NLIS 5
May 6, 2003
(Industry, Trade and Rural Development)

 

What is the opposition�s position on small business development?

Industry, Trade and Rural Development Minister Judy Foote recently questioned the opposition party on their position with respect to small business development during a debate in the House of Assembly.

"What exactly is the official position of the opposition on small business development?" asked Minister Foote. "While the opposition is on the record stating that �a PC government will end the practice of providing loans or grants to businesses,� the current leader of the opposition has himself availed of such a loan, which was eventually written off by government. As a beneficiary in the past of government loans, does Mr. Williams now believe the practice of providing loans or grants to businesses should be eliminated?"

Minister Foote also discussed the leader of the opposition�s leadership style should he become leader. Following the Throne Speech recently, Mr. Williams indicated in his remarks that if the PC party formed government, he would "create a new arm of government that would report directly to the Premier�s Office and be responsible for business development within the province."

"Does this show a lack of confidence by Mr. Williams in members of his own caucus that he would not give one of them the responsibility for small business?" asked Minister Foote. "Not only has Premier Grimes appointed a minister responsible for business development in the province but this government has established the Small Business Advisory Council to provide ongoing advice on appropriate measures government should consider to help stimulate and grow the small business sector over the long term. This approach values input from the business community, an approach we strongly support as a government."

Minister Foote questioned the opposition on their position with respect to the elimination of the payroll tax for small businesses. Referring to the payroll tax, the member for Cape St. Francis said in the House of Assembly on Monday, May 5, "That is something, I suppose, after the next election that hopefully we will be looking at." This statement again shows the inconsistency in the position of the opposition when at one point they promised to "eliminate the payroll tax", however Mr. Williams, in a recent speech to the St. John�s Board of Trade, said he wouldn�t make a commitment on the tax until he found out �exactly what the fiscal state of our province is.� "So what is the position of the opposition on the payroll tax?" asked Minister Foote.

Another inconsistency exists in the opposition�s policy on EDGE. The opposition has stated "A PC government will end the practice of providing loans or grants to businesses and will eliminate the EDGE program."

"How can the leader of the opposition say he supports business development in the province when the opposition is on the record as not supporting a program which clearly makes Newfoundland and Labrador the most competitive jurisdiction in Canada for encouraging new business investment, with enhanced benefits for new and existing businesses starting up or expanding in rural areas?" asked Minister Foote.

Minister Foote said the government�s position on growing the economy and working with business is clear. The government has made numerous investments in small business, including:

  • introduction of the Economic Diversification and Growth Enterprises (EDGE) program;
  • elimination of the payroll tax for small businesses with payrolls between $500,000 and $600,000 with a commitment to eliminate the payroll tax for all small businesses by the end of the next mandate of this government as our fiscal situation permits;
  • introduction of a corporate income tax holiday for new small businesses in growth sectors of the economy;
  • an increase in the small business corporate income tax threshold from $200,000 to $300,000 over four years in $25,000 increments annually;
  • enhancement of the direct equity tax credit program to provide a tax credit to arms length corporations that make investments in eligible businesses;
  • commitment to establish a red tape reduction committee;
  • introduction of two new programs (Small Business Seed Capital Equity program and Small Business Market Development Program) to assist small businesses to take advantage of new growth opportunities in our economy;
  • commitment to establish a Business Attraction Agency to entice new investment, companies and industries to the province in strategic growth sectors of the economy; and,
  • implementation of a strategic partnership initiative with business and labour to advance the socio-economic interests of Newfoundland and Labrador.

Media contact: Tansy Mundon, Communications, (709) 729-4570

2003 05 06                                       1:00 p.m.


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