MONTRÉAL, April 19, 2021 /CNW Telbec/ - On the occasion of the unveiling of the federal budget, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance of Canada, recognizes the strategic importance of the aerospace sector in the country's economy by providing $2 billion to support the industry in its recovery.
A financial envelope dedicated to the aerospace industry to help it emerge from the crisis and return to growth
The federal government will provide $1.75 billion over seven years through the Strategic Innovation Fund. Created to stimulate progress, this Fund is a critical lever to keep Canadian aerospace companies in the global race towards sustainable mobility.
The government is complementing this support with $250 million over three years to regional development agencies to implement a regional aerospace recovery initiative. The objective of this measure is to encourage small and medium-sized companies to improve productivity, build commercialization capacity, and improve the energy efficiency of their operations and products.
In addition, by extending the Canada Emergency Wage Subsidy program until September, the government is providing additional relief to companies in the sector, necessary to keep talent employed and prevent the ecosystem from deteriorating.
Stimulating measures to encourage the industry's green shift
In response to the biggest crisis ever to hit the sector, the aerospace industry will use the momentum of the recovery to strengthen its commitment to reducing greenhouse gas emissions. By making such massive investments, the government is encouraging the industry to accelerate its shift to decarbonization. Indeed, through measures such as the Net Zero Accelerator, the federal government intends to reduce by 50% "the general tax rate on corporations and small businesses that manufacture zero-emission technologies."
"By tabling this budget, the federal government is sending a strong signal to the aerospace sector. It is also demonstrating its willingness to work with the provincial government to provide the industry with a harmonized vision for a green recovery and concrete solutions tailored to the needs of the sector. With these measures, we will be able to make the aerospace industry one of the pillars of Canada's economic recovery and a leader in the sustainable mobility of tomorrow," said Suzanne M. Benoît, President of Aéro Montréal.
About Aéro Montréal
Created in 2006, Aéro Montréal is a strategic think tank that groups all major decision makers in Québec's aerospace sector, including companies, educational and research institutions, as well as associations and unions.
The activities of Aéro Montréal are made possible thanks to the participation of the governments of Canada and Québec, the Montréal Metropolitan Community, as well as company members of the cluster.
SOURCE Aéro Montréal
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