Trudeau Liberals aren't paying enough attention to affordability: Poll

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OTTAWA — Less than half of Canadians think the federal government is doing enough to combat Canada’s ongoing affordability crisis, new polling suggests.

The spark*insights poll, conducted on behalf of Restaurants Canada, found that 57% of respondents said the Liberals aren’t making affordability enough of a priority — and that’s prompted the food service advocacy group to call on the federal government to dial back payroll taxes by 2% in the coming fall federal economic statement.

“We started to see signs of a drop in volume, foot traffic and spending in our restaurant’s in early spring,” Restaurants Canada president and CEO Kelly Higginson told the Toronto Sun.

“As we were looking at that challenge, everything came back to the disposable income challenges that Canadians are dealing with on a day-to-day basis.”

Seventy-seven per cent of those polled said they’d benefit from the tax cut, with 42% of respondents saying it would have a major positive impact on their families.

According to Restaurants Canada, Canadians earning $50,000 in annual salary pay $830 in Employment Insurance, while their employer pays $1,162 — and that’s on top of provincial withholdings.

Restaurants Canada wants to see a 2% reduction in payroll taxes in the federal government’s fall economic statement — something they say will benefit both those within Canada’s restaurant industry as well as everyday Canadians.

“It’s a lever they have the ability to use, and it would impact both the employer and the employees, and it would impact both the employer and employees,” she said, adding that restaurants are Canada’s fourth-largest employer.

“This would put more money back in the employees’ pockets, and would allow employers an opportunity to invest in their operations and probably keep more people on per shift and extend and protect hours for the employees, so it gives both parties just a little bit more financial stability.”

Canada’s extended COVID-19 lockdowns took an enormous toll on restaurants, with Higginson saying it’s been a challenging four years.

But recent affordability issues are prompting some of her members to report that 2024’s been among their hardest years yet.

“Every single operating cost you can think of went up and dramatically. I mean, we’re talking about 25% in food costs alone,” she said.

“As Canadians have been challenged with this affordability issue, a lack of disposable income over the last couple years and certainly in the lastsix months, that’s also taken a big hit on the industry.

“It’s a bit of a perfect storm.”

The date for the fall economic statement has yet to be announced by the finance department.

bpassifiume@postmedia.com
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