You are here

MAC encouraged by budget measures aimed at economic stimulus

The Mining Association of Canada (MAC) views the Federal Budget 2009, tabled yesterday, as being appropriate for the times.  Investments in infrastructure, as well as providing greater access to credit, are positive steps in addressing the economic downturn.

“These are economically challenging times for our industry, and MAC is encouraged by budget initiatives aimed at providing economic stimulus and a path forward,” said Gordon Peeling, President and CEO of MAC. “MAC is also supportive in principle of infrastructure spending that will increase demand for raw materials and ideally result in improved access to resources in the far north.”

MAC welcomes the creation of the new regional economic development agency for the North and looks forward to working with the agency to advance resource development and economic opportunity for Northerners and Aboriginal People.

Other positive measures in the budget include:    

  • Extension of the temporary 15 percent Mineral Exploration Tax Credit
  • Investment in the Aboriginal Skills and Employment Partnership Initiative, and the Aboriginal Skills and Training Strategic Investment Fund 
  • Improved access to financing through the measures contained within the Extraordinary Financing Framework
  • Funding for a Community Adjustment Fund oriented toward resource-dependant communities
  • Strengthening of labour adjustment programs and training for unemployed workers

MAC is encouraged that the previously-announced corporate income tax reductions were maintained and notes that while the extension of the 50% accelerated capital cost allowance rate for investment in machinery and equipment will provide some incentives for new spending on capital, more aggressive measures could be taken to encourage major investments in capital spending and innovation.

Based in Ottawa, The Mining Association of Canada is the national organization for the Canadian mining industry. Its members are engaged in mineral exploration, mining, smelting, refining and semi-fabrication.