NEWS RELEASE
GUELPH CHAMBER OF COMMERCE
*************************
GUELPH, ONT. - Apr. 28, 2017 - In response to Budget 2017, the Guelph Chamber of Commerce while commending the government for Ontario’s first balanced budget since the global recession, expressed concern that there is no clear long-term plan in areas where businesses see increasing cost such as energy and cap and trade. The only means for the government of Ontario to see continued balanced budgets is if there is a strong and robust private sector.
“While the previously announced measures to reduce energy rates through the Fair Hydro Plan was welcomed, there is still much more to be done and energy remains a significant cost of doing business in Ontario. In addition, providing further clarity around the proceeds from the new cap and trade system is pivotal. Government needs to work collaboratively with the business community to shape how the funds in the Greenhouse Gas Reductions Account are allocated. Businesses in Guelph are at the leading edge of clean technology manufacturing, research, design, and development. As such, engaging with these businesses as this policy is fully formulated will be vitally important,” says Kithio Mwanzia, President & CEO of the Guelph Chamber of Commerce.
Ontario’s revenues rely on the level and pace of economic activity of the province, but Budget 2017 offers limited vision for how to ensure that private-sector economic growth will continue to rise.
Promised Corporate Income Tax rate relief, which the government paused following the economic downturn, were not reinstated.
In the 2009 budget, the province pledged to reduce the Corporate Income Tax (CIT) rate to 10 per cent by 2013. Within 10 years it was estimated that the value of this CIT reduction would see Ontario benefit by increased capital investment of $47 billion, increased annual incomes of $29.4 billion and an estimated 591,000 net new jobs. However, the CIT reduction promise was halted in 2012 in light of the province’s deteriorating fiscal situation, and so the CIT rate remained at 11.5 per cent.
Budget 2017 indicated that 98 per cent of all new jobs since the recession in Ontario have been full time, and 78 per cent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good, quality jobs throughout our province.
In addition, Budget 2017 made import investments in post-secondary education and training support as a means of addressing workforce shortages, a major concern for Guelph businesses. Similarly, the continued investment in export development and going global is welcomed.
“The Chamber has been actively involved in programs and activities that better connect Guelph businesses with global opportunities. Through the Global Leadership Forum, the Chamber will continue to focus on connecting businesses in a variety of sectors – including agri-food, manufacturing, infrastructure, and energy – to expanding market opportunities around the world. How the Ontario government supports small-and-medium sized enterprises (SMEs) will impact Guelph’s economic future. Guelph and Ontario’s ability to succeed is tied to the ability to help SMEs become export ready and scalable,” concludes Mwanzia.
KEY POINTS FOR ONTARIO’S BUSINESS COMMUNITY:
- Ontario will not return to planned Corporate Income Tax cuts, jeopardizing tens of billions of dollars in potential capital investment and hundreds of thousands of news jobs.
- 98 per cent of all new jobs since the recession in Ontario have been full time, and 78 per cent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good jobs throughout our province and challenges many recent comments about precarious work and the need for the Changing Workplaces Review.
- Private sector investment is predicted to grow by 3.1 per cent, annually, to 2020, an amount that would outpace growth in real GDP growth and household spending.
*************************
