2016 Federal Budget Review pcmacanada.com | fundingportal.com
Thank you to PCMA Founding Sponsors Agenda 2
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 3
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 4
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 5
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 6
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 7
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 Balanced Budget legislation WAS revoked 3.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 8
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 9
Q&A Type in your questions for Richard Rémillard using the online interface 10
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 11
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 12
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 13
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 14
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 15
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 16
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 17
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 18
Q&A Type in your questions for Teri Kirk using the online interface 19
Stay Connected 1.877.363.3632 | 1.855.850.fund (3863) | info@pcmacanada.com services@fundingportal.com pcmacanada.com fundingportal.com 20
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