All this talk about economic stimulus, or as we Canadians call it, the Economic Action Plan, but where does it leave us? The news is full of vague terms, all the acute attention focused on the automotive, forestry and natural resources. Is any of this planning going to leave an impact on the culinary and food sectors, and help you ride through the recession?

The real challenge with economic stimulus for the Canadian culinary scene is figuring out where we all fit. Food fits into so many sectors, we’re impossible to pigeonhole. We contribute approximately 13% of all Canadian jobs and about 8.5% of GDP (Agriculture and Agrifood Canada), yet receive little direct recognition within the budget itself.

I took the pleasure of reviewing the 2009 Federal Budget and the Economic Action Plan, to see how it might specifically affect Cuisine Canada’s members. I focused on the main areas of our membership, including food production, restaurants, the service sector, tourism, farming, agricultural commodities, writers, artists, and small business owners. Be glad, I saved you 343 pages of reading. Here comes my summary!

(Shout out in the comments if I missed you!)

Business sector:

• Corporate taxes are to be cut to 19%, and small business income brackets for Canadian held private corporations will be increased, allowing up to $500,000 at the lowest 11% tax rate.
• The Canada Small Business Financing Program is increasing the maximum eligible loan amount to $350,000, or $500,000 for property, and is increasing the reimbursement limit for capital losses from 10 to 12% for loans made after March 31, 2009.
• There is a 100% capital cost allowance for business computers during the 2009 fiscal year, and continuation of the 50% capital cost allowance for manufacturing and processing equipment through 2011.
• Business information programs will be enhanced, including an emphasis on youth business development.

Agriculture and Food Processing:

• The Growing Forward fund intends to increase agricultural flexibility by injecting $1.3 billion over the next 5 years.
• There will be assistance provided to extend credit for Farm Cooperatives and Credit organizations, with the intent to improve competitiveness.
• $50 million over the next 3 years will enhance livestock operations, slaughter facilities and meat processors, to increase food safety, and add value to Canadian products.
• Tariff relief will be implemented for imported industrial food processing equipment.

And on the cultural side of things:

• An overall $335 million is targeted for culture and arts programming.
• $40 million for the Canadian Tourism Commission over the next two years, with half intended for domestic initiatives, including the Olympics, the other for international programs.
• Marquee festivals will be supported with $100 million in the next two years.
• $60 million for infrastructure grants over two years for community cultural institutions that engage in “Canadian Heritage Programming”.
• $12 million per year over the next four years for developing a cruise ship corridor in the St. Lawrence and Saguenay.
• Canadian magazines and newspapers will receive $30 million in support over two years.
• And of course the nebulous “Canada Prizes for Arts and Creativity” which are still in the planning stages.

Are you as stumped as I am?

While Canada is better off than some other countries, many of you are hurting andI wonder how any of this “Economic Action” is going to help.

How do you fit into the Economic Action Plan? Do you anticipate real help from this plan, or is this just another piece of spin? What policy would you put in place to help your work thrive through the recession?

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Post written by Amy Proulx.

Dr. Amy Proulx is a happy-go-lucky food chemist and biologist, currently an NSERC research fellow with Agriculture and Agrifood Canada’s Guelph Food Research Centre. When she isn’t blowing up perfectly edible things in her lab, she is usually found cooking perfectly edible things for her family and friends.

Photo © uxud. Published under a Creative Commons License.