The following is a report from the Recreation Vehicle Dealers Association (RVDA) of Canada.
Monday afternoon, government House Leader Karina Gould tabled the Fall Economic Statement (FES) on behalf of the new minister of finance, Dominic LeBlanc, and the federal government. The FES follows the resignation of the deputy prime minister and minister of finance, the Hon. Chrystia Freeland, earlier this morning. Minister LeBlanc will now serve as the prime minister’s steady hand as minister of finance, in addition to his roles as minister of public safety and intergovernmental affairs.
The FES provides an opportunity for the federal government to share an update on current finances and highlight priorities. Compared to typical timelines for the release, this year’s announcement comes after a significant delay and during a period of great uncertainty for the federal government. Affordability and the cost-of-living crisis remain top-line agenda items, with Prime Minister Trudeau recently announcing measures such as the GST/HST break and business-focused tax breaks and incentives. The FES also features updates and commitments to housing and infrastructure development, capital investment in Canadian innovation, and investment tax credits to support the industrial transition, among other key priorities, to increase productivity and sustain wage growth.
In response to the looming 25% tariffs promised by President-elect Donald Trump and pressure from premiers, the federal government plans to invest in supporting the Canada Border Services Agency, the RCMP, Public Safety Canada and the Communications Security Establishment, although the details of this remain vague. They are “focused on countering the U.S. threat of tariffs while fostering a stable and competitive business investment climate.”
Highlights for RVDA
In areas of particular concern to the RVDA of Canada, the 2024 Fall Economic Statement announces that the federal government is considering further measures to create a more nimble and resilient labor market that supports newcomer integration into their chosen professions. This includes removing the tax-exempt status of regulatory colleges that do not accelerate credential recognition and publishing a national credential recognition performance framework.
RVDA of Canada has been heavily involved in workforce development discussions with this government. While the difficulties highlighted by the industry seem to have been understood, details on these changes will only be presented in the next federal budget. It will be interesting to see how these promises are maintained if the current government sustains a loss of confidence and elections are triggered.
The leader of the Official Opposition, the Hon. Pierre Poilievre, posted online that the Liberals forced former Minister Freeland “through the fiscal guardrail and Canadians off the debt cliff” and reiterated the Conservatives’ intention to take a common-sense approach to supporting Canadians.
The federal government has failed to hold its commitment to keep the deficit at or below $40.1 billion. The deficit for the 2023-2024 fiscal year totaled $62 billion. Last week, the Bank of Canada cut interest rates from 3.75% to 3.25% — factors that influenced this decision included weaker-than-expected GDP and slowing economic growth. Ahead of 2025, the federal government continues to contend with the ongoing affordability and cost-of-living crisis, rising unemployment rates and pressure from opposition parties and the public alike to deliver relief and support to Canadians. The federal cabinet is also in significant disarray and is expected to be shuffled shortly.
Other measures in the Fall Economic Statement (FES) potentially of interest to RVDA of Canada include:
- The government’s intent to introduce legislative amendments to the Customs Act to grant the Canada Border Services Agency new authorities to inspect goods destined for export as a means to crack down on auto theft. This will include requiring warehouse operators and shippers to provide adequate accommodations for CBSA officers to carry out their mandate.
- The government’s intention to amend the criminal code to make bail and sentencing laws stricter to better respond to the severity of auto theft, break and enter, extortion, and arson crimes committed by repeat, violent and organized crime offenders.
On measures for Canadian businesses, the Fall Economic Statement includes:
- The expansion of the Capital Gains Rollover on business investment, to ensure that Canadian small businesses can access the capital they need. The FES proposes to expand what qualifies as an eligible small business corporation share and to relax certain conditions for the rule to apply.
- Fully reinstating the Accelerated Investment Incentive, reinstating immediate expensing for manufacturing or processing machinery and equipment, clean energy generation and energy conservation equipment, and zero-emission vehicles, which will protect Canadian jobs.
- Modifying the Canada Carbon Rebate for Small Businesses by creating a new base payment allowing those that have between one and 20 employees to qualify for a payment equivalent to having 20 employees.
