Canadian Vintners Association (CVA) – Annual General Meeting – Delivering on our Commitments in a New Minority Parliament

July 27, 2006

Niagara-on-the-Lake, Ontario
Check Against Delivery

Introduction

Good evening, it’s an absolute privilege to be with you tonight.

The Canadian Vintners Association is indeed a dynamic organization, comprised of a vibrant group of individuals.

Your tireless effort in producing world-class wines enhances Canada’s reputation on both a domestic and international level.

It embodies the notion that hard working Canadians can achieve impressive – and in your line of work, delicious – results.

Wine Industry in Niagara Region and British Columbia

The significant growth and investment that continue to take place in the BC and Ontario Wine sectors are testimony to this sector’s pursuit of a viable, sustainable wine industry, including:

o Thousands of new acres;
o Millions of dollars in capital expansion; and
o Partnerships with foreign wine interests

It is, in large part, due to the efforts of entrepreneurs, like Donald Triggs and Allan Jackson, that we have flourishing and growing wine regions right across Canada.

As a result, Canadian consumers now enjoy greater choice and quality to meet their increasingly sophisticated demands.

The Niagara wine sector is a major economic contributor to this region’s agricultural base.

And the wine regions both here and in BC have stimulated greater investment in the thriving agro-tourism industry.

I understand that Canadian wine tours now generate revenues of $400 million a year and this figure continues to grow.

I am proud and impressed that Canadian premium wines, especially our flagship Icewines, routinely win accolades at the world’s most prestigious competitions – and I am enjoying sampling some of these beautiful wines today.

The close collaboration between the federal government, the provinces and the industry continues to help enhance this industry’s performance and recognition on the world stage.

So, thank you to all Canadian vintners, especially to those of you here in Niagara, who work very hard to advance this important agri-food sector.

Canada’s New Government

Now, as you are all aware, on January 23, Canadians voted for change and they asked our party to lead that change.

They voted for a party that set out five key priorities for its first session of Parliament.

Not 100, not 16, not even 10 – but five key priorities in areas that are important for Canadians from coast to coast.

The 5 Priorities

These priorities are:

1. Restoring Canadians’ faith in the federal government by introducing the most sweeping accountability measures in Canada’s history.

2. Rewarding hard work and helping Canadians get ahead by reducing the GST.

3. Protecting families, communities and Canada’s way of life by cracking down on guns, gangs, and drugs.

4. Giving parents choice in child care by providing direct financial support and new child care spaces.

5. Guaranteeing timely health care services to Canadians by moving towards a Patient Wait Times Guarantee.

Delivering Results for Canadians

It’s now been fourth months since Canada’s new government took office.

During the last session of Parliament, our Government made significant strides in addressing each of these issues.

We made commitments to Canadians – and we’ve kept them.

Over the past 130 days, our Government has implemented a host of new measures to clean up government and provide direct benefits to millions of ordinary, hard-working Canadians.

We have taken on the challenge of governing this country responsibly – and we have succeeded.

A quick rundown of the measures our Government has introduced clearly shows one important thing – we have done exactly what we said we would do.

Federal Budget 2006

It’s no secret that Canadians are taxed too much. We’re taxed from the time we get up in the morning until we go to bed each night.

This tax burden hurts Canadian families and serves as a disincentive for both domestic and foreign investors.

That’s why, in our first federal budget, our Government brought forward almost $20 billion in tax relief measures over the next two years – that’s more than the last four federal budgets combined.

o Canada’s new Government has delivered a budget that cuts taxes and pays down debt, while at the same time focusing federal spending on key priority areas.

Budget Highlights

In its first budget, our government is:

1. Reducing the GST – from 7 per cent down to 6 per cent, effective July 1.

2. Providing a new $1,000 Canada Employment Credit for working Canadians.

3. Introducing a new Transit Tax Credit.

4. Providing parents with a tax credit to cover registration fees for children’s sports.

5. Assisting tradespeople with the cost of tools, and providing tax incentives to encourage more apprenticeships.

We promised Canadians that we would lower their taxes – and we delivered.

Budget 2006 – Supporting Canadian Business

This Government understands that small businesses are crucial to the Canadian economy.

Approximately 97 per cent of all Canadian businesses are small businesses. They are responsible for almost half of all new jobs created in this country.

This is why our Budget contains measures to support the growth of small businesses.

1. Firstly, it proposes to increase the amount of small business income eligible for the 12-per-cent tax rate to $400,000 from $300,000 as of January 1, 2007.

2. Secondly, it proposes to reduce the 12-per-cent tax rate applying to qualifying small business income:
o to 11.5 per cent in 2008; and

o to 11 per cent in 2009.

Corporate Tax Reductions

To excel in the global economy, Canada needs a competitive business tax system. We need to create a climate that encourages capital investment and innovation.

Canada’s new Government remains committed to delivering results for Canadian businesses in a minority parliament and is taking action by:

o Reducing the general corporate income tax rate to 19 per cent from 21 per cent by 2010;

o Eliminating the corporate surtax for all corporations as of January 1, 2008; and

o Eliminating the federal capital tax as of January 1, 2006 – two years ahead of schedule.

Elimination of Excise Tax

On June 27, coincidentally one month ago today, The Honourable Jim Flaherty, Minister of Finance, delivered significant tax relief to Canada’s small and medium-sized wine producers.

This decision strengthens the competitiveness of small and medium-sized vintners and brewers by reducing the federal excise tax on their products.

Excise duty on Canadian wine produced with 100 per cent Canadian agricultural products is eliminated - a reduction of 62 cents per litre.

This is a great announcement, benefiting both the grape growers and industry at large.

Eliminating this tax provides wineries with extra funds to further reinvest in their business.

It also allows wineries to compete on a more level playing field with wine-producing regions around the world which do not pay excise taxes.

Canada’s New Government – A Vision for the Future

So there you have it. A focused agenda that has produced real results for Canadians. All within our first six months in office.

It’s quite an accomplishment, but the job is far from over.

In the months to come, our Government will build on these successes and seek to address other priorities that must be dealt with to improve the quality of life for all Canadians, including:

o Strengthening political accountability through democratic reform;
o Continuing to crack down on crime and combat terrorism;
o Developing a practical “made-in-Canada” plan for a clean environment; and
o Strengthening Canada’s economy to improve the quality of life for Canadians.

Conclusion

Ladies and gentlemen, just as we did in our first 130 days, we have set an ambitious agenda for the fall session of Parliament.

I appreciate being invited here tonight to highlight the commitment of Canada’s new Government in making this minority Parliament work for all Canadians.

Thank you.