Restaurant industry calls on Newfoundland and Labrador to assist small business operators

Published January 30, 2020

Restaurants Canada makes 4 key recommendations in an open letter to the premier and finance minister

ST. JOHN’S, Newfoundland – Jan. 30, 2020 – Restaurants Canada is calling on the government of Newfoundland and Labrador to provide much needed relief to small businesses hard hit by the recent blizzard, following years of economic slowdown.

In an open letter to Premier Dwight Ball and Finance Minister Tom Osborne, the national association’s vice president for Atlantic Canada urges the government to take the following actions.

  • Introduce a wholesale beverage alcohol pricing program for bars and restaurants. Now that New Brunswick has committed to introduce such a program, Newfoundland and Labrador is the only province in Atlantic Canada not offering wholesale pricing to bar and restaurant licensees.
  • Maintain commitment to continue linking minimum wage to increases to the national consumer price index. Small business operators would further benefit from the introduction of a training wage, recognizing the cost of hiring inexperienced workers, and a liquor-serving wage, recognizing the significant gratuities earned by servers.
  • Increase the Health and Post Secondary Tax (HAPSET) exemption threshold to $3 million. While introduced with the intent to target large corporations, this tax instead penalizes small, labour-intensive businesses like restaurants, where over a third of all sales go toward salaries and wages. Increasing the exemption threshold to $3 million and changing the rules so that associated establishments are not captured would protect small business operators from the job-killing consequences of this tax.
  • Exempt businesses from the 15 per cent Retail Sales Tax on insurance premiums. Newfoundland and Labrador is the only province that imposes a tax on the insurance premiums that businesses pay to protect their property and operations from risk.

Read the full letter here: www.restaurantscanada.org/restaurants-canada-open-letter-to-government-of-newfoundland/

 

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Media Contacts:
Luc Erjavec │ 902-209-0804 │ lerjavec@restaurantscanada.org
Marlee Wasser │ 416-649-4254 │ media@restaurantscanada.org

 

About Restaurants Canada

Restaurants Canada is a national, not-for-profit association advancing the potential of Canada’s diverse and dynamic foodservice industry through member programs, research, advocacy, resources and events. The foodservice sector in Newfoundland and Labrador is a $1.1-billion industry that directly employs 16,500 workers and is the province’s number one source of first jobs.

Marlee Wasser

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