May 20, 2009
FREDERICTON (CNB) - The provincial government is ensuring that the economy remains a priority by investing $56.8 million in business-related and population growth activities in 2009-10.
Acting Business New Brunswick Minister Jack Keir made the announcement while releasing the department's budget estimates for this fiscal year.
"We are continuing our work to attract more investment, create more jobs and help more people and companies be successful in New Brunswick," said Keir. "Investing in building our economy and growing our population is especially critical now, with the world facing such difficult challenges. This year's budget reflects a continued focus on our strategic priorities of aggressive investment attraction; business retention and expansion; and cluster development."
Measures in the 2009-10 budget for Business New Brunswick include:
As well, the province continues to provide loans and loan guarantees to companies struggling to obtain access to credit because of the worldwide financial crisis.
Since October, the provincial government has extended working capital loans to several companies with demonstrated track records and business plans, including CE3 in Dieppe, T.S. Simms & Co. in Saint John, Ocean Pier in Scoudouc, LuminUltra Technologies in Fredericton and Sunny Corner Enterprises in Miramichi.
"It's no secret that companies all over New Brunswick are struggling with the new economic reality, and we are determined to help them obtain access to the credit they need to maintain their inventories and to keep people on the payrolls," said Keir. "We are confident these companies will get through these tough times and emerge stronger than ever."
Keir said tax reforms announced as part of the overall budget will bring significant benefits to New Brunswick businesses.
Cuts to corporate taxes and enhanced credits will save companies $20 million in 2009-10, an amount that will grow to $44 million by 2012.
On July 1, the corporate tax rate will fall to 12 per cent from 13 per cent, giving companies about $6 million in tax relief this fiscal year. The rate will drop again each July 1 until it reaches eight per cent, providing New Brunswick businesses with $37 million in tax savings by 2012.
This tax cut goes beyond Ottawa's 10 per cent target and will give New Brunswick the lowest rate in the country, said Keir.
The government has also boosted the small business limit to $500,000 from $400,000, tying New Brunswick for the highest small business income limit in Canada.
"Together, these tax cuts will make New Brunswick a more attractive place to live and make a living," said Keir. "The changes will help us attract more business, more skilled workers and more growth, fast-tracking our province toward our long-term goal of self-sufficiency in 2026."
MEDIA CONTACT: Ryan Donaghy, communications, Business New Brunswick, 506-453-2694.