Nova Scotia's NDP proposes manufacturing tax credit
Last Updated: Thursday, February 12, 2009 | 4:08 PM AT
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Nova Scotia NDP Leader Darrell Dexter promises he would reinstate a tax credit for business were his party to form a government.
Though there's no election underway, Dexter made the campaign-style promise Thursday as he spoke to the Halifax Chamber of Commerce.
He said he would reinstate a manufacturer's tax credit the governing Progressive Conservatives axed seven years ago.
"If a company is not investing it is withering away," Dexter said.
The NDP's proposed 10 per cent manufacturing and processing tax credit is much more modest than the one eliminated in 2002.
But Dexter said it would have a big impact.
"That provincial investment would trigger the creation of more than 2,000 jobs, from construction, purchases of equipment and machinery and increased operations that result," he said.
Dexter said the $20 million to $25 million needed a year to pay for the tax credit would come from existing government revenue.
"We have within our budget money for economic development. We have money for restructuring. We have money for capital investment. This money would come from those areas," he said.
Jean-Paul Devost, with Acadian Seaplants, likes the idea of a tax break, though he's unsure that alone would convince him to buy new equipment or expand his business.
"Would it make a difference in terms of whether we would actually make an investment or not? I would say that the amount would not be great enough," Devost said.
To have a real impact, he said, the province would have to bring back the 30 per cent tax break offered to businesses until 2002.
Former cabinet minister Jamie Muir was also present for Dexter's speech.
"Certainly it would be a good thing if it helped business go in this province and if the province can afford it," said Muir.
Nova Scotians are expected to head to the polls this year for a provincial election.
Last week, the Tories launched a campaign to try to convince voters that an NDP government would drive the province into deeper debt. They released a 65-page booklet and website called RiskyNDP.
The NDP countered with its own site, called ThriftyNDP.
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