Take a Closer Look at Québec

Transcription

1 Take a Closer Look at Québec Lombardy s challenge for competitiveness CANADA SEMINAR

2 Québec in 2010 Vancouver CANADA UNITED STATES MEXICO Mexico Atlanta QUÉBEC Québec Montréal Toronto Boston Detroit Chicago New York Washington 1000 km 2000 km 3000 km Largest province in size in Canada, second in population 7.8 million inhabitants 25% Canadian Population 1,667,441 km² (3.3 times Spain) GDP of $285 billion GDP per capita of CAN$40,121 Size of economy comparable to Switzerland NA Free Trade Agreement between Canada-USA-Mexico : 440 million consumers Within 1,000km of Montreal: 130 million consumers Federated State Parliamentary Democracy 4000 km

3 Italy & Québec: Good business partners 2009 importation facts Italian importations in Québec : 1,4 G$ CAD Importation partner : 10th world wide & 4th in the EU Most Imported Products High Tech products : 13% Medium/High Tech : 31% Source : AEQM/Institut de la Statistique Québec

4 One of the Lowest R&D activities Cost in North America Comparison of Tax Rates, 2010 Manufacturing Companies (total effective %) Québec California North Carolina Illinois Massachusetts Michigan ,87 37,87 36,55 37,54 36,65 New York Pennsylvania Washington 31,85 43,54 42,15

5 Québec: The Lowest Corporate Tax Level Among The G7 Countries Source : Raymond Chabot Grant Thornton, April 2010 QUEBEC COMBINED CORPORATE INCOME TAX RATE Canada Corporate Tax Rate (Manufacturing) Québec Corporate Tax Rate (Manufacturing) Total Canada + Québec % 11.9% 30.9% % 11.9% 29.9% % 11.9% 28.4% % 11.9% 26,9%

6 One of the Lowest R&D Costs in North America R&D spending by businesses in Québec receives favorable tax treatment: Québec France Canada Japan UK USA Italy Germany Source: Ministère des Finances du Québec, profil économique et financier, 2009

7 Energy costs In Québec, all forms of energy are plentiful, reliable, and available at competitive price.. Québec Canada France Ontario United States Mexico Netherlands Japan Germany UK Australia Italy Source : KPMG Guide to International Business Location, 2010

8 More R&D for less money In-house R&D Project ( 100 in salaries) Canada Tax Credit : 39 Québec Refundable Tax Credit : %

9 More R&D for less money R&D Project of 100 subcontracted to a Recognized Research Center in Québec Canada Tax Credit : 27 Québec Refundable Tax Credit : %

10 More R&D for less money R&D Project of 100 conducted under the Refundable Tax Credit Program for Private Partnership Pre-competitive Research Canada Tax Credit : 22 Québec Refundable Tax Credit : %

11 Québec Aerospace Industry 60 % 70 % 40 K G$ 60 % 80 % N o 1 N o 3 N o 5 Canadian Aerospace and Defence Jobs Canadian Aerospace R&D Budget Employees Companies Annual Revenues (2009) Canadian Aerospace Industry Revenues Canadian Aerospace Industry Exports Canadian Aerospace City : Montréal Aerospace City in the World : Montréal Aerospace Industry in the World : Québec

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13 Leadership World (% market shares) Regional jets Small & medium size turbines Flight Simulators Avionics 47% 34% 70% 60% Landing gears, large aircrafts 60% Civil Helicopters 14%

14 An Investment Destination More than 6.9 G$ of investment over the last 5 years Company Specialty Investment (CDN$M) Origin GE Canada (2010) Engines 63.5 United States Esterline / CMC Electronics (2009) Avionics 95 United States CAE (2009) Flight simulator 714 Canada Pratt & Whitney Canada (2008) Engines 575 Canada Bombardier (2008) CSeries 2,500 Canada Rolls-Royce (2008) MRO - Engines 19.5 United Kingdom Sonaca-NMF (2007) Wing panels and structural parts 17 Belgium Héroux-Devtek (2007) Landing gear 40 Canada Pratt & Whitney Canada (2007) Engines 1,500 United States RTI Claro (2006) Titanium parts 43 United States Messier- Dowty (2006) Landing gear 20 France GE Canada (2006) Engines 22 United States Mecaer (2006) Landing gear 7 Italy CAE (2005) Flight simulator 630 Canada Bell Helicopter Textron (2005) New MAPL Program 700 United States

15 Leading-Edge Training in Aerospace Six universities Five technical colleges and two specialized trade schools, including: the National Aerotechnical School (ENA) the Montreal Aerospace Trade School (EMAM) Close to 4,600 graduates every year (engineers, technicians and specialized workers)

16 The Canadian Space Agency Headquartered in Saint-Hubert 800 employees Coordination of all aspects of Canada s space program Cooperation with the European Space Agency (ESA)

17 On going programs Bombardier CSeries June 24th 2010 Learjet 85

18 Renewable Energy Québec Energy Sources Natural Gas 13% Electricity 39% Oil 38% Coal 1% Biomass 9% Source: Ministère des Ressources naturelles et de la Faune, 2007

19 Québec Government s Major Policy Directions An Energy Strategy Focused on Renewable Energy Hydro Implement 4,500 MW of new hydroelectric projects Wind Develop Québec s existing wind potential: 4,000 MW by 2015 Ethanol Goal to achieve an average of 5% of ethanol in all gasoline sold by 2012 Biomass Convert non-food biomass An Action Plan to Convert Forest Biomass Renewable Energy Residual Materials Ban organic matter in landfill sites Financially support the set-up of infrastructures ($650M) to produce biogas from organic matter (as a fossil fuel replacement)

20 Industrial Expertise: Some Examples Renewable Energy

21 Renewable Energy Summary The Québec Government: Promotes diversification of energy supply Promotes a reduction in fossil fuel consumption By 2020 an ambitious goal to reduce 20% GHG emissions from the 1990 levels

22 Life Sciences in Québec 50 % Canadian Pharma Industry 389 M$ 32 K G$ N o 1 N o 8 R&D spendings Employees Companies Annual revenues (2008) Canadian Pharma City : Montréal North America Pharma jobs concentration : Montréal

23 Life Sciences in Québec R&D in Québec 4 Universities 2 faculties of medicine 3 university hospitals 50 health research centers : McGill University and Genome Québec Innovation Center McGill University Center for Studies in Aging Biotechnology Research Institute INRS-Institut Armand-Frappier McGill Cancer Institute Segal Cancer Center, Jewish General Hospital Montréal Clinical Research Institute Montréal Heart Institute Montréal Neurological Institute

24 World leaders and local entrepreneurship Life Sciences in Québec

25 Contract research organizations (CROs) Life Sciences in Québec

26 Invest Québec : About Us Headquarters: World Trade Center Montréal Founded by merger in 1998 Québec Business Development Bank Québec s Central Agency for: Inward Investment Services Tax & Financial Incentives 421 Employees Assets of more than CAN$6 billion 11 International Offices: Atlanta, Beijing, Chicago, London, Los Angeles, Mumbai, Munich, New York, Paris, Stockholm, Tokyo A One-Stop Shop for: Site Selection Finance Identifying Local Partners, Suppliers and Clients Incentive Packaging Advice on Legal, Accounting, Work Permit and Real Estate

27 Invest Québec Taylor made financial solutions Loan Loan guaranty Interest free loan Non reimbursable financial contribution R&D tax credit bridge financing Working capital Etc

28 A Key Financial Partner : A 10-Year Overview World Trade Center Montréal Financing operations Authorised financing Value of projects New jobs created Yearly average Average benefit/cost ratio New foreign investment >12,500 CAN$9.5 billion CAN$48.2 billion 160,000 1,000 projects CAN$1 billion 16,000 new jobs 4.74:1 433 projects CAN$8.9 billion 35,000 new jobs

29 A Key Financial Partner : A Great Vintage World Trade Center Montréal Financing operations Authorised financing Value of projects New jobs created Benefit/Cost Ratio New foreign investment 2,032 $1.6billion $6.1billion 14, :1 80 projects $964 million 2,712 new jobs

30 Thank You Linda HOULE Director Business Development Europe Investissement Québec Paris Office 66, rue Pergolèse Paris France Tel.: +33 (0) linda.houle@invest-quebec.com

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