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CPP expansion without consultation “irresponsible”: CFIB Survey

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80 per cent call for a delay

St. John’s, July 6, 2016 – With a July 15th deadline looming for provincial leaders to commit Canadians to a lifetime of increased Canada Pension Plan (CPP), eight in 10 small business owners are calling on governments to delay a final agreement in favour of consulting with Canadians and conducting a full economic impact analysis according to a new Canadian Federation of Independent Business (CFIB) survey. 

“Business owners have grave concerns about the proposed expansion of CPP,” said Vaughn Hammond, Director of Provincial Affairs in Newfoundland and Labrador for CFIB. “They recognize the significant fiscal situation in which the province finds itself and are prepared to do their part, but the environment is getting difficult for many business owners to cope.” 

Eighty-three per cent of small business owners said that it is irresponsible for governments to proceed with CPP expansion without conducting public consultations and providing an economic impact analysis. Another 75 per cent agreed that there are better ways to help Canadians save for their retirement than to expand the CPP. 

“It does not make sense why the Government of Newfoundland and Labrador would agree to CPP expansion given the state of the Province’s finances and the impact the 2016 Budget is having, and will continue to have, on small business owners and the overall economy,” Hammond added. “What does make sense is for the Government of Newfoundland and Labrador to assume a leadership role and call for a delay in approving the CPP deal so it can be understood better.” 

How the proposed plan will impact small businesses

  • 69 per cent report the proposed CPP expansion plan would increase pressure to freeze or cut salaries
  • 50 per cent say they would have to reduce investments in their business
  • 37 per cent would be forced to cut positions. 

The survey was conducted between June 29 and July 4 with 3,460 respondents. 

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.