NEWS RELEASE
TIMMINS CHAMBER OF COMMERCE
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The 2017 federal budget’s promises of investments in skills training, Indigenous education and duty to consult are somewhat marred by ongoing deficits and rising costs, according to the Timmins Chamber of Commerce.
Though there are causes for concern, Timmins businesses should see a positive impact from the following elements of the federal budget, as tabled on Mar. 22 by Finance Minister Bill Morneau:
- $3.1 million over three years to establish a secretariat to support the Working Group on the Review of Laws and Policies related to Indigenous Peoples, and $24 million per year on an ongoing basis to support the timely resolution of specific land claims;
- $90 million over two years to increase funding to support post-secondary student support programs for Indigenous Peoples;
- $1.8 billion over six years to expand Employment Insurance training programs through Labour Market Development Agreements with the provinces;
- Another one-year extension of the 15-per-cent Mineral Exploration Tax Credit for flow-through share investors.
“While we take issue with some elements of the 2017 federal budget, it generally helps to make Canada a more competitive environment, and it includes several items that could have a positive impact on Timmins businesses,” said Timmins Chamber President Christine Bender.
“We’re extremely pleased to see that our advocacy throughout the last year, including our successful push to have the Canadian Chamber network adopt our policies in September, have helped the federal government to prioritize the need to clarify resource industries’ duty to consult with Indigenous communities. The lack of a clear framework on how businesses and Indigenous communities should approach this process creates uncertainty for resource development projects, and the need for direction is crucial; as such, we’re very happy to see that our efforts to push the federal government on this file have borne fruit.”
Also of interest to Timmins business community is the 2017 budget’s focus on staffing and skills training, given that these concerns continue to be a major priority for many Timmins businesses.
With nearly $5 billion across a range of programs, the budget also promises to help improve the timeliness of the Express Entry system for permanent residents, and to expand support under the Temporary Foreign Worker Program.
Timmins businesses should also be pleased to note the federal government’s follow-through on its promise to not enact a tax on employer-sponsored health and dental benefits.
Such a move could have led to as many as 50 percent of small businesses in Canada reducing coverage for their employees.
Following vocal opposition by the Timmins Chamber and others within the chamber network, Prime Minister Justin Trudeau suggested in February that it would be omitted from the final 2017 budget -- a promise that has thankfully been kept, said Bender.
However, the federal budget also contains some items of concern for the Timmins Chamber. Positive news about Employment Insurance (EI) – unemployed workers will be able to seek training without losing benefits – was offset by the news that EI premiums are set to rise by 3 per cent in 2018, or $1.68 per $100 of insurable earnings.
This is a frustration for small businesses who already face a range of regulatory challenges and escalating costs, said Bender.
The considerable deficit of $28.6 billion is also an issue, with no apparent plans to return to balance; this poses some questions about the country’s fiscal footing, and further fiscal complications this imbalance could eventually create.
“The measures to address some of our members’ more pressing issues are to be commended, but there is arguably too little in the budget to address the rising costs that businesses continue to face,” said Bender.
These frustrations were also shared by the Canadian Chamber of Commerce, which was cautiously optimistic about the government’s planned investments in infrastructure.
“While we welcome specific measures in the budget on skills and innovation, our international competitors are racing ahead,” said the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.
“The U.S. election was a game-changer, yet the budget is written as if nothing has changed. As our number one trading partner rolls back regulation and cuts taxes, Canadian businesses face more regulation and increased costs imposed by all levels of government for fees, taxes and essential inputs like electricity.”
Beatty called upon the federal government to meet urgently with the provinces to identify specific measures to cut the cost of doing business in Canada.
“The Canadian economy is fueled by trade, yet there has been nearly no export growth in the past two years, and business investment has decreased for nine straight quarters. Despite this, governments still don’t seem to recognize the problem,” said Beatty. “We need a national strategy and it should be announced in the fall economic update at the very latest.”
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