2013 New Brunswick Budget SubmissionRelease Date: 03/13/2013 Staff Reference: Peggy McFarland
March 13, 2013
Honourable Blaine Higgs
Minister of Finance
Department of Finance
P.O. Box 6000
670 King St., Room 371, Centennial Bldg
Fredericton, NB E3B 1G1
Please find enclosed a submission from the Canadian Life and Health Insurance Association (CLHIA) on your forthcoming Budget.
Established in 1894, CLHIA represents life and health insurers accounting for 99% of the business in Canada. With the head offices of four life and health insurers located in New Brunswick, the life and health insurance industry is a major contributor to the province's economy. The industry directly employs almost 4,000 New Brunswickers and has investments in the province of almost $10 billion. In 2011, the industry paid over $1.5 billion in benefits to New Brunswickers through products including supplementary health plans, life insurance, annuities, RRSPs, and disability insurance.
The industry supports the Government's commitment to fiscal responsibility and its plan to reduce expenditures and return to balanced budgets by 2014-15. We also support the Government's commitment to maintain a competitive tax system.
This submission recommends that New Brunswick:
- enact measures to facilitate the provision of Pooled Registered Pension Plans (PRPPs) which are prudent, efficiently-managed, private pension plans, that would be available to New Brunswick workers, particularly within smaller businesses, and the self-employed
- resist any suggestions to impose a provincial Retail Sales Tax on insurance premiums and to examine reduction and eventual elimination of the existing premium tax on life and health insurance premiums, thereby encouraging employers and individuals to maintain or expand life and health insurance protection for their employees and families
- expand the use of Private Public Partnerships (P3) for long-term infrastructure projects. This would support New Brunswick's investments in projects that would make the provincial economy more productive and competitive, without putting any additional pressures on provincial finances.
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