Calgary, Alberta, March 28, 2023 – Budget 2023 tabled by the federal government today reflects the fiscal restraint required by government during times of economic uncertainty, and highlights several important initiatives including investments in clean technology, supply chain measures, internal trade supports, and commitments to reduce regulatory timelines. However, Budget 2023 misses key investments in areas proving most challenging for businesses, including affordability measures and initiatives to address the labour force and skills gap. Several investment tax credits outlined will be helpful in spurring investment in clean technology, however further clarity is required before private sector investments can be deployed.
"Today’s budget reflects the cautious optimism felt by businesses by avoiding unnecessary spending to manage the inflationary environment," says Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce. "While this budget signals several key initiatives, businesses have questions as to how tax credits will work, how small and medium-sized businesses will be supported as they grapple with affordability, and the ongoing labour shortage. We remain concerned regarding an absence of measures aimed at increasing productivity and economic growth."
The Calgary Chamber is pleased to see:
- Further clarity on the Investment Tax Credit for Clean Hydrogen, including a credit between 15 and 40 per cent of eligible project costs and a 15 per cent credit to convert hydrogen into ammonia for transportation.
- The new Investment Tax Credit on Clean Electricity for abated natural gas-fired electricity generation and commitment to $20 billion towards greening the grid through the Canada Infrastructure Bank.
- A new Investment Tax Credit for Clean Technology Manufacturing to advance critical mineral production, refundable up to 30 per cent of investments in machinery and equipment and totaling $4.5 billion over five years and an additional $6.6 billion from 2028-35.
- $1.3 billion over six years to reduce regulatory timelines through the Impact Assessment Agency, Canada Energy Regulator and several other departments, making it easier to build major projects in Canada.
- $158 million over three years to support tourism through Regional Development Agencies and Destination Canada, supporting one of Calgary’s hardest hit sectors.
- $500 million over ten years towards the Strategic Innovation Fund to advance large projects that reduce emissions.
While several key investments were advanced, the Chamber will continue to advocate for the inclusion of the following measures:
- Greater affordability support for small and medium-sized businesses, given the significant challenges they are facing related to inflation, rising interest rates, rising costs of labour, supply chains and rising costs of insurance.
- Measures to address the labour shortage and set newcomers up for success through credentialling and accreditation, which is a gap given 81 per cent of Calgary businesses anticipate facing barriers to growth due to difficulty attracting and retaining talent.
- Additional clarity on carbon capture utilization and storage incentives, given the importance and urgency of investment in emissions reduction technology to meet ambitious climate goals, businesses need certainty and clarity that facilitates and accelerates investment decisions.
- Advancements on an economy-wide, sector agnostic, national GHG offset system based on consultations with industry, provincial and territorial governments, and Indigenous partners.
- Support for downtowns as hubs of commerce, attracting investment and talent, particularly given the significant challenges downtowns have faced over the course of the pandemic.
- Improve the affordability and quality of childcare in Canada by providing top-up funding for provincial childcare agreements based on inflation.
Several measures announced in Budget 2023 are directionally positive but requires further clarity for business certainty and thus investment decisions. The Calgary Chamber looks forward to working with government on key consultations referenced in Budget 2023 including:
- The implementation of carbon contracts for difference, providing greater clarity for businesses facilitating key investment decisions.
- Details on the structure of the Clean Electricity Investment Tax Credit, particularly given the accelerated timelines and required commitment to meet ambitious 2035 goals.
- Establishing the Canadian Innovation Corporation in Calgary, in light of the anticipated Canadian Innovation Corporation Act outlined in Budget 2023.
- The development of the National Supply Chain Strategy, given the ongoing cost and timeline challenges facing businesses.
- The development of policies to advance biofuel production including sustainable aviation fuel, leveraging Canada’s agricultural expertise to be competitive with the U.S. Inflation Reduction Act Clean Fuel Production Credit.
- Expansion of economic reconciliation initiatives beyond the Canada Infrastructure Bank to support for Indigenous businesses and entrepreneurs partnering with private sector on major projects.
We look forward to continuing to work closely with Calgary businesses and government to ensure a strong public policy landscape that supports prosperity and community wellbeing.
ABOUT THE CALGARY CHAMBER OF COMMERCE
The Calgary Chamber exists to help businesses thrive. As the convenor and catalyst for a vibrant, inclusive, and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification, and opportunity. As an independent, non-profit, non-partisan organization, we build on our 131-year history to serve and advocate for businesses of all sizes, in all sectors, and across the city.
Media opportunities
For media inquiries, please contact Shannon Hazlett, Senior Public Relations Advisor, at media@calgarychamber.com.
