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Budget fails to curb government spending despite fiscal crisis
St. John’s, April 15, 2016 – The Canadian Federation of Independent Business (CFIB) is concerned about the impact the 2016 provincial budget will have on small business. Across-the-board tax and fee increases will be harmful to the economy and the government has offered no forecast showing targets for spending reductions.
“If the government expects Newfoundlanders and Labradorians to step up to help fix the province’s finances, then they must lead by example,” said Vaughn Hammond, Director of Provincial Affairs for Newfoundland and Labrador. “While the government identified some savings, spending is still forecasted to grow by nearly five per cent. There is nothing in this budget that shows the government is willing to practice themselves what they preach for hard-working business owners and workers – restraint and discipline.”
CFIB was hoping the province’s new economic reality would encourage government to curb their spending while they get the books back in order, but the budget’s seven-year forecast does not show substantial spending reductions. It is imperative the provincial government work to find the savings necessary to get the province back on track between now and the fall fiscal update.
“This budget may satisfy the bond rating agencies and the province’s creditors, but it will be a colossal challenge for Newfoundlanders and Labradorians,” added Hammond. “The tax and fee hikes will lead to lower profits and investments for business owners, increased prices for consumers, and widespread employee wage freezes at the very least.”
For further information, contact Vaughn Hammond at 709-753-7745 or [email protected].
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.