Canada’s Federal Government Fall Economic Update

November 4th, 2022 by enserva

Today, November 3, 2022, Canada’s Federal Government shared its Fall Economic Statement. During which Minister Freeland highlighted the growing risk of a mild recession, introduced targeted relief for the worst hit Canadians, and introduced new measures to support private investment in Canada, as well as support to Canada’s supply chains. The update appears to recognize and echo the challenges to long term energy security and stability that Enserva leadership shared with Ottawa decision makers in Spring and Summer 2022.

According to the federal government, though the economy is slowing, Canada appears to be in decent economic position thanks to higher commodity prices and the lowest debt-to-GDP-ratios in the G7. The update highlights better-than-forecasted revenues however those revenues are restrained from broad scale inflation. The government also announced programming to increase private investment, reduce emissions, and secure Canadian energy and manufacturing supply chains.

New measures proposed in the 2022 Fall Economic Statement that may impact members include:

Affordability


• $1.7B in compensation for supply management sectors to assist with the impact of free trade agreements
• Permanent elimination of interest on federal student and apprentice loans
• New, quarterly Canada Workers Benefit, with automatic advance payments for lowest-paid workers so they do not have to wait to receive their funds
• Lowering and regulating credit card transaction fees for small business

Jobs, Economy, and the Path to NetZero


• A commitment to launch the new Canada Growth Fund to encourage billions of dollars in private investment required to reduce emissions and grow the economy. The fund is designed to reduce emissions, accelerate key tech deployment such as low-carbon hydrogen and CCUS; scale up companies; and capitalize on Canada’s natural resources and strengthen critical supply chains to secure Canada’s future economic environmental well-being
• Two major investment tax credits for clean technologies and clean hydrogen to make Canada a leader in the net-zero transformation, including a new Investment Tax Credit for Clean Technologies, which will offer a refundable tax credit equal to 30 percent of the capital cost of investment in clean energy, and a commitment to launch consultations on how to implement a tax credit for investment in clean hydrogen starting in the next few weeks
• $250 million for ESDC to support Canadian workers’ transformation to the net zero Economy with funding that will be available to unions who offer training in this sector
• The federal government committed to starting consultations on how to best support Canada’s Advanced Manufacturing Competitiveness
• New taxes on share buybacks by public corporations in Canada
• Creating the Sustainable Jobs Training Centre as well as a new sustainable job stream for the Union Training and Innovation Program to equip workers with skills required for today and the future
• The Sustainable Jobs Secretariat, a one-stop shop that would provide the most up to date information on federal programs, funding, and services across government departments to support workers seeking sustainable, good paying jobs

Road Transportation Workers


• The federal government seeks to address the trend of drivers self-incorporating and operating as independent contractors who would otherwise be entitled to benefits and supports as employees, including paid sick leave, health & safety standards, employer contributions for EI & CPP, as well as workplace compensation protections
• The Fall Economic Statement proposes funding to take stronger action against non-compliant employers through orders, fines, and prosecutions to enforce the Canada Labour Code and in turn reduce illegal misclassifying of drivers
• $137M to the Canada Border Services Agency to improve their service levels

Enserva is the voice of Canada’s energy services, supply, and manufacturing sector. Our core advocacy objective is to give our sector a strong and equal voice at decision-making tables at the highest levels of government. We will continue to monitor government updates, announcements and legislation that impacts our members.