Toronto, Ontario — September 24, 2019 — The writ has been dropped, and the major parties are releasing details about what policies their governments would pursue. With the campaigns for Canada’s next prime minister revving up, it’s time to see what each party has planned for the nation’s automotive industry and collision sector.
Liberal
Auto Industry: Prime Minister Justin Trudeau recently visited the automotive hub of Windsor, Ont., generating buzz that it may have an upcoming plan for Canada’s auto sector. Little was said.
Liberals have been actively supporting the manufacturing industry, going coast to coast handing out chunks of the $1.33 billion they raised from retaliatory tariffs on the U.S. to the steel and aluminum sectors. They have also been dishing out money for manufacturers through their strategic innovation fund.In the past, Trudeau has called for a national manufacturing strategy but it has yet to materialize.
Small Business: During their first term in government, the party lowered the small business tax rate from 10.5 to 9 percent. For this election, they have pledged to give cash to entrepreneurs to build startups and eliminate the tax ‘swipe fee’ merchants pay to credit card companies.
Editor’s note:
The infrastructure around chip-and-pin technology does not justify the high price paid on each transaction. It can be difficult for even big companies to fight back–just look at the long standoff between Wal-Mart and Visa.
While it would have a trickle-down benefit to repairers, the real benefits would be seen by high-volume sellers, whose businesses are more dependent on frequent, small purchases.
While not traditionally seen as the darling of the auto repair sector, the Grits are clearly moving into a more pro-business direction. — GS
Conservative
Auto Industry: Andrew Scheer’s Conservatives have yet to speak directly about the auto industry but, back in 2018, Scheer said he would continue to support manufacturing in southern Ontario through the FedDev Ontario program and a federal auto-sector investment fund.
Conservatives plan to close the gap between conventional and electric vehicles, though a timeline has yet to be released. The party wants to invest in Canada’s charging infrastructure and vows not to pull back on any federal funds already committed to transit projects. The party also plans to reward green technology companies by taking tax rates from 15 percent to 5 percent.
Small Business: The Tories also plan to cut the tax rate on small business. Scheer also mentioned plans to make it easier for business owners to pay dividends to family members.
Editor’s note:
Usually seen as the prettiest girl at the Business Improvement Association dance, the Tories are uncharacteristically vague about their tax plans in this cycle. The small business tax policy plans are unlikely to cut terribly deeply as they are already historically low.
While the plan is now vague, the Tory goal of simplifying family dividend payouts will have a lot of appeal for second and third-generation repair businesses.— GS
New Democrat (NDP)
Auto Industry: NDP leader Jagmeet Singh was the first candidate to make huge promises to Canada’s auto sector. On September 14, Singh took to Oshawa, Ont. to promise a $300 million investment into the nation’s automotive industry, should he be elected. While standing in front of the city’s General Motors assembly plant — which is slated for closure later this year — Singh vowed that the NDP will revive Canada’s auto innovation fund, initiated under Stephen Harper’s conservatives in 2008.
The NDP’s program is designed to further encourage the development of zero-emissions vehicles, but with a catch: manufacturers and suppliers receiving the financial support would be forced to keep jobs on Canadian soil.
The tactic is part of the party’s climate change strategy, unveiled earlier this year. Singh claims the strategy will create jobs in Canada’s auto sector and boost endeavours in environmental sustainability. The party is vowing to triple the Liberal’s electric vehicle subsidy, giving owners of zero-emissions vehicles an extra $15,000 in their pockets.
Small Business: NDP also wants to electrify the government’s fleet of vehicles by 2030, eventually striving for all new vehicle sales in Canada to be emissions-free by 2040 — a goal the Liberals share.
The NDP’s biggest small business platform is a plan to simplify the passing down of companies from one generation to the next.
The party has also pledged to invest in training to allow underemployed people to train in careers with labour shortages.
Editor’s note:
While unlikely to garner the votes of too many business owners, the NDP definitely does offer the most impressive plan the owners of family businesses. Its training platform, however, is unlikely to inspire too much interest.
While labour shortages remain significant in the collision industry, industry-led attempts to encourage recruitment are paying off–and the situation is slowly improving. In the last budget, the Liberals invested in a new series of training initiatives, on which the jury is still out. — GS
Make sure to check back with Collision Repair magazine for more election coverage.
