Central Labrador is a hub of activity and is set in one of the most beautiful regions of our province and country.

Apr 2024

FOR IMMEDIATE RELEASE
APRIL 17, 2024

 

LNCC Encourages a Return to Balanced Budget, Targeted Economic Plan for Growth

 

On Tuesday, April 16, Finance Minister Chrystia Freeland tabled a more than 400-page budget, proposing $52.9B in new spending over five years and a projected $39.8B deficit.

 

Here are the key takeaways for businesses:

• New Canada carbon tax rebates for small businesses

  • Assisting as many as 600,000 small firms with 499 or less employees, eligible for a share of $2.5B

• $8.5B in new spending for housing

  • Unlocking nearly 3.9M homes by 2031

  • Consider redeveloping properties and buildings on National Defence lands

  • Converting underused federal offices into homes

  • Consideration of a new tax on residentially-zoned vacant land

• $60M over five years for Futurpreneur Canada, a long-time partner of the LNCC, enabling an estimated 6,250 additional businesses owned by young Canadians to start or scale-up their business

• New Canadian Entrepreneurs’ Incentive to reduce the inclusion rate to 33.3% on a lifetime maximum of $2M in eligible capital gains, a combined $3.25M when selling all or part of a business

• $350M over five years to support Indigenous Financial Institutions

• $200M over two years to increase access to venture capital for equity-deserving entrepreneurs

• $463.3M over three years to repair and maintain small craft harbours

• $263.5M over four years to extend temporary support for seasonal workers until October 2026

• Increased transparency of airline passenger fees including seat selection, checked and carry-on baggage, in-flight entertainment and meals

• Proposed legislated procurement targets for SMEs

 

With no projected budget balance and larger deficits forecasted in each year ahead, the LNCC is concerned with government spending and new tax increases, including a digital services tax and Employment Insurance premiums, which will have a direct impact on businesses.

 

“While we are pleased with several initiatives to support SMEs, the innovation sector and tourism, we are concerned with high government spending with no projected budget balance,” says LNCC CEO Julianne Griffin. “Now is not the time to introduce new taxes, but instead focus on returning to a balanced budget and reduce the debt interest. We need a targeted economic plan to reduce the cost of doing business with strong supports for SMES to encourage business growth.”

 

The LNCC encourages the federal government to focus on fiscal responsibility while developing a strong economic plan for communities across Canada.

 

 

About the Labrador North Chamber of Commerce

For more than 60 years, the LNCC has been the most diverse and representational business organization in Labrador, advocating on behalf of businesses on unique Labrador-specific business challenges. As one of the most active Chambers in the country, the LNCC is a determined voice for the Labrador business community, and a strong advocate for growth and prosperity in the region.

 

Contact:

Julianne Griffin, CEO
(709) 896-8787
ceo@chamberlabrador.com