Bill C-30: An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures - Presentation to the ...
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Bill C-30: An Act to implement certain provisions of the
budget tabled in Parliament on April 19, 2021 and other
measures
Presentation to the Senate Committee on National Finance
Dan Kelly, CFIB President and CEO
May 18, 2021
Businesses fully open, by sector and province (% response)
% change
% change
since last month
since last month
*Natural Resources 82 -3
*PEI 94 +25
Construction 82 +1
SK +20
83 Manufacturing 76 -6
NL -7 Wholesale +2
75 75
NB +2 Transportation 74 -4
73
+9 Agriculture 72 -7
QC 67
Prof. Services 62 -3
BC 66 +1
Pers./Misc. Services 62 +1
AB 62 -9
Fin. Ins. etc. 54 -26
MB 60 -15 Ent. & Admin. Mgmt. 54 -7
CA 54 -4 National 54 -4
-3 Soc. Services 54 -2
ON 42
Retail 46 -3
NS 32 -128
Arts, Rec. & Info. 16 -21
Hospitality 9 -54
Source: CFIB, Your Voice – May 2021 - National Data - Preliminary results as of May 6 - May 11, 2021, n= 3,404.
*Note: small sample, use with caution.
2Normal or above normal staffing, by province and sector
(% response)
63 70
53 60
49 51 51
44 46 50
41 6
40 5 7
37 4 40
34 4 5
4
4 63 30
51 51
41 42 45
36 37 40 20
29 32
10
0
NS ON AB CA MB BC QC NB SK NFLD *PEI
About the usual for this time of year (95%-105%) More staffing than usual (106% and over)
63 64 70
60
53 55 5 60
52 52 5
44 46 8 50
40 41 42 42 6 6
5 8 40
5 7 15
55 60 59 30
53
45 45 45 20
11 37 37 35 36 38
7 30
10
7 10
0
Hospitality Arts, Rec. & Pers./Misc. National Ent. & Admin. Retail *Natural Soc. Services Prof. Services Manufacturing Construction Fin. Ins. etc. Agriculture Transportation Wholesale
Info. Services Mgmt. Resources
Source: CFIB, Your Voice – May 2021 - National Data - Preliminary results as of May 6 - May 11, 2021, n= 3,404.
*Note: small sample, use with caution.
3Normal or better revenues, by province and sector
(% response)
61
40 41 45
36 37 37 38
40
31 13 35
27 29 6 9 17
15 17 30
20 9 11 25
10 44 20
6 30 15
28 28 24
20 20 22 21 10
14 17
5
0
NS ON AB CA SK NB MB NFLD BC QC *PEI
70
About the usual revenues for this time of year (95%-105%) Better revenues than usual (106% and over)
57 60
51
45 15 50
42
37 38 39
35 37 22 40
31 14
28 28 11 10 17
25 16 30
6 11 16 22
5 7
43 20
28 29 31 29
8 22 25
6 20 20 20 19 22 10
1 3 15
5 5 0
Hospitality Arts, Rec. & Pers./Misc. Transportation Soc. Services National Retail *Natural Ent. & Admin. Prof. Services Construction Manufacturing Fin. Ins. etc. Wholesale Agriculture
Info. Services Resources Mgmt.
Source: CFIB, Your Voice – May 2021 - National Data - Preliminary results as of May 6 - May 11, 2021, n= 3,404.
*Note: small sample, use with caution.
4What worries you most about COVID-19?
(Select all that apply, % response)
Economic repercussions (on provincial, national and/or global economy) 65
Overwhelming stress 50
Physical health impacts (on myself, my staff or others) 49
Business cash flow (paying rent, meeting payroll, paying suppliers/mortgage/other bills, getting paid) 47
Consumer spending will be reduced, even following the COVID-19 crisis 46
Debt (long-term financial consequences of debt and depleted savings) 45
Sluggish vaccine rollout 42
Business logistics (getting and shipping products, managing inventories) 41
Staffing (layoffs, retention, refusal to work) 36
Access to enough government support for my business/workers 36
Access to any/enough income as a self-employed worker 28
Having to close my business permanently 24
Other (Please specify) 9
Access to personal protective equipment for my business 6
No concerns at this moment 2
Don’t know/Unsure 0.4
Source: CFIB, Your Voice – May 2021 - National Data - Preliminary results as of May 6 - May 11, 2021, n= 3,404.
*Note: small sample, use with caution.
5Latest research on businesses, jobs at risk
Link to full research report: https://www.cfib-fcei.ca/en/media/news-releases/181000-canadian-small-business-owners-now-contemplating-pulling-plug-putting-24
6Forgive more small business debt and allow longer repayment terms for
loans.
7Extend and expand COVID relief for small businesses until the entire economy can
reopen and small businesses can once again serve customers in person.
Roughly what percentage of your business’s COVID-19 financial shortfall is currently being replaced by COVID-19 government grants (for example, CRB,
CEBA, CERS, CEWS, provincial grants)? (Select one answer only)
Up to 9% 19
10% to 19% 16
64% say that less 50% or more
20% to 29% 14 of their shortfall is replaced by
30% to 39% 9 government grants
40% to 49% 6
50% to 59% 7
60% to 69% 4
70% to 79% 4
80% to 89% 2
90% to 99% 2
100% 2
Don’t know/Unsure 14
Source: CFIB, Your Voice – May 2021 - National Data - Preliminary results as of May 6 - May 11, 2021, n= 3,404.
*Note: small sample, use with caution.
8What is needed for recovery
The federal government is looking at ways to help stimulate economic recovery. Which of the following
would be helpful to your business? (Select all that apply)
Provide a 2021 payroll tax rebate to small employers to offset the costs of CPP/QPP and EI,
69
and to lower the cost of hiring
Reduce red tape 55
Provide tax forgiveness measures (such as on GST remittances, import duties) 53
Increase the amount of loan forgiveness for CEBA and other government backed
52
emergency loans (such as BCAP or HASCAP)
Extend the existing COVID-19 emergency programs (such as CEWS or CERS) to the end of
50
2021
Introduce a temporary sales tax holiday to incentivize consumer spending 37
Invest in infrastructure improvements to spur economic growth 36
Make more businesses eligible for COVID-19 programs 31
Fund green initiatives (such as renewable energy projects, cleantech companies) 16
Make social programs more generous (such as introducing a national childcare system,
13
pharmacare and expanding EI)
Other 11
None of the above 2
Source: CFIB, Your Voice Survey, Jan. 12 - Jan. 31, 2021, n = 7,029.
92021 Federal Budget: some good news for small businesses
• Extension of the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency
Rent Subsidy (CERS) into the fall
• Creation of a new hiring incentive (the Canada Recovery Hiring Program) to encourage
businesses to staff up in the summer as the economy starts to recover
• Introduction of immediate expensing for “eligible property” acquired by a CCPC on or
after Budget Day and is put into use before January 1, 2024, up to $1.5 million per
taxation year
• Commitment to reducing credit card swipe fees that merchants pay
102021 Federal Budget: some businesses left behind
No fixes of the gaps in Emergency Relief Programs
• Still no access for new business that opened their doors after March 1, 2020
• No fix for CERS challenges for business who have both a holding and operating company and the requirement that businesses
pay full rent within 60 days
• No fix to CEBA gaps for those waiting on a second round of funding or who don’t qualify under the Non-Deferrable Expense
stream
No help with debt burden
• No new help for the average small business which has inherited $170,000 in COVID-related debt (eg. expanding CEBA to
$80,000 with 50% forgivable, extending time frame for loan repayment or a forgivable portion of HASCAP)
New spending and future taxes
• Dramatic increases in spending on non-COVID related items
• No change in plans to increase liquor and carbon taxes and CPP premiums
• Concerns with “luxury tax” on behalf of many small firms involved in selling, supporting cars, boats and aircraft
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