Canadian Pizza Magazine

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Newfoundland budget does little to feed industry growth


April 25, 2012
By CRFA

April 25, 2012, St. John's, N.L. – Although yesterday’s budget includes
steps to reduce program spending, government is still forecasting a
deficit and growing debt – and plans to do little to help the restaurant
industry grow and prosper.

April 25, 2012, St. John's, N.L. – Although yesterday’s budget includes
steps to reduce program spending, government is still forecasting a
deficit and growing debt – and plans to do little to help the restaurant
industry grow and prosper. To create an environment for long-term
growth, government must reduce the cost of doing business in the
province, let Newfoundlanders keep more of their hard-earned money and
take aggressive steps to lower the large liability associated with
public service pension, says the Canadian Restaurant and Foodservices
Association (CRFA).

“The restaurant industry is the third-largest private-sector employer
and a cornerstone of the province’s economic and social foundation, and
yet there is little in this budget to recognize the important role we
play in communities throughout Newfoundland and Labrador,” says Luc
Erjavec, CRFA’s Atlantic Canada Vice President. “This budget will not
reduce the cost of doing business or encourage customers to visit our
restaurants.”

“While government deserves credit for reducing the rate of program
spending, taxpayers are still on the hook for billions of dollars in
public pension liability. Our members pay more than their fair share of
taxes, and can’t be expected to bail out pension plans when they are
trying to run their businesses and create employment opportunities for
thousands of Newfoundlanders,” says Erjavec. “It’s time for government
and its employees to take a hard look at pension reform. We need a
solution that is equitable and fair to taxpayers, business owners and
public service workers.”

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Newfoundland and Labrador’s restaurant industry directly employs nearly
13,200 people at 1,076 establishments. Twenty-two per cent of Canadians
are first employed by the restaurant industry, making it the number one
source of first jobs.