The Honourable Jill Burridge 
Minister of Finance
Department of Finance

Re: Prince Edward Island Pre-Budget Submission

Minister Burridge,

The chamber of commerce movement in Atlantic Canada is a coordinated, community-embedded network that reaches thousands of small businesses across the four provinces. Within this network, the Atlantic Chamber of Commerce (ACC) serves and engages the chambers of commerce located in Prince Edward Island (PEI), providing a shared platform for collaboration, insight, and regional advocacy.

Local chambers provide on-the-ground intelligence and direct support to entrepreneurs, while the ACC strengthens this work through regional alignment and shared advocacy. National partners, including the Chambers of the Federation and the Canadian Chamber of Commerce, ensure that local business priorities from our region influence national economic policy.

For any government aiming to support small business at the grassroots level, investing in a partnership with local chambers is one of the most effective tools available. Chambers have the trust, reach, and channels to deliver programs quickly and credibly. An investment in this network strengthens small business, builds community capacity and aligns local action with regional and national economic priorities

The ACC submits the following items for consideration for Budget 2026/27:

1. Regulatory Burden
Reducing regulatory burden remains the most efficient way that your government can lower the cost of doing business. PEI should adopt a proactive regulatory approach and legislate a permanent commitment to reduce the total compliance burden by at least 25 % over the next five years, with annual public reporting on progress. Every new regulation should require a competitiveness impact assessment and government should introduce a Standard Cost Model (SCM) framework to systematically measure administrative and compliance costs in both dollars and hours for businesses and citizens. Widely regarded as the gold standard in leading red-tape-reduction jurisdictions, SCM delivers transparent, evidence-based measurements that allow governments to set ambitious yet achievable targets, track real
savings for businesses and individuals, and demonstrate tangible progress to the public.

2. Comprehensive Tax Review
The Government should initiate a comprehensive provincial tax review to assess whether the existing tax framework promotes fiscal responsibility and economic equity. While a review of tax brackets is already included in the Finance Minister’s mandate letter, this effort should be broadened to evaluate the overall effectiveness and efficiency of the entire tax system. Streamlining the tax code would lower compliance costs for individuals and businesses, making obligations simpler to understand and meet. By reducing complexity and eliminating unnecessary barriers, a modernized system could boost economic participation, attract greater investment from both domestic and international sources, and enhance the province’s competitiveness.

3. Access to Qualified Talent
Labour shortages in critical trades continue to pose a significant challenge to PEI’s economic development, limiting the province's ability to meet demands in key sectors such as construction, healthcare, manufacturing, and agriculture. To address this, the Government of Prince Edward Island should:
            A. Introduce or expand a refundable tax credit incentive, such as a rebate on provincial income tax paid on the first $50,000 of earnings, for workers of all ages in high-demand occupations, rather than restricting it to younger entrants. This broadening would enhance the province's competitiveness in attracting and retaining experienced talent from across Canada and internationally, building on existing efforts like regional recruitment strategies for theconstruction sector and supports through Skills PEI for apprenticeship training and workforce
development. By implementing this incentive, the government could accelerate workforce growth, support apprenticeship completions, and foster innovation in vital industries, ultimately contributing to sustained productivity gains and economic resilience for businesses
and communities throughout PEI.

            B. Invest in training and capacity for local chambers and industry associations to facilitate the Talent Pipeline Management model. A new to Canada approach for building talent pipelines for upcoming projects that will require a planned approach to workforce development. We can
work with your government on an investment to grow the workforce in PEI. Learn more here: https://www.atlanticchamber.ca/talent-pipeline-management

The ACC, in partnership with Chambers of Commerce and Boards of Trade from across the region to develop an Atlantic Population Growth Strategy. One of the primary recommendations for Governments is to implement an Atlantic Graduate Retention Tax Credit (AGRTC). The AGRTC would create an incentive for domestic and international graduates to remain in Atlantic Canada for at least three years, addressing retention challenges and workforce gaps. The Government of Prince Edward Island should implement an AGRTC and implore its Atlantic counterparts to also pursue implementation.

The ACC is requesting to meet to discuss how we can support your government’s efforts to improve economic conditions for all businesses to thrive and prosper.

Sincerely,
Rhonda Tulk-Lane
President & CEO, Atlantic Chamber of Commerce
Chair, Chambers of the Federation