Small business offers frank assessment of Ontario government:

Provincial policies harming, not helping economy

TORONTO, Nov. 9 /CNW/ - The policies of the current Ontario government are adding to an already dismal economic outlook, according to a new survey of small businesses conducted one year in advance of the 2011 provincial election. In the survey of nearly 3,400 Ontario small businesses by the Canadian Federation of Independent Business (CFIB), 58 per cent of firms are feeling pessimistic about the future of the provincial economy. Topping the list of negative policies is electricity pricing, particularly Time-of-Use Metering, with 69 per cent of small business reporting this has harmed their firm.

"While certainly not all of the challenges facing Ontario are caused by government, entrepreneurs believe that provincial policies are making the problem worse and causing a withering of the economy," stated Satinder Chera, CFIB's Ontario vice-president. "We asked businesses to rate the performance of the Ontario government and they gave Queen's Park a failing grade on virtually every economic measure, including handling of the economy."

Aside from energy costs and the HST, hikes in payroll taxes (WSIB) and the minimum wage are eating away at previously announced measures to support small firms. And, with 87 per cent of respondents feeling they don't believe they're getting the straight goods from the government, Chera states, "They have an opportunity to overcome this credibility gap by using the upcoming Economic Statement to give small businesses the tools they need to create and retain jobs."

At a recent meeting with Finance Minister Dwight Duncan, CFIB pressed for the following:

1. Provide an comprehensive update on steps to reduce the deficit; outline progress to limit the growing gap between public and private sector wages, benefits and pensions
2. Reduce job-killing payroll taxes; increase the Employer Health Tax exemption to $800,000
3. Stop the skyrocketing cost of electricity; exempt small business from Time-of-Use Metering
4. Introduce measures to offset the painful transition to the HST; restore the vendor compensation to support the role of small firms as tax collectors
5. Reinvigorate the province's red tape reduction efforts by announcing a Regulatory Accountability Act to measure and reduce the regulatory burden

To view the full results of the survey, go to www.cfib.ca/on

As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from more than 107,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

For further information:

To arrange an interview contact Gisele Lumsden at 416-222-8022 or via [email protected]