November 27, 2008

Canadian Federation of Independent Business

CFIB warns WSIB’s Bill 119 will put contractors out of business

TORONTO

A government bill that forces construction company owners, executive officers and independent operators to pay Workplace Safety and Insurance Board premiums on their own earnings passed in the Ontario legislature on Wednesday, November 26.

The Canadian Federation of Independent Business has warned that the move will put many contractors out of business.

“We estimate that at least $511 million will be scooped up by the WSIB from additional annual premiums forced upon these businesses,” said CFIB’s Ontario vice-president Judith Andrew, “and that’s on top of what they already pay to this $3.5 billion public monopoly.”

In an interview just prior to passage of the legislation, Andrew pointed out that that the legislation forces construction company owners (proprietors and partners), executive officers (in the case of corporate entities) and independent operators (single person businesses) to pay the premiums on their own earnings, over and above what they currently pay to cover employees for workplace disability insurance.

“This is a significant tax grab that will damage business confidence in the weakening construction industry and throughout the entire small business sector in the province,” said Andrew. “Apart from the policy being wrong-headed and particularly ill timed, it was given short shrift in the legislative process with no prior consultation, little debate and no estimate of the impact on the small- and medium-size business job creators.”

Andrew also strongly criticized the Ontario government for raising WSIB taxes on the pretext that Bill 119 will improve safety, flush out the underground economy and level the playing field.

“None of this will be accomplished on account of this legislation,” said Andrew. “What it will do is help cheaters prosper and hurt or wipe out law-abiding firms.”

DCN News Services

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