The collective strength of the Ontario Chamber network to advocate for businesses during one of the most turbulent economic junctions in Canadian history became a unifying theme at the recent Ontario Chamber of Chamber of Commerce AGM in Windsor.

The event – held April 24-26 and hosted by the Windsor Essex, Amherstburg and Leamington District Chambers of Commerce - brought together approximately 150 delegates representing 60 chambers provincewide to network, hear from economic leaders, and to debate policies that can create evidence-based solutions to benefit the business community and province’s economic growth.

“The annual AGM is a great opportunity for Chamber leaders to not only share ideas and best practices, but to find ways to navigate current economic upheavals created by U.S. President Donald Trump’s continued trade threats,” says Cambridge Chamber of Commerce President and CEO Greg Durocher, who attend the AGM accompanied by Board Chair Murray Smith. “Having a unified voice is pivotal, especially now, in helping to create the certainty businesses need.”

Drop in business confidence

It was a sentiment echoed by Ontario Chamber of Commerce President and CEO Daniel Tisch during his opening remarks at the conference, entitled Bridges, Not Barriers. 

He spoke about the immense stress business leaders are under due to staffing concerns and rising prices and referenced the OCC’s ninth annual Ontario Economic Report (OER) released earlier this year which showed a significant rise in business confidence over the course of 2024, climbing from a historic low of 13 per cent to 26 per cent by year’s end.

However, despite this improvement, confidence remains historically low and fragile, with 48 per cent of businesses expressing a lack of confidence in the economy. When U.S. tariff threats are on the table, business confidence dropped dramatically to just 15 per cent, almost erasing the last year’s gains, according to the OCC’s separate tariff survey in early February.

Tisch said business leaders are looking for assistance and guidance, noting the Chamber network is the best organization to take on that leadership role.

Trade clarity will come

“We can provide that platform and provide the clarity and collaboration and continuity they need to be successful, and that they deserve because we need them to help build our province and to create jobs and economic opportunity and the growth that we all want,” he said, adding Canada will eventually achieve some level of clarity when it comes to U.S. trade. “We don’t exactly know when, but we know that it’s going to be fragile and as long as the president (Trump) is in office there is no guarantee he will respect any (trade) deal that he signs because he didn’t respect the last one. We can’t put all our eggs in that basket anymore and have to diversify as a trading nation.”

Competitiveness was the underlying theme of two sessions at the AGM featuring a panel of experts, including Windsor Essex Chamber of Commerce President and CEO Ryan Donally, who spoke about the long-standing trading relationship between the U.S. and Canada. It was noted that 25% (approximately $320 to $390 million) of all trade between the two countries crosses the Ambassador Bridge daily.

Long-term strategies needed

“You can’t unscramble this egg since cross-border trade has been around for at least a century,” he said, adding Trump’s tariffs will cost thousands of jobs on both sides of the border before stressing the need for trade diversification and long-term strategies.

It was a sentiment shared by Luke Polcyn, Senior Executive, Development and Economic Transformation for the City of Detroit, who outlined the vibrant trading relationship between the two cities and the opportunity for cross-border partnerships in terms of innovation assets.

“This disruption (tariffs) is being done in our name but ask any SMEs on the U.S. side and they would tell you the system could be tweaked but not blown up,” he said.

A second panel of experts which focused on Ontario’s ‘competitive edge’ offered insights on how key sectors can navigate policy changes, and how the province can build on its future competitiveness.

“Our responsibility at the moment is to think long-term,” said panelist Jaipaul Massey-Singh, CEO of the Brampton Board of Trade, adding more could be done to commercialize innovation. “Let’s not let this crisis go to waste. It’s not all doom and gloom but a wakeup call.”

He stressed the need to hold decision-makers accountable to push for change, an opinion shared by a fellow panelist, Sueling Ching, President and CEO of the Ottawa Board of Trade.

“We must demand a continued collaboration of strategies,” she said. “Our new normal is change.”

Policies will help businesses

In effort to make changes, this year 36 policies were approved by the delegates covering a wide variety of issues that can directly affect businesses. These included  policies relating to education, healthcare, homelessness, mental health and addictions, transportation, infrastructure, and manufacturing. These policies now become entrenched in the Ontario Chamber of Commerce’s policy ‘play book’ to guide its ongoing advocacy work at Queen’s Park.

The Cambridge Chamber co-sponsored three policies which received support from delegates:

Create and Implement a Provincial Strategy to Address Homelessness, Mental Health and Addictions

• This policy outlines several recommendations for the Province, including ensuring social services outreach teams are available as partners to police throughout Ontario to support marginalized individuals and improve province wide data collection and access for frontline services to enable better decision-making. Also, prioritize funding, program, and policy changes to better support those with complex mental health conditions that may pose a risk to themselves and others, and incentivize municipalities to develop more low barrier supportive housing solutions.

Cutting Administration for Ontario Physicians

• This policy sets out several recommendations, including encouraging the Province to collaborate with physicians, healthcare administrators and stakeholders to set key performance indicators for administrative workloads and set targets based on industry benchmarks to ensure improvements in physician efficiency. It also calls for the prioritization of secure digital technology to reduce administrative burdens, and collaboration with the Ontario Medical Association and other healthcare organizations to implement proven strategies that reduce physicians’ workloads.

Ontario Government Assistance on Employment Land Assembly

• This policy calls for the Province to financially assist municipalities with the purchase of land for major industrial and economic development projects. It also recommends funding support be provided for necessary infrastructure, such as roads, utilities, and servicing, to enhance the viability of potential employment lands to attract investors. As well, it recommends the need for regional partnerships and engagement with the private sector to optimize both existing and new employment land uses to ensure the land assembly efforts integrate with broader economic strategies. 

The strength of the Chamber network when it comes to advocating for the business community was very apparent recently as representatives from Chambers of Commerce and Boards of Trade nationwide recently gathered in Halifax to debate and approve policies aimed at boosting Canada’s economy.

Several hundred delegates gathered Oct. 16-19 at the Canadian Chamber of Commerce’s CCEC Conference and AGM to network, hear from several high-profile business and industry leaders, but more importantly debate policies that can make a difference at a time when Canada’s productivity is suffering to the point where we rank the lowest among the G20 countries, and small businesses continue to face hardships.

“I do think regulation is one of the biggest challenges facing Canadian productivity,” said Shaena Furlong, President & CEO of the Richmond Chamber of Commerce in B.C, while speaking as part of a panel discussion on the outlook for small business. “I think generally in Canada, and this is across all regions, we have problem in that the folks who are imposing regulations on business have only ever signed the back of a pay cheque and there is a sentiment that business and industry are a bottomless well and it’s not just true.”

Delegates were told by Isabelle Hudon, President and CEO of BDC, there are now 100,000 fewer entrepreneurs in Canada than there were 10 years ago, an issue touched on by outgoing Canadian Chamber President and CEO Perrin Beatty during a special tribute to his 17 years as head of the organization. 

Network provides a strong voice

“Capital is fluid, and you are not going to know when an investor chooses not to stay in Canada or not to invest in Canada,” he said. “We need to increase our ease in doing business.”

However, Perrin credited the work of the Chamber network and its advocacy efforts to create a better climate for businesses. 

“Businesses have never more greatly needed a strong, effective and organized voice,” he said. “I’m confident the Chamber can make an even greater contribution to Canada in the future. You are the ones who will carry out that mission. It will be your imagination and your commitment, your energy and your collaboration that will create a brighter future for our country.”

This sentiment is shared by Cambridge Chamber of Commerce President & CEO Greg Durocher who says a key role of Chambers is to develop policies that can lead to fundamental changes in legislation to create environments where businesses can thrive and in turn, communities can prosper. Greg attended the AGM, along with Board Chair Murray Smith and the Chamber’s policy writer Brian Rodnick.

“The policies approved by delegates at the Canadian Chamber AGM and Ontario Chamber AGM provide the tools needed to urge both the provincial and federal levels of governments to make decisions that can assist our economy,” he says. “The Chamber network from coast-to-coast provides a strong voice for businesses.”

At this year’s Canadian Chamber AGM, just over 40 of the policy resolutions presented by Chambers and Boards of Trade nationwide, were approved by nearly 300 voting delegates.

The policies – which now become part of the Canadian Chamber of Commerce’s ‘official playbook’ - touched on the following areas: taxation and finance; labour, skills, and immigration; transportation and infrastructure; agriculture; health; manufacturing; and international affairs.

A policy submitted by the Cambridge Chamber and four others co-sponsored by the Chamber received overwhelming support:

Calling for a comprehensive, independent review to simplify Canada’s tax code

Delegates supported a call to reform Canada’s tax system by establishing an independent, comprehensive review of the tax system ensuring its terms of reference focus on simplification and modernization, identifying potential changes to encourage more economic prosperity for Canadians.

​Implementing a Canada Trade Infrastructure Plan (CTIP) (co-sponsored)

The Chamber network supported a move to have the Federal Government implement, in cooperation with the national business sector and Provinces-Territories, a Canada Trade Infrastructure Plan to guide future planning and construction activities. The hope is to help grow the economy nationwide and ensure that all trade corridors have the capacity to move Canadian goods and service as markets expand.

​Increasing capacity across Canadian manufacturing (co-sponsored)

Delegates supported a call for the Federal Government to implement a 10% refundable manufacturing investment tax credit for all operations nationwide, like the current Atlantic Investment Tax Credit. 

​Addressing the affordability crisis by getting back to fiscal balance & right sizing (co-sponsored)

The Chamber networked supported a series of recommendations to bolster the economic wellbeing of the private sector, including working toward bringing down the level of debt, reviewing government expenditures, if necessary, via a Royal Commission, mandated reviews across all ministries and departments that re-examine government services and the implementation of a cash pooling arrangement within and between all departments and ministries.

​Improvements to the Artificial Intelligence and Data Act (co-sponsored)

The delegates approved a series of recommendations calling for more public consultation when the legislation gets rolled out and assurance that regulations imposed on the industry allow it to remain competitive with other countries including our major trading partners. Also, the policy called for the Federal Government to separate AIDA from Bill C-27 to ensure that it receives due attention and is not held back by other controversial legislation as well as clarifying what makes an AI system ‘high impact’ to better enforce the regulations. 

Debating policies to create evidence-based solutions that will benefit the business community and province’s economic growth played an important role at the Ontario Chamber of Commerce’s recent 2024 Annual General Meeting and Convention in Timmins.

Approximately 100 delegates representing Chambers provincewide made the trek north, including Cambridge Chamber of Commerce President and CEO Greg Durocher and incoming Board Chair Murray Smith.

“Ensuring businesses have the legislative backing and supports they need to succeed and prosper is at the core of what Chambers and Boards of Trade do and the policies approved at this event assists our network in creating a roadmap to make that happen,” says Greg. “The conference also provides a great opportunity to connect with other Chamber leaders and share ideas and best practices.”

This year, 28 policies were approved by the delegates covering a wide variety of issues that can directly affect businesses including labour, education, healthcare, transportation, infrastructure, manufacturing, and housing.  These policies now become entrenched in the Ontario Chamber of Commerce’s policy ‘play book’ to guide its ongoing advocacy work at Queen’s Park.

The AGM, held April 25-27 and referred to as A Northern Experience, featured sessions related to the creation of a more prosperous business climate for success in Ontario’s north surrounding labour and supply chain issues touching on the needs of the growing EV market in the southern part of the province. Guest speakers included Minister of Mines the Hon. George Pirie, plus representatives from the mining and renewable energy sectors.

Another session focused on the OCC’s Economic Reconciliation Initiative, created in partnership with the Canadian Council for Aboriginal Business, and provided delegates the opportunity to share challenges and opportunities with OCC representatives that they have regarding building relationships with Indigenous Peoples and businesses in their communities.

The OCC will now review their findings and report back to the Ontario Chamber Network with feedback and potential solutions.

Economic growth imperative

The need to create economic growth was at the heart of a video message shared with delegates from Canadian Chamber of Commerce President & CEO Perrin Beatty, who urged the government to modernize its regulatory framework.

“Requiring federal regulators to apply an economic and competitive lens would encourage manageable regulations and reduce the interprovincial trade barriers affecting over 1/3 of Canadian businesses,” he said, adding doing this would ‘fortify’ Canada’s economic foundation. “Modernizing our regulatory framework would cost the government little or nothing at a time when Canadians and businesses from coast to coast are struggling with affordability. The government should be looking to relieve financial burdens wherever possible.”

Beatty also stressed the need for strategic and long-term investment in infrastructure to create a “resilient network” of gateways and corridors. 

“As the world increasingly needs what Canada can provide, it’s critical that Canadian businesses are able to get their goods and services to market reliably,” he said. “If we have learned anything from 2023 is that supply chains are only as strong as their weakest link.”

As well, Beatty also called on the need for the government to provide financial supports, like the CEBA (Canada Emergency Business Account) program during the pandemic, that require more tailored, strategic, and innovative solutions.

“The issue isn’t about how to bail out small businesses but how to build them out,” he said, adding collaboration between the Canadian and Ontario Chambers of Commerce, as well as local Chambers, is needed to make change happen. “The work of the Canadian and Ontario Chambers, and the rest of the Chamber network has never been more important than it is today. Canada has never more greatly needed what we as a network of Chambers can offer.”

Click here to see the OCC Policy Compendium.

Cambridge Chamber policies approved by Ontario delegates

The AGM provides an opportunity for Chamber leaders to come together to discuss and debate key policies that shape the Ontario Chamber of Commerce’s (OCC) advocacy agenda for the coming year. The Cambridge Chamber presented three policies which received overwhelming support from delegates:

• The first policy calls for the Province, in consultation with municipalities, police boards, and businesses communities, to use economic analysis principles when it comes to current and potential crime diversion programs that could reduce crime and in turn make it safer for businesses to operate. As well, the policy recommends that underperforming programs that don’t adequately serve communities of all types be identified and that funding be prioritized accordingly, and that the efficacy of these programs be evaluated in the context of other wrap-around services available in each community. Also, the policy calls for the implementation of a system to measure the long-term impacts of these program investments and insists municipalities continue to use Special Constables in urban areas instead of fully sworn officers to reduce tax burdens.
• The second policy, which the Cambridge Chamber co-sponsored,calls for the establishment of timelines for the Province’s new Building Ontario Fund (formerly the Ontario Infrastructure Bank) to commence investments into projects. It also calls for a strategy put in place to ensure these investments in major projects are in municipalities and regions across Ontario.
• The third policy, which the Cambridge Chamber co-sponsored, recommends the Province initiate a major review of provincial-municipal fiscal arrangements to ensure cost-effective program delivery and maintenance/expansion of infrastructure.

High inflation, interest rates and housing costs continue to drive pessimism in Ontario’s economic outlook, according to the Ontario Chamber of Commerce’s (OCC) eighth annual Ontario Economic Report (OER). 

Despite this, many businesses surveyed remain confident in their own outlooks, with 53% expecting to grow in 2024.

“In spite of the fact there seems to be a mood of pessimism in the air, the reality of it is there seems to be more bright lights than there are dim lights,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “We’ve had years where business confidence and prospects of being confident are going to be over 60% but given where we are today, I think having around 50% of businesses confident they are going to have a good year and grow is a positive sign.”

However, he says that figure doesn’t minimize the economic issues facing businesses, including affordability and also notes the struggle to achieve necessary tax reform measures continues.

“We must also ensure there is a balance or equity in tax distribution from not only a cost perspective but also on deployment so when money is being handed out it’s being handed out appropriately,” says Greg.

The OER contains regional and sector-specific data on business confidence and growth, public policy priorities, regional forecasts, and timely business issues such as supply chains, employee well-being, diversity, equity and inclusion, economic reconciliation, and climate change.

The report, compiled from a survey of businesses provincewide conducted between Oct. 12 and Nov. 21 and received just under 1,900 responses, states that 13% of businesses are confident in Ontario’s economic outlook. That represents a 3% drop from last year and a 29% drop from the year before with the cost of living and inputs, inflation, and housing affordability as the key factors for the confidence decline.

The sector showing the most confidence was mining, with the least confidence being shown in the agriculture, non-profit and healthcare social assistance sectors. The most confident regions were Northeastern and Northwestern Ontario, both at 23%, and the least were Kitchener-Waterloo, Windsor-Sarnia, and Stratford-Bruce County. (The survey indicated these latter two regions had a high share of respondents in the non-profit and agriculture sectors compared to other regions).

“As the report suggests, businesses still need to grapple with economic headwinds and many of those headwinds are limiting their ability to invest in important issues within the workplace and that may well be part of the reason they are having difficulty hiring people,” says Greg. “That said, entrepreneurs are interesting individuals, and they always will find a way to wiggle themselves through the difficulties of the economy.”

He questions whether the pessimism around growth and confidence outlined in the survey is related to the economy or stems more from the fact many businesses are unable to hire the people they require so they can grow their business.

“There are lots of companies out there that need people and that’s always a good thing when you’re at a very low unemployment rate now which is hovering around the 5% rate,” says Greg, noting he receives calls and emails daily from local companies seeking workers. “As inflation starts to drop and as the Bank of Canada rates start to drop, I think we’ll see that pessimism go away.”

Read the report.

Outlook highlights: 

• Small businesses are less confident (12%) than larger businesses (22%) due to challenges with repaying debt, fluctuations in consumer spending, inflationary pressures, and workforce-related challenges such as mental health.
• Simplifying business taxes is identified as a major policy priority of 50% of surveyed businesses. 
• Confidence in Ontario’s economic outlook varies considerably across industries and is lowest within the agriculture sector (3%), non-profit (8%), health care and social assistance (8%), and retail (10%) sectors. 
• Confidence is highest in the province’s mining (46%) and utilities (27%) industries, both of which benefited from strong growth and investments in the province’s electrification infrastructure and electric vehicle supply chains. 
• Businesses in Northeast and Northwest Ontario exhibit the highest confidence at 23%, where the mining industry is a major employer.

 The municipal election this past fall resulted in some new and familiar faces around local council tables, each prepared to represent the needs of their constituents and communities to the best of their ability during their next four years in office.

In the winter edition of our Insight magazine, to be released this month, we reached out to the municipal leaders for the City of Cambridge and Township of North Dumfries, along with Cambridge’s two regional councillors, to get a sense of what issues and concerns they believe are facing the business community and to provide potential solutions to make things even better to conduct business locally.

Each were asked the same series of questions in hopes of providing our business community with a snapshot of what approaches our municipal leaders will be taking over the next four years.

Here’s a portion of their responses to a few of the questions:

1. How do we make Cambridge/Township of North Dumfries even better places to do business?

Cambridge

Mayor Jan Liggett: “Connecting equity to transit-oriented development can mitigate traffic and pollution, generate demand for transit, catalyze the development of affordable housing, and bring new businesses and quality jobs to our community.”

Donna Reid, Ward One: “Council needs to support development because more people will generate more business and needs to consult our businesses as to their needs to ensure we will be providing the services that will assist them.”

Mike Devine, Ward Two: “Our tax base is an issue, and we must see that it’s set in a reasonable manner for businesses, especially since we have moved into more higher-tech manufacturing than we’ve previously seen in Cambridge in the first 30 years.”

Corey Kimpson, Ward Three: “We have to look at the processes we have in place and really look at having a collaborative approach between the levels of government, the community and business community.”

Ross Earnshaw, Ward Four: “For Cambridge to be perceived as an attractive place to do business, our downtowns must be seen as safe, comfortable, and truly fun, public places.”

Sheri Roberts, Ward Five: “Having the appropriate infrastructure in place such as safe roads, well planned parking, and other supports and services for employees and customers, will make it as easy as possible for companies to focus on the running of their business.”

Adam Cooper, Ward Six: “I would like to see improved road networks to get large this truck traffic out of our downtown areas and major roads such as Hespeler Road and King Street.”

Scott Hamilton, Ward Seven: “It’s important that we increase density in our cores to support businesses and large-scale infrastructural projects such as the LRT.”

Nicholas Ermeta, Ward Eight: “We need to constantly review and improve customer service levels at City Hall. We need to always strive to provide timely service and assistance when needed.”

Township of North Dumfries

Mayor Sue Foxton: “We must link quality of life attributes of the community and countryside with the business opportunities of the area and continue with the current program underway to facilitate the installation of fibre to the address across North Dumfries.”

Rod Rolleman, Ward One: “We need to market North Dumfries as the rural escape for city residents to the north and east of us.”

Derrick Ostner, Ward Two: “We can make North Dumfries a better place to do business by being more engaging with prospective businesses.”

Alida Wilms, Ward Three: “I love being part of a rural community and think there are incredible business opportunities here for any aspiring entrepreneur.”

Scott Tilley, Ward Four: “By encouraging and supporting businesses to set up in North Dumfries it will be a win/win for both the residents and business, as they will both support each other.”

Region of Waterloo

Doug Craig, Regional Councillor: “Rapid transit options must proceed, safety in our downtowns must be safeguarded and everything from recreational facilities to health services must continue to be improved.”

Pam Wolf, Regional Councillor: “To attract business to Cambridge we need to make it attractive to their employees. They want good schools, safe neighbourhoods, recreation facilities and arts and culture.”

2. What do you think are the biggest concerns facing businesses in Cambridge/North Dumfries and how will you address them?

Cambridge

Mayor Jan Liggett: “Labour shortage is a North American problem. We have universities, colleges and training facilities close by which graduate high quality staffing for companies. I will continue to work with them to encourage the growth of these educational facilities.”

Donna Reid, Ward One: “Our core areas struggle with the homeless, addicted and those with mental health issues. Our council needs to provide more services to address the needs of these vulnerable people.”

Mike Devine, Ward Two: “The tax base is clearly an issue for businesses and the cost of city services, such as snow plowing, are also an issue.”

Corey Kimpson, Ward Three: “Having things ready to move as quickly as possible is paramount, because when a business is ready to do something, they’re ready to go and can’t be waiting, especially in this economy. Is there a way we can fast track and expedite things?”

Ross Earnshaw, Ward Four: “Business owners do not feel like their voices are being heard by municipal leaders. It is important that we give local businesses a voice at City Hall.”

Sheri Roberts, Ward Five: “The cost of doing business goes up every year.  One way that municipalities can help with this is by streamlining the processes around opening a new business.”

Adam Cooper, Ward Six: “We need to lobby the provincial government for long-term detox and rehab facilities while also reconsidering the services offered downtown to prevent our core from becoming the dangerous playground for untreated addiction that it has become.”

Scott Hamilton, Ward Seven: “We all need to work to ensure that we have a skilled workforce, that conditions are ripe for quickly and efficiently importing supplies and materials as well as exporting our products to market.”

Nicholas Ermeta, Ward Eight: “Affordability or lack thereof are big concerns for businesses. I want to minimize future tax increases by reviewing the budget to find greater efficiencies and to find new funding models that rely less on property taxes.”

Township of North Dumfries

Mayor Sue Foxton: “Concerns include the cost attributed to the purchase of land for employment purposes, the timelines and cost for “approvals” to bring a development proposal forward to the marketplace, plus the ability to attract and retain employees for new or growing businesses and access transit to facilitate this. Council in June 2022 adopted a position to streamline the review and approvals process associated with site plan approvals. This measure should witness a reduction in the timelines to secure a decision.”

Rod Rolleman, Ward One: “The three biggest concerns facing businesses in North Dumfries are labour shortages, poor quality internet, and lack of commercially zoned properties. The Township needs to partner with the private sector and bring high-speed internet to our business parks.”

Derrick Ostner, Ward Two: “Biggest concerns are having the available land, and proper internet.”

Alida Wilms, Ward Three: “As more people move into the area, there’s greater pressure on our rural and natural areas because of the increased housing needs.

Scott Tilley, Ward Four: “Planning for future parking and dealing with current parking issues by working with the community residents and businesses to get their feedback, I will assist in making it easier for businesses to be accessed by listening to the people who are in the area regularly.”

Region of Waterloo

Doug Craig, Regional Councillor: “Safety in our community on the streets, in our parks and in our downtowns must be improved to have a safe, liveable community.”

Pam Wolf, Regional Councillor: “One of the biggest challenges to business is attracting and retaining staff. To help with this we need to build more housing including affordable housing to house staff.”

While COVID-19 has created a uniquely difficult situation for Ontario’s municipalities, it has also exposed areas to improve municipal fiscal governance.

Local governments do not have the fiscal autonomy they need to make them competitive and maintaining the status quo could be devastating for communities in a post-COVID economic recovery. The impact of the virus and the resultant public health measures have meant that most municipalities are seeing a decline in revenue and increase in expenditures.

In response, as all levels of government look to balance debt and deficits while protecting the well-being of our communities, the Ontario Chamber of Commerce (OCC) released its latest report, Better Budgets: Bolstering the Fiscal Resilience of Ontario’s Municipalities, which identifies 14 recommendations for both the Province and municipalities which can bring immediate and long-term relief to communities across Ontario.

“Municipalities in Ontario are facing a triple threat this year: an ongoing pandemic that has been devastating to local economies, reduced revenue from closed or limited services, and increased spending on public health and human services. The Financial Accountability Office estimates the pandemic will collectively cost municipalities $2.7 billion in 2021, on top of the expected $4.1 billion impact of 2020,” said Cambridge Chamber of Commerce President & CEO Greg Durocher. “In Budget 2021, the Government of Ontario committed to a long‐term economic growth plan. It is imperative public policymakers do everything they can do to ensure communities like ours do not get left behind in recovery.”

During the June 28 edition of our Chamber Chat, Cambridge City Manager David Calder and CFO Sheryl Ayres took a closer at the report and provided some great insight on the merits and viability of some of these recommendations, while identifying misconceptions relating to others.

“I commend the Ontario Chamber of Commerce on their work on Better Budgets,” said David, adding the report contained some ‘old chestnuts’ municipalities having been trying to change for many years when it comes managing finances. “It’s a good variety. Some we can support and some that might not be as supportable.”

Greg said for many years there has been ongoing discussion centred on the ‘restrictiveness’ of municipalities’ ability to raise revenue, noting changes are clearly needed, especially when it comes to Ontario’s property tax system.

“We have to undue to the system so to speak and make sure taxes are applied appropriately,” he said.

Sheryl agreed the current property tax system, which has been in place since the 1990s, is need of a full review.

“In doing that, they also need to look at other revenue tools that municipalities can use in addition to property taxes,” she said, noting that 91% of tax dollars go to the Provincial and Federal governments, leaving the remainder for municipalities. “Yet, we’ve got the greatest portion of expenses related to the assets that we own, and we are closer to the people in terms of the local services we provide. I believe we need a comprehensive review of the whole tax system and how it’s allocated across three levels of government, ensuring there is transparency and equity in how the funds are raised from the residents of Canada.”

David said the downloading of services to municipalities is an important issue that needs to be addressed.

“We need to review who should be providing what services and whether there are ways to be more cost efficient in the supply of those services,” he said. “It’s a very complex conversation but one that needs to take place.”

David said municipalities have been looking for ways to be more autonomous for many years in effort to make better decisions at the local level.

“We’ve got to figure out where do we want to be in that spectrum,” he said. “There needs to be discussion around trying to make sure we control our delivery a little bit where appropriate.”

The OCC report agrees and states the Ontario’s post-pandemic recovery and long-term success will depend heavily on unleashing the economic potential of its municipalities.

“Given that local governments in Ontario cannot run budget deficits, their current options for fiscal sustainability are limited to tax increases, service cuts, and the use of reserves,” said Claudia Dessanti, Senior Manager, Policy of the OCC. “Now is the time for municipalities and the province to explore alternative means of achieving fiscal sustainability.”

Key recommendations outlined in the report include:

Undertake a comprehensive and forward-looking review of Ontario’s property tax system to ensure the system is more equitable, efficient, and predictable for businesses.

Adhere to the ‘pay-for-say principle’ to ensure that all responsibilities are accompanied by adequate funding.

Enhance and incentivize regional collaboration across municipalities.  

The OCC report was created in partnership with KPMG Canada. Read the report.

The Cambridge Chamber of Commerce and Ontario Chamber Welcome Focus on Tourism, Small Business, Women, Training, and Local Communities

The Cambridge Chamber of Commerce released the following response to the Government of Ontario’s 2021 Budget, Ontario’s Action Plan: Protecting People’s Health and Our Economy.

“Ontario’s 2021 Budget means supports for the hardest-hit sectors and communities including right here in Waterloo Region, much needed aid for women who have been deeply impacted by the pandemic, and initiatives that will create a strong economic rebound related to tourism, training, and vital infrastructure such as broadband,” said Cambridge Chamber of Commerce President and CEO Greg Durocher.

Leading up to Budget 2021, the Ontario Chamber Network was calling for policies that mitigate the immediate impacts of the crisis and lay the groundwork for a robust and inclusive economic recovery. Resources need to be focused on those hit hardest by the pandemic, where they will have the greatest impact.

“Ontario’s business community welcomes the 2021 Budget, which gives businesses much-needed supports to confront the current health crisis while laying the foundation for a strong and inclusive economic recovery,” added Rocco Rossi, President and CEO of the OCC.

Some of the things called for in the Ontario Chamber Network pre-Budget Submission included:

• Targeted support for the hardest-hit sectors and communities;
• Demand-driven skills programming;
• Enhanced access to capital for small businesses and entrepreneurs;
• Bold action on interprovincial trade;
• Strengthening of municipalities’ fiscal capacity; and
• A sensible path to getting Ontario’s finances on track post-pandemic.

“Women’s fulsome participation in the labour market is a precondition to our economic recovery and future prosperity. We greatly appreciate the new supports for women, as they have been among those disproportionately impacted by the crisis,” said the report’s author Claudia Dessanti, Senior Policy Analyst of the Ontario Chamber of Commerce. “A taskforce for inclusive economic growth, further supports for child care, a job training tax credit, relief for the tourism industry, and support for survivors of domestic violence are all welcome initiatives that will help turn the tides on the impacts that were so severe and immediate for women in Ontario. Budget 2021 addresses many of the supports we called for in our recent report, The She-Covery Project: Confronting the Gendered Economic Impacts of COVID-19 in Ontario.”

Some of the measures welcomed by the Ontario Chamber Network in the 2021 Budget are:

Support for inclusive growth:

• A taskforce for inclusive economic growth. The COVID-19 crisis has disproportionately affected women, racialized individuals, Indigenous people, people with disabilities, and other communities in the province. The new taskforce will examine how to increase women’s participation in the workforce, which will support economic recovery.
• Temporary Job Training Tax Credit. Studies suggest about half a million jobs are not expected to return in Canada after the pandemic, the majority of which are occupied by women. Financial support for underemployed individuals to access training and reskilling will be particularly important for lower-income workers, new immigrants, and Ontarians living in Indigenous, rural, remote, and northern communities.
• Child care support. Access to affordable child care is a long-standing issue that has been exacerbated by the pandemic. Enhancing the CARE tax credit for 2021, extending financial support for virtual learning costs, and investing in new child care spots will help ease the burden for Ontario families and allow more women to re-enter the workforce.
• Supports for women fleeing domestic violence. The increase in domestic violence incidences during the pandemic has forced many women to leave their homes and communities, jeopardizing their safety and livelihood. Support for women in transitional housing and underserved areas will help provide safety for women in vulnerable situations.

Supports for business:

• Doubling of the Ontario Small Business Support Grant. The grant has helped many organizations survive the crisis thus far and making this an automatic top-up instead of asking businesses to re-apply will reduce the administrative burden on both businesses and government.
• Additional resources for the Digital Main Street Grant. Many small businesses, particularly in rural and remote regions, have benefited from the supports of this grant to get their business online. Expanding the program will help more businesses digitize and prepare for the economy of tomorrow.
• Invest Ontario Fund. Additional funding in Invest Ontario over the next four years will be important to create jobs and investment across the province.

Support for tourism:

• Tourism and Hospitality Small Business Support Grant. The OCC recently wrote to the Ontario government about how the tourism industry is not eligible for the Ontario Small Business Support Grant. This new grant is welcome news for hotels, travel agencies, hunting and fishing camps, and other organizations that did not qualify for the original grant.
• Local Tourism Tax Credit and Tourism Recovery Program. Many of the chambers of commerce and boards of trade are active in the tourism industries within their local communities. These additional supports will be critical to support a revival of tourism after the pandemic.
• Support for alcohol producers & local distilleries. Ontario’s vineyards, cideries, and small distillers have been greatly impacted by the pandemic as tourism stalled this year.

Support for communities and municipalities:

• Broadband investments. The pandemic has put the spotlight on the digital divide for people and businesses, particularly in remote and rural communities. Additional funding to connect all Ontarians, including businesses, to reliable broadband by 2025 is welcome news. 
• Regional Opportunities Tax Credit. Additional resources towards this program will allow rural and remote communities to invest in projects that create local jobs and economic growth.
• Property reassessment for municipalities. Pausing the property tax reassessment gives municipalities and businesses more capacity and time to adjust to the economic uncertainty and challenges caused by the pandemic.
• Expansion of the Ontario Together Fund. The Ontario Together Fund has successfully leveraged Ontario’s business community to address pandemic-related challenges and support relief efforts.
• Access to vaccination appointments. The Ontario Chamber Network welcomes support to help seniors and people with disabilities get to their vaccination appointments. The faster the population is inoculated, the sooner we can focus on recovery.
• Strategic Priorities and Infrastructure Fund. Renovations to local buildings and sports facilities will also be integral to local economic growth and recovery initiatives.

Read the Ontario Chamber of Commerce full pre-Budget submission here.

I am a small business owner based in Cambridge, Ontario.  Along with my partners, we operate two manufacturing operations employing a total of about 25 people.

I am proud of all of the response of our political leaders to this crisis on all levels – local, provincial and federal.  They have taken a sober and analytical approach to the immediate needs of the citizens of this country.

Their willingness to commit funds, resources and support to our front line workers, small businesses and all in need will get Canada through this ordeal.

As a business owner, my top priority is always looking ahead to determine how I can not only succeed; but avoid unexpected disruption to my team; and minimize our potential for risk of any kind.

This is where I think the business community needs more support from our leaders.

The question of when we should re-open for business is open for debate.  The leaders in Canada, USA and abroad have differing opinions on this matter. 

There is only one question on my mind – what is required for me to do business in a way that will be safe for my team, clients and supply chain?  This is the question that must be answered prior to our return to regular business.

There is no doubt in my mind that the scientists of the world will determine when it should happen; using the tools and expertise available to them.  It brings me comfort to know that our Canadian politicians are being guided by science in their decision making process on these issues.  

However, there is another component to this decision that I think we are neglecting.  Whenever we return to work, it will be to a new business landscape.  There are new risks, new considerations and a higher expectation from the community for business owners to provide a safe working environment.  As a community, we need to determine what will be required to have in place prior to a return to “regular” business. Until we have a vaccine / “herd immunity”, do workers require masks to be safe?  Do we need to require hand sanitizer at entry points to work areas and require all team members to use?  In Taiwan, there are some common practise expectations for citizens that have allowed them to maintain a very low infection level of COVID without restriction on children being at school, or businesses operating normally.  What can we learn from their example that can help us to prepare to resume our work?

If Toyota, Honda, or even my business or a local hair salon re-opened in two or four weeks without making any adaptations to how the risk of COVID transmission is controlled; how will we have made progress against this disease?

The saying “time heals all wounds” has never resonated with me.  Time doesn’t heal all wounds; but time does offer us the opportunity to prepare for what is coming at  us next.  We know that the economy will have to resume prior to COVID being completely eradicated.  The question is – what will we as a community do to mitigate the risk of another peak of infection as we make that return to the new normal?

There is no question that children will have to return to school; I am less concerned about when that happens than I am about what the plan is to keep them safe and healthy once they are there.  We have the example of how Taiwan has made this work; kids wearing masks and having plastic cubicle style dividers between desks during meals.  Will we use this time to learn from their example and adapt our own action plan for what is required to be in place prior to resuming their in class education?  My hope is that we do. 

The Cambridge Chamber of Commerce is starting to gather experts and business owners to start this discussion.  I am proud to be a part of this discussion; I look forward to learning and planning together with others to determine how we as a business community can plan to get back to business.  This is new territory for everyone – consumers, business owners, employees, politicians, government, youth and seniors.  If we can agree on the supports that are needed to re-open in a safe manner, the time spent until that happens can be spent planning and making the required changes to how we do business to accommodate the new reality we live in.  If as a community we neglect this opportunity to plan and adapt, we are destined to repeat this cycle of the pandemic again in the not so distant future.

This is work that our Chambers of Commerce, professional associations, industry associations, regulatory bodies or governing standard registrars, perhaps the labour unions and school boards are well poised to do.  They have connections to business in their sector, a communication channel with a broad range of companies in a vertical market, and the support of their members.  If we all pressure these organizations in our own industries to get to work on our behalf, we can start planning for the future.

It’s time to change the question from “when can we re-open” to “what is required for a safe and healthy re-opening in my workplace to get through this crisis”?

Let’s get to work.

Kristen Danson

Managing Partner

MitoGraphics Inc. / Swift Components Corp

519 240-4205 Direct

Leading tax practitioners say that business owners with income as low as $50K will be affected

Ottawa, September 27, 2017 – The Coalition for Small Business Tax Fairness, a unified voice of more than 70 organizations representing hundreds of thousands of business owners across the country, has written a new letter to Finance Minister Bill Morneau with professional analysis confirming that Ottawa’s tax proposals will affect middle-class business owners, resulting in higher tax rates than other Canadians with similar income levels.  

“We are alarmed by the huge gap between the government’s statements about the impact of their proposals and the detailed analysis by Canada’s tax professionals,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Tax practitioners are united in the view that these changes have the potential to affect all small business taxpayers, no matter their income.”

"It is the farmers, mom and pop shops, and entrepreneurs, who invested everything into their businesses, that will be most affected by these changes, instead of targeting the real problem. The government needs to go back to the drawing board, hold a real consultation and listen to what tax professionals, provincial governments and the business owners who fuel the growth of our communities are saying," added Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

The government has claimed that these proposals would not affect business owners with incomes under $150,000. Tax practitioners disagree.

One of the new rules introduced by the government would restrict small business owners from sharing income with family members. Tax practitioners say that this can affect business owners with incomes as modest as $50,000. Also, as two-thirds of Canadian incorporated businesses are majority owned by men, the restrictions on sharing income with a spouse are likely to remove a disproportionately higher number of women from benefiting from their family’s business.

The government is also proposing changes that would discourage small business owners from holding certain types of investments in the incorporated company. According to tax practitioners, business owners retain business earnings in the corporation to safeguard against economic downturns, secure bank financing and invest in other start-up companies.

Tax practitioners have confirmed that the proposed tax changes would result in higher combined corporate and personal taxes for business owners across the board and in many cases, small business owners would incur tax rates far greater than what an employee with a similar level of income would pay. 

The Coalition, which has doubled in size since August 31, is asking the federal government to review carefully the analyses of tax professionals across the country, take these proposals off of the table, and launch meaningful consultations with the business community to address any shortcomings in tax policy.

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For the full list of Coalition members, please visit smallbiztaxfairness.ca.  

For media enquiries or interviews, please contact:

Andy Radia
Media Relations Specialist
647-464-2814

What some are saying:

“The agriculture equipment manufacturing sector represents 12,000 Canadians and their families predominantly in rural areas; as entrepreneurs who have put their lives on the line to invest in and grow their family business, the sector consistently exports more than $1.8 billion of farm equipment to over 150 countries. The scope and complexity of the proposed tax changes puts a lot of this at stake, and we must fight to ensure that fairness prevails for our members.” — Leah Olson, President, Agricultural Manufacturers of Canada

“Franchisees are the backbone of the communities they serve, by employing people of all backgrounds, supporting local initiatives, and helping grow the economy. As business owners, they assume significant risk, but have been able to achieve success through hard work and support from family members. Simply stated, CFA believes the changes being proposed by the Minister will hurt Canadian franchisees.” — Ryan J. Eickmeier, Vice President, Government Relations & Public Policy, Canadian Franchise Association

“The residential construction and renovation industry has always largely consisted of family-run businesses that help build the communities they operate and live in, many over several generations. These are hard-working Canadians trying to earn a middle-class living, hire local workers, and create a future for their families. The government’s proposed tax changes threaten the very existence of these businesses, posing a threat to small local companies in every community and the jobs they create.” —Kevin Lee, CEO, Canadian Home Builders’ Association

“We look forward to working with the Minister of Finance to ensure that any changes help secure the future of agriculture and not hinder it.” — Mark Wales, Chair of the Canadian Horticultural Council’s Business Risk Management Committee

“We are fully supportive of the government’s pledge to advance evidence-based policy-making. Our members are concerned that the government’s proposed changes to small business taxes are not sufficiently informed by the level of research, analysis and consultation required to ensure a full appreciation of the impacts this will have on Canadians - not just entrepreneurs and small business owners but also on the overall health of the Canadian economy and competitiveness in the short and long term.” — Leigh Harris, Vice Chair (Interim) National Board of Directors, CMC-Canada

“Canadian business families are scared, confused, and demoralized. Years of planning for business succession will potentially go up in smoke! And we’re being called tax cheats along the way. Canada can do better, we must do better—our economy depends on it.”— Allen S. Taylor, Chair, Family Enterprise Xchange

“These egregious proposed tax changes would negatively impact the family farm in ways that are both profound and complex. The federal government needs to reverse course on their ill-advised tax hike attack on our middle-class family farms. — Levi Wood, President of the Western Canadian Wheat Growers Association, grain farmer

If your business is incorporated, you could be facing a larger tax bill and big compliance costs from the government’s new proposals to change the way corporations are taxed. Here are three things you need to know about the tax changes proposed by the federal government:

• Do you employ family members? The government wants to scrutinize their compensation to apply a much higher tax rate on income they consider “unreasonable.”

• Do you invest the profits from your business? The federal government is proposing to tax that income at an effective rate of 70%. 

• Do you want to pass your business on to your children? Tough new rules make it difficult for younger kids to get the capital gains exemption. They could be double-taxed.

Small and medium-sized businesses (SMEs) are the engine of the Canadian economy – estimates range from 85 to 90% of all businesses in Canada are SMEs.

The chamber network across Canada is using its collective voice on this issue; your voice as a business person needs to be heard as part of this initiative. Send a message to your MP today. Government needs to know that this tax reform will harm businesses of all sizes.

Don’t know where to send the message to your Member of Parliament? Look up their address using your postal code.

Thirty-five business groups, including the Canadian Chamber—on behalf of the hundreds of thousands of members they represent—have presented a letter to Finance Minister Bill Morneau asking the government to take these proposals off the table and instead meet with the business community to address any shortcomings in tax policy affecting private corporations.