Recent months have seen a turbulent political climate in Canada and challenges in the relationship with the U.S. This week's VOB explores the implications of proposed tariffs on Canadians and Canadian businesses, the historical context of similar situations, and the potential economic fallout of this looming issue.

In November 2024, President-Elect Donald Trump announced his intent to impose a 25% tariff on all goods from Canada and Mexico unless both countries address issues related to drug and migrant flows across the border. In response, Canada pledged $1.3 billion in new spending for border security, although legislative action on this plan is stalled due to Parliament’s prorogation until March 24, leaving key details in limbo.

The potential consequences of these tariffs are evident. Experts estimate that Canada’s GDP could decrease by more than 2.4%, contributing to significant inflationary pressures and the loss of as many as 1.5 million jobs. The impact wouldn’t be isolated to Canada—the U.S. is also projected to see a 1% reduction in its GDP if these measures proceed. These tariffs would affect manufacturers, employers, and consumers alike, creating widespread disruption and economic strain.

This is not Canada’s first experience with Trump-era tariffs. In 2018, he imposed a 25% tariff on steel and 10% on aluminum products. Canada responded with its own $16 billion in tariffs on U.S. goods before both nations reached an agreement in 2019. A similar cycle repeated in 2020 with the introduction of additional 10% tariffs by the U.S., countered by Canada. Prime Minister Justin Trudeau has signaled that Canada will implement countermeasures if the proposed January 2025 tariffs go into effect.

The automotive sector, which sources 20% of its inputs from the U.S., is one of the industries most vulnerable to cost increases. Other affected sectors include energy, chemical and plastic manufacturing, forestry products, and machinery—all susceptible to supply chain disruptions and rising costs. Small and medium-sized businesses, which account for 40% of Canada’s exports to the U.S., would face similar challenges, with tighter margins and declining sales potentially leading to widespread job losses. In Ontario alone, the potential toll could reach 500,000 jobs.

In preparation, the Canadian government is considering retaliatory tariffs, targeting products such as toilet paper and orange juice, although specific measures remain under development. This situation, experts suggest, is part of Trump’s broader negotiation strategy—a high-pressure tactic aimed at achieving stricter border security measures by leveraging extreme demands.

While the federal government’s response is on hold due to Parliament’s prorogation, several provinces have proactively bolstered border security resources. For businesses, preparing for the potential tariffs is vital. Andreas Schotter, an expert in international trade, recommends business conduct a “thorough supply chain assessment to identify risks, planning for both 10% and 25% tariff scenarios, building six months of cash reserves, and renegotiating contracts to include tariff provisions and limit financial exposure.”.

Though businesses can take steps to mitigate the potential impacts, support from all levels of government will be critical in navigating the challenges ahead. The uncertainty surrounding these tariffs underscores the importance of proactive planning and coordinated action to protect the economy and the workforce from their far-reaching effects.

This past month has been challenging for businesses and organizations across Canada. We’re diving into some news that could shake up our holidays for businesses and shoppers across Canada. Starting this Saturday, December 14th, 2024, the government is rolling out a GST/HST tax exemption on various products until February 15th, 2025.

The GST/HST offers zero rate taxes on multiple products. The following products are:
•             Food
•             Beverages
•             Restaurants, catering, and other food or drink establishments
•             Children’s Clothing and Footwear
•             Children’s diapers
•             Children’s car seats
•             Children’s Toys
•             Jigsaw Puzzles
•             Video Game consoles
•             Physical Books
•             Printed Newspapers
•             Christmas and Similar decorative trees

Now, this may seem like a win for consumers. No tax means lower prices, and we could see increased spending, but we don’t know the whole impact on businesses and how this pressure to comply with new tax rules takes its toll at one of the busiest times of the year.

While customers might enjoy the savings of an estimated total of $1.7 billion, businesses are stressed and scrambling to get ready. According to the Canadian Federation of Independent Business (CFIB), many small businesses call this tax break a headache. A survey from 3,500 small businesses found that 75% of small firms expect it’ll cost them about $1,000 just to reprogram their systems to handle the exemption. And 65% said there’s not enough time to get everything in place before the deadline.

With the perceived benefit for consumers, businesses will still have to go through the tedious task of updating their systems. This tedious task could update their computing systems to apply zero-tax to the products listed above.
Some industries, such as hospitality, will have to go through more tedious tasks than others. This involves distinguishing between selecting the alcohol eligible for GST/HST relief because there are specific alcoholic beverages eligible for tax relief and some that are not. According to the CRA, beer and malt beverages (canned or bottled beer, pitches of beer) qualify. Wine, cider and sake (including fortified) that are 22.9% alcohol by volume or less. And/or Spirit cooler and premixed alcoholic beverages that are 7% ABV or less also qualify.

The items that would not qualify are alcoholic spirits and liqueurs, including cocktails with spirits that would not qualify. For example, a sangria, including wine and rum, would not qualify. Beverages sold from a vending machine also are not eligible. Examples like these create an additional burden for businesses. Another burden is that businesses will additionally have to revert to their original systems after the tax relief period.

There are also some confusing rules around returns. For instance, a customer buys something now during the tax break, then returns it and repurchases it later. That could mean extra fees for businesses handling those transactions through credit cards. And let’s not forget some of the confusion around qualifying items—like age limits for children’s products. Businesses will need to sort through these nuances, which could lead to even more confusion. This is not ideal for already stretched small businesses preparing for the busy holidays.

While the government hopes this holiday tax break will boost consumer spending, not everyone is convinced. Only 4% of small business owners surveyed by the CFIB think it’ll lead to stronger sales. For many, the costs and logistical challenges seem to outweigh the potential benefits. As Saturday looms closer, this GST/HST relief is inevitable. Still, we can only hope this holiday relief will increase sales for our local businesses and make the tedious work worth doing.
If you’re a business owner feeling overwhelmed, there are resources to help you navigate this. You can call the CRA’s GST/HST inquiries line (1-800-959-8287 for English, 1-800-959-8296 for French) or check out the CRA’s webpage here.

This week, the Chamber's Vice President of Operations and Government Relations, Joel Wiebe, released a statement addressing concerns about the potential impacts of the proposed development charges increase on our community. The letter highlighted impacts on housing affordability, business growth, and infrastructure development.
The Chamber remains committed to advocating for the interests of our local businesses. If you have any questions, please feel free to contact Joel directly at [email protected].

Stay tuned for an upcoming release on the Canada Post strikes!

You can click here to download the statement or find it attached below!

Last week, your local Chamber of Commerce brought together our local business and political leaders, Mayor Jeff Leal and Jasbir Raina, the Chief Administrative officer (CAO). This was the second annual Mayor's Breakfast, with a packed house at the Peterborough Golf and Country Club. This meeting covered important municipal matters, from increasing development charges and tax rates to physician recruitment and MAT tax.

With this meeting expected to be heated, Leal and Raina dove into the reasoning behind the proposed budget cuts. As you may know, last week, the city council proposed to cut funding by 25% for various community organizations rather than raising our tax rates. A week later, council rejected most of the proposed budget cuts. Leal brought up how instead of applying budget cuts, he asked the "big three” to reassess their budget asks. These organizations were the Police Services Board, Peterborough County-City Paramedics, and Peterborough Public Health. Rather than raising our tax rates, Leal wants to make this budget work by asking the three organizations to reassess their funding requests.
Raina referred to his experience in Mississauga, where he learned the ropes of accurate municipal budgeting. He reasoned that a municipality must operate with a large tax base. Raina mentioned that "municipalities cannot function and expect to grow with smaller tax bases, specifically Band-Aid budgets."  Raina pointed to the many completed roads and ongoing projects adequately funded through tax increases.

Leal also touched on cross-border servicing and physician recruitment. With little industrial land left in Peterborough, this is a big concern if we seek to grow our industrial sector locally. Leal went over how the city has proposed to work with other municipalities in cross-border servicing, where industrial lands would be co-managed. This would benefit the city and the neighboring municipality and bring more businesses and employment to our area. On a physician recruitment note, Peterborough currently has 32,000 people without a doctor, which is a complex situation. Leal touched on this complexity in the city's plan to help bring in more family physicians. The "Bring Them Home" campaign would seek to bring back overseas Peterborian medical students in Ireland to practice at home in Peterborough.

The next elephant in the room was the proposal to increase development charges. One audience member asked how the city expects to spur development with these high increases. Raina responded to this comment, saying, "Every house added to the city is putting pressure on the community, and in accommodating this growth, the community must bear the costs." Although this makes it seem that development charges are necessary to accommodate growth, many developers are still concerned with this cost increase as it will make it more expensive to build and will pass on to the consumer, as one audience member pointed out. On a side note, the Chamber will address the proposed high increases in development charges with our local Peterborough and Kawarthas Home Builders Association.

The next hot topic was our Municipal Accommodation Tax (MAT), implemented in 2019, in which 50% of its revenue will fund a new city-managed tourism entity. An audience member asked about the city's plan for this. Raina highlighted that the MAT tax would strictly reinvest in tourism development, and the work to establish the city's tourism entity is still a novel proposal and a work in progress. Raina also mentioned the progress in the MAT tax funding projects, such as the new arena, and how this MAT tax can continue to rejuvenate downtown.
Moving on to successful city initiatives, Leal showcased the recent success of the city's green waste initiative. Members of the audience were pleased to hear about creating a plan to expand green waste to businesses. This green waste initiative helped the city see great benefits in reducing landfill use and extending its life. Leal also mentioned that the plan to provide green waste management services could occur in the next calendar year.
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This Q&A was jam-packed with sensitive but necessary discussions regarding taxpayer increases and operating challenges. This was a great opportunity for businesses to voice their concerns and have our public servants and mayor hear them. Having this dialogue in uncertain times amidst proposed tax increases is refreshing to see. This Q&A provided much-needed insight into the city's rationale for the following calendar year. This breakfast closed off with remarks from Leal and Raina expressing that to build Peterborough, it will take a unified approach. While true, this unified approach should not come at the expense of our local businesses. We hope our city can hear these concerns addressed at our Mayor's Breakfast and that next year's proposed plans reflect the feedback they received.

One of the many objectives of the Chamber is to advocate for our members. Joel Wiebe, our Vice President of Operations and Government Relations, is doing just that. This week, your local Chamber has released a statement addressing concerns on the impacts of City budget cuts on our essential local organizations. Please click here to download the letter or find below the attached document.

This past September, the Canadian government announced another 10% cut to international student permits. This isn’t the first cut either. Earlier this year, there was already a 35% reduction in student visas, plus a cap of 364,000 visas this fall (down from last year’s 560,000). So, what’s behind these numbers, and what does it mean for Canada? Here on VOB, we like to dig into these controversial issues and explore how policies impact our communities and businesses. With all these restrictions on international students, there is a lot to unpack—and some potential serious consequences.

The conversation around international students has been heating up, especially with Canada’s housing crisis and labor shortages thrown into the mix. We’re seeing strong opinions on both sides. On one hand, there’s a group that says Canada’s infrastructure just can’t handle the volume of international students coming in. On the opposing side, national student associations argue that international students are wrongly blamed for the housing crisis. Cutting their numbers, they say, also hits universities hard, slashing a vital revenue stream.

And they’re not wrong—Canada’s colleges and universities really rely on international student fees, which are much higher than domestic ones. For example, Fanshawe College recently reported they’re expecting a whopping 39% cut in international students next January, with a 47% drop in first-year international students alone. The council of Ontario Universities also are projecting a loss of nearly $1-billion in revenue over two years with the drop from international student enrollment. Considering the average cost for an international student is around $36,000 a year, these reductions could severely impact funding for our post secondary institutions.

The reliance on international students has sparked some tough questions: are schools too dependent on these higher fees to make up for gaps in public funding? And what happens when this revenue source shrinks? Some wonder if Canadian institutions should rethink their business models and find a more balanced way to fund education without leaning so heavily on international students.

There’s another layer to all this: international students contribute more than just tuition fees. They’re a crucial part of Canada’s workforce, particularly in the hospitality sector. According to Statistics Canada, international students make up around 4.6% of that industry—a big deal in a sector that’s facing labor shortages. Plus, the Canadian Bureau for International Education shows that 70% of international students indicated they want to stay and work in Canada after graduation, which could further add to our growing talent pool. Their economic impact also extends beyond tuition, who support local businesses and contribute millions to the economy in consumer spending.

But, of course, we can’t ignore the housing issue. With more than a million international students in Canada, and vacancy rates as low as 1.7% in Ontario, housing is in high demand. More students mean more pressure on an already tight housing supply, which many Canadians feel directly. This is where the government’s policy shift could ease some of that strain, but it’s a double-edged sword. Fewer international students may help with housing, but it could significantly reduce revenues for post-secondary institutions and even lead to staff layoffs.
​
Ultimately, this situation highlights the complexity of relying heavily on international students. The recent policy changes make it clear: this isn’t just about the students. It’s about sustainable planning and strategies that support Canada’s needs, whether it’s in housing, education funding, or labor supply. Moving forward, we can only hope that these policy adjustments drive further investments in the infrastructure and resources needed to make Canada a stable place for everyone—both local and international residents.

This week on the Voice of Business, we are diving into an important yet often overlooked topic: Intellectual Property (IP). IP refers to creations of the mind, like inventions or artistic works, which are increasingly important in today's growing "ideas economy." This economy is centered around intangible assets like software, technology, and digital innovations. Recently, Jim Balsillie, former co-CEO of BlackBerry, discussed on CBC the urgency of safeguarding Canada’s intellectual property in our evolving economy.

We encounter intellectual property every day, from the apps we use—like Facebook, Netflix, or Microsoft Office. We also observe our reliance on IP with Tesla’s autonomous driving systems or user interfaces with our phones. For business owners, it’s essential to protect their IP, as it shields their innovations from competitors and creates potential revenue streams through licensing agreements. However, many businesses, particularly those in the tech sector, underestimate the importance of protecting their intangible assets.

Balsillie’s podcast appearance emphasizes the consequences of not prioritizing IP protection, which are evident in Canada’s lagging productivity. He warns that foreign companies are buying Canadian-owned IP, which could push Canada to rank last among OECD countries in terms of productivity. According to Balsillie, the issue isn’t who invents these technologies, but rather who owns the rights to them. As more Canadian IP is sold to foreign companies, the potential for foreign entities to shape the future of Canadian industries grows. This could lead to significant changes, including headquarters relocating outside of Canada and essential jobs being outsourced abroad.

The elephant in the room, Balsillie notes, lies in the lack of a legislative framework that incentivizes businesses to retain their IP domestically. On top of that, there’s a gap in educating corporations about the value of IP and how to manage it effectively. He highlights how other countries, such as China, are far ahead in patent filings for technologies like artificial intelligence. China has filed 400,000 AI-related patents, while Canada on an industry wide scale has filed roughly 40,000. This further illustrates how other countries are actively protecting their innovations, giving them a competitive edge in the global market.

Balsillie also draws attention to the sharp growth of the intangible economy, which now makes up for 92% of the value in the Standard & Poor's 500 index—up from just 17%. This rapid growth will only continue, making it even more important for Canada to protect its intellectual property. He argues that Canada must foster a more attractive business environment to encourage companies to hold their IP rather than sell it to foreign competitors. While he doesn’t go into detail, Balsillie suggests we should learn from international models of legislation regarding IP retainment.
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Another concerning trend is the growing number of Canadian pension funds being invested abroad. Balsillie points out that if our own investors are placing their money outside of Canada, it should be a wake-up call that our market is not offering the support needed for businesses to grow and thrive. Addressing this issue requires a multi-faceted strategy that includes educating businesses about IP and creating a market that rewards innovation and encourages companies to keep their IP in Canada.

Finally, whether you are a large tech company or a small local business it is important business owners are aware of the advantages of their IP rights. Not only does keeping IP retain jobs in Canada- it also boosts our economy. Balsillie stresses the need for a comprehensive strategy to educate businesses about the benefits of protecting their intellectual property and fostering an attractive market environment. By doing so, Canada can ensure its productivity stays competitive and holds onto its valuable innovations!

The Voice of Business Column is made possible thanks to the support of Mark’s and can be found at pkchamber.ca

Peterborough and the Kawarthas Chamber of Commerce Vice President, Operations and Government Relations, Joel Wiebe will be attending a conference with Chambers across the country to discuss proposed policy resolutions.

Wiebe will be touching on Improving the Regulatory Environment for Natural Health Products, High Frequency Rail, Supporting International Students Entry to the Canadian Workforce, and Tax Fairness for Healthcare Professionals. Here are some of the following policy resolutions that will be discussed. 
 
Improving the Regulatory Environment for Natural Health Products

In Canada, oversight of Natural Health Products (NHPs) falls under the Natural Health Products Regulations (NHPR) of the Food and Drugs Act. These regulations came into effect on January 1, 2004, after consultation with stakeholders and the public to determine an appropriate regulatory framework for NHPs. At that time, it was agreed that it was not proper to regulate natural products under the same regulations as chemical drugs or impose the same standards of evidence onto natural health products.

In 2017, Health Canada launched a consultation on the regulation of self-care products. In 2021, Health Canada conducted consultations regarding proposed regulations to amend the Natural Health Products Regulations with the purpose of gathering feedback on proposed improvements to natural health product labelling. In addition, it was cited that the proposed amendments were anticipated to decrease the regulatory burden and costs to businesses, as well as introduce greater efficiencies for businesses.

Since then, new proposed regulations were introduced creating concerns around the future of Natural Health Products (NHP) in the Canadian Market, from new fees and charges imposed, to the increased regulatory burden and the inequitable treatment of natural health care products. Most recently, in 2023, Health Canada provided information related to the fee proposal with the intention to start charging new fees on April 1, 2025, in addition to increasing the regulations.

There is value in making sure products claiming health benefits are safe, but these standards do not take into account the wide variety of NHPs. While some offer alternatives to pharmaceuticals, many are considered supplemental to pharmaceuticals like vitamins, probiotics, and amino acids. Many of these products are not normally healthcare-associated, like natural deodorants, sunscreens, toothpaste, and skin care products. 

According to the Canadian Health Food Association’s Save Our Supplements campaign, 76% of brands say there is a high/very high chance they will need to pull product from the market as a result of these regulations. One in five companies say they are seriously considering leaving the Canadian market. Additionally, 66% of companies said it would have a negative impact on employment. Dating back to 1998, with the report of the Standing Committee on Health, Natural Health Products: A New Vision, it has been recognized that there is a legislative and regulatory regime required to govern traditional medicines (including, but not limited to, traditional herbal remedies, traditional Chinese, Ayurvedic and Native North American medicines), homeopathic preparations and vitamin and mineral supplements, taking into account the needs of associations, consumers, manufacturers, distributors, growers, importers, exporters, retailers and practitioners. The guiding principle since that time has been to establish a regulatory framework for NHPs that (1) protects the health of consumers (2) respects consumers' access to products and (3) guarantees product safety and quality.

With limited implementation timelines, exorbitant fee increases and additional regulatory burdens, the new standards will cause significant issues within the industry and government. The fees, regulations and compliance costs are viewed as unnecessary changes to a system that was deemed to be working after the Natural Health Products Regulation in 2004. Canada already had some of the strictest regulations for NHPs prior to the new regulations. Once fully implemented, it will have the most stringent regulations on NHPs in the world. Many of our trading partners, including the US, Australia, EU, Japan, and China have different classifications based on the product’s composition, claim, and intended use. These factors will determine whether it is a supplement or medicine.

As of 2022, Health Canada had licensed over 120,000 NHPs.6 With the increased demand for Natural Health Products and Practices and the increasing regulatory environment, there has been increased awareness regarding the need for legislation that will ensure a better regulatory environment for Natural Health Products and Practices, including calls for a proposed Charter of Health Freedom Act.7 The health and wellness industry recognizes the need for a more balanced regulatory environment and structure, built in consultation with industry, while still achieving the guiding principles of protecting the health of consumers, respecting consumers’ access to products and guaranteeing product safety and quality.

Businesses in the health and wellness sector understand the regulations imposed in 2004, citing that they have been the best regulatory regime of NHPs in the world with the expertise and time invested in that process. However, the most recent cost recovery model and amendments to the Food and Drugs Act, as of December 22, 2023,8 will not achieve the desired outcomes without the same due diligence and consultation as previously conducted with industry.

Recommendations:

That the Government of Canada:
1. Replace the definition of therapeutic product in section 2 of the Food and Drugs Act with the following: therapeutic product means a drug or device or any combination of drugs and devices, but does not include a natural health product within the meaning of the Natural Health Products Regulations.
2. Repeal Section 21.321 of the Food and Drug Act and Subsection 21.8(2) of the Food and Drug Act to reverse the changes imposed by Bill C-47 section 500-504.
 3. Eliminate additional fees, until fee levels are re-examined in consultation with industry.
 4. Consult with the Natural Health Product industry to come up with a globally competitive strategy to address safety concerns, and the differentiation between medicinal NHPs, supplements, and other consumer products while taking into consideration costs and the regulatory impacts for businesses of all sizes.
5. Implement the Standing Committee on Health’s recommendations from the report: Natural Health Products: A New Vision.
 6. Only implement new regulatory changes once backlogs are cleared, operations run efficiently, and policies and procedures are in place to ensure stable operations continue for Natural Health Products.
 
High Frequency Rail

The upturn in passenger rail transport is well and truly back on track since the end of the pandemic. More than four million passengers used VIA Rail trains in 2023, representing a 24.7% increase over 2022. Between 2021 and 2022 alone, cumulative ridership increased by 116.2% in the Quebec-Windsor corridor. This enthusiasm for intercity travel on VIA Rail trains is, however, hampered by the fact that VIA Rail owns only 3% of the infrastructure on which its trains run.
With 60% of Canada’s population residing along the corridor, the HFR project becomes a strategic issue for Canada in the following respects:
• Job creation: the VIA HFR Inc. project is expected to create thousands of jobs over the life of the project.
• Economic development: As part of the VIA HFR project, the state-owned company will expand its existing network by more than 1,000 km of track, and expects to see a marked increase in ridership in the Corridor, thanks to reduced travel times, increased punctuality and more departures in certain parts of the Corridor. By connecting more communities with more and more punctual departures, schedules better adapted to business needs and faster journeys, the HFR project will help weave commercial links by simplifying business travel and making it easier to work and rest on board trains. The HFR project will also enable employers in the corridor to expand their labour pool by combining transportation and work. 55
• Tourism: in 2022, tourism accounted for 2.02% of Canadian GDP and 1 in 10 jobs, according to Statistics Canada. Between 2024 and 2030, the Canadian economy is expected to grow by 4.1% annually, while the tourism sector will grow faster, by 5.8% on the same basis.
• Nevertheless, growth in the tourism sector is below the global average. Mobility between major urban centres will therefore play a key role in the coming years. The HFR project will make intermodal connections more fluid by increasing the number of transfers between different means of transport, with the aim of attracting more tourists to inland Canada. As such, in 2024, spending on business and leisure travel in Canada will exceed that of 2019.
• Optimizing infrastructure: As identified by several chambers of commerce, the creation of a separate passenger rail corridor between Quebec City and Toronto will benefit the freight sector, which will also be able to optimize its own infrastructure and generate more economic activity. Consider, for example, the benefits of further optimizing rail lines to transport coastal products from the Prairies even more efficiently, or consumer goods that travel the distance by rail between British Columbia and Quebec. The HFR project will also free up some of the road traffic on the corridor’s highways, which represents a major congestion issue between cities.
• GHG reduction: Thanks to the higher number of frequencies, the punctuality of trains on dedicated tracks and the increased speed of journeys, the train is becoming an alternative to the car. In its 2017 report Stuck in Traffic for 10,000 Years, the Canadian Chamber of Commerce stated that an HFR would cut congestion by 2.4 million cars along the corridor, in addition to reducing highway maintenance costs. The HFR project includes track electrification, so that the newer engines will be ready to run on it. The introduction of an HFR will contribute to Canada’s efforts to meet its new GHG reduction target.
• It is worth noting that a number of municipalities have publicly expressed their wish to see the VIA HFR project come to fruition, with the aim of starting up service as soon as possible, including open letters signed by the mayors of Toronto, Peterborough, Ottawa, Montreal, Trois-Rivieres and Quebec City. More than half of all trip segments are not between two major cities on the current route.

Recommendations:

That the Government of Canada:
1. Urge VIA HFR to proceed with the entire HFR project as quickly as possible.
2. Gives priority to the HFR project and other passenger rail services on dedicated tracks as essential ways to meet our climate objectives. 3. Develop a strategy to extend HFR service beyond the current Toronto-Quebec City project.
 
 
Supporting International Students Entry to the Canadian Workforce

International students have long been integral to the socio-economic fabric of Canada, contributing significantly not only as a skilled workforce but also enriching the cultural landscape of the communities in which they reside. Historically, these students have faced stringent work limitations that conned their off-campus employment to a maximum of 20 hours per week. In response to acute labor shortages across various sectors, the Government of Canada enacted a temporary measure in November 2022, allowing these students to exceed this limit. Initially set to expire in April 2023, the policy was extended to April 2024, recognizing its broad benefits. The policy was not extended and a 24-hour cap on International Students during the school terms was introduced as of May 1, 2024.

International students typically pay between 2.9 and 5.3 times more for their education than domestic students . While there are some financial supports for international students, they are not eligible for many of the supports domestic students receive, like student loan programs. Many rely on working in Canada to help pay for their school and living expenses. Unfortunately, those work experiences are limited. International students often turn to the underground economy to increase their hours. This makes them vulnerable to exploitation and abuse. These jobs may pay less than minimum wage and it creates a power imbalance as the students have no legal recourse to demand payment because they are working in violation of their study permit.

This progressive policy of extending the number of hours the International Students could work has proven vital for both the students and the Canadian economy, particularly in smaller cities and communities like those in Quinte West. By working more hours per week, international students have not only been able to better support themselves financially but have alleviated staffing shortages, filling critical gaps in the labor market, particularly in sectors like hospitality, retail, personal care and entry level manufacturing, which often struggle to attract local workers. These roles, while crucial, are frequently undervalued and understaffed, yet they form the backbone of our local economy, ensuring the operation of community essentials from restaurants to retail stores. 

The ability for international students to work additional hours has enhanced the students' educational experience by providing them with real-world work experience in a global setting and increased their contributions to the economy through taxes and consumer spending. More importantly, this policy has allowed them to earn a livable wage, which has reduced their need to rely on limited and overburdened social services. The evidence is clear: international students significantly bolster our workforce, particularly in sectors that struggle to attract domestic employees. Their contribution extends beyond filling labor gaps; they enhance our cultural landscape, stimulate economic activity through their spending, and alleviate pressures on our social services by being financially self-sufficient. Allowing these students to work more hours has proven to be a successful policy, not just as a temporary relief measure but as a potential long-term solution to ongoing labor market challenges.

However, the benefits currently realized are at risk now with the new measures that have been introduced. The resulting reduction in work hours to 24 hours per week, will not only reverse the gains we have made but could also push many students into precarious living conditions or compel them to seek work in unregulated environments where they are vulnerable to exploitation. Moreover, the current housing crisis and the rising cost of living exacerbate these risks, making it even more critical to maintain and enhance their ability to work sufficient hours.

Now the temporary measure of full-time hours during school terms has expired, there is a critical need to not only reassess its impacts but also to advocate for its extension and enhancement based on empirical evidence and the positive outcomes observed. The Quinte West Chamber of Commerce, representing both the business and civic interests of our community, recognizes the dual benefits of this policy to our local economy and the international students’ welfare and thus proposes a strategic approach to make these changes permanent, ensuring the continued prosperity and inclusivity of our community.

By providing additional oversight to protect them as they enter the Canadian workforce during their studies, by strategically guiding them towards in demand careers, and by allowing them to work the number of hours necessary to meet the high cost of living in Canada, there is a greater chance they will have success entering the Canadian workforce after graduation.

Therefore, the Quinte West Chamber of Commerce proposes a series of strategic measures designed to solidify and expand the current policy framework. These include making the increase in allowable full time work hours permanent, improving regulatory oversight to protect students in the workplace, and providing targeted support services that address both the immediate and long-term needs of international students.

Recommendations: That the Government of Canada:

1. Implement a policy allowing international students to work full-time hours during academic terms.
2. Support financial literacy programs tailored for international students to help them manage their finances effectively, including Canadian banking, savings, fraud prevention and tax systems
 
Tax Fairness for Healthcare Professionals

The federal Excise Tax Act provides the Canada Revenue Agency with a number of exemptions to the collection of sales tax. Schedule V, Part II of the Act 1 defines healthcare services and section 7 specifically lays out what individual service practitioners are exempt. The Act lists 13 specific services like chiropodic, physiotherapy, and naturopathic services. There are notable registered professions missing from this list, including registered massage therapists. The registered massage therapy sector met the criteria for harmonized sales tax exemption in 20192 by achieving five provinces regulating the profession. These provinces are Prince Edward Island, Ontario, British Columbia, New Brunswick, and Newfoundland and Labrador. The Canadian Massage Therapist Association has requested exemption from the Ministry of Finance, but no action has yet been taken from the federal government. Psychotherapists have been in the same situation, but the federal government is now in the process of approving a sales tax exemption for this mental health profession. It’s fair for the Government of Canada to set baseline criteria for providing HST exemptions to ensure only those held accountable through regulated professions can be afforded this support. However, it’s also incumbent on the Government of Canada to grant approval in a prompt manner when those criteria have been met. Waiting five years with no indication of any action is unacceptable.
 
Recommendations:
That the Government of Canada:
1. Level the playing field for all regulated healthcare professions by providing sales tax exemptions for all providers that meet regulation requirements, including Registered Massage Therapists
2. Begin the sales tax exemption process within one year of complying with regulation criteria

This past week Kawartha Downs and your local Chamber hosted a trackside chat which featured Mayor of Cavan Monaghan, Matthew Graham, and Otonabee-South Monaghan Mayor Joe Taylor. Also in attendance was the honorable Minister of Labour, Immigration, Training, and Skills Development, David Piccini. Our VP of Operations & Government Relations, Joel Wiebe led the chat with a Q & A period for our guests.

The conversation began with Minister Piccini addressing the current state of affairs in Ontario. He touched on the big challenges we are facing - labour shortages, foreign workers, and housing. According to Piccini, productivity is taking a hit due to an increasing regulatory burden, labour shortages, and a lack of investment in skills. To combat these issues, he highlighted a new policy initiative which would allow for grade 11 and 12 students to earn co-operative education credits in the skilled trades. Students would also receive a new seal on their diploma recognizing their completion of the program. This will allow students to fast track their learning and hands on experience before entering post-secondary through co-operative learning. This is just one of the ways the minister is addressing our labour shortage by attracting more youth into trades.

Another incentive is the provision of grants for individuals to purchase trade materials. This provincially funded grant provides individuals looking to enter the trades industry with that first set of tools to start their careers. Covering the costs of materials for tradesmen can remove the initial investment to enter trades for individuals.

Shifting to the topic of foreign workers and immigration, Minister Piccini acknowledged the immense contribution immigration has played in building our workforce, including his own grandfather who immigrated from Italy. However, he emphasized the importance of also growing our own domestic worker base specifically in the services industry. While immigration has mitigated our labour shortage problem, it is important to continue to concentrate efforts on enticing our own local workforce to join various industries experiencing labour shortages as well.

Piccini touted the economic success Ontario has experienced without raising taxes and reducing a regulatory environment, pointing out that Ontario is the only province that has not raised taxes, and this has contributed to over $60 billion in revenue. In addition, he proudly mentioned before the pandemic we produced “0% of PPE, now 90% of PPE manufacturing is produced in Ontario” further illustrating our progress in providing a prosperous and viable market for manufacturers here in Ontario.

Next up, Cavan Monaghan Mayor Matthew Graham, and Otonabee-South Monaghan, Mayor Joe Taylor set the stage. They both had a lot to say on municipal matters such as housing, employment lands, and economic development. The mayors had their own set of experiences within their townships but faced the same bureaucratic challenges in lengthy approvals for land development.

In positive news, both townships are experiencing progress with hundreds of housing units in development! For example, Mayor Graham spoke on Millbrook overseeing 600-1200 units in the process of being built. Although housing units are progressing, the cost of development remains a concern. One person for instance, spent $2 million just on buying land and another $2 million on hydro.

Meanwhile Mayor Taylor touched on the need to develop land on cross-border boundaries with the city of Peterborough. Taylor said that “some townships do not have the capital to service city-owned lands and needs cooperation from the city.” With more cooperation this could lead to increased development in areas identified for growth between municipal boundaries.

Both mayors also spoke on the significant delays for developing employment lands. Graham mentioned “one land assessment cost $300,000 and then took four years for approval.” To mitigate these lengthy delays Graham proposes a “streamlining of services where municipalities can go to one body to meet provincial regulations rather than go through multiple bodies.”

The mayors closed off in talking about how meeting the needs of their township is their number one priority. Mayor Graham mentioned a thoughtful point about bureaucracy acknowledging that while it can be frustrating, these are processes of our democratic system. “Some people hate bureaucracy but a lot of these bureaucratic processes and policies are democratic and to undermine them would be anti-democratic.” Despite these challenges, it was refreshing to hear both mayors remain optimistic about the future of their townships.

Finally, it was a very insightful discussion, offering a behind-the-scenes view of the work being done by our local mayors and the Minister of Labour for businesses in our community. Whether it’s Minister Piccini’s focus on tackling labour shortages or the ongoing work of our mayors to drive housing and employment land development, the topics discussed help address key challenges businesses are facing, such as labour shortages and rising regulatory burdens.

​The solutions offered by Piccini—encouraging youth to enter the trades and reducing the financial barriers to entry—will provide students with early exposure to the trades and fast-track their skills development. This means businesses can expect a more skilled and prepared workforce in the near future. Additionally, the mayors' focus on reducing bureaucratic delays and fostering cooperation between municipalities and the province would create more opportunities for business growth and investment in our community. It’s encouraging to see proactive steps being taken at both the provincial and municipal levels to build a better future for all.