Amid the turbulence created by a multi-year pandemic, severe weather events, supply chain disruption, and national and global geopolitical events, the Government of Canada has released its 2022 budget containing an ambitious agenda with several measures that address affordability for Canadians.
The Atlantic Chamber of Commerce welcomes the investments of Government in:
- affordable housing by expanding the Rapid Housing Initiative and launching a new Housing Accelerator Fund;
- new Indigenous tourism fund and commitments to develop a post-pandemic Federal Tourism and Growth Strategy;
- the forgivable amount of student loans for doctors and nurses who practice in Rural and Remote Communities;
- a trusted employer model for Temporary Foreign Workers that will address labour shortages, and in particular, streamlining the foreign worker program for agricultural and fish processing employers;
- a Canada Growth Fund to attract private sector investment and support supply chain development; and for
- the gradual phase-out of the small business tax rate when taxable capital reaches $50 million instead of $15 million.
Conversely, there were several areas of concern not addressed in the budget, such as an early return to sustainable spending, improving performance through government reforms, and addressing security risks and affordability of doing business in Canada.
Investments are critical to tackle national issues facing Canadians, but when combined with pandemic supports dispersed over the past two years, such enormous spending levels is unsustainable. Government must develop a clear strategy to return Canada’s finances to balance by controlling spending and growing the economy.
Reducing red tape, advancing regulatory reform, and modernizing an outdated tax system are solutions to reduce the rising cost of doing business, fueling economic growth, and reducing the cost of government—none of which were prominent in Budget 2022. Failing to address these issues will serve only to undermine efforts to attract private sector investment, as the largest employer in the country, small businesses face an avalanche of regulatory requirements, and a myriad of taxes while trying to maintain operations.
The path to economic growth must be paved in equal measure with strategic investments and regulatory reforms that advance efficiency and lower unnecessary costs to business and Canadians.
While the Atlantic Chamber of Commerce applauds the investment in affordable housing, it is concerned that significantly more is needed to accommodate the growing number of immigrants entering the country each year. Affordable housing is a minimum requirement of attracting and retaining newcomers and filling our increasing labour force shortages. To this end, Canada must also make to credential assessment process more efficient and reliable to ensure newcomers are eligible to work in the chosen profession sooner.
The threat of Cyber Security facing business and Canadians is growing exponentially. As seen in recent months, the potential costs and disruptions associated with cyber attacks are escalating for both business and public sector systems. In addition to increased funding to the Communication Security Establishment, Canada must take aggressive measures to ensure the protection of our technology infrastructure and the privacy of Canadians.
The federal government displayed commitment to helping Canadians survive the dire effects of pandemic lockdowns and layoffs. They must soon demonstrate a commitment to adopting measures that make Canada a great place to open businesses and create jobs.
