On February 11, the Federal Minister of Finance, the Honourable Jim Flaherty, presented the 2014 federal budget, entitled
The Road to Balance: Creating Jobs and Opportunities. NAFA had a representative present at a private stakeholder Budget lock-up on Parliament Hill, where a small group of major national associations had an advanced preview and briefing on the Budget prior to Minister Flaherty delivering his Budget Speech on national television.
This budget commits to no new taxes for Canadian Families and businesses, and reduces tariffs on a number of goods. The budget also has a renewed focus on consumer issues, including targeting Canada-U.S. pricing differences and eliminating a number of consumer billing costs.
The deficit will be reduced to 2.9 billion in 2014-2015, and the government will return to surplus of $6.4 billion next year.
Key highlights of interest to NAFA members include:
Canada-U.S. Price Gap
- Economic Action Plan 2014 proposes to address a source of the price gap identified by the Senate Committee: country pricing strategies—that is, when companies use their market power to charge higher prices in Canada that are not reflective of legitimate higher costs. Evidence suggests that some companies charge higher prices in Canada than in the U.S. for the same goods, beyond what could be justified by higher operating costs. Higher prices brought on by excessive market power hurt Canadian consumers.
- The Government intends to introduce legislation to address price discrimination that is not justified by higher operating costs in Canada, and to empower the Commissioner of Competition to enforce the new framework. Details will be announced in the coming months.
Automotive Innovation Fund
- Budget 2014 proposes to provide an additional $500 million over two years to the Automotive Innovation Fund, to support significant new strategic research and development projects and long-term investments in the Canadian automotive sector.
- The Automotive Innovation Fund (AIF) provides repayable contributions to automotive firms that are undertaking strategic, large-scale research and development projects focused on new vehicle technologies. Established in Budget 2008, the AIF has provided commitments totalling up to $316 million to six projects involving automotive assemblers and parts makers. This funding has leveraged commitments of up to $2.3 billion in private sector investments.
For more information, please contact 1-866-935-9969 or
nafa@impactcanada.com 
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