2017 New Brunswick Budget SubmissionRelease Date: 12/08/2016 Staff Reference: Noeline Simon
December 8, 2016
The Honourable Cathy Rogers
Minister of Finance
Department of Finance
P.O. Box 6000
Fredericton, NB E3B 5H1
Please find enclosed a submission from the Canadian Life and Health Insurance Association (CLHIA) on your forthcoming Budget.
CLHIA represents life and health insurance providers 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 over 3,000 New Brunswickers and has investments in the province of $12 billion. The industry pays nearly $1.9 billion in benefits each year to New Brunswickers through products such as supplementary health plans, life insurance, annuities, RRSPs, and disability insurance. The industry is an important contributor to the public finances in New Brunswick, paying $34 million in taxes to the province in 2015.
The industry supports the Government's commitment, as outlined in Engage NB and Choices to Move New Brunswick Forward, to fiscal responsibility and return to a balanced budget position. We also support the Government's commitment to maintain a competitive tax system.
This submission recommends that New Brunswick:
- guide and incent its residents to take responsibility for their long-term care needs by providing tax assistance on qualifying long-term care insurance products,
- enact measures to facilitate the provision of Pooled Registered Pension Plans (PRPPs) which are prudent, efficiently-managed, portable private pension plans, that would be available to New Brunswick workers, particularly within smaller businesses, and the self-employed, thus vastly improving access to a pension plan,
- expand and accelerate the use of Public-Private Partnerships (P3) for long-term infrastructure projects, allowing New Brunswick to modernize its infrastructure and make the economy more productive and competitive, and
- refrain from increasing the existing tax on life and health insurance premiums or introducing any other form of premium-based tax.
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