CADA participates in Department of Finance pre-budget consultations
March 8, 2021
In the fall of 2020, CADA provided a written submission with recommendations that focus on post-crisis economic recovery, as part of the House of Commons Standing Committee on Finance in advance of the 2021 budget. However, the Department of Finance consultations provide a unique opportunity to submit recommendations directly to the officials working on the budget and to the Minister of Finance.
The recommendations from the association focused on recovery measures to help dealers recover from the pandemic and a zero-emissions vehicle (ZEV) strategy. This time, however, the recommendations were made directly to the Minister of Finance (Chrystia Freeland) and the Department of Finance Canada, as opposed to the Standing Committee on Finance in the House of Commons.
“This submission to the Department of Finance Canada is part of our work to ensure the automotive industry remains supported moving forward, in the years ahead,” said Tim Reuss, CADA President and CEO.
The association has been working with the Canadian Vehicle Manufacturers Association in partnership with the Canadian Manufacturers' Association, the Global Automakers of Canada, and the Canadian Finance & Leasing Association, to launch a joint effort that would help ensure both federal and provincial decision-makers are aware of the economic challenges faced by the Canadian automotive industry — and how the sector, in turn, supports the country’s economy.
Freeland has introduced a new federal initiative requesting that the various sectors bring forward their best ideas on how Canada can build back from the COVID-19 crisis. The joint submissions from CADA and partner associations to the federal minister include support for a national vehicle scrappage program that would turn older and higher polluting vehicles into new and safe ZEVs. This in turn would help stimulate the economy by increasing new vehicle sales and helping to reduce greenhouse gas emissions.
“Our recommendations to the government include a strong and robust recovery package that will help revive Canada’s automotive industry and increase the economy through incentive programs that would encourage the purchase of vehicles post-pandemic,” said Reuss.
CADA Public Affairs Director, Huw Williams, said that if the national scrappage program is well-designed and funded, it would have a significant economic benefit and it would also align with the federal government's focus on a green recovery. He also said the association’s submission stressed the importance of ensuring no new taxes that could hurt vehicle production, dealerships, or their employees, should be introduced during this fragile economic time.
“We’ve been extremely focused on programs, including access to the Canada Emergency Wage Subsidy (CEWS), that kept dealerships alive and in business amid the crisis,” said Williams. “And although these types of programs remain important in 2021, a recovery template is also needed from the government.”
CADA is equally focused on ensuring the government prepares an efficient and adequate ZEV adoption strategy for the future. CADA Chief Economist, Oumar Dicko, said the association has been consulting with Transport Canada over the last few months and has worked with the Standing Committee on Environment and Sustainable Development.
CADA participated in the committee’s study on the ZEV strategy in Canada by providing dealer feedback and recommendations. Their main message was that incentives drive the adoption of ZEVs, that a ZEV mandate would limit consumer choices, and that federal and provincial governments must work together to create a national ZEV awareness campaign and ensure that a reliable network of charging stations are being built in Canada.
More updates will be provided in future CADA Newsline articles.