OTTAWA, (Feb. 24, 2005) — National trucking representatives gave the federal government a thumbs up for its 2005 Budget promise to spend $433 million over five years to improve border services and strengthen trade capacity.

Although not contained in the budget document, federal officials explained to the Canadian Trucking Alliance that the primary use for the additional funds is to hire more Canada Customs staff at key ports of entry to staff primary inspection booths.

The federal government also indicated that in an upcoming budget, it would renew the $600 million Border Infrastructure Fund created in 2001.

“Too often, CTA members face line ups coming back into Canada when primary inspection booths are closed. Staffing was often identified as the problem. The 2005 Budget should help address this issue,” said CTA CEO David Bradley in a statement.

However, CTA said that the Liberals fell short on the issue of accelerating Capital Cost Allowance rates to encourage environmentally friendly truck and equipment investments.

“CTA has long-encouraged the federal government to adjust the CCA regime to encourage the penetration of cleaner truck engines into the marketplace,” said Bradley. “While I don’t question the steps taken in today’s Budget, most of the environmental measures are directed towards the reduction of GHG emissions. Therefore, there are no fiscal incentives provided for ongoing investments by the trucking industry in clean engine technology to eliminate harmful smog causing emissions.”

Other tax measures of interest to CTA were the elimination of the corporate surtax by 2008, the phased reduction of the corporate income tax by two percentage points, and measures to increase RRSP deduction limits.