Thank you, Madam Chair and members of the Standing Committee on Finance. On behalf of the Medicine Hat and District Chamber of Commerce, I extend our sincere gratitude for the opportunity to present to you today.
Our primary concerns related to our pre-budget submission of July 2012 are as follows.
Commercial border services. It would be beneficial for the Canadian government to invest in border initiatives, ensuring there is a financial capacity to guarantee the hours and services of ports of entry, consistently matching the U.S. border standards on both traveller and commercial services. Additionally, the Canadian government needs to invest in border services in Alberta and implement budgetary resources and a plan for an extension of hours at the Wild Horse port of entry to ensure there is a second 24-hour commercial border crossing in Alberta. With a population of close to four million and the fastest growing GDP in the country, Alberta remains the only province with one 24-hour port of entry.
Investment in citizenship and immigration. The federal government's temporary foreign worker program and Canada's provincial nominee program are important components of Canada's labour strategy. However, changes in how the programs are implemented and integrated federally are urgently needed. Change is needed to reform processes to increase Canadian businesses' ability to compete domestically and globally. In Canada, employment is projected to reach 35.2 million in 2055. The labour force is projected to reach 22.8 million in the same year. Therefore, the demand for labour would exceed the supply of labour by 13.9 million workers. As a chamber of commerce, we ask for investment and consideration toward the foreign worker program to assist in alleviating the increasing labour gap.
Tax indexing. The value on new housing rebates has not changed since 1991, and we are requesting that the government evaluate and look at increasing the value on GST and HST particularly on new housing rebates or index the values of inflationary rates.
Charitable tax credits. In order to provide a greater focus on fundraising and individual donations, the Government of Canada should establish higher tax credits for donations and provide less direct funding to charities. This will provide a greater incentive for individuals and businesses to provide donations to charities of their choice.
HST exemption from managed assets. On July 1, 2010, the federal government facilitated the implementation of harmonization of the GST with provincial sales tax in Ontario and B.C. While providing streamlined reporting and numerous cost savings for business, the implementation of the harmonization has resulted in Canadian investors paying the price on their retirement assets. Investors are paying GST on management fees for mutual funds, segregated funds, exchange traded funds, hedge funds, and managed pension plans. With the harmonized sales tax, asset management services are now subject to the combined tax rate. Therefore, we request that the federal government continue to assist Canadians to save for the future by exempting asset management services from the goods and services tax.
Red tape reduction. We commend the Government of Canada on its red tape reduction action plan, and we encourage continued investment in reducing unnecessary regulations and bureaucracy through the recommendations provided by the red tape reduction commission. The disproportionate impact on small firms is especially important given that the SMEs are a critical driver of the Canadian economy, and firms with fewer than 50 employees account for 97% of companies in Canada. Businesses feel that much of the regulatory requirements are unneeded and provide no further benefit or added value. Instead, the regulatory burdens are increasing the cost to taxpayers and to business.
Support to ranchers in the removal of specified risk material. Since 2007, increased costs associated with the removal of specified risk material from cattle has caused significant cost disadvantages for Canadian cattle producers, processors, and veterinarians. In order to maintain slaughter capacity and restore competitiveness in the Canadian cattle industry, the federal government should work to implement regulatory reform and policies to offset the costs and harmonize regulations with the United States. We would ask the federal government to invest in working with the cattle industry to determine a cost-effective solution to the removal of specified risk material.
Investing in the Canadian Forces and training. The Canadian Forces bases invest heavily in their surrounding communities....
Yes?