Eighty percent of Saskatchewan businesses are battling it government charged cost.
This is according to a survey conducted by the Canadian Federation of Independent Business (CFIB), which showed that one in six businesses in Saskatchewan were considering closing their doors for good.
CFIB Provincial Affairs Director Kathleen Cook said, Electricity Rising costs aren’t the only thing businesses have to grapple with.
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“Last week SaskEnergy announced that natural gas rates for the small commercial sector are actually going to increase by about 20 percent in less than two weeks. So for the average small business that means an additional $52 in their monthly bill, and with further increases in 2023 and 2024, that means an additional $800 per year for small business owners’ annual energy costs.
Cook noted that the costs for small businesses are already very high, adding that only half of small businesses have returned to pre-pandemic levels of revenue, and that increased inflation is also costing business owners more.
“Inflation is driving up the costs of food, fuel, insurance and almost all of them,” Cook said.
He said some of these costs are beyond the control of the provincial government, but the CFIB would like to see them make some changes.
“For example, we want them to temporarily suspend collection of the provincial fuel tax – we have seen other provinces take this step, and we think Saskatchewan can and should follow suit.”
Cook also suggested that the province should stop the collection of the small business corporate tax, and that the PST expansion be reversed.
Global News contacted the government of Saskatchewan and obtained a statement.
“The government of Saskatchewan understands that everyone is facing the challenge of inflationary pressures. Premier Scott Moe and Finance Minister Donna Harpoire have both indicated that as we find our way through this fiscal year, if we If we find our way to the surplus, we will see how we can return these dollars to benefit all Saskatchewan people,” the statement read.
It said the federal carbon tax and lack of pipelines are driving inflation and energy costs.
“With the shift to more renewable generation, modernizing the electricity system and ensuring a sustainable future for all of us, SaskPower needs additional funding for the people of Saskatchewan, which is fueled by the carbon tax and the federal government’s changing goals and requirements.” on emissions reduction. Despite these challenges, SaskPower’s capital investment in the province’s electricity system was $922 million for 2021-22, and total SaskPower contributed $1.9 billion directly to the provincial economy during the fiscal year. dollars contributed.
The provincial government also touched on rising prices for SaskEnergy and natural gas.
“Plus, SaskEnergy’s small commercial customers have some of the lowest combined natural gas bills in Canada despite a significant increase in the price of natural gas. SaskEnergy has a commodity hedging (price risk management) strategy that allows for future purchases of natural gas.” This strategy is allowing SaskEnergy to maintain a commodity rate that is well below the market price of natural gas.
“SaskEnergy is also committed to helping small businesses reduce their energy costs through programs such as commercial boiler discounts.”
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