (UTVs), and trailers. Design options include custom dimensions, grommets, and d-rings, in addition to color choices. n Tarps are also an excellent way to keep the hay that you store in your barn dry in case the roof is leaking. Farmers who have to store hay outside are likely to own balers that produce round or square bales of hay, that they need to protect from damage caused by rain and snow. Custom fabricated tarps with tie-down fixtures will also keep hay covers in place during windy or inclement weather. n Tarp covers protect agricultural machinery whether they are stored outside or in an open barn. Tarps with UV-resistant finishes stop the sun from damaging tractor seats and steering wheels. And from keeping dirt and dust from accumulating on vehicles helping them run smoothly and eliminating costly repairs. When it comes to protecting Utility Tractors, Row crop tractor, Rotary tillers, Implement carrier, Earth moving tractors, tarps offer several benefits. n Transporting farm equipment from manufacturer to customer requires load protection to ensure a non-damaged product is delivered. Machinery tarps are used to cover things such as combines, milking machines, harvesting equipment, etc. Companies like Tarps4Less offer quality heavy duty truck tarps at competitive prices in any quantity. Their tarps specially designed for hauling lumber, steel, and machinery.
pas de données

Copyright © 2020  Shandong Abusair Agricultural Machinery Co,. Ltd- |  Sitemap

Multifunctional farm Abusair machinery  |  Tea Professional Cultivator farm machinery