St. John’s businesses call for tax relief

Board of Trade warns of layoffs and closures

St. John’s business and property owners Friday warned of closures and layoffs unless the city provides tax relief.

“We are asking our members to bulletproof their businesses, and we are asking council to be our partners and provide tax relief,” Des Whelan, chairman of the St. John’s Board of Trade, said at a news conference Friday morning at Rocket Bakery, which drew several business owners and representatives from industry groups.

“We have joined forces to work together so that city council knows that we are united in our concerns. This year’s budget has been bad for business. This year’s budget is bad for the city, and this year’s budget is bad for citizens,” said Whelan, who called tax increases in the 2016 budget “outrageous and antigrowth.”

The cost of the budget will be felt in higher prices and job losses, said Whelan, adding that businesses that can’t absorb higher taxes will close their doors, and even those that can absorb them will be forced to delay expansions and other plans.

Whelan called on city council to cut spending and provide tax relief.

Rocket owner Kelly Mansell became choked up as she spoke about the 45 people the business employs.

“When you work in a business like ours, we’re like a small community,” Mansell said. “People have children, people get married, people come out — it’s a real community here at Rocket, and if I have to lose someone, it’s really hard. We haven’t had to lose anyone yet, but I’ve had to write the cheques already for the (tax) increase and it’s really hard. … I’m emotional because for people who have families, it’s scary to think they might get laid off.”

Bob Hallett, owner of Erin’s Pub, Tavola and Kilbride Music, said city council needs to be convinced of the pressures businesses are under.

“A lot of small businesses are very, very worried about what they have to face in the coming year, and they don’t know how they’re going to face this tax burden,” Hallett said. “If businesses start closing, the tax base is going to go down in a hurry.”

Mansell said she was encouraged by the gathering of business owners vowing to pressure the city for relief.

“I’m really optimistic about being able to get some change made to the tax load,” she said.

Whelan said he was pleased with city council’s recent announcement of a stronger budgetary review process, but added it needs to begin immediately, and set measurable targets.