GNCC Letter to Finance Ministers on Canada Pension Plan Reform

June 6, 2016 | Advocacy, Blog, Federal Advocacy, Latest News

On June 20-21, the Government of Canada will meet with the provincial governments in Vancouver to discuss reforming the Canada Pension Plan (CPP). Like our counterparts at the Ontario Chamber of Commerce and the Canadian Chamber of Commerce, we are afraid that the bill for enhancements to the CPP will fall on businesses, who are already hard-pressed by the rising cost of doing business in Canada and Ontario.

We have requested that Bill Morneau, Minister of Finance in the Government of Canada, and Charles Sousa, Minister of Finance in the Government of Ontario, consider the pressure already on Canadian business in their deliberations. In our letter to both ministers, we suggested that any enhancements to the CPP should be voluntary, and funded by employees. Read our letter to Minister Morneau below (an identical copy was sent to Minister Sousa).

 

 

The Honourable Bill Morneau, P.C., M.P., Minister of Finance
House of Commons
Ottawa, Ontario K1A 0A6

 

Dear Minister:

We congratulate you on your decision to meet with the provincial governments on the subject of pension reform in Canada. Closer cooperation between the provinces and the federal government will be a key factor in building prosperity in Canada, and we are glad to see efforts such as this.

The Greater Niagara Chamber of Commerce is the largest business organization in the Niagara region, and the third largest Chamber in Ontario. We represent over 1,550 members, employing more than 45,000 people. The Chamber Accreditation Council of Canada has recognized the Greater Niagara Chamber of Commerce with its highest level of distinction.

We wish to relay the grave concerns of our membership, and of the business community in general, on the subject of pension reform. In a time when the costs of doing business are rising, businesses are worried that additional, mandatory pension contributions, which effectively function as payroll taxes, will be another burden that they cannot afford. Many fear that pension program changes will compel them to downsize, lay workers off, delay or cancel expansions, and even to close their doors.

At the Greater Niagara Chamber of Commerce, we share the opinion of the Ontario and Canadian Chambers: too many businesses can afford neither mandatory increases to the Canada Pension Plan (CPP), nor the increases forthcoming in the Ontario Retirement Pension Plan (ORPP). Enhancements to the CPP must be voluntary and paid for by employees.

We suggest that employees should be able to contribute higher amounts to their CPP. Employees should be able to increase their contribution over the current 4.95% level, up to 6.85%, as suggested by the Canadian Chamber. This would take steps to resolve pension shortfalls while not imposing additional costs on businesses.

We realize that the interests of citizens, both as workers and as future retirees, and fiscal considerations for government are very important to this issue, but we hope you will also consider the interests of the businesses who employ those citizens, drive the Canadian economy, and have to bear this burden.

Yours sincerely,

Mishka Signature

Mishka Balsom
President & CEO, Greater Niagara Chamber of Commerce

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Pension Intervention: How to Fix the CPP without Tanking the Economy

May 31, 2016 | Network News

5 Minutes for Business: Pension Intervention: How to Fix the CPP without Tanking the Economy

On June 21, finance ministers are meeting to decide what to do with up to $800 billion of retirement savings. Here at the Canadian Chamber of Commerce, we’re worried a big tax increase is headed for the middle class like an elbow to the chest.

The government seems determined to increase contributions to the Canada Pension Plan, and the Finance Minister has said repeatedly that he hopes to reach an agreement with the provices by the end of 2016. With Ontario’s Retirement Pension Plan (ORPP) set to commence enrollment in 2017, the race is on to find a federal solution that will avert a patchwork of provincial programs cropping up.

This comes at the worst possible time—an economy reeling from weak commodity prices and slower consumer spending will be lucky to eke out growth of 1.5% next year. It’s difficult to stimulate the economy while pulling money out of the pockets of Canadians.

How much? The Canada Pension Plan (CPP) already costs 9.9% of one’s salary (shared equally by employee and employer). ORPP would add 3.8% (shared equally) on top of that, bringing us up to almost 14%. This is in addition to 4.5% for Employment Insurance as well as federal and provincial income taxes. All this would place Canada’s payroll tax burden up near the highest in the world (not quite France, but close), according to OECD’s report on taxing wages. Worse, the Conference Board estimates that ORPP would decrease household spending by $2.84 billion per year in the early years because benefit payments won’t start until 2022 and will be less than contributions until 2047!

We’ve all heard the argument that Canadians don’t save enough and we must act now! Actually, a study from McKinsey shows that 83% of Canadians will retire without significant adjustment in their standard of living. A report from CD Howe points out that the average income of Canadian seniors, adjusted for tax and family size, is 91% of the average income of working age Canadians and that seniors are better off financially than younger Canadians. Fred Vettese, who co-authored a book on retirement with Bill Morneau, says there is no retirement crisis because we understate certain income sources, such as real estate, and overestimate our spending in advanced ages.

The point is not that we should do nothing. Some workers are at risk: those who go from to job to job on contract find it more difficult to save. Seniors who depend on a spouse’s pension sometimes struggle when survivor benefits are clawed back. These folks should be helped with targeted programs, but the across-the-board ORPP will simply hurt the economy.

Instead, we can help the middle class by improving savings opportunities and providing better incentives. Firstly, the government’s recently announced increase to the Guaranteed Income Supplement will help the most at risk seniors. Secondly, Canadians, by default, should be “opted-in” to savings plans in order to provide the nudge they need, and savings incentives could be targeted towards those in the lower middle income levels. The government could also allow Canadians to voluntarily contribute more to the CPP. Finally, we need to emphasize personal choice and responsibility. The CPP is supposed to help us save, not guarantee income for all Canadians.

We hope that the finance ministers will not increase the tax burden on Canadian workers and businesses with sweeping increases. There are measures that could help us save without hurting our economy.

For more information, please contact :

Hendrik Brakel
Senior Director, Economic, Financial & Tax Policy
613.238.4000 (284) | hbrakel@chamber.ca

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Ontario Chamber of Commerce Addresses Minister of Environment and Climate Change on Cap-And-Trade

May 12, 2016 | Network News

Ontario Chamber of CommerceMay 12, 2016
Hon. Glen Murray
Minister’s Office
Ministry of Environment and Climate Change
77 Wellesley St W
Ferguson Block, 11th Floor
Toronto ON M7A 2T5

Minister Murray,

Thank you for your continued engagement with Ontario businesses as you move ahead with the implementation of Ontario’s cap and trade system. As outlined in our 2015 report, Clean Profits, and subsequent submissions, the Ontario Chamber of Commerce (OCC) and the province’s business community understands the need to address climate change. If designed effectively, the cap and trade system presents significant economic and environmental opportunities for the province.

Recently, the government introduced and received comments on Bill 172, Climate Change Mitigation and Low-carbon Economy Act, 2016 and its associated regulations. We hope the business community’s feedback is taken into consideration as the government moves ahead with the implementation of its cap and trade system.

The OCC was encouraged by the greater level of specificity contained in Bill 172 surrounding cap and trade revenue. The creation of a separate Greenhouse Gas Reduction Account to hold these funds, more clarity around authorized expenditures from this account, and annual reporting requirements are all positive steps towards transparency.

Despite these positive developments our members remain concerned with a number of aspects of the cap and trade system. We hope you will be able to provide greater clarity on these issues.

1) What will be the economic impact of the cap and trade system?

In Clean Profits, we urged the government to conduct and publicly release the results of an economic analysis of the cap and trade system, including sector-level impacts. This information is essential to help businesses and consumers understand how they will be impacted by a price on carbon. In particular, sector-level information is important to inform non-covered businesses that will not be directly subject to the carbon price, as the specific impacts of cap and trade on their business can be more difficult to determine.

We have not received any information regarding the projected economic impact of the cap and trade system in Ontario. We strongly urge the government to release the results of any analysis it may have undertaken as soon as possible, so that Ontario businesses can best prepare for the implementation of the new system.

2) How will cap and trade revenue be invested and administered?

While Bill 172 sets the parameters whereby cap and trade revenue can be spent, questions remain about how these funds will actually be used, and how the Greenhouse Gas Reduction Account will be administered.

The OCC continues to emphasize the need for cap and trade revenue to be reinvested into the business community. Directing cap and trade revenue towards efforts that facilitate businesses’ transition to a lower carbon economy, such as investments in low-carbon processes, technology, and other capital, will be essential for Ontario to meet the government’s ambitious greenhouse gas reduction targets. Providing transitional funding will also be critical to help prevent carbon leakage, or the relocation of operations to jurisdictions with no greenhouse gas reduction policies.

Currently, the mechanisms by which funds from the account will be distributed are unclear. Who will be eligible to receive this money? How could a business with a plan to reduce its carbon footprint access these funds? Which principles and criteria will be applied to evaluate and compare project proposals? How long will the application process take?

If this revenue is to help Ontario drive emissions reductions, then it must be available from the beginning. To provide for a wide range of solutions to reduce greenhouse gas emissions, access to this revenue should not be overly restrictive. We urge the government to finalize and communicate the details of revenue administration and distribution in advance of the launch of the cap and trade system, so that businesses are prepared to take advantage of this opportunity to reduce their carbon footprint quickly. Government should work with the business community to ensure that the mechanisms to access these funds are simple, fair, and transparent.

3) How, and when, will offsets be available?

Bill 172 sets out the requirements for the registration of offsets, but contains few other details. MOECC notes in the proposed regulation document that a separate offsets regulation will be proposed later in 2016.

Offset credits could play an important role in increasing the overall effectiveness of Ontario’s cap and trade system. Allowing covered entities to purchase offsets provides them with another vehicle to comply with their obligations under cap and trade, and can often be a lower-cost alternative. By allowing non-covered sectors to sell credits, an offset market can also provide an economic incentive for non-covered businesses to reduce their emissions. This expands the greenhouse gas reducing potential of the cap and trade system.

To play a role in cap and trade compliance, however, both covered entities and entities looking to sell offsets need much more information. How can offset projects be verified and registered? How can businesses buy and sell credits?

As such, we request that the government to finalize the details of offsets regulations and associated protocols as quickly as possible to coincide with the launch of the cap and trade system. If Ontario is to support a viable offsets market and drive further emissions reductions, credits must be available for covered entities to purchase soon after implementation. The OCC and our members would welcome an opportunity to work with you directly in the coming weeks.

4) What will the cap and trade system look like after 2020?

Certainty is essential to effective business planning and risk mitigation. Businesses in Ontario have little insight into what the design of Ontario’s cap and trade system will be after 2020. While we understand that the government is focused on getting the cap and trade system ready for a 2017 launch, post-2020 design elements are important considerations for businesses looking to make long-term investments in the province. In particular, many covered entities are wondering whether some free allowances will be carried over into future compliance periods. This has been done in other jurisdictions to maintain competitiveness and reduce carbon leakage.

We urge the government to, where possible, increase the clarity of system design beyond the first compliance period.

Overall, we continue to hear that businesses are feeling uncertain about the incoming cap and trade system and unprepared for its full implementation next year. To produce the most effective environmental and economic outcomes, it is important that government takes the time get the design of cap and trade right. This was underscored at the OCC’s recent Annual General Meeting, where the Ontario Chamber Network voted to support the delay of cap and trade implementation to allow government and the business community more time to prepare. As such, we encourage the government to consider delaying the implementation of the cap and trade system until 2018.

The OCC and its membership understand the need to address climate change and will continue to contribute to this conversation. We welcome engagement with the Ontario government and the broader business community as government moves ahead with the implementation of the cap and trade system. Providing clarity on these and other questions will be essential to create a system that reduces emissions while fostering the conditions necessary for continued economic growth and prosperity.

Sincerely,

Allan Odette
Allan O’Dette
President & CEO
Ontario Chamber of Commerce

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Navigating the Storm – How to Deal With a Volatile Global Environment

April 19, 2016 | Network News

Navigating the Storm - How to deal with a Volatile Global Environment

By: Mark Wiseman, CEO of the Canada Pension Plan Investment Board

I am quite excited to be the first guest writer of the Canadian Chamber of Commerce’s 5 Minutes for Business. Although our country represents only about 3% of the global economy, we have a wide array of world-class companies. Banking, mining, and oil and gas tend to hog the spotlight, but Canadians are breaking ground in areas like robotics, retail and pharmaceuticals (not to mention pension fund management). Our business community makes me proud, and it’s a pleasure to be able to address it here.

Amidst all of our collective successes, there is no doubt that our economy is still going through a difficult period. At the Canada Pension Plan Investment Board (CPPIB) our fiscal year ends on March 31, so I was reflecting on the past twelve months. Oil prices shrivelled and Toronto’s stock market was down 6.6%. But Canadians are in good company. Stocks had fallen 5.3% in the U.K., 11.1% in Japan, and China’s A-shares lost nearly 20% of their value over the last twelve months (after being up 39% during the March-June, 2015 period). The U.S. managed to take the trophy by eking out a 1.8% gain.

I thought back to September, when I visited our office in Brazil. Just as I boarded my flight home, S&P downgraded that country’s government debt to junk status, following a 9-month slide of nearly 40% for Brazilian equities. A short time later I was in Asia and reporters were asking me why we were still looking to invest in China amid that country’s stock market crash. It’s not hard to find something for a global investor such as CPPIB (we have offices in 7 countries and invest approximately $280-billion around the world) to worry about, and I’m constantly being asked how we deal with this type of environment.

The truth is our situation is very unique. CPPIB’s exceptionally long investment horizon, coupled with our funding model, enables us to withstand more volatility than other pension plans. Other factors, such as the certainty of our assets, also help allow us to be unusually patient investors. Indeed, as we work to grow the Canada Pension Plan Fund, not only for today’s contributors but for future generations, the prudent thing for us to do is to take on a bit more risk than most other plans. We can withstand occasional losses, even significant ones, in pursuit of higher long-term returns.

So while the impacts of lower oil prices continue to spread and Brazil’s economy suffers through a dramatic reversal of fortunes, at CPPIB we can continue to hunt for good opportunities in these types of markets. Yes, Chinese growth is failing to meet economists’ expectations. But when you look through a long-term lens, you see that that country will still be the dominant driver of the global economy. For CPPIB, significant market challenges often create some of the best investment opportunities.

Last month Finance Minister Bill Morneau asked me to sit on his 14-member advisory council on economic growth. As the press release states, the council is tasked with “finding ways to overcome the challenges posed by an aging population as Canada seeks to achieve sustainable, long-term growth.” Amid challenges there are opportunities. I referred at the outset to the pioneering work that Canadians are doing in a wide array of industries. I believe that the current difficulties the economy faces will create new business opportunities for enterprising Canadian companies that find solutions to evolving problems. When I consider this country’s long-term potential, I can’t help but be optimistic.

For more information, please visit: CPPIB.com

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Canadian Chamber of Commerce – Connections, April 2016

April 15, 2016 | Network News

Connections... get plugged into your network

NDP Private Member’s Bill (PMB) would disrupt our economy if passed
Bill C-234, sponsored by NDP MP, Karine Trudel (Jonquière), is the latest in a series of PMBs that have been introduced over the past decade that propose to prohibit federally-regulated employers from using temporary replacement workers during a labour disruption.

Federally-regulated businesses provide essential services to Canadians that touch their lives including telecommunications, transportation and broadcasting. Denying these companies the ability to use replacement workers to keep providing these services during a work stoppage would have ripple effects throughout the entire economy, including:

  • Marine shipping grinding to a halt affecting annual deliveries to the Arctic as well as international trade and supply chains throughout the country.
  • Air and/or rail transportation shutting down leaving passengers – and goods – stranded.
  • Telecommunications service disruptions remaining unresolved affecting voice and data communications including the internet.

If passed, Bill C-234 would result in a near total prohibition on the use of temporary replacement workers. Under this bill, workers could only be replaced (1) with managers, superintendents, etc. or (2) in the event employer property is at risk of destruction or serious damage. Under all other circumstances, an employer would find itself in a situation where it could not continue to operate in the event of a strike.

Proponents of a ban on the use of replacement workers argue that it would reduce strike activity. However, the vast majority of employers under federal jurisdiction are large companies with many employees represented by sophisticated labour unions. Relationships are long-standing, mature and working effectively under the Canada Labour Code. In the past three years, the federal sector has seen limited strike activity – three strikes in 2013, five in 2014 and 12 in 2015. Bill C-234 is a solution to a problem that does not exist.

If you or your colleagues are meeting with members of Parliament, we ask that you flag your concerns with this bill and the harm it could cause to all Canadians if passed. We have developed a “leave-behind” document that you may wish to share with your MP — either in meetings or electronically.

For more information, contact Susanna Cluff-Clyburne, director, parliamentary affairs, scluff-clyburne@chamber.ca.

TPP consultations – business needs to be heard!
The House of Commons Standing Committee on International Trade is conducting a study on the Trans-Pacific Partnership (TPP) agreement. The committee’s primary objective is to assess the extent to which the agreement, if implemented, would be in the best interests of Canadians. The study will result in a report to be presented in the House of Commons.

As part of its study, the committee is inviting Canadian individuals and organizations to provide written submissions that express their views on the TPP agreement. The committee is also inviting Canadians to request to appear as a witness before the committee, either as an individual or as a representative of an organization.

Next week, the committee will have consultations in a number of cities in western Canada. But individuals and organizations can also provide a written submission and must do so before 23:59 EDT on April 30, 2016. Written submissions are to be no more than 1,500 words. (More information on the process for providing a written submission can be found in the Guide for Submitting Briefs to House of Commons Committees. Written submissions should be emailed to: ciit-tpp-ptp@parl.gc.ca.

In the fall when TPP negotiations concluded, we shared an FAQ document with you that speaks to questions you/your members may have about the TPP. We also held a teleconference call, which we recorded and you can still listen to.

Should you have specific issues that you are unclear on or unsure of, please send us a quick note; we’d be happy to discuss any thoughts you may have.

When it comes down to it, the government needs to hear from business – not just the naysayers; this is an important agreement and opens the doors of opportunity for Canadian enterprise. Let’s have the voice of business be heard!

Publications update:
This week we released our latest report entitled Canada’s Next Top Trade Barrier: Taking International Regulatory Cooperation Seriously.

Nearly every international business has a horror story about getting its products approved in a new market. From redesigning a headlight because it tilted a few degrees higher to losing a shipment of cookies at the border because they were made with regular (unfortified) flour, companies from all sectors spend enormous amounts of money and time navigating and complying with a vast web of divergent regulations.

Good regulation is a force for competitiveness. Demanding and evidence-based regulation protects the health, safety, environment and pocketbooks of Canadians. It builds trust with consumers and gives companies confidence to invest. But Canada’s rules do not carry much weight with its trading partners, who prefer to create their own rules. Sometimes Canada, too, fails to recognize when others get it right. So the world is left with a patchwork of divergent regulations that gums up supply chains and undermines international trade and investment.

So what is Canada doing about it? Its free trade agreements are good at taking down tariffs, but they have not had much success with regulatory issues. Our report explores this important gap in Canada’s trade policy and outlines a new international regulatory cooperation strategy for the federal government. Please feel free to share the report!

Also… as he paces about the office waiting to be a new dad, we’ve given Hendrik Brakel a break from authoring 5 Minutes for Business, but it needs to roll off the presses none-the-less. We’ve got some guest authors lined up so, next week, watch for Mark Wiseman, president and CEO of the CPP Investment Board, our first guest columnist.

Rethinking the Business Model? Strat planning on steroids
Our chief operating officer Guy Legault has been serving a dual role this year; he’s got a busy day-to-day role at the Chamber – overseeing our operations and, after hours, he’s the chair of the Canadian Society of Association Executives (CSAE). Guy came to us with a world of association/not-for-profit experience. As many involved in the membership world know, the membership model is shifting and changing. You know it. We know it. There are new types of members, stakeholders and customers. And, we’re all looking for new ways to serve all of these groups with the same or shrinking revenues. But what to do about it? CSAE began a business model review in 2014 and work continues in 2016. Guy has been along for the work at CSAE and is now turning his experience and efforts to the Chamber.

The CSAE process has required “out of the box” thinking, some of which required going beyond the conventional wisdom of associations… i.e. that their only customers were current duespaying members. Widening their definition of “customer” to include association board members, “F-10s” (managers in the first decade of their careers) and “growth-oriented” associations was a critical step in fashioning a business model capable of generating significant future growth.

If you’d like to get a sense of what this type of process has been like, CSAE has shared two podcasts (part 1) and (part 2) with Guy and their CEO Michael Anderson on the business model review that CSAE is undergoing.

Let’s Talk About Growing Your Business │ Let’s Talk Exports – Annual Cross-Canada Tour | April 26 – June 2, 2016
Let’s Talk Exports is your chance to get the most up-to-date information available on what the global economy has in store for exporting businesses of all sizes, in all sectors.

Volatility struck global markets with a vengeance in the opening months of the year. Stock markets, commodities, sovereign bonds and currencies were all swept up in the wild ride. Are the wheels of the world economy getting loose? Is this the natural point for another global recession, or is the cyclone contained? And will there be an end to the commodity price plunge? Is Canada’s winning streak at an end, or are there opportunities to pursue?

Join Peter G. Hall, VP & Chief Economist at Export Development Canada, to hear answers to these and other questions about the global economy and its effects on Canada, along with forecasts of the Canadian dollar, commodity prices and growth in your industry.

Visit Let’s Talk Exports for more information and to register. Located in Vancouver? This May, Let’s Talk Exports will be the keynote session at the half-day Exporting Unleashed 2016 event.

Canada’s Resource Champions
We are pleased to announce two more Resource Champions Awards. Winners nominated fall into two categories: individuals or corporations.

Nominated as an individual champion, Steve Moran is president and CEO of Corridor Resources, an Eastern Canadian junior resource company, engaged in the exploration for and development and production of petroleum and natural gas in eastern Canada. Steve was nominated by Valerie Roy, president & CEO, of the Atlantic Chamber of Commerce; you can learn more him by reading his nomination.

Our newest organization nominated as a Resource Champion, is Emera. Emera was created out of the privatization of the provincial Crown corporation Nova Scotia Power Inc. An energy and services company, Emera is based in Halifax. They were nominated by the Halifax Chamber of Commerce (NS). Read all about Emera in its nomination profile

Chamber news!
A new chamber joins the Canadian chamber network!
We are pleased to welcome a new chamber to our unique network of businesses: The Trent Hills Chamber of Commerce (ON), Nancy Allanson, executive director, nancy@trenthillschamber.ca.

New leaders in the network
Please join us in welcoming the following new chamber execs to the chamber network; if they’re in your region of the country — why not welcome them to the network?
Dustin Hemmingson, president, Bashaw & District Chamber of Commerce (AB), bashawcc@gmail.com.
Lisa Vanderkwaak, president, Beaumont Chamber of Commerce (AB), dvanderkwaak@embroidme.ca.
Britten Snatic, executive director, Beaverlodge Chamber of Commerce (AB), beavercc@telus.net.
Andrea Yaremie, executive director, Bonnyville & District Chamber of Commerce (AB), manager@bonnyvillechamber.com.
Chris Pinchin, secretary, Bow Island/Burdett & District Chamber of Commerce (AB), chamber@bowislandchamber.com.
Suzanne Jackett, president, Bragg Creek & Area Chamber of Commerce (AB), suzanne@braggcreekchamber.com.
Nathalie Benoit, manager, Chamber of Commerce of Drummond (QC), nbenoit@ccid.qc.ca.
Lorna Wood, manager, Dryden District Chamber of Commerce (ON), chamber@drytel.com.
Jonny Nielsen, president, Elk Point Chamber of Commerce (AB).
Anne-Marie Proulx, general manager, Chamber of Commerce of Gatineau (QC), aproulx@ccgatineau.ca.
Daisy Lachance, general manager, Chamber of Commerce of Lac Mégantic (QC), dg@ccrmeg.com.
Nancy Shaw, CEO & general manager, Greater Oshawa Chamber of Commerce (ON), ceo@oshawachamber.com.
George Brothers, general manager, Peace River & District Chamber of Commerce (AB), manager@peaceriverchamber.com.
Pieter Van Ewijk, administrator, Picture Butte & District Chamber of Commerce (AB), chamber@picturebutte.ca.

Congratulations… to Françoise Bertrand, president & CEO of the Fédération des chambres de commerce du Québec who was honoured recently by the Public Policy Forum for her exceptional contributions to public policy. In her acceptance remarks, Madame Bertrand said “I share this honour with the network of chambers of commerce first in Québec but across Canada, because working together: we make a difference!” You can read her acceptance remarks here.

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Greater Niagara Chamber of Commerce announces 2016 – 2017 Board of Directors

March 31, 2016 | Media Releases

Today, the Greater Niagara Chamber of Commerce (GNCC) announced the eight Directors elected by its membership to the Chamber’s Board of Directors. Six new Directors will join the Board’s existing Chair, Ian Kowalchuk, and Vice-Chair, Dave Shaw. The 2016 – 2017 GNCC Board of Directors now consists of 19 members.

Commenting on their appointment, GNCC Nominating Committee Chair Wade Stayzer said: “We are very pleased to add the talent and industry knowledge of these respected individuals to our Board. We are looking forward to their contributions as we continue to support Niagara businesses in their success.”

The six new members of the Board include:

  • Lisa Benger MBA, CHRL – Director Human Resources, Walker Industries Holdings Limited
    • As a HR professional with more than 15 years of experience, Lisa loves what Niagara has to offer, and is currently a Director for the Niagara Workforce Planning Board, as well as Co-Chair of the Niagara LIP Council.
    • Lisa works at Walker Industries Holdings Limited’s office in Niagara Falls.
  • Noel Buckley – President & General Manager, Scotiabank Convention Centre
    • For over 25 years, Noel has worked in the Canadian tourism and hospitality industry, previously serving as President of the St. Catharines Chamber of Commerce, President of Niagara Falls Tourism, and President & CEO of Ottawa Tourism.
    • Noel is the president & general manager of the Scotiabank Convention Centre in Niagara Falls.
  • Mark Cressman – Regional Director, Media Sales, Postmedia Network Inc.
    • Born and raised in Niagara, Mark has been in the media business for his entire career, and is currently responsible for more than 30 Postmedia properties throughout Ontario.
    • Mark currently lives in Niagara Falls with his wife and two young sons.
  • Scott Glover – Manager, Kalar Rd. Branch, Meridian Credit Union
    • As a life-long resident of the region, Scott is passionate about seeing Niagara grow, and is the past chair of the GNCC’s NEXTNiagara Council.
    • Scott is the manager of Meridian Credit Union’s Kalar Rd. Branch in Niagara Falls.
  • Bill Janzen – President, Future Access Inc.
    • As a passionate Niagara entrepreneur, Bill is committed to lifelong learning, and has always embraced risks and the pursuit of new opportunities on the path towards founding his own web design and tech support company.
    • Bill is the founder and president of Future Access Inc.
  • Holly Mundula – Manager, Business Services, FirstOntario Credit Union
    • Actively volunteering to make Niagara a better place, Holly is a lifelong St. Catharines resident that enjoys being involved with charitable community endeavours, including GNCC, JCI, Wise Guys Charity, and Wise Girls.
    • Holly is the manager of Business Services for FirstOntario Credit Union.

The Greater Niagara Chamber of Commerce is the champion for the Niagara business community. With over 1,500 members representing more than 45,000 employees, it is the largest business organization in Niagara and the third largest Chamber in Ontario. The Chamber Accreditation Council of Canada has recognized the Greater Niagara Chamber of Commerce with its highest level of distinction.

For more information and interviews please contact:
Mishka Balsom
CEO, Greater Niagara Chamber of Commerce
905-684-2361 ext. 227 or mishka@gncc.ca

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Horizon signs merger with GTA utilities

March 24, 2016 | In The News

Max Cananzi, president and CEO of Horizon Utilities, and Mishka Balsom, president and CEO of the GNCC, at the Niagara Business Leadership Series

St. Catharines homeowners should expect multi-year savings following a blockbuster hydro utility merger deal.

That merger of Hydro One Brampton with Horizon Utilities, PowerStream, and Enersource was announced Thursday, and followed municipal shareholder approvals.

If formally approved by regulators, it will create second-largest electricity distributor in Ontario.

At a Hamilton media conference, the move was forecast to push down annual electricity rates $40 per year for the average homeowner customer.

It will also add millions of dollars in dividends to municipalities, who own the respective utilities to be merged.

Municipal councils for the cities of Barrie, Markham, Vaughan, Mississauga, Hamilton and St. Catharines all voted in favour with the merger.

“This is a very historic moment,” said St. Catharines Mayor Walter Sendzik, who joined those mayors at the official signing held at Horizon Utilities’ office.

“The effects will have a generational impact,” said Sendzik, one of the speakers at the live-streamed event. “Those of us that have families (and children) that are young and really on the cusp of wanting to stay in their communities, this creates that opportunity.

Sendzik said the city’s strategic plan is built on the “four pillars of sustainability — economic, social, cultural and environmental.”

“When our council reviewed this merger opportunity it hit all the marks,” he said, pointing to dividends coming back to the city and allowing it to reinvest in culture.

He said environmentally, the merger is sensitive to climate change by “(exploring) alternative energy by looking at the different forms of energy distribution.”

In his speech, Sendzik said customers can also expect 5.9 per cent lower annual rates “through the entire 25-year forecast.” St. Catharines homeowners should average-out at $40 per year in bill savings over that period.

Annual dividends to the city should also bump up to $4.5 million, from $3.5 million, over that time.

The new company — which was called “Mergeco” as a placeholder name at the news conference — is subject to post-closing adjustments and regulatory approval from the Ontario Energy Board, anticipated to occur late this year.

Meanwhile, Ontario has now executed a Share Purchase Agreement with PowerStream (represented Thursday by Barrie, Markham, Vaughan), Enersource (Mississauga), and Horizon.

The purchasers have agreed to pay $607 million for Hydro One Brampton, which was represented at Thursday’s event by Ontario Energy Minister Bob Chiarelli.

“What we’re doing here today is a very significant transformation,” said Chiarelli at the event. “We’re celebrating a leap of wisdom … leadership and vision.”

Net revenue gains from the Hydro One Brampton sale will be dedicated to the province’s Trillium Trust to help fund transit, transportation and other priority infrastructure as part of the “Moving Ontario Forward” initiative.

“I think this will be a case study for universities to look at how to do this,” Sendzik said. “When you look at how this merger will have an impact on Ontario, we’re hoping other municipalities and other distributors will see how this will have a net positive impact.

“It will make us more competitive and provide relief for ratepayers that have been asking for it.”

Max Cananzi, Horizon Utilities’ president and CEO, said it’s possible the merged utility, when approved, could possibly add jobs to St. Catharines with the “shifting of some locations and functions.”

He said St Catharines “will be maintaining the current call centre location and the many jobs currently there. Service levels will be the same or better as a result of the merger.”

“It’s a really historic event,” said Cananzi, in that interview. “This is a milestone in the electricity sector in the province. We’ll look back at … the creation of an exciting, dynamic new company that St. Catharines is part of.”

In an interview after the event, Sendzik said the merger “will actually allow for a better customer experience.”

“We’ll have greater access to greater technology and the utility to address major concerns related to power outages,” he said.

Sendzik adds it provides local and regional “competitive advantage” with lower energy rates for all Horizon customers, including businesses.

Mishka Balsom CEO of the Greater Niagara Chamber of Commerce said the merger “results in reduced electricity costs and improved service for St. Catharines ratepayers.”

“Plus, it holds the promise of increased dividends for the City of St. Catharines, while maintaining the current jobs here,” Balsom said.

“One can only call this a true win-win situation.”

Thursday morning’s event was attended by Chiarelli, mayors for the shareholder communities of Mississauga (Enersource), the cities of Hamilton and St. Catharines (Horizon Utilities), the cities of Barrie, Markham and Vaughan (PowerStream)

donfraser@postmedia.com
Twitter: @don_standard

Original article: http://www.stcatharinesstandard.ca/2016/03/24/horizon-signs-merger-with-gta-utilities

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Previously in GNCC Advocacy

March 10, 2016 | Advocacy, Blog, Municipal Advocacy, Provincial Advocacy

Introduction

At the GNCC, we work hard to influence policy and build alliances and partnerships that will help your business prosper. In a new series of entries, we’ll try and tell you more about that aspect of our work, and how we’re working for you in the field of policy, advocacy, and government relations.

GO Train

Recently, we had some success on the GO front. The GNCC has been a strong supporter of the initiative to bring all-day, year-round GO train service to Niagara since its inception. When we made our budget recommendations to Queen’s Park, GO train for Niagara was one of them. The Government of Ontario’s budget reflected our recommendation, promising that they’d work towards bringing that service to Niagara and Bowmanville. The budget mention is the first real acknowledgement from the province of Niagara’s GO case, and it’s a positive one.

We’ve got to sustain that momentum and make sure Queen’s Park delivers. We’re working on that with a number of groups in Niagara, and we’ve held meetings with diverse groups like Niagara Region, the Mayor of St. Catharines, the Brock and Niagara College student unions, and the YMCA. MPP Jim Bradley, with whom we recently met to discuss the GO case, said we should get an announcement by the end of June.

VIA Rail

While that’s going on, we didn’t want to lose sight of long-haul rail service. VIA Rail used to run commuter trains to Niagara until 2012, when, due to a federally imposed 10% budget cut on all Crown corporations, it was stopped. We helped St. Catharines city councillor Bruce Williamson on his motion calling for VIA to investigate restoring service to Niagara, which passed unanimously. We recruited the assistance of Transport Action Ontario, an NGO that advocates for sustainable public and freight transportation, who provided expert advice.

We followed up by meeting with St. Catharines MP Chris Bittle and Niagara Centre MP Vance Badawey to ask for their help on VIA. They were both enthusiastic and are working to support this motion in Ottawa. Grimsby city council endorsed the demand for VIA Rail made in St. Catharines during their March 7th meeting, as did Pelham on March 9th.

Sharing Economy, Microdistilleries, & Provincial Issues

We met with Niagara West-Glanbrook MPP Tim Hudak and talked about a few topics, including GO, the Ontario Retirement Pension Plan (ORPP), Cap-and-Trade, and ride-sharing. We had previously endorsed Mr. Hudak’s bill that proposed a regulatory framework for “sharing economy” firms at the provincial level, which we think is very necessary. Mr. Hudak also told us about his new bill, nicknamed “FreeMyRye,” which aims at extending the same perks to microdistilleries that have been given to wineries and microbreweries – the right to sell by the glass on the premises, and the right to sell directly to restaurants. Seeing the boost that these practices had given to Niagara’s wineries and microbreweries, we endorsed this bill as well.

Ontario Chamber of Commerce Policy Resolutions

We sent three policy resolutions to the Ontario Chamber of Commerce (OCC) for their AGM. Firstly, we proposed that the government re-invest in promoting Canadian tourism, which has been sadly neglected in recent years to the effect that tourist numbers are actually in decline.

Secondly, we advocated that the government restore the SR&ED grant, which is a grant that the government gives to firms conducting research and development (R&D) and encourages Canadian innovation. As Canada is falling behind in R&D, we felt this was very important.

Thirdly, we proposed that if the Government of Canada ends up legalizing recreational marijuana use, they should do so under a regulatory framework that protects Canadians, especially our youth, and preserves consumer choice and competitiveness in the market for distribution and sale.

The Ontario Chamber approved all three policy resolutions at the committee level, and they will be sent up to the AGM for discussion. If successful, they will become part of the OCC’s advocacy platform for the next three years.

St. Catharines Budget 2016

We also offered our opinion on the debate surrounding the proposed 2016 St. Catharines budget, specifically, on the infrastructure levy. You can read our position statement here. In summary, while we don’t like tax hikes, we also understand that there is a $140 million infrastructure gap in St. Catharines, and we’ve got to address this if it isn’t to become a massive problem in the future. Further, if there are to be increased taxes, we prefer that they be small, incremental, and predictable, rather than huge and sudden as the result of deferred maintenance or the lack of a reserve.

On that basis, we supported the infrastructure levy as a reasonable step towards solving a problem that was only going to get worse the longer it was ignored. The budget passed on March 8th, and the motion to remove the infrastructure levy was lost.

Ontario Budget 2016

Going back earlier this year (normally these updates will be of very recent events, but since this is the first, we will go back further), we also participated in the budget processes for the Governments of Ontario and Canada. When we made our case to Ontario Finance Minister Charles Sousa, we called for infrastructure spending, particularly on transit in Niagara, and reiterated the case for GO train service in Niagara. We were pleased to see the results of that lobbying in the 2016 budget.

Federal Budget 2016

At the federal level, we wrote to Minister of Finance Bill Morneau and asked him to reinvest in Canadian research and development and in tourism (the same research was behind our policy proposals to the Ontario Chamber of Commerce). We also made these requests in person at the public budget consultations held by Niagara MPs Chris Bittle and Vance Badawey. The federal budget is expected on March 22, and we hope that our concerns will be reflected in the federal budget as they were in the province’s.

Ontario Retirement Pension Plan (ORPP)

The ORPP has become deeply unpopular with Ontario businesses for its high projected cost to businessowners, and for the lack of information about obligations and details. The GNCC has been working with the Ontario Chamber of Commerce, seeking to have the ORPP cancelled or at least to have its launch delayed until further details can be hammered out. Our efforts paid off when the Government of Ontario announced that the launch of the ORPP was being delayed a year, until January 1st, 2018.

Can GNCC Advocacy Help Your Business?

The GNCC works in advocacy and government relations on behalf of its members. If your business has an opportunity or a challenge where the GNCC advocacy staff could help, please get in touch. Call us at the number above, or e-mail our policy and government relations manager at hugo@gncc.ca.

About the Greater Niagara Chamber of Commerce
The Greater Niagara Chamber of Commerce (GNCC) is dedicated to the success of businesses and organizations in order to ensure the long-term prosperity of the Niagara region. Our vision is to give a credible and definitive voice to Niagara enterprises and economic interests. The GNCC has over 1,500 members and represents 45,000 employees. It is the largest business organization in Niagara and the third largest Chamber of Commerce in Ontario.

Prepared by the Greater Niagara Chamber of Commerce
@The_GNCC l www.facebook.com/NiagaraChamber
www.gncc.ca l info@gncc.ca l 905-684-2361

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Position Statement: Proposed St. Catharines Infrastructure Levy 2016

March 3, 2016 | Advocacy, Municipal Advocacy

The Greater Niagara Chamber of Commerce (GNCC) wishes to comment on the current budget debate over the proposed infrastructure levy, namely, that the city is raising taxes by 4.16%, and then adding an infrastructure levy of a further 1% on top, to create a 5% total tax rate.

The 5% figure is part of a whole, not a definitive figure. The rise in St. Catharines municipal taxes must be balanced against the zero raise from the Niagara Region. The total tax bill is a combination of taxes from the City, the school boards, and the Region. The total increase in taxes – including the infrastructure levy — is 2.16%, which is barely above the rate of inflation.1 This is the actual increase that city residents will see on their tax bill, and translates to an average of $69.65 a year.2

The infrastructure levy represents 0.98% of the city’s tax levy, and 0.4% of the total combined levy.3 St. Catharines currently faces a $140 million infrastructure gap on the city’s roads, bridges, and sewers.4 The business community understands that tax hikes are not good for business; however, deteriorating infrastructure is also not good for business. Business depends upon effective public services. These systems and organizations cannot be allowed to fall into neglect without risking the health of the business community.

St. Catharines’ tax bill is currently one of the lower burdens in Ontario. The median residential tax burden in 2015 was $3,377; St. Catharines paid $3,097.5 The median water and wastewater rate was $938; St. Catharines paid $842.6 While the St. Catharines municipal tax burden as a percentage of household income is slightly above average, this must be balanced against the cost of living.7 Office building property taxes are about 9% less in Niagara than the average in Ontario, industrial property taxes about 12% less, and vacant industrial land rates 29% less.8 The Canadian Taxpayers Federation gave St. Catharines a grade of B— on its municipal report card, the highest grade awarded, in 2013, citing St. Catharines’ excellent ratio of high-income public servants to households and successful efforts to keep public-­‐sector salaries down.9

Comparisons have been made between the infrastructure levies in Guelph and St. Catharines, but the GNCC does not believe this is a straightforward comparison. The Guelph infrastructure levy will be two percent, as opposed to the St. Catharines levy of one percent. Guelph’s tax burden is almost 20% greater than that of St. Catharines.10

The GNCC understands that an asset management plan and a full service review — neither of which has been conducted in Guelph — are either complete or underway in St. Catharines.11 In the 2015 Budget, for instance, the asset management plan revealed that savings in Category 3 facilities (which are rated relatively low in service life, building condition, and current/future use and would be good candidates for sale, demolition, or decommissioning) could be $82,673. Additional partnership or sales possibilities might add another $264,288.12 It is clear that savings in the budget alone could not come close to addressing the $140 million infrastructure gap without being accompanied by deep cuts that would have a serious impact on the quality of life for residents and businesses — or increased taxes.

A $1,000,000 commercial property in St. Catharines pays $34,589 in total property taxes.13 The infrastructure levy would cost the owner of this property an additional $107.14 per year. This is not, as has been alleged, a full-time equivalency (FTE) and is very unlikely to lead to layoffs or job losses.

Given the need to address the sizable St. Catharines infrastructure gap, the infrastructure levy seems reasonable. While the GNCC and the business community do not applaud tax hikes by any means, we also recognize that government services are necessary to the functioning of society and must be provided.

  1. City of St. Catharines, 2016 Draft Operating Budget (http://www.stcatharines.ca/en/governin/2016-­‐Draft-­‐Operating-­‐ Budget.asp?_mid_=34789)
  2. Ibid.
  3. Ibid.
  4. Walter Sendzik, Hard work, consultation went into city budget (http://www.stcatharinesstandard.ca/2016/03/02/sendzik-hard-work-consultation-went-into-city-budget)
  5. BMA Management Consulting Inc. Municipal Study – 2015 (http://guelph.ca/wp-content/uploads/2015FinalMunicipalStudyGuelph.pdf)
  6. Ibid.
  7. Ibid.
  8. Niagara Region, Property Tax Comparisons to Other Municipalities (https://www.niagararegion.ca/government/budget-taxes/Municipal-Tax-Comparisons.aspx)
  9. Canadian Taxpayers Federation, Ontario Municipal Report Card 2013 (https://www.taxpayer.com/media/Ontario%20Municipal%20Report%20Card(1).pdf)
  10. BMA, op. cit.
  11. City of St. Catharines, Asset Management Plan 2013 (https://stcatharines.civicweb.net/document/13953)
  12. City of St. Catharines, Budget 2015 Asset Management – Category 3 (https://www.stcatharines.ca/en/governin/resources/15Category3Assets-Feb23.pdf)
  13. Niagara Region, Property Tax Calculator (https://www.niagararegion.ca/government/budget-taxes/prop-tax-calculator.aspx?c=St.+Catharines&t=Commercial&p=1000000)
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