Retail Council of Canada (RCC) and Shelfspace acknowledge the decision of British Columbians today who have voted for change in the HST referendum.  We commit to continue working with the Clark Government to ensure a smooth transition. 

“We commend the government for listening to retailers and announcing a consultative process that will allow sufficient time to change point-of-sale systems and to consider other improvements that will help retailers and our customers” said Anne Kothawala, Senior Vice-President, Public Affairs, Retail Council of Canada. 

“Undoing the implementation of the HST involves a costly and time consuming undertaking for businesses small and large. Our members would rather be investing time and resources in the creation of additional jobs, as opposed to the millions of dollars that will need to be spent to adjust their accounting and point-of -sale systems” said Kothawala. 

Retail is the largest employer in British Columbia, with retail employment representing over 12 per cent of the province’s total labour force, directly employing more than 300,000 British Columbians. Retail’s success to date in British Columbia has been driven by increased investment, strong consumer demand, and sensible and focused policy and regulation by the provincial government. 

At present, retailers are doing what they can to control their costs, while continuing to contribute to overall job creation and economic  growth. Having to undo the implementation of the HST comes at a particularly challenging time when retailers are striving to adapt to a redefined consumer landscape following the global recession. 

“Reverting to a dual tax system isn’t the only thing retailers have to contend with,” added Kothawala. “This comes amidst the challenges of a soft summer brought on by poor weather, as well as having to deal with cross-border shopping, a 25% spike in minimum wage  in BC, multinational manufacturers charging higher prices to Canadian retailers, inflation, gas prices, the spectre of rising interest rates, import taxes, and competitive pressures.” 

RCC & Shelfspace are pleased to see that the Government will consult the retail community to determine what a refreshed PST/GST system would look like. At a minimum, retailers will be looking to government to:

• Reinstate the PST commissions that used to be available to retailers who sold goods at a certain threshold;

• Provide tax and administrative credits to retailers to mitigate against the burden and impact of adjusting POS and other systems from the HST and moving them back to the PST/GST system;

• Drive out inefficiencies , confusion and complexities that existed in the previous PST/GST system;

• Create clarity and consistency on PST exempt goods and services; and

• Keep the combined rate as low as possible to stimulate growth, spending and investment in the BC economy.

“With the transition back to the GST/PST regime, both organizations want the provincial government to improve the PST’s costly and complicated rules in order to ensure that retailers can ultimately focus on what they do best – serving their customers,” added Mark Startup, President & CEO of Shelfspace.

 

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About Retail Council of Canada

Retail Council of Canada (RCC) has been the Voice of Retail in Canada since 1963. We speak for an industry that touches the daily lives of Canadians in every corner of the country — by providing jobs, career opportunities, and by investing in the communities we serve. RCC is a not-for-profit, industry-funded association representing more than 45,000 store fronts of all retail formats across Canada, including department, specialty, discount, and independent stores, and online merchants. RCC is a strong advocate for retailing in Canada and works with all levels of government and other stakeholders to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness. RCC also provides its members with a full range of services and programs including education and training, benchmarking and best practices, networking, advocacy, and industry information.

About Shelfspace, The Association for Retail Entrepreneurs

Established in 1917, Shelfspace, The Association for Retail Entrepreneurs, is a not-for-profit organization that represents the retail communities of BC and AB. Governed by a dedicated group of retail leaders, Shelfspace exists to serve the retail community through advocacy, cost savings, education and community engagement; and by sharing the passion for retail excellence. Shelfspace is the voice of over 4,500 store fronts in BC and Alberta.

Retailing represents $60 billion worth of economic activity and accounts for 30,000 enterprises, the majority of which are independent businesses.1 The retail industry is the province’s largest private sector employer, providing paycheques for over 300,000 British Columbians.

For more information, please contact:

Meredith Ladner
Coordinator, Retail Council of Canada, Western Canada
(604) 633-3135
mladner@retailcouncil.org

Mark Startup
President & CEO, Shelfspace, The Association for Retail Entrepreneurs
604-730-5252
mark@shelfspace.ca