VICTORIA - The provincial government is cutting small business subsidies, along with 20 other funding programs, because the programs give some businesses an unfair advantage over their competitors.

"Ending these unfair subsidies is key to revitalizing prosperity and restoring sound fiscal management. Without these subsidies, individual businesses can now compete fairly on a level playing field," said Minister of Competition, Science, and Enterprise Rick Thorpe.

The decision to cut subsidy programs was made after a government review of all ministry programs to determine which were considered business subsidies. The next step is to review the economic development funding to business organizations, industry sector associations, and local and regional development groups. Business owners with signed agreements will be honoured, and all applications in hand will be processed according to existing guidelines.

David Quackenbush, President of the Home and Micro Business Federation disagrees with the decision. "The government's claim that this cut will level the playing field is unfounded. It is clear that public and private sources of funding for small businesses are becoming more difficult to get. This means that fewer small businesses will be able to compete with larger and better funded operations."

According to Quackenbush small companies employ over half of the province's working population. He feels that the cuts will be a major detriment to one of the highest employment sectors in the province.

Brian Gray, Senior Vice President of the CFIB is in favour of the cuts. "The government is in a financial squeeze, we should expect cuts in our own backyard." Gray went on to say that CFIB members have consistently voted against subsidies that give money to one business and not another.

 

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