Atlantic Chamber of Commerce - Pre-Budget Submission to the Government of Canada

The Honourable Chrystia Freeland
Deputy Prime Minister and Minister of Finance
Department of Finance, Government of Canada

{Via email}

February 9, 2024

Re: Atlantic Chamber of Commerce - Pre-Budget Submission to the Government of Canada

Dear Deputy Prime Minister Freeland,
The Atlantic Chamber of Commerce, representing 90 chambers of commerce and boards of trade and more than 16,000 businesses across Atlantic Canada submits the following items for your consideration in advance of the 2024 Budget:

Housing and Labour
Housing affordability is a significant concern for businesses and chambers in Atlantic Canada. The Federal Government can help alleviate the pressures on the housing market through:

1. expansion of supply and removing barriers to new builds. One of the largest factors inhibiting growth in Canada is the current interest rate set by the Bank of Canada. Fiscal policy and monetary policy cannot continue to operate at odds and the Government of Canada should indicate a desire to return to lower interest rates to help solve the housing crisis.
2. implementing a renovation tax credit for first time homebuyers to incentivise the sale of starter homes that may need renovations to be move-in ready.
3. developing a unified framework with provincial/territorial governments, industry representatives, and regulatory bodies to recognize domestic skilled trade workers' training and credentials across provinces/territories to unlock Canada’s labour mobility among the skilled trades.

Lowering the Cost of Doing Business
Businesses in Atlantic Canada identify the cost of doing business as one of the biggest risk factors and burdens to them. In an Atlantic Impressions survey of businesses across Atlantic Canada, 69% of businesses felt the carbon tax would negatively impact their business and 62% said they would like to see the federal carbon tax withdrawn. The Government of Canada can immediately alleviate cost pressures on business and their customers by discontinuing the federal carbon tax.

In the more than half a century since the last major tax review in Canada, countless layers of complexity and burden have been added to Canada’s tax code. In the interest of fairness, and to improve the nation’s competitiveness, we urge your government to explore options reduce the burden of tax compliance by creating a Royal Commission on Taxation and Competitiveness.

Reducing inflation is also a high priority for businesses and so is mitigating the factors that lead to inflation. Throughout the course of history, whenever a nation has printed significant quantities of money, often to fuel deficit spending, a sharp increase in inflation has followed. Canada should prioritize and maintain firm pathway to ending deficit spending.

Support for Small and Medium Sized Enterprise (SME)
SMEs have identified the need further support from the Government of Canada as they continue to rebuild from the burdens and hardship of the pandemic and aim to grow. Businesses require more precise direction and streamline procedures to navigate government programs effectively. The current bureaucratic requirements for accessing these programs are perceived as burdensome, consuming excessive time and already scarce resources. While governments have demonstrated the ability to swiftly devise programs during crises, there is a need for enhancement in their regular operational delivery. Government should aim to reduce regulatory burden for businesses interacting with government and establish maximum response times so that businesses can have a level of predictability in their interactions with government.

As Canada focuses on growing the economy, Government should introduce new job creation incentives to encourage employment growth in areas of priority for our economy and to reduce overall financial burdens for businesses. Introducing incentives will allow businesses to make investments in their workforce and productivity to accelerate their recovery and growth.

Canada faces significant challenges within our domestic borders that are largely within our own control. The budget represents an opportunity for the government to underscore the significance of the private sector and enact crucial investments and policy measures aimed at reducing the cost of living and conducting business. The Atlantic Chamber stands ready as a willing partner for the Government of Canada as the nation progresses forward.

Sincerely,

__________________
Rhonda Tulk-Lane
CEO, Atlantic Chamber of Commerce