NB Budget: Business Reacts
MONCTON–New Brunswick’s business community is troubled by higher corporate taxes announced in today’s budget, but hopes it means more positive things for the future.
“This isn’t a ‘feel good’ budget by any means. This is certainly not an election budget. But in certain circumstances it was things that needed to be done with the financial status of our province,” said Carol O’Reilly, CEO of the Greater Moncton Chamber of Commerce.
“We were all pretty well prepared for what was in there because test balloons have been flying in the sky for the last two months.”
As part of the provincial budget, corporate tax in the province will go up to 14 per cent. Small businesses, which are the majority of chamber members, will remain unaffected. However, O’Reilly said the increase still could impact some businesses.
“People are going through rough times and for those businesses that are hovering, we hope something like this isn’t going to put them over the edge,” she said. “I think it could have a negative impact on some businesses, but I also think it’s something that the government has to do, because we can’t continue in the situation that we’re currently in.”
Fredericton Chamber of Commerce CEO Krista Ross says this budget wasn’t friendly for business. Though there were a few good things in the budget, there was very little that promoted business growth.
“Certainly we recognize that we need to balance the books in our province, but we also need to grow. Growth is the only way to get out of the financial situation that we’re in,” Ross said.
“Any increase in taxation to business has a negative impact. We want to be seen as a region and a province where business is welcome. Businesses want to come here because it’s a cost effective place to do business. So increasing corporate tax doesn’t give that message for sure.”
Saint John Region Chamber of Commerce CEO David Duplisea says the budget wasn’t as bad as it could have been. He’s glad to see small businesses are not going to be impacted, but said the corporate tax increase will ultimately fall on consumers.
“It’s not unexpected, there will be some pain and if corporate taxes are going up, that will be passed on to the consumer,” Duplisea said. “Ultimately I think the consumer will be the one will pay for that.”
Like it or not, the budget is done and Ross said the business community needs to focus on moving forward.
“The government has told us they are working on a growth plan, and we need to make sure that business is a corner stone of that plan. Because the only way to find a path to prosperity is growing our economy,” she said.
“We need to move forward supporting business, creating an environment where business can grow. If business succeeds, the province will succeed. Period.”
