Ontario Retirement Pension Plan (ORPP): Small businesses are extremely concerned with the government’s persistence to proceed with the ORPP and the intention to establish an arm’s-length, administrative body to oversee the plan. “Today, the provincial government missed an opportunity to instill confidence among Ontario’s job creators, completely ignoring their fear of the devastating impact the ORPP will have on their business payroll,” said Plamen Petkov, CFIB’s vice president for Ontario. “While the federal government has provided additional clarity on not imposing higher mandatory pension premiums, the province remains determined to hit Ontarians with a new pension tax.” If implemented, the ORPP would force 70 per cent of small businesses to freeze or cut staff salaries, and about half to reduce positions. As a result, it would drive up Ontario’s unemployment rate by 0.5 per cent by 2020. Not surprisingly, 86 per cent of small businesses are opposed to a mandatory ORPP.
Beer sales: Small businesses were hopeful that the Clark review on government assets would open up Ontario’s archaic beer retail market to more competition. Regrettably, only large grocery stores will get the chance to bid on beer licences, while small retailers and corner stores will be shut out. “Ontarians want more convenience, better service and fair pricing,” said Nicole Troster, CFIB’s director of provincial affairs for Ontario. “A new beer tax, government-mandated prices and retail hours fall short of delivering the changes Ontarians deserve.” On a rare positive note, bar and restaurant owners will no longer pay a premium on purchases of up to 250 cases of beer a year.
Apprenticeship training: The skilled trades will feel the impact of this budget with the Apprenticeship Training Tax Credit being slashed in half, from $10,000 to $5,000 per apprentice, per year. In addition, by reducing the tax credit rate and eligibility period, and by maintaining high apprenticeship ratios, the government makes it even more difficult for small employers and apprentices to engage in training.
Deficit reduction: CFIB supports the government’s decision to keep program spending increases to 0.9 per cent per year going forward and its commitment to balance the budget by 2017-18. “There is growing concern, however, that the province relies too heavily on strong economic growth to balance the books. Instead, it should seriously commit to legislating a freeze on public sector wages and benefits and reforming the arbitration system,” added Petkov.
Budget 2015 did not address other key small business concerns, such as repealing mandatory WSIB insurance for business owners and independent operators in construction, and providing immediate relief to skyrocketing hydro rates for small businesses.
