2013 Newfoundland and Labrador Budget SubmissionRelease Date: 03/18/2013 Staff Reference: Peggy McFarland
March 18, 2013
Honourable Jerome Kennedy, Q.C.
Minister of Finance
and President of Treasury Board
Government of Newfoundland and Labrador
Confederation Building, 2nd floor, West Block
P.O. Box 8700
St. John's, NF
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. The life and health insurance industry is a major contributor to Newfoundland and Labrador’s economy. The industry directly employs 1,600 Newfoundlanders and Labradorians and has almost $10 billion invested in the province. Last year, the industry paid almost $820 million in benefits to Newfoundlanders and Labradorians through life and health insurance products including life insurance, annuities, RRSPs, disability insurance and supplementary health plans.
The industry commends Newfoundland and Labrador for its success in significantly reducing the provincial debt over the last nine years. In addition, we strongly support the Government's commitment to ensuring Newfoundland and Labrador is a competitive and business-friendly environment.
In this submission we recommend that Newfoundland and Labrador:
- 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 Newfoundland and Labrador workers, particularly within smaller businesses, and the self-employed, thus vastly improving Newfoundlanders' and Labradorians' access to a pension plan
- resist any suggestions to impose a provincial Retail Sales Tax on insurance premiums, and, as fiscal circumstances permit, take action to reduce the existing premium tax on health and disability and life insurance to 2%, comparable to other jurisdictions, and ultimately eliminate it. This will make these products more affordable at a time when their role in meeting the health care and income protection and financial security needs of Newfoundlanders and Labradorians is increasing.
- expand the use of Private Public Partnerships (P3) for long-term infrastructure projects. This would support Newfoundland and Labrador's investments to grow the economy and enhance quality of life, without putting any additional pressures on provincial finances.
(Original signed by)