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The Unintended Consequences of a $15 minimum Wage

5/31/2017

 
What we are hearing from our members:
​Local Manufacturer – “I’ve just won a contract to supply another local company with my product. This is a major order that will require an expansion of my businesses, including hiring more people. At $15/hr, I am no longer competitive and will have to walk away from the work and the expansion. I thought hydro rates, now my largest business expense, was hard enough to deal with. This is impossible.”
Local Tech Company – “Layoffs likely and price increases for sure”
​Local Not For Profit with 35 employees during the Summer – “Our labour costs just went up 30%! We will use a combination of hiring fewer people, shortening shifts and increasing prices to adapt. Unfortunately, hiring fewer students for the summer will be the first move”
​Local Retailer – “Increasing Minimum wage to $15 will affect our entire pay scale. An employee currently making $15 an hour has earned it through experience, training and proving themselves. They certainly won’t be happy making the same money as en entry-level employee. Our costs will increase approximately 8% and while we can increase prices over time, it has to match our competitors, so our only tool in the short term is an equal reduction in the number of hours.”
​Local Restaurant – “At $14/hr payroll increases by $70k, at $15/hr an additional $23k… I see hiring fewer people, increasing prices, phasing out employee benefits such as group benefits, free uniforms, free meals, etc. This is the most devastating cost to hit the hospitality industry – ever…”
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The call will continue for an economic impact analysis around the proposed changes to the Employment Standards Act (ESA) and the Labour Relations Act (LRA).  The provincial government is planning to introduce legislation today (Thursday, June 1) to put in motion the changes announced on Tuesday.   
That means over the summer months the legislation will make its way through committee.   Yes, the proposed changes are the result of a two year review by two special advisors, and the Ontario Chamber of Commerce and by extension the Peterborough Chamber of Commerce participated in those discussions, but the challenge is we’ve yet to see or know of an economic impact analysis of the changes.  This information is vital to ensuring that the province is moving forward with eyes wide open.   

“Minimum wage was explicitly left out of the Changing Workplaces conversation, so we’re not sure what’s guiding today’s announcement,” says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. To suddenly legislate the most dramatic minimum wage increase in Ontario’s history creates serious concern about unintended consequences.”
​
In the announcement of the Fair Workplaces and Better Jobs plan, Premier Kathleen Wynne highlighted five main changes to the Employment Standards Act: 
  • Minimum Wage will be increased to $15/hour over the next 18 months.
                    As of January 2018 it will rise to $14/hour
                    As of January 2019 it will rise to $15/hour
                    After that increases in minimum wage will be tied to inflation (as is currently the case)
  • Equal pay for equal work 
                    This change is aimed at ensuring part-time, casual and seasonal employees are paid the same rate as                       full-time employees on a pro rata basis
  • Increased vacation time to 3 weeks after five years of service with the same employer
  • Fairer rules for scheduling
                    An employer must pay an employee for 3 hours of work if a shift is cancelled without 48 hours notice
  • Changes to Sick Days
                    Employees will receive up to 10 sick days each year, of which two must be paid
  • Temporary workers
                    Will have to be paid the same as a full-time employee doing the same job.  If legislation is passed this                       will come into effect on April 1, 2018

Under the Labour Relations Act some of the changes include: 
  • Exclusions from Collective Bargaining
                     The Ministry of Labour will work with affected Ministries to consult with stakeholders to review the                                Special Advisors' recommendation to remove the exclusions under the LRA, taking into account                                  ongoing litigation. Currently, the following professions are excluded from collective bargaining:                                    domestics, hunters and trappers, members of the architectural, dental, land surveying, legal or medical                      profession and agricultural and horticultural employees. The Special Advisors recommend that these                          groups should be covered by the LRA.
  • Measures to Increase Unionization
                     Including extending card-based union certification to the temporary help agency industry, the building                        services industry and the home care and community services industry

Enforcement and Education
  • Hiring of 175 more Employment Standards Act officers to enforce and educate both employees and small and medium businesses.  

​All of these changes will have compounding costs which the government has not yet fully understood. That is why the Chamber Network and the Keep Ontario Working Coalition have called on the government to conduct a comprehensive economic impact analysis. This analysis should have clear acceptability thresholds, and the reforms implemented should be limited to those that pass such thresholds or are being implemented with a commensurate economic offset measure, in order to help businesses transition into any regulatory changes. 

We have heard from members who say the impact will be felt throughout their businesses.  

“We are really good local employers in the not-for-profit sector, during peak season we have 35 employees.  Our staff is well respected in our workplace, we are generous with our current benefit plans, and we offer great summer employment options to university/college students (full time throughout the whole summer). 18 months, and a 30% plus rate increase --- how could any business adapt to that without sacrificing customer service, increasing prices AND reducing overall staff level?”

As the provincial government moves this legislation through the committee process over the summer we urge them to truly understand the economic impact of these changes that have great potential to hurt job creation, consumer costs, and economic growth.  

How will this affect your business? Let us know: sandra@peterboroughchamber.ca

Provincial Government Statement

​Local Retailer – “At this point we have estimated that this increase will cost us upwards of $50,000.00 a year. Where is that coming from, profit, that is used to scale our business, and for the creators/the risk takers to feed our families.”
​Local Multi-Business Owner – “We have always operated our businesses with a view to a one, three, and five year strategic plan, uncertainty about general economic conditions, makes planning difficult at best. The proposed changes were not on anyone's radar 12 months ago so we are left re-evaluating our plans. We had planned a fairly major expansion to begin in the next 6-12 months, those plans are now on hold and possibly cancelled. We will in all likelihood be forced to freeze hiring and possibly implement some layoffs, hopefully these will not be permanent in nature. We are in a competitive sector but we will, like our competition, be forced to pass along increased costs to our customers where possible. Some of our business ventures are price regulated, so we are vulnerable here to the decisions of the regulators.”
​Local Property Management Group – “We may need to look at price increases across the board, but for our residential properties it will be more costly housing as we increase the market rent of our units as they turn over; ultimately a cycle – we have to increase housing amounts accordingly and those making the new minimum wage still may not be able to afford the accommodations and, it will ultimately affect anyone on a fixed income. In any event, I expect many of our expenses would increase as the increase in minimum wage will also affect their business and they in turn will pass that cost along to us.”

Changes will Hurt Job Creation, Consumer Costs and Economic Growth

5/30/2017

 
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Keep Ontario Working Coalition: Ontario Deserves Evidence-Based Reform
​Changes Will Hurt Job Creation, Consumer Costs and Economic Growth

PETERBOROUGH, May 30, 2017 – The Keep Ontario Working coalition, in partnership with the Peterborough Chamber of Commerce and the Ontario Chamber of Commerce (OCC), today expressed concern that the Government of Ontario’s Fair Workplaces and Better Jobs Plan, commits to unproven sweeping reforms without ensuring protection against unintended consequences, including job losses, rising consumer costs, and economic hardship. 

“The Chamber Network has been involved with the Changing Workplaces Review over the past two years,” says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “Minimum wage was explicitly left out of the conversation, so we’re not sure what’s guiding today’s announcement.  To suddenly legislate the most dramatic minimum wage increase in Ontario’s history creates serious concern about unintended consequences.”

The Keep Ontario Working Coalition (KOW) is a broad-spectrum group of business sector representatives concerned with sound public policy to help produce jobs and grow Ontario. 

As noted in the Business Prosperity Index of the Ontario Chamber of Commerce’s 2017 Ontario Economic Report, despite projections that Ontario will lead Canada in economic growth in the coming years, diminished profitability, lower labour market participation, and sluggish market activity; along with other key factors have resulted in a risk-averse atmosphere that businesses are disinclined to grow production. Businesses are questioning if they should grow in Ontario or expand offshore.

Despite that, Ontario’s private sector is still doing its part to support workers. As the Government pointed out in Budget 2017, 98 per cent of all new jobs since the recession in Ontario have been full time, and 78 per cent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good jobs throughout our province.

Statement
The following is a statement by the Keep Ontario Working Coalition on the Government’s proposed workplace reforms: 
“We share in the Government’s desire for broadly inclusive growth. However, in order to achieve this, we need to ensure that we are not risking job losses, rising consumer costs, and economic hardship as a result of over-regulation.

“Government cannot regulate prosperity. To demonstrate true fairness and compassion for workers, we must ensure Ontario has a strong economy to help create jobs and increase economic growth. 

“That is why we are urging the government to take time this summer to have an independent third party conduct a comprehensive economic impact analysis on the proposed reforms to consider the unintended consequences to employers. In addition, as the province’s biggest employer, the government must fully understand what these changes will cost in relation to the provincial treasury as well as social services and other government agencies.  

“Why is evidence-based policy important? Only three years ago, the Premier’s own Minimum Wage Advisory Panel conducted extensive research and concluded: ‘In the Canadian context, researchers have generally found an adverse employment effect of raising minimum wages especially for young workers…typically those studies find that teen employment would drop by 3 to 6 per cent if the minimum wage is raised by 10 per cent.’

“While the Changing Workplaces Review cautioned that any regulatory change shouldn’t impair the competitiveness of businesses in the province, the reforms outlined in Fair Workplaces and Better Jobs Plan thus far do not provide the balance needed to help ensure a competitive environment for Ontario. 

 “But we have time. Now we must work cooperatively with government to identify the scale of the economic impact of these changes and help employers transition into any new policy regime. We will continue to be cooperative partners with government to find solutions that will, where possible, inhibit negative impacts on the growth of Ontario’s economy, our people, and our communities.” 

- 30 - 
​
Keep Ontario Working Coalition Members 
Association of Canadian Search, Employment and Staffing Services (ACSESS) 
Canadian Franchise Association (CFA) 
Food & Consumer Products of Canada 
Food and Beverage Ontario (FBO)
National Association of Canada Consulting Businesses (NACCB Canada)
Ontario Restaurant, Hotel and Motel Association (ORHMA)
Ontario Chamber of Commerce (OCC) 
Ontario Federation of Agriculture
Ontario Forest Industries Association (OFIA)
Restaurants Canada
Retail Council of Canada (RCC)
Tourism Industry Association of Ontario (TIAO)


www.keepontarioworking.ca


Media Contact: 
Sandra Dueck
Policy Analyst/Communications Specialist
Peterborough Chamber of Commerce
sandra@peterboroughchamber.ca
705-748-9771 x215

Small Business Too Big To Ignore makes a difference as the Province releases a Burden Reduction Plan

5/19/2017

 
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The provincial government has released an eight point plan to help make the lives of small business easier.  The measures which are scheduled to be introduced in the fall can be directly linked to the advocacy work of your Peterborough Chamber of Commerce through the Small Business Too Big To Ignore campaign and the policy resolution process through the Ontario Chamber of Commerce.  We thank our members for their participation during this campaign through a survey and roundtable events. 

​These initiatives do represent a positive change and we are very encouraged by today’s (Friday, May 19, 2017) announcement on burden reduction. Cutting red tape for business has been a key component of our advocacy work and we are pleased to see government make meaningful change to reduce the regulatory burden on small business.

The one-window service concept will help save businesses time and money. The small business procurement policy is also very encouraging, and we ask the government to consider how they can expand this opportunity for small businesses across the province.

We are also pleased to see Ontario adopt the $1 in $1.25 out provision, which will apply to new administrative costs. This is a best practice internationally and will keep the regulatory burden on business in check. We would certainly encourage this government to consider how they can bring costs down for business more broadly, outside of administrative fees.

But to keep Ontario competitive, we need to ensure that any impending changes to the Labour Relations Act and Employment Standards Act are evidence based and fully costed.

More information on the proposed changes around labour laws and employment standards is expected next week. 
 
Proposed measures for small business include: 
  1. Reducing regulatory costs: Requiring all ministries to offset every dollar of new administrative costs to business, by removing $1.25 of old and unnecessary costs.
  2. Streamlining compliance for small business: Ensuring that undue burdens aren't placed on small businesses when new or amended regulations are introduced, while maintaining robust environmental, health and safety requirements and other public interest protections.
  3. International or national standards alignment: Increasing harmonization with other jurisdictions and adopting international or national standards, where appropriate, when developing or reviewing regulations.
  4. Rewarding good actors: Recognizing businesses that have a good compliance record and lowering their costs by reducing the requirements, such as the number of inspections, without compromising the environment health and safety, and other protections.
  5. Electronic transmission guarantee: Providing businesses the option to electronically submit any required documentation to the Government of Ontario instead of more costly paper submissions.
  6. Government procurement: Introducing a preferred procurement policy for small businesses that would help provide better access to government contracts.
  7. One-window service: Developing a new program that would help small businesses access support, information and resources by phone, online and in person.
  8. Reducing fees and other costs: Reviewing licence and registration fees paid with a goal of providing relief to small- and medium-sized businesses. 

“Small businesses are critical for vibrant main streets across Ontario. These business owners contribute by creating jobs and strengthening local economies. Supporting these business owners by streamlining their dealings with the province and providing new opportunities for growth will help Ontario prosper.” - ​Peterborough MPP and Minister Responsible for Small Business Jeff Leal 

Read the Ontario Government's press release

We're going to the Theatre! New Location for 2017 Business Excellence Awards

5/19/2017

 

We’re Going to the Theatre
​ New Location for 2017 Business Excellence Awards

PETERBOROUGH: The Greater Peterborough Chamber of Commerce is pleased to announce that the 14th Annual Peterborough Business Excellence Awards will be held at Showplace Performance Centre.  

“The Trentwinds experienced a significant flood, and thus will be undergoing some big changes this year,” says Stuart Harrison, President & CEO of the Chamber.  “So we are very excited to be putting a new spin on a grand tradition, by holding the Excellence Awards at Showplace.”

Please use our Announcement Video in any social media or on your website.

Awards will be handed out in 21 categories, live on the Showplace stage on Wednesday, October 18th, 2017.  More than 50 finalists will be profiled in front of 500 of Peterborough’s business leaders.    

Nominations are still being accepted, but the deadline is fast approaching: Wednesday, May 24th at 4:30pm.
​

Self-nominations are encouraged.  Nominate your own company, or another deserving business or business leader in the community.  Nominate online at www.excellencepeterborough.ca 

There are categories for every business size & sector:
Peterborough Business Excellence Awards Categories 2017
Business Citizen of the Year
Employer of the Year
Local Focus
Entrepreneurial Spirit
Micro Business
Hospitality
Marketing & Promotion
Health & Wellness
Not-for-Profit
Retail Chain/Franchise
Retail Non-Chain/Non-Franchise
Commercial Development or Renovation
Innovation/Research & Development
Customer First
Environmental Practices
Supply Chain
Skilled Trades
Tourism
4-under-40 Profiles
Newcomer Entrepreneur of the Year
Student Business Leadership Bursaries

The Peterborough Business Excellence Awards were established to promote the advancement of responsible business leadership within the community.  We encourage interested businesses to nominate themselves, or to nominate any qualified individual or business for any of the award categories. Nominees do not need to be members of the Chamber of Commerce.
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Host Sponsor
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Business Citizen Sponsor

Voicing concern over the Changing Workplaces Review

5/17/2017

 
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The Chamber Network is in the midst of a big advocacy push right now around the Changing Workplaces Review, which will be publicly released this coming Tuesday. 

What’s been coming out about the report and how the government is going to proceed with some of the recommendations in recent days has the business community concerned.  Ahead of the public release of the report and recommendations, the business community has weighed in with its concerns in a letter to Premier Wynne.  The letter asks the provincial government to:
  • conduct and make public economic impact analysis on any recommendations it will consider bringing forth as legislation
  • determine acceptability thresholds for accepting a change 
  • be prepared to offer a commensurate economic offset measure  
For the past two years, through the Ontario Chamber of Commerce (OCC), the voice of business has been at the table recognizing that the working environment has changed, but cautioning government against change for change’s sake.   In the 2017 budget released just two weeks ago, the Ontario Government presented numbers that showed that since June 2009, 98% of jobs were full-time, with 78% of new jobs in above average wage industries.  These numbers show the positive impact of the private sector in Ontario and the commitment to good jobs.  

The two year Changing Workplaces Review was commissioned by the province to examine and make
recommendations for updates to the Labour Relations Act (LRA) and the Employment Standards Act (ESA).   The Labour Minister was expected to discuss his thoughts with the Liberal Cabinet yesterday (Wednesday, May 17) and then the full report will be released this coming Tuesday.  

The Chamber of Commerce and Board of Trade network, including your Peterborough Chamber, believes it is
imperative to understand the impacts of any proposed changes, especially for small business which makes up 98% of Ontario’s business mix.  With more than 400,000 small businesses across all sectors of our economy employing hundreds of thousands of Ontarians, we need evidence that any proposed changes under the LRA and ESA do not hurt the economic viability of small business.  Already, many businesses face challenges around electricity pricing, cap and trade, increases in product costs and meeting accessibility requirements.   

Earlier this year, Peterborough Chamber members contributed to Ontario Chamber of Commerce’s Business Confidence Index.  There was a significant confidence gap between how businesses felt about their own abilities and the confidence they had in government to create a competitive climate for business operation.  The index also identified that finding and securing talent was one of the biggest challenges for businesses.

“By rushing ahead with reforms that could discourage investment and eliminate jobs, we believe the concerns revealed in the Business Confidence Index will only be amplified,” says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “We need to get the message out that proposed changes could diminish economic opportunities in Ontario.”

The OCC, in its letter to Premier Wynne, also states that education and enforcement of current measures
is an important area of common ground for government, employees and employers and that the goals of economic growth and improved employee rights are not mutually exclusive.  What supports the competitiveness of Ontario’s economy will help enhance quality of work.
​
Furthermore, as Richard Koroscil, Interim-President and CEO, Ontario Chamber of Commerce says in the letter to the Premier, there is potential for “These sweeping changes to tip our economic balance in a profoundly negative way, therefore, we will continue to urge Premier Wynne to complete an economic impact analysis of the proposed reforms to limit potential consequences that could seriously jeopardize our future growth. Politics cannot drive decision-making, evidence must.”  

Ontario Chamber Rapid Policy Update

The Chamber Network: Advocating for your Business

5/10/2017

 
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Returning from an Ontario Chamber of Commerce (OCC) Annual General Meeting always brings with it a great sense of accomplishment.  The Annual General Meeting is an opportunity for chambers of commerce and boards of trade to discuss and debate the issues impacting business and inform the direction of the advocacy efforts for the OCC.  The 105th edition of this gathering was no different, with almost two dozen speakers sprinkled throughout the event, including the the three main political parties and a panel called Improving Cross-Border Trade in the Trump Era: A Role for Business.  

In all, 32 policy resolutions were passed by the over 170 delegates representing more than 70 chambers of commerce and boards of trade.   The big four business issues of electricity, cap and trade, infrastructure, and workforce skills and development were among the main topics of conversation. However, resolutions were also passed encouraging the provincial government to widen Ontario’s trade base, to maintain provincial tax exemptions on employer health and dental plans, to develop more connectivity between transit systems, to dismantle the College of Trades, and to require an economic analysis before the closure of schools.   

Two policy resolutions put forward by the Peterborough Chamber of Commerce and a number of co-sponsoring chambers were passed by delegates at the Annual General Meeting.  

“In the Spirit of Business” asks the provincial government to align the craft distillery industry with that of the craft brewery industry by instituting a graduated tax program and allowing craft distillers to distribute their products directly to bars and restaurants. We would like to thank our members in the distillery industry for their input on this policy resolution.

“Addressing the challenges of Ontario’s largest economic sector: Small business” asks the provincial government to use the Red Tape Challenge to learn more about the regulatory burden facing small business and to use current resources to develop a concierge service to help guide business to regulatory compliance.  Thank you to all the member businesses from the Peterborough Chamber of Commerce and the Kawartha Chamber of Commerce and Tourism for participating in the 2016 campaign “Small Business Too Big To Ignore”.   This policy resolution was a direct result of those roundtable conversations and survey results.   

The fireside chat sessions with the three political leaders were very interesting, particularly as we start to prepare for the provincial election in 2018.    

Premier Wynne spoke to the broader forces that are creating uncertainty in the province and re-iterated her government’s commitment to ensuring Ontario businesses can be competitive.  She mentioned
meetings with about a dozen US governors designed to reinforce the integrated relationship between Ontario and almost 30 states.  The Premier also spoke about the need for flexibility in retraining programs, experiential learning, and cap and trade. 

Patrick Brown, Leader of the Opposition, was very animated in his remarks, talking about the skills mismatch and issuing a commitment to dismantle cap and trade.  Brown told the crowd that Ontario is simply not competitive in energy and reform needs to focus on fixing the core structural problems of the system.  He’s also concerned about the sincerity of the government on infrastructure and their commitment to seeing projects completed. 

Leader of the NDP Andrea Horwath also focused on energy speaking against mandatory time-of-use pricing.  She also expressed concern about a lack of transparency and the mistake of privatizing Hydro One.  Retraining programs in the face of a changing economy were also on the mind of the NDP Leader and she hopes that more attention will be paid to the state governments than the rhetoric in Washington.  

Watch for more articles on individual policy resolutions in the coming weeks.  

Peterborough Chamber wins Excellence in advocacy Award

5/10/2017

 
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Your Peterborough Chamber of Commerce was awarded the 2017 Excellence in Advocacy Award at the 105th Ontario Chamber of Commerce Annual General Meeting in Sarnia this past weekend.  The award is given to a chamber or board of trade that has demonstrated forward-thinking policies around advocacy and is considered the
go-to source for advocacy within their community.

“Advocacy on behalf of our members is the core work of the Peterborough Chamber,” says Jim Hill, Chair of the Board of Directors. “To be recognized as a leader among Ontario Chambers speaks to how the Chamber is ensuring Peterborough businesses have opportunities to remain competitive.”

"The Excellence in Advocacy Award from the Ontario Chamber of Commerce is recognition that we are among the best at the core work of the Chamber – the business of lobbying Government," says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. "The award recognizes the work of the Policy Committee, the uniqueness of the Power Hour, the solid content of the Leaders Lunches, and our skill at communicating all of it, thus it is an award for all of us, staff, volunteers and Chamber members. Now we know how it feels to win an Excellence Award!"

Your Peterborough Chamber was also recognized for achieving Accreditation with Distinction for 2017-2019.  

Putting a Peterborough lens on provincial Budget 2017

5/1/2017

 
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The fact that the Ontario Budget for 2017-2018 is a balanced budget is one of the forefront messages in the recently released document.  However, a balanced budget is commendable, especially since it’s the first balanced budget since the recession doesn’t erase the debt the province has accumulated and will still require payment to service. 
 
“Budget 2017 demonstrates that much of Ontario’s fiscal outlook will depend on the prosperity of our private sector,” said Richard Koroscil, Interim President & CEO, Ontario Chamber of Commerce (OCC). “The government acknowledged that business investment spending slowed in 2016, though expects firms to increase investment by 3.1 percent, annually, to 2020 – an amount that would outpace growth in real GDP growth and household spending. These assumptions depend upon business confidence – which has fallen precipitously in recent years according to the Ontario Economic Report – and U.S. demand, which is subject to considerable risk given recent comments by American President Donald Trump.”

On the positive side, a balanced budget does allow the government more flexibility in program funding and that is seen in the budget.  “Peterborough is well served by this budget,” Hon. Jeff Leal, Minister of Agriculture, Food and Rural Affairs and Minister Responsible for Small Business told me in a phone call hours after the budget. “The investment in pharmacare for children will help fill a gap for those without full benefit packages and allow parents to put that money to other uses, while continued investment in the Red Tape Challenge will help reduce the regulatory burden for small business.”

With 93% of Peterborough Chamber membership falling into the small business category of 100 employees or less it is good to hear the commitment to this program reiterated.  The Chamber is also pushing for a Red Tape Challenge analysis of the small business sector as a whole.  

When asked how he would describe the budget in one sentence Minister Leal replied, “building for tomorrow.” 
The private sector has had a positive impact on the economy and demonstrates a clear commitment to good jobs throughout our province.  98% of all new jobs since the recession in Ontario have been full time, and 78% in above-average wage industries.  

The OCC released its analysis of the budget shortly after the document was delivered at Queen’s Park.   Picking up on their highlighted areas, what does the budget mean for Peterborough?
 
Infrastructure
In Budget 2017, the Government indicates it will invest $13.5 billion through Moving Ontario Forward to enable faster and more frequent service on the GO network and Union-Pearson Express In addition, the Government announced that funding for the Connecting Links program will increase to $30 million per year by 2018-9. 
  • OCC Analysis
In our 2017 Pre-Budget Submission, we called for a one-time, $30-million enhancement of the Connecting Links fund as a transitional measure to assist affected communities in addressing the two-year gap in which the program was discontinued. We are pleased to see that investment will be made beginning 2018-9. However, the OCC expected to see more dedicated infrastructure investment announcements, particularly outside of transit and roads.
  • Peterborough Analysis
Increased funding for Connecting Links is a positive move. In the past the townships of Havelock-Belmont-Methuen and Norwood-Asphodel have received funding because their main street is a piece of Highway 7.  However, infrastructure needs in the City and County are still significant and will continue to challenge municipalities in the future.   The Peterborough Chamber looks forward to seeing the province’s Long Term Infrastructure Plan which will be released by the end of 2017.

Business Growth Initiative
The Business Growth Initiative was announced in Budget 2016 as a plan to support Ontario’s transition to a new economy. Budget 2017 includes an expansion of the BGI by $650 million over five years.
  • OCC Analysis
The OCC is encouraged by the Business Growth Initiative and welcomes further investment in the plan. The challenges faced by small businesses seeking to scale into medium- and large-sized firms is one we identified in Breaking Barriers: Ontario’s Scale-Up Challenge.
  • Peterborough Analysis
Entrepreneurship is a designated pillar in the Peterborough Economic Development Strategic Plan, the focus of the Innovation Cluster and other groups such as Start Up Peterborough.  To see the government’s plan to invest in areas of advanced computing, artificial intelligence, 5G and autonomous vehicles gives entrepreneurs direction to focus their efforts in many sectors.

Cap and Trade​
In Budget 2017, the Government indicates it is working on a separate system of Ontario-based voluntary carbon offsets to support the government’s carbon-neutral commitment. The proceeds of the carbon allowance auctions are expected to be $1.8 billion in 2017-8 ($1.9 billion was projected) and $1.4 billion in 2018-9. Projected spends of those proceeds include:
  • $800 million towards helping homes and businesses adopt low-carbon technologies
  • $55 million towards municipal partnerships to achieve emission reduction targets
  • $420 million towards modernizing transit towards low-carbon goals (i.e. rail, cycling infrastructure)
  • $410 million towards implementation of Green Investment Fund initiative
​
  • OCC Analysis
The OCC has become increasingly concerned that increased input costs imposed on the private sector mean that Ontario risks losing out on jobs and investment. However, we are encouraged that the government has developed a plan for the next two years of carbon allowance auction proceeds.
  • Peterborough Analysis
As a community that is very connected to nature the cap and trade program has been challenging.  There is still a lot of uncertainty amongst the Peterborough Chamber membership as to whether or not this is the best program for business and to achieve the overall goal of GHG emission reduction targets.  We look forward to hearing more about how businesses of all sizes and across all sectors can access funding.  

Financial Literacy and Skills for the Knowledge Economy
In Budget 2017, the Government reiterated its support for injecting financial literacy into the secondary school curriculum. In addition, the Government has committed to invest nearly $190 million over three years in the Career Kick-Start program which will create more opportunities for high school and post-secondary students, along with recent graduates, to develop job relevant skills.
  • OCC Analysis
We support government’s efforts to modernize the secondary school curriculum and provide students with hands-on opportunities to develop the skills they need to compete and succeed in a technology-driven, knowledge-based and ever-changing economy. Hiring challenges were identified as a top priority by OCC members in the recent Business Confidence Survey.
  • Peterborough Analysis
Financial literacy has been an important topic for the Peterborough Chamber for many years.  Finding and hiring skilled talent in a timely manner has also become a focus of Chamber Members.  The Chamber is a community partner in the Local Employment Planning Council pilot project that seeks to identify the need in the local labour market and where gaps will be in the future. 

Health Care Booster Shot
The government is providing for greater health care spending in the form of a $7 billion “booster shot” over the next three years. In budget 2017 the government also plans to spend an additional $11.5 billion over the next three years, including the cost of the new children and youth pharmacare program with annual growth in health care spending is projected to be 3.3. percent on average.
  • OCC Analysis
While the OCC is pleased to see that healthcare is a priority for this government, we do not believe that spending more money is a sustainable solution.In recent advocacy efforts the OCC has encouraged government to shift towards a value based health care system and modernize procurement and supply chain processes.

OHIP+: Children and Youth Pharmacare
The Government plans to provide universal drug coverage to all children and youth aged 24 and under, regardless of family income. Beginning in 2018, OHIP+: Children and Youth Pharmacare will cover the costs of medicines funded through the existing Ontario Drug Benefit Program. The preliminary estimate of the cost of OHIP+ is $465 million per year.
  • OCC Analysis
While the goal of providing drug coverage to all Ontario children and youth is a laudable one, we are concerned that the costs of the pharmacare plan will further contribute to the unsustainable health care spend Furthermore, we are concerned that OHIP+ may disrupt current workplace drug benefit plans, many of which already fill needed prescriptions for young Ontarians. 
We encourage the government to work with insurance firms and employers to determine the best way to ensure Ontario children and youth have access to the medicines they need, without duplicating or disrupting current coverage. We hope to work with government to design a plan that works in tandem with private drug benefit programs.

Interprofessional Primary Care Teams
The Government is investing a further $15 million to create new, or expand existing, interprofessional care teams.
  • OCC Analysis
In Transformation Through Value And Innovation: Revitalizing Health Care in Ontario, the OCC called for greater use of interprofessional care teams to better co-ordinate holistic care and to ensure patient needs are consistently and effectively addressed.
  • Peterborough Analysis
The Peterborough Chamber is pleased to see this commitment by the provincial government.  Your chamber started this call in the mid-2000’s with a policy resolution called “Addressing the Bottlenecks to Healthcare”.  This resolution called for the creation of multi-disciplinary care teams in emergency rooms.  One result of the resolution was the province allowing pharmacists to administer the flu shot.  


Business Investment
In Budget 2017, the Government projects that business investment will outstrip real GDP growth and household spending, rising by an average 3.1 percent between 2017 and 2020. Government attributes this growth to a competitive Canadian dollar, strong U.S. demand, and improving domestic opportunities. 
  • OCC Analysis
In the Ontario Economic Report, we found that business investment is slowing due to a high perception of risk in the Ontario economy. Given the uncertainties surrounding existing free trade agreements with the U.S., as well as an on-going lack of business confidence in the province’s economic outlook, it is unclear how business investment could be prompted to reach such levels of growth.


Housing Affordability
Previously, the Ontario government released a set of 16 comprehensive measures aimed at helping Ontarians find affordable homes and bring stability to the real estate market. In Budget 2017, they detailed their plans to address the complex network of factors influencing the Ontario real estate market.
  • OCC Analysis
The OCC appreciates that the Province is “collecting more precise data on the real estate market”. It is concerning that the Government’s own projections show projected housing starts in 2017 through 2020 to be lower than those in 2016. This indicates that their 16-point housing affordability plan may have negative unintended consequences. Given the importance of increasing supply to improving affordability, these projections do not bode well for the success of the Government’s plans.
  • Peterborough Analysis
Housing is the foundation of a strong economy.  The importance of a market that includes a decent supply of homes in the housing and rental market is linked to encouraging new talent to locate to our community.   The sustained impact of the current housing market could lead to challenges in the City and County.  

Welcoming New Canadians
Budget 2017 reveals that federal government has increased the province’s 2017 allocation for the Ontario Immigrant Nominee Program (ONIP) by 500 nominees to a total of 6,000. The OINP is also modernizing its application process this year with a new, paperless online system that will speed up the application process, improve customer service, and help employers find the skilled workers they need more quickly.
  • Peterborough Analysis
The Peterborough Chamber has been a voice in the discussion around integration of newcomers to our community and economy.  The Peterborough Chamber of Commerce recently hosted a provincial Minister’s Employment Table with the Ministry of Citizenship and Immigration and brought together employers and service providers to discuss how to improve programs to access international talent.  

There are a couple other areas of concern as Ontario will not return to planned Corporate Income Tax cuts, jeopardizing tens of billions of dollars in potential capital investment and hundreds of thousands of new jobs. 

And while there is no deficit over the planning period, there is also no plan for surplus. Ontario’s debt will rise by 21per cent in the next three years as a result of interest charges, with no plans to begin debt repayment.   

Budget 2017 also sets directions around mental health, cyber security, the Changing Workplaces Review, growth in agri-food and aerospace all issues and sectors that apply to Peterborough.  
​
Read Budget 2017

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