2016 Federal Budget Review pcmacanada.com | fundingportal.com - - PowerPoint PPT Presentation

2016 Federal Budget Review

pcmacanada.com | fundingportal.com

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Thank you to PCMA Founding Sponsors Agenda

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Agenda

Private Sector Financing Measures Richard Rémillard, President, Richard Rémillard Consulting, Director, PCMA

• Q&A

Public Sector Financing Measures Teri Kirk, President, Funding Portal, Director, PCMA

• Q&A

A word about PCMA and Funding Portal

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Private Sector Financing Measures

Richard Rémillard Understanding Budget 2016

• Budget deficits out into the future with a cumulative total of

$111B added to the national debt

• Debt to GDP ratio to eventually decline, assuming the

economy grows

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Focus on the Middle-Class

Language and structure of the Budget reveal priorities:

• Language: “Growing the Middle Class”
• Structure: 2 chapters devoted to Middle Class

Other priorities include:

• Innovation and Cleantech
• Indigenous Peoples

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Major Tax Measures and Expenditures

• 1. Child Benefit cost estimated at $40B for the 2016-7 and

2017-8 benefit years

• 1. $8.3B over five years for Indigenous peoples
• 2. $3.4B over five years for climate change and air pollution
• 3. $2.5B over two years for improving employment

insurance

• 4. $1B over four years to support cleantech
• 5. $800M over five years for innovation

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Measures Not Included in Budget 2016

What's NOT there

• 1. Taxation of stock options – no change
• 2. Capital gains inclusion rate – no change
• 3. Mineral Exploration Tax Credit for Flow-through share

investors – extended 1 year

• 4. Small Business tax rate – no change
• 5. Small Business deduction – some tightening of the

rules around partnership and corporate structures

• 6. Canadian Cooperative Markets Regulator – no

mention

• 7. "Patent-box" approach to corporate taxation per

Québec Budget – not included

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Campaign Promises Honoured

• 1. Income splitting WAS reversed
• 2. Balanced Budget legislation WAS revoked
• 3. Labour-sponsored venture capital corporations tax credit

WERE re-established

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Some Thoughts

Winners vs. losers

• Winners are many small groups in need
• New focus of government on nurturing ‘high impact’ firms
• Losers are upper income individuals

Worst fears not realized

• No change to capital gains inclusion rate

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Q&A

Type in your questions for Richard Rémillard using the online interface

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Public Sector Financing Measures

Teri Kirk Budget 2016 provides new funding measures to support the private and public companies market

• 1. Innovation and Export Support for Established Companies
• 2. Innovation and Export Support for SMEs
• 3. Clean Technology
• 4. Youth Employment and Skills Training
• 5. Additional Sectorial Measures

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Innovation and Export Supports

New "High-Impact Firm" Initiative

• Helps 1,000 high-impact firms to scale up and increase their

global competitiveness by improving coordination of services among major federal funders: ISED (Innovation, Science Economic Development to Canada), BDC, EDC, NRC-IRAP, TCS and Regional Development Agencies. "Automotive Innovation Fund" extended to 2020-21

• Attracts strategic, large-scale R&D projects focused on new

vehicle technologies. Funding for established firms

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Innovation and Export Support for SMEs

$50M for NRC-IRAP

• Helping more SMEs to access IRAP funding and services

in 2016-17. $4M to renew the Canadian Technology Accelerator Initiative

• Supports Canadian ICT, life sciences and cleantech

companies to access business accelerators abroad. Direct funding for innovation Funding for export of innovations

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Cleantech Funding on the Rise

• 1. $1B over four years to support clean technologies
• Aimed at Forestry, fisheries, mining, energy and agriculture

sectors.

• 2. $50M over four years for the SD Tech Fund at SDTC
• 3. $261.3M for Natural Resources Canada
• $82.5M over two years for clean energy
• $50M over two years for GHG reduction in the oil and gas sector
• $128.8M over five years for energy efficiency programs
• 4. $50M in additional funding for Regional Development

Agencies to support cleantech

Direct funding for clean technologies across several sectors

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Youth Employment and Skills Training

• 1. $165.4M in additional funding for Youth Employment
• Create new green, environmental and cultural jobs for youth; support

internships and skills development.

• 2. $73M for a new Post-Secondary Partnership and Cooperative

Placement Initiative

• Support internships and co-op placements in high-demand sectors.
• 3. $50M in additional funding for Canada Job Fund Agreements
• Help more businesses to provide skills training to new employees.
• 4. $85.4M for union-based apprenticeship training
• Support more apprenticeship training over the next five years.

Funding for hiring post-secondary graduates

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Additional Sectorial Measures

• 1. $40M to renew the SINED Program
• Support economic development in Northern Canada for the

next two years – Strategic Investments in Northern Economic Development.

• 2. Extend the 15% Mineral Exploration Tax Credit until

2017-18

• Help junior mineral exploration companies to raise capital

through flow-through shares.

• 3. $1.9B over five years for arts and culture sector

Support for aboriginal industries and arts/culture Support for prospectors and developers

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A word about PCMA

Objectives

• 1. Ensuring access to private market investment options
• 2. Building industry infrastructure for dealers, issuers and

investors

• 3. Providing an effective national voice for the private capital

markets industry Member Benefits

• 1. Getting exposure to industry experts and colleagues
• 2. Gaining insights into regulatory and compliance issues
• 3. Securing access to online tools, publications, networking,

educational seminars and conferences Join the PCMA at pcmacanada.com

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A word about Funding Portal

• Aggregates 15,000 sources of government

funding and private sector debt and capital market funding for business

• Assists companies to secure funding,

using today's online tools

• Builds commercial referral networks with

PCMA members and firms Use Funding Portal at fundingportal.com

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Q&A

Type in your questions for Teri Kirk using the online interface

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Stay Connected

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