Budget 2022 – Our Policy Experts’ Insights

On April 7, 2022, the Government of Canada announced its 2022 Federal Budget. Read on for some quick insights from our policy experts on everything from small business to cannabis.

Click here for our full statement from our President & CEO Perrin Beatty highlighting some more high level takeaways.

General

“Today’s budget sets out a very ambitious agenda with new programs and agencies, as well as series of consultations on critical policy issues. There are a number of welcome measures in the budget such as the investments in critical minerals and support for the transition to net zero. Other items – or the absence thereof – such as debt relief for the hardest-hit sectors and complications to the tax code will hold back our economic growth potential.

Given the ambitious agenda, the government will need to move quickly and collaboratively with industry if we are going to deliver economic growth.”

– Mark Agnew, Senior Vice President, Policy and Government Relations, Canadian Chamber of Commerce 

SMEs

“After a tough two years, small businesses were hoping for more from Budget 2022. The announcement to gradually phase-out access to the small business tax rate for medium sized businesses is welcome, but SMEs are still struggling with short-term debt servicing that will hold back their ability to grow.”

– Alla Drigola Birk, Senior Director, Parliamentary Affairs and SME Policy, Canadian Chamber of Commerce

Environment & Natural Resources

“Budget 2022 proposes up to $3.8 billion over eight years to implement a Canadian critical minerals strategy. This investment will support the sustainable development of value chains from coast, to coast, to coast – and will help position Canada to supply domestic and international markets with the foundational building blocks for manufacturing and digital infrastructure. The Canadian Chamber looks forward to working with the Government and our members to ensure Canada expands domestic mining, processing, and manufacturing.”

“ Budget 2022 proposes over $12 billion in spending over five years on new emission reductions programs – including $1.7 billion for zero emission vehicle incentives, tax credits for net zero technologies including CCUS, and $250 million for pre-development small modular reactor projects. While these are welcomed investments, there is much work left to do to reach emissions reductions targets – and to meet the estimated $2 trillion price tag for Canada to reach net zero. The Canadian Chamber looks forward to working with the Government and our members to support a stable policy and economically competitive business environment for our private sector.”

– David Billedeau, Senior Director, Natural Resources, Environment, and Sustainability, Canadian Chamber of Commerce

Cybersecurity

“Enhancing Canada’s cybersecurity is a must which is why we particularly welcome the $180.3 million to enhance CSE’s abilities to prevent and respond to cyberattacks on critical infrastructure. Where budget 2022 disappoints and is falling significantly short is with respect to investments in Canada’s cybersecurity industry, businesses, and the cybersecurity workforce. Protecting Canadians means more than just protecting the federal government.”

– Ulrike Bahr-Gedalia, Senior Director, Digital Economy, Technology & Innovation, Canadian Chamber of Commerce

 Agriculture

“Pleased to see much-needed investments in climate resilience in the agriculture sector through carbon sequestration, clean technology, and other programs. The agriculture sector is a leader in the fight against climate change while helping meet Canada’s economic and export-based objectives.

Strengthening the Temporary Foreign Worker program with a specific program for agriculture will help reduce labour shortages and reduce administrative burdens.”

– Jarred Cohen, Policy Advisor, Canadian Chamber of Commerce

Cannabis

“The proposal to launch a new cannabis strategy table through ISED is something the National Cannabis Working Group put in its pre-budget submission and has been advocated for by the entire cannabis sector. We are pleased to see this in the Budget and look forward to government/industry collaboration in building a sustainable legal cannabis industry.

Quarterly remittance of excise duty is a good first step for helping smaller licensed producers, but it needs to apply to all licensed producers. The NCWG will continue to advocate for applying this across the industry.”

– Jarred Cohen, Policy Advisor, Canadian Chamber of Commerce

Supply Chains

“Supply chains are under serious strain both here and around the world. Many of the issues Canada can’t fix by itself, but some we can, and that’s where we need to focus. The commitment to additional funding under the National Trade Corridors Fund will help make our supply chains more resilient. However, we must avoid the temptation to spread whatever money is available like peanut butter by establishing a clear vision with measurable economic returns.”

“We need both better data and better data-sharing among the various partners. Today’s budget commitment to develop industry-driven solutions to use data to make our supply chains more efficient is a great step forward. Better data will help us identify specifics, including where new bottlenecks are forming along our supply chains.”

“Making Canada an attractive destination for business investment that will support economic growth requires getting the fundamentals right. The budget missed a chance to ease the regulatory burden on Canadian business by introducing economic competitiveness mandates to ensure we are competitive with our trading partners.”

– Robin Guy, Senior Director, Transportation, Infrastructure & Regulatory Policy, Canadian Chamber of Commerce