The National Marine Manufacturers Association Canada (NMMA), Bolton, ON, recently appeared before the House of Commons, Finance Committee in Ottawa as part of a review of the credit market in Canada.
Sara Anghel, vice-president of government relations and public affairs for NMMA Canada, spoke on behalf of the Canadian marine industry addressing the lack of marine floor plan financing and the potential impact it can possibly have on the industry, as well as on the Canadian economy.
“A federal government loan guarantee program for floor planning will increase liquidity, attracting new lenders to the marine industry,” said Anghel. “NMMA urges the federal government to consider and include dealer floor plan financing as part of Business Development Canada's (BDC) mandate to protect the $26 billion economic impact of Canada's recreational boating industry and ensure the estimated 374,000 jobs our industry produces are secure,” added Anghel.
Jeff Wilcox, president of George's Marine and Sports, Eganville, ON, was also present, providing a dealer perspective on the current challenges of running a small business without floor plan financing and how the situation is forcing many throughout Canada's marine industry into unemployment.
“During my time with George's Marine and Sports, I have seen a number of changes in credit availability. However, today's situation has created the most challenging set of parameters I have ever seen in running a small business,” said Wilcox.
The House of Commons Finance Committee heard from a number of interested parties including GE Capital. The Committee will review the comments and make recommendations to the federal government and the BDC on next steps.