Creating Regional Economic 

                               Prosperity Since 1876

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CHAMBER SENDS LETTER TO MAYOR, CITY COUNCIL REGARDING 2006 CITY OF WINDSOR BUDGET 

On Tuesday, June 21, 2005 the Chamber sent a letter to Mayor Eddie Francis and City Council addressing the 2006 Budget. In its pre-budget statement the Chamber made comments about the budget process, which started with a public consultation of budget stakeholders. The Chamber also addressed the need for transparency and urged the City to make changes to its corporate property taxation classes, making the same more favorable to business. To view the full Chamber submission click here. 

CHAMBER CALLS FOR REVIEW OF MUNICIPAL 

BUSINESS TAXATION

Monday, May 16th, 2005

The Chamber of Commerce has asked the City of Windsor to review its business taxation optional classes by which the City charges different tax rates depending on the size and the type of the business. Currently the City of Windsor maintains a large industrial class that is higher than most other jurisdictions in the Province.

The Chamber delegation, comprised of Donald J. Marsh, Chair of the Board and Tim Fuerth, member of the Chamber’s Finance & Taxation Committee, addressed the Council, delivering a presentation that stressed the importance of fairness in taxation and the concern by the business community with the current level of taxation.  

Speaking from the concern of the Chamber regarding negative effects of uncompetitive taxation for economic development, Donald Marsh stated “it is imperative that City Council provides leadership and begins to put in place a strategic plan that will ensure Windsor is equitable and fair to industrial taxpayers to ensure future growth in our community.”

The Chamber offered to work with the City of Windsor, through the Chamber’s Finance & Taxation Committee to develop a longer-term financial plan to ease the level of taxation and remake the tax classes system to restore fairness in our municipal business taxation.

For a copy of the Chamber's Presentation Click Here.

Provincial Budget Released...

Wednesday, may 11th, 2005

The Ontario Finance Minister Greg Sorbara has tabled his spring budget. Providing comments on the 2005 Ontario Budget, the Windsor & District Chamber of Commerce Finance & Taxation Committee stated that "fundamentally the Provincial finances improved on the basis of the strong corporate profits and the Corporate Tax Revenue, something the government may not count on in the following year. 

The Committee also noted that the increase in the electricity rate for large corporations effectively increase the cost of doing business in Ontario. There were no border infrastructure announcements and no specific reference to the importance of the Windsor-Detroit Border crossing to the Province. 

The government will not balance its books until 2008-09 which is one year later than stated by the government and years later than the Chamber's recommendation for a more aggressive timeline for eliminating the deficit. 

The Budget provided significant spending increases in the area of Postsecondary Education and an increase in health care spending. The Budget could be characterized as a spending budget that did not go far enough to address the need for fiscal discipline when the Province is experiencing a deficit situation. 

The projections for the growth in the GDP of 3.4 % and the revenue projections seem high considering the state of the national economy and the increase in the energy costs, as well as the higher value of the national currency."

The Ontario Chamber of Commerce was in the budget lock-up and is pleased to provide a quick analysis. We also include some resource documents for our members.

OCC Media Release (MS Word)

Media Release Template- for local customization (MS Word)

2005 Provincial Budget Matrix- completed with OCC budget analysis

To access the Ministry's budget information, click here

CHAMBER EXPECTATIONS FROM THE 2005 ONTARIO BUDGET

Ontario’s Economic Outlook

The members of the business community, including Windsor & Essex County, are less optimistic about the state of the Ontario economy and their own company’s performance expectations for 2005. Nearly half the members answering an Ontario Chamber of Commerce survey in January 2005 believe that the economy will perform “about the same” as in the previous year.

Outlook for Windsor & Essex County

The Windsor & District Chamber’s economic outlook shows that ongoing border issues and the strength of the Canadian dollar have hurt the Hospitality and Tourism sector and have dampened the growth expectations in industries dependant on trade with the United States.

The overall outlook remains cautiously optimistic, however, and we can overcome the weaknesses by cooperating with the public sector. The Provincial Budget has to address some of the factors that have the potential to increase local growth prospects.   

EXPECTATIONS

Emphasis on Economic Growth

The top priority for the Government in the upcoming Ontario Budget should be the creation of a new generation of economic growth in the Province. The second priority should be the need for the government to be fiscally responsible to its taxpayers and the business community by eliminating the deficit and reducing its debt. The Chamber expects that only strong fiscal discipline will be able to pull Ontario from its current financial difficulties.

The Windsor & District Chamber of Commerce believes that the Ontario government’s fiscal and economic goal should be to make Ontario the most competitive jurisdiction in North America. It is critical that the province remain focused on Ontario’s competitiveness.

To that end, the 2005 Budget should reduce the overall level of taxation for businesses in Ontario as outlined in our recommendations for the level of taxation in the Province. The Chamber believes that reducing the level of the corporate income tax, property tax and retail sales tax will encourage investment in capital and creation of new jobs in Ontario.

The Deficit

The Chamber is disappointed with the budgetary performance as the budget is expected to show an even larger deficit this year. We acknowledge the accounting practices in the energy sector have played a role for this anomaly from the previous year. This, however, is a strong indicator and should be addressed by the government reorganization and overhaul of the sector that is critical to our economic prosperity. The government must restore the confidence of the business community in its energy policy.

Debt Reduction

The Chamber still sees reduction of the Debt as a priority for the Ontario government once the current deficit is eliminated. Our position on debt reduction remains unchanged from last year. The government of Ontario must take steps to reduce the debt-to GDP ratio to 15% by 2010.

While we accept this as a reasonable plan to solving the financial difficulties of the Province we believe that fiscal discipline with a goal of finding substantial savings in its operations can be achieved and should be a guiding principle for the government.

Level of Taxation

The Windsor & District Chamber of Commerce continues to advocate for the removal of profit-insensitive levies, primarily the corporate capital tax, which is a key inhibitor to Ontario’s corporate competitiveness. The capital tax is counter-productive and has a significant impact on the province’s competitiveness and ability to attract new investment. Canada remains the only G7 country to levy the corporate capital tax, which we believe hinders investment. 

The provincial government should move to eliminate this tax and reassure investors by, at the very least, matching the federal government’s timetable for removing the large corporations tax, through successive years of rate reductions and increased exemption levels.

The Chamber has been encouraging the Province to promote economic growth by working toward low and equitable taxation alongside efficient and effective regulation. Reductions in the Personal, Property and Corporate Taxes remain as tax priorities for our Chamber. Last year’s income tax increase (The Ontario Health Care Premium) may have a negative financial effect on the businesses, particularly those that are contractually obligated to pay the new Ontario Health Care Premium on behalf of the employees.

The Ontario Chamber of Commerce has put forward a long-term “Tax Package” Strategy that could, if implemented, have significant economic benefits for the province so that the Ontario government may be able to further invest and enhance public services. Key components of the “Tax Package” Strategy are:

·          Streamlining corporate tax collection

·          Harmonizing the sales tax system and

·          Eliminating the Ontario capital tax

SPENDING PRIORITIES

The Windsor & District Chamber of Commerce believes that to achieve a balanced budget and reduce the debt the government of Ontario should limit its spending on key priority areas and reduce its expenditures in others.

The top policy priorities for businesses across the province are health care, education, energy and transportation. The Windsor & District Chamber of Commerce agrees with these priorities. The Chamber also believes that the investment in Border related infrastructure for the Windsor-Detroit Border crossings and the emphasis on stimulating economic development growth are immediate priorities that must be addressed in the 2005 budget.

Border Infrastructure

The Windsor-Detroit Border issue is critical to all Ontario businesses, especially the auto and auto parts industry, and is much bigger than a local municipal jurisdictional issue. The list of businesses and sectors affected adversely by border delays in our local community is larger yet, and it includes the Hospitality and Tourism, Greenhouse and Retail sector. The Chamber deems the Border related issues to be the top priority for the government as it affects the economic well being of our local Community, but also the Province and the country.

In January the Windsor & District Chamber of Commerce endorsed the Schwartz Report commissioned by the City of Windsor to outline a local solution to the Border issue. The Ontario Chamber of Commerce has adopted a resolution put forward by the Chamber that urges all levels of government to make the investments necessary to implement the Schwartz Plan.

The Province has taken significant steps to recognize the importance of this plan by its support and allocation of funds for environmental assessment along the transportation corridors recommended by the Schwartz Report. The Chamber will be looking for Budget items that will speak to this Provincial commitment.

Health Care

Windsor and Essex County continues to experience a shortage of health care professionals. This year’s budget should address some of the issues associated with this problem, such as accreditation of foreign trained health professionals.

Energy

The Chamber has put forward a resolution, adopted by the Ontario Chamber of Commerce in the area of Energy. The Chamber believes that conservation of electrical power has the potential to be a significant cost saving strategy in generating and using electricity in Ontario. This approach has significant effects and benefit to the natural environment. The Chamber urged the government of Ontario to Continue to advance Conservation initiatives related to the use of electrical power.

Postsecondary Education

The Windsor & District Chamber of Commerce was pleased with the decision by the Government of Ontario to commission a review on Postsecondary education in Ontario led by former Premier Bob Rae. This was a necessary step to ensure our province is competitive and that we have a sustainable economic prosperity for our future generations. The Chamber participated in the consultations conducted by Bob Rae and has supported the subsequent Bob Rae Report.

Postsecondary education is one area that will directly benefit the future for our children and grandchildren. Reinvestment in Ontario’s postsecondary institutions will help alleviate the financial pressures identified in the Bob Rae Report. The 2005 Provincial Budget should provide better funding for postsecondary education, training and apprenticeship, making an investment in our future generations.

Microsoft Word Document

Ontario Chamber of Commerce 2.

2004 Federal Budget

On March 23, 2004 the Windsor & District Chamber of Commerce held a news conference covering the 2004 Federal Budget speech from the House of Commons and providing comments to the local media. 

Among the Chamber's comments, delivered by members of the Chamber's Finance & Taxation Committee, and later carried by the local media, were the following statements.

Ed Kanters, Chair of the Chamber's Finance & Taxation Committee

Ed Miles, Member of the Chamber's Finance & Taxation Committee 

Art Belanger, Member of the Chamber's Finance & Taxation Committee 

Also at the 2004 Budget news conference was Federica Nazzani, a member of the Finance & Taxation Committee. 

2003 City of Windsor Budget

Letter to the Mayor and Members of Council 

The Windsor & District Chamber of Commerce has sent a letter to City Council on the day of public deliberations for the 2003 City of Windsor Budget.  

Our Chamber commented on the delayed Budget Process and the lack of early consultations with sufficient time to analyze the Draft Budget. The 

  Chamber also calls for the City of Windsor not to raise taxes when property assessments are increasing. The Chamber is pleased with the recent  announcements of reorganization of city administration  if they lead to a more efficient and effective City Hall operation. 

For the full text of the letter  click here. 

2003 Provincial Budget

   2003 Provincial Budget

On Thursday, March 27th Ontario Minister of Finance Janet Ecker presented the Provincial Budget live via satellite to four locations... Full Story 

    For the Budget Speech click here

    To view our Pre Budget Release click here

    To view our Pre Budget Presentation click here

   March 28, 2003

   The Provincial Government Unveils 2003 Budget

Budget Report

In its release on Thursday March 28, 2003 the Windsor & District Chamber of commerce called for several budget initiatives to give our business community a competitive edge and a better business climate. While maintaining a balanced budget our Chamber extracted some of the key items from our pre-budget submission that we wish to see in the new budget. Among them are the reinstatement of tax cuts delayed in the last provincial budget, increase in regional level of funding for health care and the need to address the gridlock and border capacity. 

The government had taken steps in both respects by its commitment to reduce the capital tax by 10%, effective January 2004, and to eliminate the tax altogether in step with the federal government. There is no specific date for the elimination of the capital tax even if the federal government has committed to a deadline of 2008. 

There was an omission in the budget about border issues. There was no mention of the problems facing Ontario businesses in terms of bottlenecks at critical border crossings like Windsor-Detroit, carrying 90% of Canada’s exports. 

There was a positive tax incentive for companies that self-supply energy. 

There is a great uncertainty in how these budget commitments will be implemented because of the fact that the government has projected revenue to increase by 7.8%. The prediction of real GDP growth at the 3% level, year after year, may be ambitious given the current economic climate. There is a lot of uncertainty in the global economy to undermine this scenario. The government is committed to spending increases yet the revenue picture remains uncertain. 

Urban issues also remain worrisome because of the serious funding gaps, uncertainty and lack of direction from the provincial government.

  March 27, 2003

    The Ontario Chamber of Commerce post budget release

     2003 Ontario Budget Speech    

     Windsor & District Chamber of Commerce Release    

    Provincial Budget to be Broadcast Live to Selected Locations

On Thursday, March 27^th Ontario Minister of Finance Janet Ecker will present the Provincial Budget live via satellite to four selected locations: Thunder Bay, Ottawa, London and North Bay. Representatives of organizations that participated in pre-Budget consultations with the Minister of Finance have been invited to attend along with MPPs who will host the events. The Ontario Chamber of Commerce (OCC) will inform its members of the budget details after the broadcast, having been in the pre-budget lock up at the Ministry of Finance to review the budget documents prior to their release on Thursday. 

Windsor & District Chamber of Commerce submitted a provincial pre-budget submission to the Ministry of Finance at the February 7th Minister's round table. The views of the business community and a submission were presented to the Honourable Janet Ecker, Minister of Finance. 

From the Ontario Chamber of Commerce:   

A pre-budget release

A pre-budget submission

For more information you can also link to the Ministry of Finance website 

     February 19, 2003

     Canadian Chamber of Commerce Budget Analysis

      February 18, 2003

      Link to the Federal Budget Website

      The Canadian Chamber of Commerce

     2003 Federal Budget      

       February 17, 2003

Windsor & District Chamber of Commerce Federal Pre-Budget Assessment

As the federal government is set to deliver its budget we are anticipating the Finance Minister John Manley to announce significant spending increases by the federal government. The Windsor & District Chamber of Commerce has always supported a strong fiscal discipline from governments especially in the area of spending. We welcome all federal funds that will help our business community in coping with their expenditures. We strongly support greater transparency, accountability and prudent review of spending programs to ensure that these resources are not being wasted.

More spending on Health Care to improve our publicly funded health coverage makes good business sense and, like all other anticipated spending increases, needs to be done within a balanced budget framework while maintaining a competitive business environment. This growth in spending needs to be sustainable and should not lead to deficits or tax increases.

Our Chamber would further stress the need to relieve the business community and Canadian taxpayers from the already high tax burden. Elimination of Capital Taxes and addressing our personal income tax will be a step in the right direction for the federal government in stimulating growth in our economy. The burden of our debt should also be addressed; the same should be reduced and maintained at a smaller percentage of our GDP.

The following points are the Chamber’s recommendations for the federal budget:  

·         The Windsor & District Chamber of Commerce believes that the Canadian government should not return to deficit financing.

·         Federal government debt as a share of GDP should be reduced to 30% (from the current 49.1%) by 2010. 

·         Our Chamber is expecting to see in the budget that the government is implementing a strategy that will “reallocate funds from programs that have already served their purpose to those that meet the immediate needs of Canadians.” 

·         The government should limit growth in spending to approximately three per cent per annum in order to maintain the real value of government programs to Canadians. The new needs that arise must be accommodated within this budget constraint. 

We will also be anticipating progress in the budget in the following priority areas of tax policy: 

·         Eliminating capital taxes

·         Raising the RRSP contribution limits 

·         Further reducing Employment Insurance (EI) premiums to get to the break-even level rate (i.e. the level where premiums collected equal the amount required to fund program payouts) as soon as possible. We would like to see the EI operate as a true insurance program respecting its original goal to provide insurance against unintended unemployment.  

·         Addressing our country’s very high marginal personal income tax rates (all income levels). 

·         Reducing the Air Travelers Security Charge, which is excessive and does not have a clear link between the fees that air passengers are paying and the level of security service they receive. 

      The Windsor & District Chamber of Commerce believes that by implementing the recommendations we have outlined would ensure that the federal government increasingly plays a positive role in maximizing long-term economic growth. It will ensure a higher standard of living in the future and improve our competitiveness in the international arena.  

             The Federal Budget Speech 

            2003 Federal Budget (February 18, 2003)

            Chamber's recommendations and response to the 2003 Federal Budget.