2016 New Brunswick Budget SubmissionRelease Date: 01/18/2016 Staff Reference: Noeline Simon
January 18, 2016
The Honourable Roger Melanson
Minister of Finance
Department of Finance
P.O. Box 6000
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 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 4,400 New Brunswickers and has investments in the province of almost $11.8 billion. The industry pays nearly $1.8 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 almost $31 million in taxes to the province in 2014.
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:
• incent and educate 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 nor introduce any other form of premium-based tax.
CLHIA appreciates the opportunity to contribute to New Brunswick's pre-budget consultation process. My colleagues and I stand ready to provide any additional information that would be helpful.
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