QUEEN’S PARK — The Ontario Division for Canadian Manufacturers & Exporters (CME) says the new budget, announced yesterday, “provides short-term relief for manufacturers to help weather a perfect storm of challenges including the higher dollar, rising input costs and competition from emerging markets.”

Ian Howcroft, vice-president of the CME said a number of the group`s key priorities have been acted on in the budget, including the complete retroactive elimination of the “counterproductive” Capital Tax and investments in employer-based training and skills development.

“CME also looks forward to partnering with the government to help manufacturers improve their productivity and operational efficiency,” Howcroft said. “The tax initiatives in this budget allow manufacturers to hold on to their money to make investments in more productive and efficient technologies and skills development.”

Howcroft said he was disappointed that the new budget didn`t include corporate tax reduction, a Value Added Tax (VAT) system and greater equity in property tax rates, but he did commend the government for committing to a “cap and trade” system for regulations. “Piling on regulations doesn’t work. We need to think smarter about regulations. This initiative is an important first step.”