Bank of Canada says no special help forthcoming for Ontario industries
\nLast Updated: Wednesday, November 14, 2007 | 12:45 PM ET
\nCBC News <\/p>\n
The senior deputy governor at the Bank of Canada says there will be no special help for Ontario manufacturers struggling to cope with the high Canadian dollar.<\/p>\n
Paul Jenkins made the comments on Wednesday at the Ontario Economic Summit, being held at Niagara-on-the-Lake.<\/p>\n
It is financial markets that determine the strength of the Canadian dollar, not the Bank of Canada, he said. <\/p>\n
“The recent sharp appreciation of the Canadian dollar is outside the bounds of what historical experience would suggest,” Jenkins told the conference.<\/p>\n
Linda Hassenfratz, president of the auto parts company Linamar, said the high dollar is costing her company $30 million a year. The Ontario government should cut its corporate tax rate to compensate, she said.<\/p>\n
“The federal government has stepped up with proposed tax cuts to take us to 15 per cent by 2012. We need the provincial government to cut as well,” she said.<\/p>\n
But so far the provincial finance minister has refused.<\/p>\n
The Ontario government counters that it has already provided $2 billion in tax cuts to businesses since it was first elected in 2003.<\/p>\n
The Liberal government also announced on Wednesday it is helping to create a $165-million fund to assist the province’s startup companies.
\nThe province will kick in $90 million, while the remaining $75 million will come from private investors.<\/p>\n
RBC Capital Partners, the Business Development Bank of Canada and Manulife Financial are among the companies that will chip in cash.<\/p>\n
The Ontario Venture Capital Fund will help encourage new companies to put down roots in Ontario and create well-paying jobs, Premier Dalton McGuinty said.<\/p>\n
The province says Ontario often attracts a large number of startup companies but they have difficulty surviving because they can’t attract investors.<\/p>\n
McGuinty said this first step is just the beginning and Ontario will look for more private investment to grow the fund down the road.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bank of Canada says no special help forthcoming for Ontario industries Last Updated: Wednesday, November 14, 2007 | 12:45 PM ET CBC News The senior de…
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