The Ontario Chamber of Commerce (OCC) presented its 2010 pre-budget submission to the provincial Standing Committee on Economic Affairs and Finance on Feb 2. This year, the OCC recommends that the Ontario Government renew the economy and its fiscal position through a more competitive business climate and an efficient, affordable government.
A competitive business climate starts by staying the course with regards to planned tax cuts for businesses and households, which were announced in last year’s provincial budget. These tax cuts, which include removing all provincial sales taxes on business and lowering the corporate income taxes, are significant measures to attract investment in Ontario. Such investment will stimulate economic activity, create jobs and pay dividends to the province by means of higher future tax revenues.
Although continued progress towards a more competitive tax system is important, it is essential that meaningful progress be made to reduce the regulatory burden on business. The largest barrier to Ontario’s business competitiveness, according to OCC members, is the cost of doing business due to red tape. To this point, the OCC is recommending that government accelerate its efforts with regards to the previously announced Open for Business Initiative and implement clear measures to reduce the regulatory burden, as well as avoid further increases in unnecessary regulation in the future.
Finally, the OCC identified the province’s fiscal situation as a significant impediment to Ontario’s prosperity. Although the estimated $24.7 billion deficit is partly due to the current economic climate and economic stimulus measures, Ontario has long been spending beyond its means. The OCC recommends that government apply comprehensive spending reforms across the broader public sector. Such reforms include limiting of public spending growth; introducing a competitive bidding process for the delivery of publicly funded programs and services; and long-term planning initiatives that are needed to anticipate future investments in infrastructure and health.
For more information on the OCC’s 2010 Prebudget Submission, please contact Derek Picard, Senior Policy Analyst, 416-482-5222 or derek.picard@occ.on.ca.
2010 Provincial Pre-Budget Submission
Remarks to the Standing Committee on Finance and Economic Affairs
