With the new provincial Liberal government now firmly in power again, small-business owners are looking to Victoria for help in boosting their profits.

"The top priority for small business is tax relief," says Laura Jones, the Canadian Federation of Independent Business (CFIB) vice-president for B.C. and the Yukon.

The CFIB is calling on Premier Gordon Campbell to shave the small-business tax to three per cent from 4.5 per cent, lower personal income taxes and reduce - "not eliminate" - the provincial sales tax. "(Eliminating it) would be too expensive at this point," says Jones.

Since small-business owners collect taxes on behalf of the province, they would like to see a simpler system and clarification of tax exemptions and rules, which have complicated wording and vary by ministry, says Jones. Small firms often have difficulty getting advice or answers to tax questions.

Photo courtesy of CFIB
Laura Jones, CFIB vice-president for B.C. and the Yukon, says level of optimism is 'phenonemal.'

As a result, the CFIB would like to see improved service and a change in attitude from provincial government employees.

"Basically, think like a small- business owner instead of like a bureaucrat," says Jones.

Provincial departments, she says, have become like businesses but fail to realize most B.C. companies - 84 per cent - have fewer than five employees.

Ultimately, she suggests, small-business owners want to be treated with respect and recognized for the "huge part" they've played in B.C.'s fiscal comeback by creating jobs and economic opportunities for the province.

"A lot of our business owners say that when the they're dealing with the government they feel like they're the enemy, or they feel like they're guilty until proven innocent," says Jones.

Some ministries, notably Revenue, and the Workers Compensation Board, have attempted to address small-business concerns, she says. Tax cuts during the Liberals' early days in office and policy changes also made a difference.

Despite their concerns, CFIB's B.C. members are the most optimistic in the country, according to the latest quarterly survey on member confidence. Results show 58 per cent expect strong profits this year, compared to 53 per cent across Canada. Meanwhile, 41 per cent of CFIB members in B.C. expect to hire more full-time employees while 33 per cent in the rest of Canada plan more hires.

"This is a phenomenal level of optimism," says Jones. "We've never seen optimism looking like that in B.C."

Confidence was the primary theme as 17 business leaders from all sectors of the economy held a news conference to trumpet the Liberals just prior to last week's vote. The word "confidence" was written in huge letters on a sign, which had a blue-sky background and hung behind the leaders.

Retail BC president and CEO Mark Startup, who was one of the business leaders who participated in the news conference, says the Liberals' election platform spelled out small business-friendly policies that are expected to extend the good times.

"There are a number of policies put into place in the last four years that have come a long way to improve business confidence," Startup says. "The reduction in personal income tax, reduction of the (provincial sales tax) to its restored value of seven per cent, and the elimination of the corporation capital tax and reduction of other taxes have been very well received, by small business, small retail companies, all retailers in the province and consumers."

Retail BC represents retailers across the province. Startup said members are looking for the returning Liberal government to be frugal, adjust taxation levels and continue to implement previous policies.

"The retail sector would hope to see more expenditure constraint on the government-spending side," he adds. "We see that there's room in the economy for continued reductions in tax. We would expect to see them targeted and timed (so) that we can still continue to increase our spending in health care and education, because retailers know how important that is to our overall confidence in the economy."

The strong B.C. economy was a focal point in the May 17 election. While the NDP contended B.C. was enjoying good times because of high commodity prices and low interest rates, business leaders countered that Liberal policies were the primary reasons for the success.

The Liberals' return to office was a relief to small tour-company operators, who are looking forward to $24 million in annual government funding for tourism marketing.

NDP leader Carole James had indicated the party would take back that marketing money.

"(The marketing funding) is the fuel that allows our industry to grow - and if you cut off the fuel for the common market, you cut off the tourism industry," says Peter Armstrong, president and CEO of Armstrong Hospitality Group Ltd., which owns Great Canadian Railtour Co. and Rocky Mountaineer Vacations.

Small tourism operators are "already tuned in" to the Liberals' policies and will be able to use their knowledge to their advantage, says Armstrong.

Tourism firms are looking forward to the Liberals putting their resort-development strategy into play and spreading economic benefits to operators around the province, he adds, "so that there will be more resorts other than just Whistler."

"We're going to see more in the Kootenays, more in the Interior. This is great news, because it gives small businesses opportunities to set up shop in those communities and grow those businesses."

The Liberals say they will also ensure that BC Ferries continues to make changes without political interference. The provincially owned company plans to replace all 22 of its ships over a 15-year period.

"I saw the devastation," says Armstrong, who served on the board of BC Ferries. "Everybody thinks that the fast ferries (fiasco, which led to the mothballing of new vessels) was the only disaster. The whole organization was demoralized. The equipment was run down. That's a vitally important service. It needs to be properly managed."

Like Jones, he is calling for a simpler provincial taxation system and a reduced sales tax - but not tax breaks.

"I want to see everybody paying their fair, reasonable tax - and a very transparent tax," says Armstrong.

"We have a huge competitor in Alberta. Right now they have no personal income tax and they have no sales tax. So we have to be very aware of the environment that we operate in, and I think under Colin Hansen (the former finance minister who is expected to retain his post when the new cabinet is sworn in), we will be able to get the answers. Definitely, small business has to be treated differently than a big corporation. But the same thing goes for the average taxpayer."

Gregor Robertson, founder of the Happy Planet Juice Co. who was elected as the NDP MLA in Vancouver-Fairview, says small-business owners are seeking more balance and certainty from Victoria.

"I'd like to see small business be a priority for this government - and not big business," says Robertson. "We've had four years now of big business getting everything they ask for, so I'd like to see small business have a voice in the legislature and have the attention of the premier."

He criticizes the Liberals for allowing B.C.'s small-business tax to move from the lowest in Canada to the middle of the pack, and allowing median annual wages to drop while making privatization "a clear agenda."

Over the last four years, he says, the Liberals have moved to "an extreme" agenda that makes business operators uneasy, because they don't know what's going to happen next."

(Monte Stewart can be reached at monte@businessedge.ca)