“This represents an important step forward in our continued engagement with our largest trading partner,” said Len Crispino, President and CEO of the Ontario Chamber of Commerce.

“While more work needs to be done to counter protectionism in the United States, this agreement has placed us in a better position than our main competitors to receive U.S. stimulus funding,” added Len Crispino. “It has also resulted in greater co-operation between provinces, territories and the federal government – a long-awaited, but very welcomed accomplishment. The depth of the federal/provincial offer and the speed at which it was put forth is an important precedent which puts us in a good position for the negotiation of future agreements.”

“We must continue to work with the United States to strengthen our ties and to develop solutions that are beneficial to both parties,” concluded Len Crispino.

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For further information:

Contact Amy Terrill: amyterrill@occ.on.ca; C: (416) 605-8205

The Ontario Chamber of Commerce (OCC) is a federation of 160 local chambers of commerce and boards of trade in the Province of Ontario, representing 60,000 businesses of all sizes, in all economic sectors and from every area of the province. In its mandate to advocate strong policies on issues affecting its members, the OCC is currently focused on economic renewal and business competitiveness. Its over-arching goal is to make Ontario the most competitive jurisdiction in North America.

In a presentation to the Standing Committee on Finance and Economic Affairs, the OCC has urged the government to be prudent in its spending, while continuing to do the things that will generate more business investment and therefore government revenues.

“Our members are concerned about the affordability of governments at all levels,” explains Len Crispino, President & CEO of the Ontario Chamber of Commerce. “While there was support for stimulus spending as a way to boost the economy, economic growth cannot be sustained on the backs of government alone. Creating the right conditions for business investment, while maintaining control of the size of government, will help Ontario return to a balanced budget and slay the threat of long term debt.”

Specifically, the OCC has recommended that the government:

1. Stimulate economic activity by staying the course on the taxation reform package announced in last spring’s budget, where possible accelerating its implementation and further reducing personal and business taxes as a way to stimulate the economy.

2. Create a more competitive business climate through smarter regulation and less red tape keeping in mind that a dollar spent on managing red tape is a dollar less for investment and hiring new people.

3. Keep spending growth at or below the same rate as the economy.

4. Conduct an actuarial analysis of healthcare expenditures in order to facilitate long term planning and provide much needed predictability, transparency and accountability.

5. Develop a 30 year long-term transportation plan in order to plan ahead for a generation, not just five years.

6. Apply smarter and more efficient spending to all programs across the broader public sector with a mandated competitive bidding process which allows bids from both the public and private sectors.

“Ontario business confidence has surged almost back to where it was in 2007 with 60% expecting better performance this year in their businesses, and a majority intending to invest in hiring new staff, expanding their businesses and increasing their capital investments,” adds Crispino. “Our members tightened their belts when the economic downturn demanded it, now they expect their governments to live within their means as well.”

The full text of the OCC’s Pre-budget submission and presentation can be found at www.occ.on.ca.

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Pre-budget submission

Remarks to Standing Committee on Finance and Economic Affairs

“Businesses in Ontario have consistently called for smarter taxation – that is taxation that is clear and consistent, that makes it easy and inexpensive to comply, and one that does not impede or penalize investment – today’s reforms move Ontario forward in that direction,” says Len Crispino, President & CEO of the Ontario Chamber of Commerce (OCC). “These tax reforms will make Ontario a less expensive place in which to do business and in a global marketplace where business and investment are extremely mobile, this competitive edge will lead to greater investment and more job creation.”

The OCC and the network of chambers throughout the province have been advocating since 2004 for a tax reform package that includes sales tax harmonization, the elimination of capital taxes, the consolidation of corporate tax collection, and more competitive personal and corporate income taxes. The passage of Bill 218 puts in place the final pieces in this tax reform package.

“Every Ontarian wins with today’s tax reforms because Ontario’s economy wins. It takes strong businesses to create jobs and wealth for everyone,” adds Crispino. “The recovery cannot occur on the backs of governments alone. With these tax reforms in place, Ontario companies will have the confidence and ability to get down to business and invest in our communities once again.”

These tax reforms are also endorsed by the Smart Taxation Alliance, a growing group of non-partisan leaders representing millions of workers and hundreds of thousands of employers in Ontario. The OCC is a founding member.

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“The economic and fiscal arguments for harmonizing Ontario’s retail sales tax are compelling,” said Rob Hattin, President of Edson Packaging in Hamilton, who spoke on behalf of the Alliance. “The current system of sales tax in Ontario is outdated. It penalizes many industries for investing in the new equipment and new technologies they need to compete globally. Further, it places Ontario manufacturers and exporters at a distinct disadvantage compared to the rest of the world by imbedding significant tax cost in the manufacturing process, artificially inflating the price of goods produced here in Ontario.”

Under the current sales tax system, many Ontario businesses pay significant amounts of sales tax on their business inputs — the equipment and materials they use in producing goods. This cost is hidden from consumers, but nevertheless impacts the final cost of all goods manufactured in Ontario. Most other jurisdictions in Canada, and indeed in the world, have moved away from this outdated approach by implementing value-added tax regimes similar to the proposed HST. These jurisdictions have eliminated the tax buried in the manufacturing process, which allows their manufacturers to compete more effectively against Ontario-made goods. Sales tax reform is essential in order to put Ontario businesses on an equal footing with their international and domestic competitors.

The Alliance argued strongly that now is the right time to move forward with tax reform because, as the world comes out of recession, companies will be looking to make new investments; without such reform, Ontario will be a less appealing jurisdiction for business investment. “We need to move forward now,” Hattin said. “If Ontario’s sales tax regime is allowed to continue to be a disincentive for investment and job creation, Ontario runs the risk of losing out on opportunities to attract new manufacturing jobs during the recovery.”

“The status quo is not an option for many Ontario industries, particularly the manufacturing sector which is the traditional backbone of the Ontario economy,” he added. “Change is urgently needed. We can no longer afford the current unfair, inefficient, and regressive sales tax regime. The question is not whether we should fear sales tax reform, but how we can work together to craft a simpler, fairer, harmonized system that applies sales tax in a more appropriate manner, minimizing inequities and opening the way for strong economic growth.”

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“The changes introduced in Ontario Tax Plan for More Jobs and Growth Act, 2009  today will fuel a stronger business investment climate in Ontario, create much needed jobs and accelerate Ontario’s recovery,” says Doug Brooks, FCGA, CEO, Certified General Accountants of Ontario, and member of the Smart Taxation Alliance.

The tax reform package includes personal, small business and corporate income tax rate reductions, sales tax harmonization, and a sales tax rebate for the most vulnerable in society.  A recent study by Jack Mintz of the School of Public Policy at the University of Calgary, calculates the impact of the tax reform package as 47 billion dollars in investment and almost 600,000 jobs – this largely as a result of reducing the marginal effective tax rate (METR) on new investment by half. 

“The reduction in the METR rate by half makes this one of the most ambitious tax reforms in Canadian history,” says alliance member Len Crispino, President & CEO, Ontario Chamber of Commerce.  “Call it the ‘smart METR’ for Ontario – it’s intelligent tax reform that will make companies more competitive by reducing layers upon layers of taxation, stimulating a more robust economy that benefits all Ontarians.”

The Smart Taxation Alliance includes AGS Automotive, the Canadian Chamber of Commerce, the Canadian Council of Grocery Distributors, Canadian Manufacturers & Exporters, Certified General Accountants of Ontario, Deloitte, Information Technology Association of Canada, Ontario Chamber of Commerce, Ontario Trucking Association, Ontario Road Builders Association, Railway Association of Canada, Retail Council of Canada, TD Bank Financial Group, TELUS, Toronto Board of Trade.

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Read the full release.

SARNIA

“We are extremely happy to be able to accept further support for the Export Market Access program, which has already helped almost 200 Ontario firms diversify their exports,” says Len Crispino, President & CEO of the Ontario Chamber of Commerce. “Ontario business is able and eager to compete with the world and with a little help can overcome the challenges associated with breaking into new or expanding current export markets.”

This additional investment will help the Ontario Chamber of Commerce further expand its support of businesses wishing to grow their business internationally.

Export Market Access was launched in June 2008 with the support of the Government of Ontario.  Almost 200 companies from throughout the province have benefitted to date from the cost-sharing grants, with about $1.7 million invested.

 Applications are processed on a continuous intake basis. Funding decisions are made within 30 business days upon receipt of fully completed applications. The online application and information regarding eligibility criteria can be found at exportaccess.ca.

Photo:  Glenn Ogilvie, Canadian Press Images

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Backgrounder: Export Market Access Receives Funding Boost

Niagara Falls

Davis accepted the award with humility, attributing his success as Premier to the values impressed upon him by his parents.  “I grew up in a household where they all felt we had some responsibility to the community and to give back to the province in which we grew up.”

Ontario Visionaries is a new initiative, designed to annually honour those who have contributed to business, public policy, labour and the social fabric of Ontario through leadership, collaboration and integrity. 

“We are pleased to have such a noble Canadian as our first recipient of the Ontario Visionaries award,” says Len Crispino, President & CEO of the Ontario Chamber of Commerce.  “More than just his education agenda, Premier Davis had a profound impact on transportation, infrastructure and trade.  Perhaps most of all, his unwavering statesmanship and commitment to Ontario and Canada enabled him to build federal-provincial bridges that continue to stand today.” 

The award was presented in front of a crowd of business, labour, education, government and non-governmental leaders at Fallsview Casino in Niagara Falls with tributes made by Senator Hugh Segal, The Honourable Jim Bradley, former PC Party of Ontario leader and radio personality John Tory, President of Niagara College Dan Patterson, Joe Barnicke and Deputy Leader of the PC Party of Ontario Christine Elliot.

Speakers paid tribute to the honesty and integrity Davis exhibited during his 26 year tenure in provincial politics and his contributions both to Ontario and to Canada.

A $2000.00 donation was made to the Brampton & Area Community Foundation in Davis’ name.

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 “While we are dismayed at the size of the provincial deficit we commend the Ontario government for the bold steps it has taken this year to improve Ontario’s competitive position, and stimulate business investment and job growth in the long term,” says Len Crispino, President & CEO of the Ontario Chamber of Commerce.  “Our members had accepted a deficit for the purpose of stimulus spending as long as there is a practical plan to eliminate it.  The sheer size of the deficit announced today underscores the importance of a practical plan to return to a balanced budget.”

The OCC commends the government’s plan for a comprehensive review of public expenditures and also recommends the deficit reduction plan adopt the following principles:

1. The Ontario government should focus on long-term, sustainable fiscal solutions, to address the budget deficit; rather than short term “quick fixes”.
2. The Ontario government should establish firm expenditure targets.
3. Smarter, more efficient spending must be applied to all programs – including health care, which is Ontario’s fastest growing expense.
4. In addition to eliminating the deficit, the government should lay the foundations to reduce debt, in the long-term.
5. Central to improving Ontario’s fiscal position is the need to stimulate economic renewal and business competitiveness.
6. Ontario must address long-term demographic risks to its future health care costs.
7. The Ontario government should remain committed to the principles and timelines of the comprehensive tax reform announced in the March 2009 Ontario budget.

The OCC and the network of chambers of commerce and boards of trade around the province, have advocated for many years for comprehensive tax reform.  With a more competitive tax environment secured through a lower marginal effective tax rate, and keeping in mind the growing provincial deficit, the government’s focus must now be to return the province to a stronger fiscal position.

Ontario is not the only jurisdiction facing an eroding fiscal position.  But rather than use that as a reason not to take action, vigilant adherence to the above principles will help Ontario emerge stronger and faster from the current economic difficulties, than its competitors. 

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The connection between green business and prosperity will be explored by Galen G. Weston, Chairman of Loblaw Companies Limited alongside Gerald Butts, President & CEO of World Wildlife Fund Canada.  OES delegates will gain valuable insight about Loblaw’s return to focus on food and aggressive elimination of the plastic bag, while pursuing other aspects of the green economy with panellists Ken Field of Greenfield Ethanol Inc., Paul Rak, President VeriGreen/VeriForm Inc., and Laura Formusa, President and CEO of Hydro One.

Creative industries have been hailed by many as key to economic growth and the OES will host a member of one of Canada’s most successful creative exports. Lyn Heward, creative consultant and executive producer of Cirque du Soleil will speak about the role creative industries may play in Ontario’s future.  Also contributing to the discussion will be the co-founder of one of Ontario’s most recognizable brands, Paul Rowan of Umbra.

And from overseas, a brand expert and author of what is commonly regarded as the most successful tourism campaign ever in New South Wales, Australia, Alex Dobrochodow will also participate.

Returning to OES will be Premier Dalton McGuinty and Ontario’s Cabinet Ministers.

Other speakers at the 6^th annual Ontario Economic Summit include:

• Gil Blutrich, President and Founder, Skyline International Development Inc.
• Hon. Sandra Pupatello, Minister Economic Trade and Development
• Warren (Smokey) Thomas, President, Ontario Public Service Employees Union
• Dr. Warren Jestin, Chief Economist, Scotiabank
• Greg Ip, US Economics Editor, The Economist
• Allan Cosman, President & CEO, Ferrero Canada Limited
• Lloyd McCoomb, President & CEO, Greater Toronto Airports Authority
• Michael Pley, COO, COM DEV International

The Ontario Economic Summit will take place November 2 – 4, 2009 at White Oaks Conference Resort & Spa in Niagara-on-the-Lake.  The summit will kick off with a special celebration of the first ever recipient of Ontario Visionaries, The Honourable William G. Davis.  Ontario Visionaries is an initiative of the Ontario Chamber of Commerce to recognize the great legacy builders in Ontario.

Further information can be found at www.occ-oes.com.

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At the Annual General Meeting of the Canadian Chamber of Commerce (CCC) in Victoria, British Columbia, delegates representing 258 chambers of commerce and boards of trade from across the country have called on the federal government to redouble its efforts to persuade all remaining provinces in Canada to harmonize their provincial sales taxes with the federal GST.

“The policy adopted today by the CCC shows the broad support of businesses of all sizes and sectors from every province in the country, for a single, value-added tax system, mirroring the GST as a way to make businesses more competitive,” says Len Crispino, President & CEO of the Ontario Chamber of Commerce, “and reaffirms the position taken by the Ontario chamber network and our partners in the Smart Taxation Alliance.”

The resolution was brought forward by the Winnipeg Chamber of Commerce at the CCC’s annual policy convention. Manitoba, Saskatchewan and Prince Edward Island are the only provinces that have declined to harmonize their retail sales taxes with the federal GST. Ontario and B.C. announced earlier this year that they will join Quebec, Nova Scotia, New Brunswick and Newfoundland in harmonizing their sales taxes.

The harmonization of sales taxes in Ontario in conjunction with other tax reforms, will make Ontario a more attractive place to do business and will save jobs. It will cut the marginal effective tax rate on new investment in half, remove about $5 billion dollars of embedded taxes out of the supply chain, and enable businesses to obtain input tax credits on all sales tax paid in the production of their products and services, making Ontario products more competitive, both for internal and external markets.

Support for a value-added tax system was a common theme at the policy debates. Among the resolutions relating to sales taxes, delegates called on the federal government to:

• Provide transitional financial assistance to remaining provinces to help them switch to the value-added tax system;
• Index the thresholds for the GST New Housing Rebate to the New House Price Index to protect housing affordability across Canada; and,
• Increase the sales volume threshold for small businesses at which they may opt out from collecting GST/HST from $30,000 to $75,000, indexed in future to the annual rate of inflation.

A total of 58 resolutions were debated at the annual policy convention on topics such as environment, industry, transport and infrastructure, international affairs, social policy and finance and taxation.

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