87 per cent of Manitoba small business owners support consultation
Winnipeg, November 4, 2016 – The Canadian Federation of Independent Business (CFIB) is pleased the Manitoba government has announced it will consult with Manitobans on the Canada Pension Plan (CPP) expansion. Feedback will be accepted until November 27th. CFIB asks the province to take the next step by pressing pause on its support of CPP expansion until after the consultation is studied and a full economic analysis is completed.
Manitoba joins British Columbia and Quebec as the only governments giving their residents the opportunity to express their views regarding CPP expansion. “This consultation comes late in the game, but it’s never too late to do the right thing,” said CFIB president Dan Kelly. “We really hope the Manitoba government uses this opportunity to take a step back, hear from the public and study the potential economic impact of CPP hikes.”
An agreement in principle to increase CPP was reached in June 2016, with Manitoba joining the deal weeks later. Since the decision, new information has been made public that reveals long-term negative economic consequences of CPP expansion. CBC News reported last week that internal Finance Department projections show the recent agreement will act as a drag on the economy until 2030. The impact on jobs will be even longer, suppressing employment growth until 2035.
Manitobans want the facts on CPP:
When asked, 87 per cent of Manitoba small business owners said that it was irresponsible to proceed with CPP expansion without proper consultation and analysis. Another 81 per cent agreed that there are better ways to help Canadians save for their retirement than to expand the CPP.
“One simple solution to help small businesses assist their employees in saving for retirement is by introducing legislation to allow for pooled registered pension plans (PRPPs),” added Jonathan Alward, CFIB’s Director of Provincial Affairs for Manitoba. “PRPPs are an excellent addition to the retirement savings options for small business owners and their employees.” PRPP legislation is in place federally and every province except Manitoba, New Brunswick and Newfoundland and Labrador.
Entrepreneurs remain concerned about the impact of rising CPP premiums and five years of increasing carbon taxes/pricing as drags on the economy and a hindrance on job creation. CFIB is calling on the federal government to reinstate its promise to cut the small business corporate tax rate to nine per cent and is asking the federal and provincial governments for further actions, including lower payroll taxes like Employment Insurance and workers’ compensation premiums.
“Small business owners understand governments wanting to help Canadians in their retirement, but there are many ways to do that. There is a need to consult the public before moving forward on a policy that has yet to be properly studied or understood, and look at all the options, not just CPP,” concluded Alward.
To arrange an interview with Dan Kelly, please contact Kiara Morrissey at 416-222-8022, 647-464-2814 or [email protected].
To arrange an interview with Jonathan Alward, Director of Provincial Affairs for Manitoba, please call 1 888-234-2232, 204-982-0817 or email [email protected]. You can also follow CFIB Manitoba on Twitter @cfibMB.
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members (4,800 in Manitoba) across every sector and region.