|
Who says life can't be both safe and exciting. New Brunswick have safe, friendly, affordable, welcoming communities and excitement as great as all outdoors. Whether you prefer small-town communities or big-city amenities, family-oriented recreation or a thriving arts and culture environment, New Brunswick, Canada offers a quality of life that's sure to suit your lifestyle. There are sandy beaches, craggy coastlines carved by the world's highest tides, magnificent rivers, rolling farmland and lush forests-all kinds of unspoiled countryside within minutes of wherever you choose to live. There are more covered bridges than anywhere else, world famous salmon rivers, as well as miles of adventure-filled parkland. New Brunswick companies are expanding beyond their original expectations thanks to their Workready Workforce Program. -One of the lowest rates of worker-initiated turnover in Canada - less than 10% and among the best in North America New Brunswick consistently comes out low in operating cost comparisons. Its distinct advantages relate to payroll, benefits, real estate, taxation, shipping, and energy costs. Plus, N.B. offers attractive financial packages for the right project. For clients, New Brunswick can prepare a customized business cost comparison that will prove their operating cost advantage. Their attractive, stable wages plus high unemployment makes a compelling case for setting up operations in New Brunswick. New Brunswick does not suffer the pressures for wage increases that many U.S. and western Canadian cities are experiencing due to tightening labor markets. New Brunswick's shipping advantage is due to lower transportation costs. The province is at the entry point to the NAFTA marketplace, and cheep back-haul rates to New Brunswick means lower costs. New Brunswick offers attractive incentives and financial packages for investing companies. Their customized approach allows them to mix the right assistance to ensure your viability in the province. There are both federal and provincial incentives and assistance that may prove right for you - from tax credits and R & D incentives to loan guarantees, start-up capital and free staff recruitment and training.
- Strategic Assistance: - Regional Funding: - New Brunswick Power Corporation Electricity Assistance: - Start Up Rate - large industrial customers starting new operations or expanding existing operations may request a start-up rate for a period not exceeding six consecutive months - New Brunswick Telephone Company Telecommunications Assistance:
There are many tax incentives available to manufacturing and other companies operating in New Brunswick, a reflection of Federal Government's and Province's pro-business attitudes. - Federal Investment Tax Credit: - Federal Research & Development Incentives: -Provincial R&D Tax Credits: The provincial tax credit reduces the amount of qualifying expenditures for the federal R&D tax credit and the 100% deduction for both federal and provincial income tax purposes. The tax credit may be used to reduce New Brunswick corporate income tax otherwise payable. Unused tax credits can be carried forward 7 years or carried back 3 years. Non-taxpaying corporations may renounce their rights to the provincial credit in order to maximize their refund of federal R&D tax credits. - Duty Drawbacks and Deferral Program: To qualify for a drawback, you must show that the goods were later exported, destroyed under Customs supervision, discovered to be obsolete or surplus, used as ship's stores or used in the assembly, manufacture, or attachment to goods that were later exported or consumed in Canada. The maximum allowable drawback is 100% of the duties paid. These duties are now recovered as an input tax credit. The new Duty Deferral Program provides up-front relief of custom duties, anti-dumping and countervail duties, surtaxes, certain excise taxes and in some instances the harmonized sales tax. This program saves money by reducing the cost of production for goods destined for export from Canada. - Foreign Tax Credit: - Provincial and Federal Sales Tax Rebate: Because New Brunswick has combined its provincial sales tax rate with the federal rate resulting in the new HST (harmonized sales tax), the entire 15% sales tax on business inputs and purchases is a refundable tax credit for business.
- Recruitment Assistance: NBJobNet is the provincial database, online on the web, that features the names and skill sets of over 5,000 people looking for work. Companies can search by location, by skills and by industry to find a match to their recruitment needs. This database is accessible free of charge to all New Brunswick companies. Job Fairs and recruitment advertisements are additional tools that can be provided to new employers. - Training Assistance: Training and Employment Development 's Workforce Expansion program is designed for partnership with the private sector to provide clients who are job-ready with on-the-job experience. The Program provides financial assistance to eligible employers
in order to stimulate the creation of long-term employment opportunities
for unemployed individuals. The Program also aims at encouraging
the hiring of the province's post-secondary graduates. Funding will
be on the basis of a wage reimbursement. The percentage of wage
reimbursement will vary between 50% to 70% of the hourly rate to
a maximum reimbursement of $8.00 per hour.
NAFTA creates a single, North American market of nearly 400 million consumers - larger than the 12 countries of the European community - and a combined GDP of $11 trillion. This market is one of the richest in the world, and New Brunswick companies have preferred access - no quotes, no tariffs on Canadian-manufactured exports to the US. Mexico's trade barriers are also coming down thanks to NAFTA, and border crossings between all three countries are faster because of electronic data interchange programs, bar-coding technology and pre-clearance of goods. The Mexican border at Laredo, Texas is within three days trucking of Canada! NAFTA and the value of the Canadian dollar have led to a large increase in trade between Canada, the United States and Mexico over the past several years. Linking Atlantic Canada to the US is the Atlantic NAFTA Trade & Transportation Corridor. Transportation along this corridor is provided by highway, rail, air and marine modes. Related infrastructure includes highways, rail lines, airports, and seaports. Significant traffic and freight volumes move along the corridor between linked centers and from feeder routes. This trade and transportation corridor provides an advantageous physical and business environment for 75% of the regional population that lives along the corridor, with few impediments to trade and travel. The corridor connects most population and industrial centers in the region.
The significant volumes of import/export traffic for central Canadian and US markets transit that the corridor daily support infrastructure and services in excess of those which regional activity could support. Enhanced world class transportation services and facilities are made possible from this volume of import/export traffic. Atlantic Canada's rail network roughly parallels intermodal facilities and link the road, rail and marine networks in the region. The new CN/IC rail merger makes interline connections to the entire U.S. even more efficient and expedient! The region's major port, airport and intermodal facilities are located along the corridor, and the corridor carries over 90% of Atlantic Canada's exports to North American and global markets, as well as most of the region's imports. The corridor and its infrastructure supports New Brunswick's shipping advantage of lower transportation costs. The time to ship to major New England markets can be 15% - 60% better than from Nova Scotia or Prince Edward Island, and the 1997 42-city KPMG business cost comparison study published by Prospectus Inc. identifies New Brunswick as having the lowest road transportation costs in Atlantic Canada and lower combined road and sea transportation costs than any of the US cities reviewed.
Efficient multimodal transportation in New Brunswick encourages cost-effective inbound and outbound shipping. According to the 1997 plastics industry study conducted by The Boyd Company Inc., on a unit cost basis over-the-road shipping costs in New Brunswick generally show a savings of 20% or more vis-à-vis comparative US truckload rates. The 1999 "Comparison of business costs North America, Europe and Japan" by KPMG confirm that Canada maintains its competitive advantage in transportation costs in most industries over the U.S. by being as much as 27% lower, and over European and Japanese markets being as much as 2½ times lower.
Both commercial and industrial properties are available with lease rates very competitive with those across the continent. Major property developments are now taking place thanks to NB's low construction costs.
To deliver fast, turnkey site selection services, all government departments and appropriate municipal authorities support fast-tracking of permits.
The Sable Offshore Energy Project will result in processed natural gas for New Brunswick and tie into the existing North American gas pipeline grid in the northeastern states. Plans call for distribution to New Brunswick consumers by as early as mid-year 2000!
The provincially-owned New Brunswick Power Corporation has developed an innovative power system over the past 75 years that provides customers with low-cost, reliable energy
We're fully digital, with dual fibre-optics rings around the entire
province, and world-class, innovative telecommunication providers. Business Climate Impressive GDP growth is forecasted by the Conference Board of Canada at 3.2% with inflation less than the national rate and no wage escalation pressures. - Nesbitt Burn's revised GDP forecast for 1999 is at 3.5%, thanks mostly to significant increases in private sector capital spending. - From a resource-based to versatile economy of knowledge-based services and high-tech manufacturing, New Brunswick has evolved. - $2.6 billion in capital investment is expected from major projects including the gas pipeline and highway construction, Statistics Canada shows a 22% increase over 1998 levels - the 2nd largest gain in the country. - Atlantic Canada's offshore project will provide an abundant and economical supply of natural gas to industry and consumers. Natural gas should be ready for distribution in the year 2000!
New Brunswick's incentive package is attractive and it can be tailored to organizations' financial and training requirements.
The Province of New Brunswick strongly promotes research and development. It provides a 10% tax credit on R&D activities, and the Conference Board of Canada shows the after tax cost of R&D in New Brunswick is the 3rd lowest in Canada and well below that of several States, including Texas, Ohio, Washington and Pennsylvania. And, Canada's R&D environment is among the most favorable in the world. Because of this, firms can significantly reduce R&D costs through direct investment or sub-contracting in Canada. Business accounts for 62% of R&D in Canada, estimated at over $12.5 billion per year.
The National Research Council (NRC) is the Federal Government's
premier research agency that employs about 2,500 people engaged
in R&D, of which 1,100 are scientists and other professionals.
Its Industrial Research Assistance Program (IRAP) provides technical
assistance and funding to companies through a national technology
network. Businesses can benefit from this solid network of research facilities
to respond to the demands of today's technological and knowledge-based
economies. In New Brunswick, businesses find all the support they
need, from a multitude of private sector consulting firms, federal
and provincial agencies, to university research and development
facilities. They provide technological leadership and expertise
all geared to actively encouraging investment, development and entrepreneurship.
|
New Brunswick Offers Tailor-Made Financial Incentives
