Chamber of commerce gives CBRM middling grade on business friendliness

Mayor Cecil Clarke says Cape Breton Regional Municipality is making progress and doing what it can on commercial taxes, after the chamber of commerce released a report card giving CBRM a middling grade on its business environment.

The Cape Breton Regional Chamber of Commerce held what it called a state of the municipality breakfast meeting Thursday to release the results from its first business-friendly survey of members, assigning the municipality an overall grade of 2.7 out of 5.

Chamber CEO Megan Penney said that reflects “moderate satisfaction, while highlighting opportunities for improvement.”

The report card rated CBRM in four general categories: red tape, transportation infrastructure, crime and safety, and communication and engagement.

Penney said 31 members responded to the survey, representing about 10 per cent of the total membership.

Commercial taxes drew a strong response, she said.

Sixty-seven per cent of respondents indicated commercial tax rates had influenced decisions to delay or cancel investment, Penney said, and 80 per cent said a gradual reduction in rates would help their business to grow or reinvest locally.

After the meeting, business owner Craig Boudreau said he just wants lower business taxes.

“There’s been a decade now that the current mayor has had to work to do something about these commercial taxation rates and to this date, they’ve only went up,” he said.

“So we’ve been hit really hard as a business community since the current mayor got in. I’m not necessarily blaming him, but that’s the reality.”

Sydney Credit Union CEO Caleb Gibbons said many business owners want to see lower taxes, but he said potential growth from the coming offshore wind industry and Defence Department investments in Sydney harbour could make it possible to reduce the commercial tax rate.

“There’s a lot to be built here and these are going to be … six-figure high-paying jobs, families around that, the housing that’s going to be required,” he said.

Gibbons also said safety was an issue for the credit union, with the main homeless shelter located across the street from the banking facility.

A new credit union building is under construction to replace the old one and Gibbons said the mayor’s push to have the province relocate the shelter has given the credit union the confidence to invest in downtown Sydney.

“We certainly had anxiety about committing that much of our members’ capital, but [the mayor] has given our board some comfort that that facility will be moved within CBRM and still serve that community.”

Clarke said CBRM is making investments in technology and housing, which will reduce business costs and increase growth.

“Even if you can’t overcome immediately reducing tax rates, we are responding with proactive things that incent development and reward people for their hard work and investment,” Clarke said.

“The tax rates themselves, it’s very difficult to change. It’s a very tough matter to address without having other alternative decisions to cut somewhere.

“That’s why we’re doing a fiscal update this fall, with a three-year plan and an overall eight-year forecast, so people will see where the pressures are and where the revenue streams can be.”

Clarke said council has been discussing commercial tax rates and he welcomed the survey results, which will help set a benchmark for the future.

“It wasn’t be careful what you ask for. We want it. We want to have this dialogue,” he said.

“We want to say how do we improve on 2.7 out of 5? And next year will be proof positive. If it goes the other direction, we’ll be having a different type of conversation.”

Penney said the survey is intended to become an annual exercise.

The next survey is being sent out now and she is hoping it will get a bigger response from members.

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