Alberta businesses are bracing for expensive promises the federal and provincial governments will make to woo voters in upcoming elections.
The federal Liberal government will present its budget Tuesday. The throne speech from the Alberta legislature on Monday set out the NDP’s ideas prior to presenting its budget.
“It’s a pre-election budget. There’ll be lots of goodies. They’ll kick the can down the road by borrowing more money to pay for all that. That’s something that concerns a lot of business owners,” said Richard Truscott, vice-president with Canadian Federation of Independent Business, on Monday.
“Taxpayers and business owners need to keep an eye on their wallets.”
He said big promises may not see the light of day if governing parties aren’t re-elected. But if they do win, they’ll be committing themselves to a lot of big ticket items.
“It’s a worrisome time that they may really turn on the spending taps, and ultimately, we’ll have to pay for those things one way or another.”
Truscott said he would like to see “freezes, some reversals and some rebalancing” by the provincial government.
The throne speech included reference to improvements to Red Deer Regional Hospital, a promise Premier Rachel Notley made during a visit to the Red Deer Advocate while the Canada Winter Games were underway.
“This work will expand the emergency room, establish a cardiac catheterization lab, and expand other services to ensure this vital part of central Alberta is ready to care for generations of patients and families,” the speech said.
Truscott, meanwhile, said the march to a $15-minimum wage has done serious harm to small- and medium-sized businesses.
A rate freeze, or a youth or training rate, could allow employers to pay new workers slightly less for three to six months to recognize the investment an employer is making in hiring young people, training them and mentoring them, said Truscott.
He said another reduction in the small business income tax rate would also be helpful.
Truscott said the federal government should freeze the planned increases to Canada Pension Plan premiums for both employers and workers until the economy shapes up.
Rick More, CEO at the Red Deer & District Chamber of Commerce, said he’d like the federal government to figure out how to help businesses compete with the corporate tax reduction in the United States. The much-criticized transfer payment system also needs updating, he said.
More said the federal and provincial governments need to reduce their deficits, which he argued are scaring away investors. Provincial barriers to trade also need to be addressed, and the province has to reduce red tape and recognize the layers of costs it has created for business, he stated.
“So much was pushed on them all at once. When the government creates these new policies, they have to give realistic time frames for business to adapt,” More said.
szielinski@reddeeradvocate.com
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