Harper Pledges Support For Canada's Small Businesses

by Mike Godfrey, Tax-News.com, Washington

03 May 2011

As Canadians prepared to go to the polls, Stephen Harper made further overtures to the Canadian business community, pledging that, if re-elected, he would introduce a series of measures targeted at boosting the success of the small-and medium-sized business sector.

According to Harper's latest statements, the Conservative party sees this sector as key to Canadian economic and social development, and, as such, regards the creation of an environment in which entrepreneurs can develop and grow, as vital. The party says that 26% of small business owners have said that they may not have gone into business had they known the true burden of regulation - a situation which requires rectifying.

In order to tackle this problem, Harper has promised to implement a "one-for-one" rule, which would require the government to remove an existing regulation each time it proposes a new one. This, the Conservatives believe, would promote a change in attitude within government, based on a recognition of the value entrepreneurs provide to Canada's economy.

Key measures proposed by the party during the election campaign include:

• The continuation of work with the Red Tape Reduction Commission, which seeks to consider existing regulations from the point of view of small business, in order to ensure that they have no unintended impact on small businesses;
• The introduction of a CAD1,000 Employment Insurance tax credit for any new employees hired by a small business;
• Extension of the BizPal scheme - an online service for businesses, providing information on required permits and licences; and
• The provision of CAD20m over the course of two years for the Canada Youth Business Foundation. This, the party believes, will enable young Canadians to launch more than 1,000 new businesses and generate an estimated 6,700 new jobs.

Reiterating his commitment to the sector, Harper said that: "As Canada emerges from a worldwide economic recession and government economic stimulus winds down, it is essential for Canadian businesses and entrepreneurs to drive our economic recovery. The Next Phase of Canada's Economic Action Plan will allow Canadian businesses do exactly that by giving them support, and will help spur the culture shift within government that they need to grow and create jobs".

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