Finance Committee on Nov. 5th, 2012

[Ray Cuthbert]

Unfortunately, I am not aware of the response.

[Tamara Miller]

The general response after the last budget was fairly positive. The CFIB, in fact, has asked for it to be extended yet again, which was done in budget 2012.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Has there been any other response from any other groups, from a positive or negative perspective, that you are aware of, Ms. Miller?

[Tamara Miller]

The general response in terms of doing a communications and media scan has been relatively positive. Certainly, the organizations that have raised the issue in pre-budget consultations have talked favourably of the credit from last year.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Is the expectation by the government that small businesses will hire more workers as a result of this credit?

[Tamara Miller]

That's the stated intent in the budget, yes.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Is there any other outcome that is expected or has happened as a result of this in past years?

[Tamara Miller]

There have been lower insurance premiums.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

It sounds like a really good-news story all around.

[Tamara Miller]

Yes, it has been positively received.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you very much. Those are all my questions, Mr. Chair.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Jean.

We will go to Ms. Nash, please.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Thanks very much.

On that point about how this tax credit is specifically going to work, can you tell me how long a person would have to be hired in order for the business to qualify for the credit?

[Ray Cuthbert]

I don't think it's a matter of one individual being hired; it could be a number of individuals being hired. Depending on how much in employment insurance premiums is paid by that number of employees, the employer has to match—actually, it's 1.4 times what the employees pay. We're looking at the employer premium increase. It depends upon how many employees might be with the organization, how many might be hired; it's not geared to one individual.

I'm not sure whether I've answered your question.

[Peggy Nash, NDP, Parkdale—High Park, ON]

So it's an aggregate number, and as long as there's an increase, then that business would qualify for the credit.

[Ray Cuthbert]

That's correct.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Can you tell me what the threshold is to qualify? Is there a threshold? Is it any increase, or how much of an increase is it?

[Ray Cuthbert]

As long as the employer premiums in 2011 were $10,000, that's the criterion to be eligible for it.

It could be any amount of increase. It has to be over two dollars to be credited, but it's up to a maximum of $1,000.

[Peggy Nash, NDP, Parkdale—High Park, ON]

What would the premium be to get the maximum credit?

[Ray Cuthbert]

I'm not sure....

[Peggy Nash, NDP, Parkdale—High Park, ON]

What would the premium level that an employer pays be, to get the maximum credit of $1,000?

[Ray Cuthbert]

I don't think there would be a premium level that the employer would pay to reach the maximum. It really depends upon how much they pay in premiums in total. Employers pay 1.4 times what an employee pays. It really depends upon the aggregate amount. There is no premium level.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Are you saying that it's a minimum of $10,000 that they would pay? Is that the level at which they would qualify for any kind of...?

[Ray Cuthbert]

That's correct. If they're under $10,000, they could qualify for a credit.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Thank you.