Small business owners want hydro revenue used for cost relief and debt reduction

St. John’s, September 9, 2026 – As a possible hydroelectricity agreement with Quebec raises the prospect of new provincial revenue, new research by the Canadian Federation of Independent Business (CFIB) finds Newfoundland and Labrador small business owners want that money used to ease business costs while paying down the province's debt.

When CFIB asked members what the province should do with revenue from a possible hydroelectricity agreement, cost relief measures dominated the response: eliminating the 15% retail sales tax on insurance (62%), cutting the small business tax rate (52%) and reducing electricity costs (47%) were among the most-selected options.

“Our members are telling us the same thing over and over. Insurance, taxes and electricity are squeezing them the hardest, and that’s exactly where they want any hydro revenue to go first,” said Jonathan Galgay, Director of Legislative Affairs and author of the report. “But owners aren’t asking government to spend this money freely - 43% also want it used to pay down the debt. They understand that relief today and a stronger balance sheet tomorrow have to go hand in hand.”

Key findings from CFIB's survey of Newfoundland and Labrador small business owners include:

• 63% of owners named investing in health care as a priority, reflecting how directly health care access affects small business owners’ ability to staff and grow;
• 62% want the province to eliminate the 15% retail sales tax on insurance;
• 52% want a lower small business tax rate;
• 47% want reduced electricity costs;
• 43% want revenue directed to paying down the province's debt.

“Hydroelectricity revenue would be exactly the kind of uncertain revenue that should be treated carefully, used to extend targeted relief without derailing progress on the deficit,” Galgay added.

CFIB is calling on the provincial government to follow through on the phased small business tax cut, eliminate the 15% retail sales tax on insurance, provide targeted electricity cost relief, and dedicate a share of any hydroelectricity revenue to paying down the province's debt.

For media inquiries, please contact:
 
Jonathan Galgay, CFIB
709-743-6069 
Jonathan.galgay@cfib.ca 

About CFIB 
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 103,000 members across every industry and region, including 1,700 in Newfoundland and Labrador. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.