A little over 50 years ago, the communities of Galt, Preston and Hespeler were, as the saying goes, three peas in a pod. Tremendous sports rivals to the very core of community pride.

Sorry, for those living in Hespeler and Galt, but I was a Preston kid. I grew up playing pool at Rusty’s, bought penny candy at Gravelle’s Variety, went swimming at ‘Eddie’s Pool (Ed Newland Pool), and sat on the wall by the Dairy Queen with a Dilly Bar.

But behind the scenes of this young man’s life, there was some interesting politics playing out. William Davis was the Premier of Ontario at the time and Darcy McKeough was his Minister of Municipal Affairs. I guess for some unknown reason, to me at least, they figured that we’d be better off together than apart and as of January 1st, 1973, the Premier declared, “thou shalt be conjoined into one harmonious community.”

Well, frankly, at that point in my life I was more interested in who was meeting at Rusty’s after school rather than what anyone at Queen’s Park was doing for, or with, my hometown of Preston. I can vaguely recall the community vote during the 1972 municipal election on what this ‘new city’ should be called, and it was narrowed to Cambridge or Blair. In the end, 11,728 residents voted in favour of the name Cambridge compared to 9,888 – most of those residing in Galt - who selected Blair. While the name Blair is not offensive in any way, it is hard for me to wrap my head around what might have been had the vote gone the other way.

We all know the end of that tale: Cambridge we shall be, and we shall be united, we shall be one. Sounds good in theory, but perhaps that ‘experiment’ didn’t exactly work out the way it was planned. My children, all born ‘post amalgamation’, still refer to the former municipal names, for the most part.

However, isn’t that what community is all about? When someone asks us today where we live, we identify, again for the most part, with the “old” community names.
Today, I live in West Galt. OK, so maybe the experiment wasn’t all bad, after all, my wife (a Galt girl), got me to move from Preston to Galt, and that was a good start. But let’s not underscore the collective challenges we all had in adapting, and ultimately embracing our new name and our new community.

The Chamber, however, had a much easier time adapting to this new reality and kind of bought into the whole concept in the early stage of amalgamation when the Galt Chamber, Preston Chamber and Hespeler Village Association merged to become the Cambridge Chamber of Commerce.

Looking back, I would have loved to have been a fly on the wall during those meetings, but I was too busy sitting on the wall by the Dairy Queen catcalling the hot rods driving down King Street. I know now, however, that there was likely some kicking and screaming but with the universal understanding that bringing business together was going to build a better community with opportunities for everyone.

The Chamber throughout the last 50 years has been the mainstay for community development and creating opportunities, filling gaps, and moving the agenda of positivity. It has also been here when the community was in need. Take the Grand River flood in 1974 as an example.

Although we are blessed to have two of Canada’s Heritage Rivers (Grand and Speed) running through our community, they can create issues - not just traffic trouble if one of the bridges is closed - that overshadow their beauty.

This was the case when the Grand River overflowed its banks on that fateful May 17th hitting downtown Galt very hard. You may have read or heard the official stories about the inadequacies of the emergency response departments that unforgettable day. But did you know that before the water arrived the Chamber President, the late Don Faichney, called the Grand River Conservation Authority to ask if there was an issue after hearing there was a dam incident at Conestogo?

The GRCA confirmed to him that they had let officials know. But hours later, as the river began to rise, Faichney called the City and of course the newly minted Regional Municipality of Waterloo, about what steps they were taking to alert businesses in the downtown core. Realizing not enough was being done, he then worked as hard as possible to get the message out himself by calling businesses - remember, there was no email or social media back then. In his Royal Commission Inquiry into the Grand River Flood 1974 report, Judge W.W. Leach credited the Chamber with providing an early response of warning that likely saved some loss.

Fortunately, all of that led to the GRCA getting funding to put up those infamous walls in downtown Galt in hopes of mitigating any future flooding, which also led to creating opportunities for revival. In hindsight, maybe we should have insisted on easy river access and raising of the water slightly so we could utilize the river in downtown for paddle boat rentals, or even freezing it to create a Rideau Canal-like experience in the winter. By the way, the GRCA is still a willing partner for that to happen one day, but I’m not sure the Grand River will freeze anymore thanks to climate change. Still, it might be worth exploring.

The Chamber of Commerce has also championed the industrial subdivisions and was instrumental in two very important community assets: higher education and professional live theatre. It was the Chamber who brought together the team – known as the ‘Cambridge Consortium’ - that eventually would get the University of Waterloo School of Architecture opened here AND, more formally, out of a tourism committee meeting came the call to establish a live professional theatre in Cambridge which led to the Hamilton Family Theatre which we now hail as a ‘community jewel’.

The Chamber has always taken the approach of fostering the building of our community by not saying no, but by saying yes and how do we get it done.

Again, putting political reasoning aside, back in 1973 our communities needed to band together since aging infrastructure was becoming an issue - especially in Hespeler – and getting new infrastructure was, and remains, a very costly ordeal. Preston, to its credit, had amazing infrastructure at that time and was in great shape and perhaps could have opted out. However, its leaders recognized that some work was needed to ensure its preservation and supported the move.

We know that preservation is always important, just look at the Gaslight District. Frankly, there would have been a time when those historic structures along Grand Avenue South simply would have been torn down but thanks to new investment, those revived old buildings have been adapted to last well into the next century.

Now, let’s be clear, I am not a big fan of forced amalgamations. Frankly, I think those moves are officially political in nature. However, I am a fan of working together for the betterment of all.

Today, many of us remember the dividing lines of those three former communities, but in time those too will disappear in the memory of its residents as change brings bigger, better, and bolder ideas to build a strong, vibrant, and genuinely prosperous community. In many respects, I believe we are the envy of our neighbours to the north which many think want to consume us since we are the only community in the region that fully straddles both rivers and Highway 401, North America’s busiest roadway. I think if we were to analyze the entire circumstance of Cambridge’s amalgamation we would probably agree, in the end, it was good for us. It certainly would have been better if we had all been on the same page at the time, but we’re only 50 years old and that’s a “young’un” in terms of community years. The best part is we’re still young, enthusiastic, looking forward, and optimistic on what kind of a community we can have. We aren’t done building this community yet, so any further craziness of amalgamation talks is off the table from my perspective.

What we have now is a community poised to explode, and you might not like that, but worry not, anyone reading this is unlikely to be here when that happens and the leaders of the day will care about what they are doing, just like the leaders of the past did.

They will care about being progressive in community development but also in building a city that is safe, healthy, and abundantly filled with opportunities. Let’s celebrate our 50th anniversary in style with recognizing we’ve come a long way in the first 50, so let us reach for the top in the next 50. After all, it’s all about the making of a community.

The news we heard Thursday from Waterloo Region’s Medical Officer of Health Dr. Hsiu-Li Wang was extremely disappointing to us. Our Board of Directors adamantly encourages all businesses to practice within the law but also echoes your concerns and disappointment at this decision.

In fact, officially, the Cambridge Chamber of Commerce does not support Dr. Wang’s recommendation to keep the Waterloo Region in Stage 1 of Ontario’s reopening framework, considering the rest of the province will be moving into Stage 2 on June 30, an estimated two weeks ahead of our Region. As such, we would have preferred this move to Stage 2 remain on hold until Waterloo Region can catch up.

In fact, our Region did its best to help the province in the early stages of the third wave through the redirection of vaccines to hotspots around the GTA to curb the spread in those communities which significantly helped, but in the end proved detrimental to us, so it seems only fair to suggest some courtesy be extended to the citizens of Waterloo Region.

The Region has been calling for a ramp up of vaccine allocations and while that has started to occur, it is in fact a case of too little too late.

We understand the worries surrounding a possible fourth wave if dramatic steps are not taken and are very aware of the threat the Delta variant poses, especially amid troubling reports of people who are not following the provisions of the law by gathering in groups which in turn are creating community and workplace outbreaks. Currently, we are now seeing COVID-19 patients being transferred to hospitals outside our Region due to capacity concerns.

This is all very frustrating and discouraging to think that people would intentionally break the rules, risk lives, and in the end hurt businesses.

Our local Public Health officials have determined that if we do not hold back a bit, we will very likely see a fourth wave that could easily spread provincewide resulting in not only another round of restrictions, but another potential lockdown.

Keeping this in mind, we are continuing our efforts to fight for added supports from both the Federal and Provincial levels of government and calling for more vaccines so we can protect our community and get things open sooner. The Chamber will continue to do all it can to support, guide and advise to the best of its ability until this crisis finally comes to an end.

Sincerely,

Greg Durocher

President/CEO

Letter Sent to the Cambridge Chamber of Commerce Membership

The federal government's recent small business tax proposal is punitive and will have damaging effects on business communities in Ontario and across the country.Over the summer, the federal Finance Department has made it clear that it intends to make the most sweeping changes to business taxes in 50 years.These proposed changes will negatively impact tens of thousands of businesses by raising taxes, reducing incentive for private investment, increasing administrative burdens, and making it even more difficult for a business to be transferred from one generation to the next.

Family businesses and family farms are being touted as tax cheats by the Federal Government. Although, they have walked that back - the fact is they have described legitimate and legal use of the tax laws are wrong and most commonly referred to as a loophole. This is not only ignorance of what it takes to build a successful business, but makes Canada the only country in the world to impose such punitive tax measures on small business. It is clear, this government has no respect for business, especially the locally owned family business.

The immediate reaction from our members and businesses across Canada was negative. We are particularly worried about the effects of the proposed tax changes for small and medium sized businesses - who are essential to our thriving local business community. We encourage local businesses to contact our  MP to provide feedback on the possible changes.

Bryan May, M.P., Cambridge & North Dumfries
534 Hespeler Road (Main Office)
Suite A4
Cambridge, Ontario N1R 6J7
Telephone: 519-624-7440 Fax: 519-624-3517 

[email protected]

Marwan Tabbara, M.P. Kitchener South - Hespeler
153 Country Hill Drive (Main Office)
Suite 2A
Kitchener, Ontario N2E 2G7
Telephone: 519-571-5509 Fax: 519-571-5515 

 [email protected]

 As an organization, we support reasonable attempts to reduce tax evasion or loopholes. However, these changes are insulting to businesses that have worked within the rules in good faith to build their businesses, to save for retirement, and sometimes just to keep their doors open.

Small Business is Too Big To Ignore and we need to demonstrate this with one voice.  

If you're not a small business owner but work for one, ask Mr. May and Mr. Tabbara to protect YOUR job by supporting small business entrepreneurs in Cambridge.

SIncerely,

Greg Durocher

Cambridge Chamber of Commerce

President/CEO 

First you have the Provincial Government with Bill 148 and then you add what our Federal Government wants to do regarding taxes and in reality it just adds up to a nightmare for small businesses. Greg explains in this weeks' 'The City'.

Finance Canada Is Considering Major Changes to How Corporations Are Taxed

The Department of Finance Canada is considering major changes to how corporations are taxed. The proposed rules could have a significant impact on many Canadian businesses: potentially raising taxes, increasing the administrative burden on SMEs and heightening the impact on family-run businesses.

On July 18, Finance Canada launched a consultation on how “tax-planning strategies involving corporations are being used to gain unfair tax advantages.” The document contains proposed policies to close these “loopholes.” There are four key changes that will affect business:

• Sprinkling income using private corporations: The government wants to tighten rules to prevent a business owner from unfairly transferring income to family members who are subject to lower personal tax rates. In certain circumstances, owners would have to demonstrate that wages and dividend payments are “reasonable.”
• Multiplying the Capital Gains Exemption: When an individual sells a small business, the first $850,000 of capital gain is exempt from taxes. The government wants to prevent tax planning structures that enable multiple family members to use their exemptions.
• Reducing the tax deferral advantage on portfolio investment inside a corporation: Currently, an owner can accumulate portfolio earnings inside a corporation and pay corporate income tax rates (which are generally much lower than personal rates). The owner defers paying personal income or dividend taxes until the money is taken out of the business. The government is considering alternatives that would reduce this tax advantage.
• Converting a private corporation’s regular income into capital gains: Income is normally paid out of a private corporation in the form of salary or dividends that are taxed at the owner’s personal income tax rate. In contrast, when a business is sold, it is taxed as a capital gain, where only one-half of capital gains are included in income, resulting in a significantly lower tax rate on income that is converted from dividends to capital gains. The government wants to tighten the rules to prevent certain tax planning structures, but it is open to more favourable treatment for genuine family business transfers.

The Canadian Chamber of Commerce and its Taxation Committee are currently studying how the proposed changes will affect members in different industries, in family businesses and those with different ownership structures. They will be submitting recommendations to Finance Canada.

Should you wish to participate or provide input, please email the Cambridge Chamber at [email protected].  In particular, we are looking for detailed examples and cases of how a specific small business will be affected by the changes. We feel concrete examples will be most effective in making our case for easing the changes. We would ask that you send them to us by August 18.

Click here to view the consultation documents released by Finance Canada.

The Liberal government wants to introduce a minimum wage increase to $15 dollars an hour by 2019. This isn't a move that best helps the people of Ontario nor is it the right move. Funny enough... These newly reformed labour laws won't fully come into effect until AFTER the provincial election is over with. Is it about helping the people of this province? Or is it a move for someone to keep their Premier job?

In this edition ofthis weeks V-Blog Greg discusses why it will not only keep the heritage aspect intact but also put a new spin on the area for our futures. Not only our futures though. It will benefit our grandchildren's future as well. This will be a district unlike any in Ontario. So check out this video and support the Gaslight District.

Can you feel the excitement in the air? A brand new federal budget is about to be delivered into the world. A precious bundle of joy, full of hopes, expectations and the future of the Canadian economy will come screaming into the House of Commons in a couple of weeks. So what should we expect?

Three big things are keeping us on the edge of our seats. This baby will have larger deficits than last year amid economic uncertainty. She’ll be full of exciting details around previous announcements—the innovation agenda, the infrastructure bank, the FDI hub. Finally, we’ll see some nasty surprises coming from the review of tax credits. Wahhh!

The budget is unusually late this year. We’re now expecting it on March 21, after a number of delays. Pity the poor Finance Department. Last year’s budget was hit by a sharp decline in oil prices and an economy that was weaker than expected. This year’s budget is upended by Hurricane Trump—normal expectations around trade and business investment are out the window.

There is now more uncertainty than we’ve seen in decades, and the federal government has run out of fiscal room. The deficit will reach $26 billion this year, and that’s before the additional costs for new health deals with the provinces. For years, we’ve advocated balanced budgets, or at least a solid plan to return to balance. The Finance Department’s current forecasts show this will not happen before 2050. (This baby will be middle-aged by then.)

Growing deficits make it unlikely that we’ll see any large new programs. Instead, this budget is likely to fill in details around previous announcements. Remember, Budget 2016 left many of the tough questions to be filled in after consultations. The government had said Phase 2 of the infrastructure plan, with the “fast, efficient trade corridors” would be announced in the next year. The Innovation Agenda, a “bold new plan” to redesign how Canada supports innovation, was coming later. Health spending would be determined. A review of tax expenditures was coming soon.

We’re excited about the innovation program, but it’s that last promise that has us most worried. The government announced an internal review of all federal tax credits, with a view to eliminating poorly targeted and inefficient ones. A panel of external experts is in place, but there has been no consultation.

We certainly support simplifying the tax system, but some of these tax credits are very important to business and Canadians. For several months, we campaigned vigorously to oppose a plan to tax employer-sponsored health and dental plans. The plan would have cost workers thousands of dollars and was only abandoned by the government after tens of thousands of emails and negative media.

The government is looking for revenue so we’ll likely see a few unpleasant surprises in the budget. It would be odd if the government reviewed 150 tax credits and decided to keep all of them. So, we just don’t know if the capital gains inclusion rate, the federal dividend tax credit or flow-through shares might be on the chopping block. We’ll be watching the budget closely to determine the positive (innovation agenda, infrastructure) and negative impacts (tax credits and deficits) on business. I’m worried this baby could be adorable and smiling on the surface but with some smelly surprises hidden away.

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

Canadian Chamber of Commerce

613.238.4000 (284) | [email protected]