Federal budget fails to deliver to restaurants stung by B.C. HST and Toronto G20
FOR IMMEDIATE RELEASE
March 22, 2011
OTTAWA – Today’s federal budget is a disappointment to thousands of restaurant operators hit hard by the HST in British Columbia and G20 damage in Toronto.
“There’s not even an acknowledgement of the significant negative impact that these made-in-Ottawa events have had on our members,” says Garth Whyte, President and CEO of the 30,000-member Canadian Restaurant and Foodservices Association (CRFA).
In British Columbia, where restaurant meals were previously exempt from provincial sales tax, the HST raised the cost of eating out by seven per cent when it was introduced on July 1, 2010 – widening the gap between the price of food from grocery stores compared to restaurants, and resulting in drop in sales for many restaurant owners. In a survey conducted in late July, 72 per cent of CRFA members in British Columbia said the HST had a negative impact on their sales.
In Toronto, CRFA estimates the city lost $84 million in restaurant sales because of G20 disruptions. Some restaurant operators have received offers of compensation from Ottawa for G20 losses, but they barely cover the cost of submitting a claim. Others have been denied compensation because they closed their businesses out of concern for the safety of their staff and customers.
“Canada’s restaurant industry creates opportunity, attracts tourists, drives culinary innovation and builds community,” says Whyte. “It’s surprising and disappointing that the federal government has remained silent on the damage done by the B.C. HST and Toronto G20.”
CRFA is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canada’s $60-billion restaurant industry employs more than one million people in communities across the country.
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