Chamber head outlines business issues

Chambers of Commerce are a grassroots organization which provides a united voice for positive changes in the business sector.

That was one of the clear messages Perrin Beatty, the president and CEO of the Canadian Chamber of Commerce provided to those attending the annual Saskatchewan Chamber of Commerce conference when he spoke to their noon luncheon on May 9.

“People in this room, and all across this country represent main street Canada,” said the former Member of Parliament.

And in coming together through some 450 chambers of commerce and board of trades, the 200,000 businesses have created a unique organization.

“This is a movement that is like no other,” he said. “… The strength of the organization comes from the grassroots.”

The strength of the organization has been needed in dealing with numerous issues, and there are certainly major ones at the forefront today where the voice of business needs to be heard, offered Beatty.

As an example, Beatty pointed to the wide ranging changes to taxation on small business which had been proposed by the federal government.

“They posed an existential threat to tens of thousands of small businesses across the country,” he said.

Initially, the federal government suggested there was little reason to change their proposal, or extend the consultation period, said Beatty, but chambers of commerce got involved holding meetings where the concerns of small business was heard.

“As a result of your efforts we were able to have substantial changes made,” he said.

While still not the perfect changes businesses may have wanted, Beatty termed them “infinitely better … than they had at the outset.”

There are also some key issues before the country now which business needs to be keeping abreast of, and have a say in depending on how things progress, offered Beatty.

The first are the ongoing negotiations around the North America Free Trade Agreement.

Beatty said NAFTA is “something that is special in North America,” adding it has been a benefit to the three countries involved.

So the key in negotiations is not to do anything which hurts the signatories in terms of trade.

“What is crucial is we do nothing that undermines it,” said Beatty.

That said, Beatty did suggest some changes are warranted, noting as an example at the time of the original negotiations and signing for NAFTA “e-commerce didn’t exist.”

There are also new job classifications today which should be covered in the deal which are not because they also did not exist at the time, he said.

Beatty said the next days are crucial in the current negotiations as a deal needs to be in place soon ahead of presidential elections in Mexico this summer, and Congressional elections in the United States this fall.

The second issue is expansion of the Trans Mountain Pipeline, said Beatty.

The pipeline is hugely important in providing much needed access to world markets for Canadian oil, he said, adding as it is today the country has only one market, the United States. He said as a result of that there is a loss of $45 million per day, which means lost jobs, and less revenue for governments.

The proposed project by Kinder Morgan has gone through all the required regulatory processes, and has been approved by the National Energy Board citing “on balance it is good for Canada,” said Beatty.

But the British Columbia government has stated it is going to use “every tool in its toolbox to frustrate the rule of law,” he said.

The decision in B.C. is frustrating because “a growing majority of British Columbians themselves support the project,” said Beatty.

The project hold-up sends a negative message in terms of investment in this country in the sense Kinder Morgan has done everything right, and is still being blocked, suggested Beatty.

“Play by the rules … it still can’t be done. What does it say to those looking to invest in Canada?” asked Beatty.

Finally, Beatty said there is also a huge need to improve the competitiveness of Canada in terms of being a place to invest in business.

As it sits the system of regulation is so slow and onerous many simply give up attempting to manoeuvre through it to establish new business, he said.

When compared to other countries through independent review Canada does not fare well because the system is “so dysfunctional,” said Beatty.

When the costs associated with the regulation of the three levels of government are factored in “it’s beginning to price us out of being competitive,” he said.

It is time for a thorough review of the Canadian system including regulations and taxation, suggested Beatty.

“We need to fix our regulatory process,” he said. “… We need to have clarity.”