Prince Edward Island Pre-Budget Submission

The Honourable Jill Burridge
Hon. George Coles Building
175 Richmond Street
Charlottetown, PE C1A 1J1

Sent via e-mail

Re: Prince Edward Island Pre-Budget Submission

Minister Burridge,

On behalf of our network of chambers representing more than 1,700 businesses across Prince Edward Island (P.E.I.), the Atlantic Chamber of Commerce is pleased to present 5 priorities for the 2025/2026 operating budget. This submission outlines critical areas that will unlock economic activity, improve conditions for housing, and increase competitiveness within the province.

1. Regulatory Burden
Reducing regulatory burden stands out as a highly cost-effective strategy for enhancing overall efficiency and productivity within an economy. Other provinces in Atlantic Canada are taking significant steps to reduce the regulatory burden in their respective provinces for businesses and citizens, P.E.I., can follow suit. The province should allocate resources to dedicate a team tasked by the Premier with reducing regulatory burden in the private sector. Implementing a pro-active approach to regulation that includes business impact assessments, maximum response times, and a reduction in the barriers that entrepreneurs face when trying to start a business will yield a positive economic impact for the province.

2. Creating a Sustainable Housing Market
To further increase the supply of housing across P.E.I., Government must improve conditions for developers and investment property owners. By increasing the supply of housing, investment property owners will then have to compete in an expanded market with more options for tenants which will likely create more competitive prices for both future homeowners and tenants. To make the market more competitive, Government should create a plan to reduce regulatory burden in housing development by simplifying and streamlining housing approvals in collaboration with municipal governments. Government should also remove the restriction on rental unit increases that prevents investment property owners increasing rent on a legally vacant unit. Regulations such as this stifle investment and discourage the construction of new rental units. By allowing rent adjustments to reflect market rates on vacant units, it could incentivize developers to build more housing, knowing that they can achieve a return on investment commensurate with market conditions.

3. Fiscal Responsibility
With deficit spending forecasted for the near future, chambers of commerce would like to see Government reign in spending and commit to balancing the budget by 2026. Continued deficit spending adds to P.E.I.’s debt and borrowing costs, which can have long-term implications for the province's financial health. By committing to a balanced budget, the government not only signals fiscal discipline but also demonstrates a dedication to sustainable economic management for the future.

4. Comprehensive Tax Review
The Government should launch a full provincial tax review to determine if the current tax structure aligns with fiscal responsibility and economic fairness. Conducting a review of tax brackets is currently in the Finance Minister’s mandate letter and should be expanded to include the entire tax system’s effectiveness. Simplifying the tax system could reduce compliance costs for businesses and individuals, making it easier for them to understand and fulfill their tax obligations. This could encourage more economic participation and investment from both local and external stakeholders by removing barriers to entry and operation within the province.

5. Labour
Government has indicated that it intends to prioritize labour shortages in the skilled trades. The Government should explore implementing a tax refund on the provincial income tax paid on the first $50,000 of income earned by workers in eligible skilled trades. Other provinces use a similar program but implement an age restriction for eligibility. P.E.I. should implement this program but expand eligibility to all ages of in-demand trade workers to increase the province’s competitiveness in attracting and recruiting skilled trade workers.

The ACC is willing to meet and discuss how we can support your government’s efforts on improving the environment for all businesses to thrive.

Sincerely,
Rhonda Tulk-Lane
CEO, Atlantic Chamber of Commerce