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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.

Chamber network urges government to address pain points and lay the groundwork for a strong rebound as province grapples with economic fallout of the crisis

The Cambridge Chamber of Commerce and Ontario Chamber of Commerce (OCC) has released its 2021 Ontario pre-Budget submission, which focuses on recovery, growth, and modernization.

The submission calls for policies that minimize the impacts of business closures, uplift the sectors and demographics hit hardest by the pandemic, invest in the infrastructure and workforce of the future, and modernize government services to improve outcomes for businesses and residents.

“With Ontario’s economy expected to enter a period of recovery this year as vaccines are distributed and businesses begin to reopen, resources need to be focused on where they will have the greatest impact,” said Cambridge Chamber of Commerce President & CEO Greg Durocher. “In the upcoming budget, we would like to see a focus on reskilling, broadband, and access to capital, which will be necessary for the revival of small business and entrepreneurship as well as an inclusive   economic recovery.”

In 2021, Ontario will continue to grapple with the COVID-19 pandemic and its economic fallout. The Cambridge Chamber and OCC’s submission notes the crisis has created new problems and exacerbated pre-existing ones. The impact on people and business has been catastrophic overall, and disproportionate for certain regions, sectors, and demographics.

“Resources should be targeted towards the sectors and communities that have been hit hardest by the COVID-19 pandemic, including industries requiring face-to-face contact, small businesses, municipal governments, as well as women, lower-income, racialized, elderly, new immigrant, and younger Ontarians,” added Rocco Rossi, President and CEO of the Ontario Chamber of Commerce.

The recommendations outlined in the submission were developed together with businesses, post-secondary institutions, chambers of commerce, and boards of trade. The submission focuses on mitigating the immediate impacts of the crisis, while laying the groundwork for a robust and sustainable economic recovery.

Read our provincial pre-budget submission here: bit.ly/3qYxUqg

(February 5, 2021) – The Chamber Network is looking forward to create a co-ordinated approach to reopening the province’s economy in the wake of the pandemic and calling on the Provincial government to ensure this happens in a balanced fashion.

“In the middle of a once-in-a-century pandemic, it is difficult to think beyond confronting the immediate demands of COVID-19,” said Cambridge Chamber of Commerce President & CEO Greg Durocher.   “However, even as we continue supporting each other today, we must also begin looking over the horizon to ensure businesses are prepared for the province’s reopening and recovery. It is never too early to start planning how our province and economy can emerge stronger while doing everything necessary to avoid further lockdowns.”

Each region’s experience differs significantly across the province when it comes to transmission rates, tracking and tracing capacity, and other variables.  The Cambridge Chamber of Commerce and the Ontario Chamber of Commerce have written to the Premier so that when the time comes businesses of all sizes have a predictable and coordinated effort to ensure society reopens in a harmonized fashion that prioritizes individual safety as well as economic stability asking for the following:

• A readiness plan with a focus on sectors and regions hardest hit. It is critical that Ontario’s employers are aware of how reopening will take place step-by-step so they can properly prepare.
• Advanced notice. Businesses and their employees need sufficient time to prepare to get back to work. 
• Clear guidelines. Businesses need to clearly understand the rules and how they will be enforced. Inconsistent and unclear public health guidelines cause confusion among businesses, employees, and consumers alike, and make it difficult for individuals to take appropriate action to protect themselves and their communities.
• Fulsome communication. Educational training via virtual workshops in advance of reopening would equip employers with practical information to help them keep staff and customers safe.
• Workforce management systems. Employers in Ontario should adopt a scalable digital software tool for routine self-screening and assessment by employees, as part of a comprehensive workforce management system.
• Rapid testing. Sufficient and timely testing and tracing gets employees back to work quickly, ensuring continued productivity and reduced strain on families.
• Evidence-based decision making. A strong testing and tracing apparatus ensures the province can accurately assess where and how the virus is spreading, so that efforts to target restrictions can be confidently based on solid data.
• Continued supports for those who need it most. Finally, continued timely and accessible supports for business will prevent further layoffs, closures, and bankruptcies.
• Leveraging private sector to support vaccine distribution and deployment. Businesses will be critical in supporting public awareness, logistical capabilities, and best practices.

“As the government explores options to safely re-open the economy, it is worth noting that businesses already adhere to a number of existing health and safety protocols and will do their part to support a safe re-opening. The business community will continue to prove their commitment to safety protocols to protect their worker and customers to keep their doors open,” added Durocher

The release of the province’s Budget 2020 Ontario’s Action Plan: Protect, Support, Recover has gained the support of the Chamber of Commerce network and business community.

The recent budget lays out $187 billion in expenditures this year to help the province recover from the impact of COVID-19, earmarking cash for healthcare and subsidizing electricity rates for businesses.

“These are extremely difficult times for businesses, and we understand that there is only so far a provincial government can go,” said Cambridge Chamber of Commerce President & CEO Greg Durocher. “I was particularly please with the reduction in electricity, education tax and the increase in the exemption to the employer’s health tax.”

Many of these items were called for in a pre-budget submission released last week by the Ontario Chamber of Commerce, which Cambridge Chamber of Commerce Board Chair Darren Drouillard says the board supported.

“Focusing intently on reducing overhead for SMEs through lower utility costs and tax reductions to business and improving IT infrastructure throughout the province, it is evident that the OCC is in touch with the needs of business and has a well thought-out set of recommendations to guide us through the next stage of the pandemic and economic recovery,” he said.

The OCC and Cambridge Chamber have long advocated for greater investment in broadband and cellular infrastructure, reforming taxes to enhance business competitiveness, developing new skills training opportunities, and lowering the cost of electricity for industry, all of which are priorities in Budget 2020.

“I certainly welcome a reduction for small businesses in the property tax, however, we will need to see how that comes off the page,” said Greg. “Municipalities cannot hold the burden of these reductions when they are unable to run deficits or borrow money for operational losses.”

The province is looking at spending $45 billion over the next three years on the crisis, taking into account the $30 billion already announced earlier this year, plus $15 million in new funding over the next two years. The plan also shows a record deficit of $38.5 billion for this year, which is in line with the government’s projections in the summer. A plan to balance the budget is expected in next year’s budget.

 “Now is the time to explore innovative partnerships – such as pubic/private partnerships to build our needed rail infrastructure, commissioning, alternative financing, and community and social impact bonds – to share risk and make the most of every dollar spent,” said Greg, noting small businesses are the heart of the community.

Darren agrees.

“We, as a business community and network of Chambers and Boards of Trade, will continue to overcome through collaboration, innovation and resilience,” he said.

Some key measures in Budget 2020 supported by the Ontario business community include:

• Reducing commercial and industrial electricity rates will make Ontario businesses more competitive and enable them to invest in recovery and growth. For years, Ontario businesses have paid more for electricity than most other jurisdictions in North America, and the pandemic has only increased electricity system costs.
• Business Education Tax rates vary throughout Ontario; as a result, businesses in London, Waterloo, Hamilton, Toronto, Windsor/Middlesex, and Kingston are paying higher taxes than those in other regions. The government has announced it will both reduce the BET rate and address regional variance within that rate, both of which the OCC and its Chamber network have advocated for in the past.
• The decision to make the higher Employer Health Tax threshold permanent is a welcome one that will free thousands of businesses from having to pay this tax.
• The move to allow municipalities to target property tax relief specifically to small business is a creative and important tool to grant communities, given that small business has been hardest hit by the pandemic.
• Broadband is a basic infrastructure requirement in today’s economy, but the ongoing pandemic has made it even more essential to public health and economic resilience. The Chamber network is very pleased to see the government take this seriously with an additional investment of $680 million (for a total of nearly $1 billion) over six years.

For a look at the budget, visit: occ.ca/rapidpolicy/2020-provincial-budget

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

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'.

Big increases to minimum wage are becoming fashionable in Canada: first Alberta (from $12.20 currently to $15 in October 2018), then B.C. (from $10.35 to $11.35 in September 2017) and now Ontario (from $11.40 to $15.00 in January 2019, a 30% hike in 18 months). Are workers better off or does it mean fewer jobs?

The debate has been ferocious because economists don’t agree, but let’s look at the fundamentals. The government accepts that carbon taxes are effective at reducing emissions because if you make something more expensive, people will use less of it. We agree, but the same logic must apply to wages. And, actually, a business owner faced with the rising cost of an input (labour) has three options:

• Absorb the added cost out of her profit margin
• Raise prices
• Reduce use of labour by substituting in morecapital or simply making do with less work

Let’s take these in order. Some businesses are so spectacularly profitable that owners can just absorb rising labour costs. But Apple and Microsoft don’t use minimum wage labour. If we look at profit margin by industry, the biggest users of minimum wage labour are in retail and food service, with razor thin (below 3%) margins. There is very little room to absorb these costs, and if a business is not profitable, there is not much point in keeping it going.

What about raising prices? The critical ingredient in business success is getting the right price point for your market. One restauranteur told us that the lunch menu in her neighborhood has to be $5-$8, any higher means flirting with disaster. In retail, the competition is with online giants, like Amazon. Often, there is no room to raise prices without driving away customers.

The third option to cope with rising wages is making do with less staff. This is controversial because many studies show that minimum wage can be increased without a corresponding rise in unemployment.

That’s why the recent Seattle study produced such a bombshell. Washington state collects detailed data on hours worked and it showed how part time workers with irregular schedules are cut back. Seattle’s minimum wage hike reduced the total hours worked by the low-wage workforce by about 9% while raising their wages by only about 3%. The net loss to workers was an average of $125 a month. This is a big, immediate hit to the most vulnerable workers.

In the long-term, minimum wage hikes can also drive labour-saving capital investment. The former CEO of McDonald’s told Forbes, “demands for a much higher minimum wage would force businesses with small profit margins to replace full-service employees with costly investments in self-service alternatives.” At the time, labour groups accused business owners of crying wolf. McDonald’s is now rolling out touchscreen selfservice kiosks across Canada and the U.S.

There is some evidence that modest increases in minimum wage can be done without disrupting labour markets, but governments have to be cautious about hurting competiveness. Previously, I had said there are three options to deal with rising costs, but there is actually a fourth and a fifth option: shut down or move to a different jurisdiction. Let’s provide input to the Government of Ontario to prevent this from happening. The Ontario Chamber of Commerce has
done some great work on this issue and has a report that can be viewed here.

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284) | hbrakel@chamber.ca

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?

Bonnie Lysyk the Auditor General for the Province of Ontario released her report last week. The most scathing report in the history of the Province, suggesting that programs are riddled with incompetence and mismanagement.

Ti's the Season, according to the Auditor General. What a wonderful Christmas present to hear about the waste, when some at this Christmas will go without even a decent meal. Just ONE of the wasteful acts by Government could have made Christmas a whole lot brighter for ALL the Homeless in the Waterloo Region, for the next 25 Christmas's. Shameful and disgusting, we don't need to change the people, the people need to change their attitude, there is simply no reason to accept incompetency from elected officials, they said they would watch our money, they even took an oath to do so, now lets hold them 100% accountable to do just that.