From TIAO: Thursday, April 23, 2015
Ontario Budget 2015: Highlights for the Tourism Industry
Ontario Finance Minister Charles Sousa released the 2015 Budget today, outlining the provincial government’s fiscal performance and its financial plan for next year. With the theme of "Building Ontario Up", there are several elements included in this year’s budget that directly and indirectly affect Ontario’s tourism industry.
Investments in Tourism and Culture
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The provincial government has committed $5.9 million to support the 400th Anniversary of the Francophone Presence in Ontario, with celebrations to take place through summer and fall of 2015
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An investment of $2.5 million over the next two years has been allocated to support the 13th Federation Internationale de Natation (FINA) World Swimming Championships, to be held in Windsor in December 2016
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A continued investment of $15 million per year will support the Ontario Music Fund
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A renewed Interactive Digital Media Fund (IDM) will receive an investment of $6 million from 2015-16, and $10 million per year from 2016-2017
Jobs and Prosperity Fund
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The provincial government launched a 10-year, $2.5 billion Jobs and Prosperity Fund in January to enhance the productivity of Ontario’s businesses; the fund has been increased to $2.7 billion per year over 10 years (an added investment of $200 million), with eligibility extended to the forestry sector
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The fund has three streams to help support businesses across the economy: 1. The New Economy Stream 2. The Strategic Partnerships Stream 3. The Food and Beverage Growth Fund
Building a Competitive Workforce
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Ontario is investing $20 million in a pilot project, entitled Experience Ontario, to assist graduating students with transitioning to post-secondary education
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The province will continue to support the Ontario Youth Jobs Strategy through an investment of $250 million over the next two years, with a focus on skills development, labour market connections, entrepreneurship and innovation
Moving Ontario Forward
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Moving Ontario Forward is the government’s plan to modernize and expand transportation infrastructure (including public transit services such as GO and PRESTO) across the province
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The 2015 Budget adds $2.6 billion to the current investment of about $29 billion, bringing the total initiative investment to $31.5 billion
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Dedicated funding will be divided proportionately based on population, resulting in about $16 billion in projects for the GTHA and $15 billion for the remainder of the province
Recommendations for Beer Retailing and Distribution
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In November, the Premier’s Advisory Council on Government Assets delivered an initial report with recommendations for how to further capitalize on the value of various government-owned organizations
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Alcohol retail and distribution was addressed in the Council’s follow up report, released in April
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Moving forward from the Council’s most recent recommendations, Ontario has authorized the sale of beer in grocery stores, with a goal for available sales in 150 stores by May 2017
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Ontario is in the process of formulating a New Beer Framework with the Beer Store to improve fairness and transparency within the industry, and is planning to introduce legislation to increase annual revenues from beer sales by about $100 million by implementing a new charge of three cents per litre on beer every year until 2018
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Ontario is also making changes to reduce red tape for Ontario’s craft beer industry
Supporting the Sharing Economy
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To address the disruption of existing business models by new technologies associated with the sharing economy, the government has made a commitment to working with Ontario businesses to assist with compliance of existing obligations
Creating a Supportive Business Environment
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The Better Business Climate Act was put into action in December 2014 with a goal of reducing compliance costs by $100 million by the end of 2017
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The government will also undertake a review of Ontario’s corporate and commercial statutes to ensure Ontario’s laws reflect an efficient and prosperous business climate
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Ontario has begun a review (entitled the Changing Workplace Review) of Ontario’s labour and employment laws, including the Labour Relations Act, 1995 and the Employment Standards Act, 2000
New Ontario Pension Plan
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The provincial government will introduce legislation to finalize the details of the proposed Ontario Retirement Pension Plan Act, 2014 before January 2017
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The ORPP’s goal is to increase the retirement savings of Ontarians by requiring mandatory contributions from both employers and employees, with a maximum combined contribution rate not exceeding 3.8 per cent
The projected deficit for 2015-16 is $8.5 billion—less than what was forecast in the previous budget. Ontario aims to balance its budget by 2017-18. The province’s GDP is expected to increase by 2.7 per cent in 2015, with continued growth forecasted through to 2018. Employment is also expected to increase, with a projected growth average of 1.4 per cent per year from 2017 to 2018.
As the umbrella organization representing Ontario’s tourism industry to the government, TIAO is dedicated to updating our membership on financial and economic developments within the province as they become available.
To view the Budget 2015 Press Release,
click here.
To view the entire 2015 Budget,
click here.