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Tt is our position that this particular provision causes the greatest
concern as it may unfairly favour one business over another within the
community. This, of course, arises through tax breaks to qualifying
existing businesses in the community or a new business coming from outside
the community which either builds or moves into newly constructed premises.
The tax saving, theoretically, will allow the qualifying business to
produce its product at a reduced cost from the competition. This is of
concern to our members,

However, there are certain factors which tend to offset our concern in
respect of unfair treatment of one business over another. They are as

follows:

a) The legislation applies to a limited class of businesses.

b) . In discussions with members of the accounting profession we
are advised that there would be very few instances where
tax savings alone are sufficient to justify a decision as
to location. ; _

‘We understand that the Municipality has the flexibility to
grant tax exemptions from 50% to 100% in respect of each
qualifying business. In those instances where Council has
a concern about inequality in respect of existing —
businesses the minimum tax exemption could ‘be applied, thus
lessening the impact: to the competing businesses.
Tax exemptions are only available until December 31, 1990
and therefore in most instances by the time the new .
construction is completed there would be less than the five
year tax exemption available. |

Therefore, although we are concerned about the potential inequality between
businesses we are of the view that very few such instances would arise in
the first place and where they do the impact is lessened by the ability to
limit the tax exemptions and the fact that the exemption is limited in

Therefore, without considering any other factors, we would offer our
qualified support to the program notwithstanding our major concern
addressed above. .

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