Prioritize Ontario’s Economy in the Federal Budget: Peterborough Chamber of Commerce
Infrastructure investment will support economic growth, the small business tax cut requires clarity, and the fiscal gap must be closed
PETERBOROUGH, ON, MARCH 17, 2016: Today, the Peterborough Chamber of Commerce in partnership with the Ontario Chamber of Commerce (OCC) released its 2016 Federal Pre-Budget Submission, highlighting key priorities the federal government must address in its upcoming budget. This includes keeping its infrastructure commitments, clarifying the small business tax cut, and eliminating Ontario’s federal fiscal gap.
According to recent polling, half of the OCC membership agrees that their organization is suffering from a lack of public investment in infrastructure. Looking at all Ontarians, 81 percent agree that “Canada needs to invest more in infrastructure in order to grow our economy”. The Ontario Chamber Network is therefore calling on the federal government to address the province’s infrastructure deficits through targeted, trade-enabling investment in projects that help Ontario firms do business and grow the economy.
“Following through on infrastructure investments in Ontario should be the federal government’s top priority,” said Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “In a letter to the Federal Finance Minister in late January, we outlined two projects that have the potential to have beneficial economic impact for Peterborough, improving the freight capability of train service and reinstating passenger service and the Energy East Pipeline project which will bring 250 jobs to our community.”
Canada’s infrastructure needs are not just roads and transit. Half of OCC members surveyed say that internet speed or connectivity hinders their ability to do business. This is especially noteworthy, as 82 percent of Ontarians agree that high-speed Internet is critical to their work and/or way of life. Broadband access and quality is not just a rural or remote issue – suburban companies report similar issues with connectivity, and 30 percent of all businesses say that telecommunications is a critical infrastructure need in their region.
“In this area we have seen good work by the Eastern Ontario Regional Network,” adds Harrison.
This submission also calls on the federal government to work more closely with the Government of Ontario to address the current inequality in federal EI funding. As a result of these inequities, Ontarians contribute between $9.1 and $12.5 billion more than what they get back in terms of services. The federal government must correct this fiscal gap, as the current funding calculation places the province at an economic disadvantage.
The Chamber Network is also concerned about the federal deficit and debt levels and the proposed small business tax credit. The Peterborough Chamber believes it is imperative for the federal government to clarify its position before acting. The government may be overstating the extent to which wealthy individuals incorporate to receive better tax treatment. It is important that the government acts on the best available evidence as it implements a reduction to the small business tax rate.
Read the Peterborough Chamber of Commerce letter to the Federal Finance Minister. We also received a letter from the Minister indicating his receipt of our letter.
Read the full report.
President & CEO
Peterborough Chamber of Commerce
**Results from a survey of OCC members, January 2016, n=853. Results from a survey of 1004 Ontarians conducted on behalf of the OCC by Leger, February 22-25, 2016. The margin of error for this sample is 3.1%, 19 times out of 20.**