Tracy Bell: Implications for business community from throne speech

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Like organizations and individuals around the province, here at the Saint John Region Chamber of Commerce we’ve been eager to hear the legislative priorities of our new leader and government.

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Our business members identified a clear list of needs and wants leading up to the election for what actions would help stimulate growth, solve problems, and strengthen the economy.

Topping that list included tax relief, supports for small business, and measures to improve productivity (and our GDP growth by extension).

The Speech from the Throne reads a lot like a scorecard, which, from a business perspective, makes good sense for this moment in time. It’s clear on how we’ll measure success. And, with the government’s pledge to increase transparency, there’s reason to believe we’ll see public-facing measures put in place to track progress toward those aims as well.

We’re encouraged by the tone of unity and the expressed commitment for collaboration. It lands with a feeling-place of ‘we’re in this together,’ that we have a collective part to play in addressing our most acute challenges and building a future state of which we can all be proud and see ourselves in.

It’s encouraging to see an impetus for action in government and a desire to make bold moves, tempered with financial discipline and balanced budgets.

Governments are notoriously slow in making progress when compared to the speed of the private sector. The quick succession of announcements and time-bound commitments in Premier Susan Holt’s first days in office set a pace that reflects the need to move quickly on key initiatives to solve pressing issues.

The first is housing.

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Premier Holt’s commitment to fully removing the provincial portion of the sales tax on new multi-unit construction is commendable. This is something the Saint John Region Chamber – alongside our counterparts in Fredericton and Moncton and economic development agencies across the province – have been calling for for months.

It’s a measure the other provinces in Atlantic Canada introduced more than a year ago and housing starts in those provinces have been outpacing New Brunswick ever since.

This tax relief initiative will assist developers of all sizes in getting new projects off the ground and working to close the gap on New Brunswick’s 15,000-unit housing deficit.

Related to the urgent need to increase our supply of affordable housing is that of property tax.

The new government has committed to overhaul the property tax system to ensure stability and fairness. This is an area where our chamber would like to learn more and contribute to the conversation.

So many business owners and landlords (homeowners too) are left frustrated and confused each year when they see their property tax assessments come through in the mail – with assessment values seemingly plucked from thin air with no comparables or context on the often-substantial increases.

A three per cent rent cap, confirmed in the throne speech, makes good sense and is a positive step in addressing our housing needs for growing workforce demands. Something our business community would bring to the table for government consideration is to look at aligning property assessment values with rent increases so landowners aren’t disproportionately burdened by skyrocketing assessments when their rental income growth is limited.

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Property value increases lead to higher property taxes. With input costs, operating expenses, and service fees so high already, expenses just to maintain a property make additional increases unsustainable for some. That means important rental property projects may no longer be viable.

There are other options to consider: a rent-linked tax credit, variable tax policies based on rental property type. Or strategies such as implementing a phased approach for significant jumps to spread the assessment increase over multiple years, giving landowners time to adjust while still reflecting the property’s true value over time.

The point here: landowners and developers have a stake in this and want to be part of the solution. One that both addresses our critical need for affordable housing, as well as maintains the viability of projects. In that way we can ensure landowners have the means to continue to properly maintain their units as well as some level of profitability to invest into new projects and future housing growth.

Another area we’re keen to glimpse into further and to contribute to is that of export development and supports that will enable sectors such as those identified in the Speech from the Throne – energy, technology, agriculture and manufacturing – to build their markets here at home and in other parts of Canada and the world.

By 2022, New Brunswick’s trade deficit had ballooned to more than $8 billion, meaning we purchase billions more in goods and services each year than we sell to outside customers – a scenario that is unsustainable in the long term.

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A solution is private sector growth. To that end, we want to learn more about the province’s throne speech promise to increase provincial exports by diversifying New Brunswick’s international markets and working with neighbouring provinces to remove trade and credential barriers currently posing economic roadblocks.

Finally, the business community has lots to contribute on the topic of research and innovation.

Today, New Brunswick ranks last among the 10 provinces for financial support governments provide to industry. It’s a concerning scenario for long-term prosperity. We’re pleased to see Premier Holt’s commitment to review and improve investment tax credits. If done well, the impact will be increased private sector investments in research, automation and technology, making our organizations and industries more competitive in the rapidly-changing global economy.

I’d like to finish this piece with an entirely personal (and off-topic) note.

At the end of next week, I finish my tenure as CEO of the chamber. It’s been an exciting few months and our small and mighty team has accomplished a lot. We’ve grown the membership by more than 200 members in the past 12 months: 48 per cent of those new members are women-owned or women-led companies and 25 per cent are newcomers to the region or the country.

We’ve formed partnerships within our community that are moving the needle on important issues. And with the leadership and direction of an awesome and committed board team, The Chamber will be embarking on an exciting strategic direction that will see our organization deliver real-world value in terms of strengthening connections and enhancing results for the community we exist to serve.

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It’s been an honour and one of the greatest joys of my professional life to get to serve the business community I know and love deeply through my time at the chamber. And as I transition to my new role leading the Wallace McCain Institute, I’ve told the team I intend to stay close and continue to be part of the work ahead as their most passionate volunteer and cheerleader.

Thank you to our members, and to the entire ecosystem for being such incredible allies to our organization, and for your trust in me. Please, let’s keep the positive momentum going. Our tide is rising in the Saint John region and there’s so much good ahead.

Tracy Bell is Chief Executive Officer of the Saint John Region Chamber of Commerce. Her column appears monthly.

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