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Rob Evans, ORHMA Director, Tony Elenis, ORHMA Chairman, Premier Dalton McGuinty, Josef Ebner, Terry Mundell, ORHMA President & CEO
Hon. Steve Peters, Minister of Agriculture and Food with Terry Mundell, ORHMA President & CEO
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Home > Government Relations > Archives > Regional Updates Archive
The Ontario Restaurant Hotel & Motel Association hosted a reception in the Legislature on Tuesday November 2nd and ORHMA Chair Tony Elenis and President Terry Mundell, joined by several members of our Board of Directors and staff, welcomed Members of Provincial Parliament to this annual event.
The reception was extremely well attended, and the ORHMA was honoured to welcome to the festivities Premier Dalton McGuinty, who took time from his busy schedule to speak with ORHMA representatives and enjoy some of the fine fare.
We were also joined by PC Leader John Tory and NDP Leader Howard Hampton, as well as several members of Cabinet. Several MPPs attended the event and all three parties were well represented. This is a direct reflection on the reputation of the Association and recognition of the importance of our industry.
The Queen's Park Reception is a chance for MPPs to meet ORHMA members face-to-face in an informal setting, make acquaintances and learn of just some of the issues the industry is facing. More importantly, it is an opportunity to mix and mingle and enjoy wonderful hospitality as only the hospitality industry can put on.
Thank you to all of our Directors, members, and suppliers who made the reception a resounding success.
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The Issues:
Here are some of the issues on which the Association will be working and a sample of some of the topics that you may deal with as a participant in the Grassroots Network.
SARS Recovery:
In response to this summer’s SARS crisis, the Ontario government committed $128 million for a two-year SARS recovery strategy. With the change in government, the second year of this investment is not guaranteed. It is essential that the new government invest in the second year of this initiative. Ontario and its hospitality industry has been slow to recover from this unprecedented economic hardship and long-term strategic investment is key to re-establishing Ontario as a world-class destination in the minds of international travellers.
Hydro Pricing:
The Premier has stated that his government will increase the price caps on Ontario’s hydro rates and it is likely that they will look to eliminating the rebate system for large users. As a necessary and uncontrollable cost of doing business, the price of hydro is a significant issue for hospitality operators.
Insurance Rates:
Recent and dramatic increases in liability insurance premiums have cut deeply into the mere 5-7%, average after-tax profit margins of our industry. As an example of the problems that this issue is causing, one operator has seen his insurance premiums increase from $45,000 to $125,000 in a single year and this is not an isolated occurrence. In fact, business insurance premiums have increased, at minimum, by 25% across the industry.
It is important that legislation is introduced to first reduce and then cap liability insurance premiums, to ensure consumer protection and increased insurance industry accountability. Immediate action is required to protect jobs and businesses in the hospitality industry.
Minimum Wage:
The Liberal government stated during the election campaign that it would raise the minimum wage from $6.85 to $8.00 over the next four years. However, recent events have left Ontario’s hospitality industry in a fragile state. As a result, employment and growth have suffered. With payroll expenses comprising over 30% of costs and razor-thin average after-tax industry margins of 5-7% a further increase to the minimum wage will cost Ontario jobs and business.
Beverage Alcohol Issues:
Ontario’s wholesale beverage alcohol regulatory framework and pricing and distribution mechanisms are extremely antiquated and must be updated in order for our industry to remain competitive. From the elimination of the gallonage fee to greater flexibility and selection for operators, this issue is of vital importance to Ontario’s hospitality sector.
Taxation:
As a result of a large provincial deficit and a different list of priorities, the new Liberal government will not aggressively pursue tax cuts. The industry has to ensure that taxes are not increased and that business is not unfairly targeted. With the reversal promised tax cuts for small businesses, corporations and individuals, the Association must work to mitigate the impact on our industry of these changes.
Environmental Issues:
The Liberal government appears committed to a packaging tax that would affect operators with take-out and drive-through operations. This tax, shared amongst all industries, is expected to cost over $110 million in the first year alone and will not be used to recycle the packaging products that our industry uses.
How to Get Involved
Interested? Like to know more?
Contact the ORHMA’s Government Relations Department at:
Ontario Restaurant Hotel & Motel Association
Suite 8-201, 2600 Skymark Avenue
Mississauga, ON L4W 5B2
Tel: (905) 361-0268 or1-800-668-8906
Fax: (905) 361-0288 or 1-888-359-5588
Email: info@orhma.com
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