May 2012 Inside this issue: GM’s Report Membership Annual Dinner Review Calendar of Events Business Books: Recommended Reading
CHAMBER at a glance
2 3 4-5 5 6
Events Review 6-7
a publication of the Brandon Chamber of Commerce
PRESIDENT’S MESSAGE Budgets start to reveal the impact on businesses
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ow that some time has passed since the presentation of both the federal and provincial budgets, details are starting to come forward to reveal the impact to business owners in the Brandon region. There are a number of items that weren't specifically addressed when Jim Flaherty delivered his deficit-cutting budget March 29, 2012, but they are coming to light now. As with any budget that deals with cuts, many were concerned about what the budget may do to productivity for industry and agriculture, two areas that affect our region. While most of the 19,200 federal job cuts are in the Ottawa region, there are some nervous people in our region are still waiting to hear how the announcement may impact them. We do know that there was no negative news affecting CFB Shilo which is a tremendous economic contributor to our region. It has been revealed that Agriculture and Agri-food Canada has some cuts in the province. The Cereal Research Centre in Winnipeg is closing in 2014. Some of the jobs from that facility are being dispersed to both Brandon
(gaining six jobs) and Morden (picking up 51 positions). For our friends in agriculture, things are not quite as positive following the provincial budget which was delivered on April 17, 2012. The 2.5 cents / litre gas tax that we all cringe at will be even higher at 3 cents per litre for marked gasoline for farmers.
beginning in of the year. Individuals and companies with taxable income higher than $500,000 are negatively impacted by this and it makes our province less desirable to attract new business.
One of the biggest surprises of the budget was the expanded PST eligibility A further negative impact will be the $35 on various insurances, including group vehicle registration fee. This will impact life insurance, travel insurance, baggage, casualty and property insurance. Also all of us individually, but also for all included is PST on land titles insurance. aspects of business including ag operators. The only bright spot will be if These go into effect July 1, 2012 and are those tax dollars are actually earmarked not viewed a very positive move for businesses. Some have said that will for improvements in our roads and continue to wick some of the optimism infrastructure. as the province erodes any competitive There is a lot of criticism that this budget advance that Manitoba has to offer. contained many identified and hidden The amalgamation of the RHA's (going tax increases. The reduction on eligible from 11 in the province down to 5) will dividends paid to shareholders by impact our region, but it stands to companies subject to the general reason that Brandon will remain a critical corporate income tax rate will be hub for health care administration. decreased by 11% to 8%. Today the eligible tax dividend for a top rate (Continued on page 6) income earner is 28.12%. That jumped to 32.26% and is retroactive to the