IBABC encouraged by federal budget

The federal budget, handed down on Jan. 27, 2009, showed signs of promise for B.C.’s major industries, and in turn the province’s insurance industry, said the Insurance Brokers Association of B.C. (IBABC).
“From an insurance broker’s perspective, the increased small business tax limit amount from $400,000 to $500,000 is helpful,” Fraser Lyle, president of IBABC commented in a release. “$200 billion has also been earmarked for credit/lending to the Export Development Canada (EDC) and the Business Development Bank of Canada (BDC),” he added.
“This could create opportunities for brokers to invest and re-invest in their business.”
Combined with the government’s intent to freeze employment insurance premiums and payroll taxes, a good opportunity to retain current staff levels and encourage hiring of new staff is created, he continued.
Lyle also noted the home and renovation tax credit, the increased first-time home buyers’ tax-free RRSP withdrawal amount, and assistance with closing costs on purchasing a new home will help to stimulate the economy.
“It’s important to remember how vital the major industries, such as construction and mining, are to the B.C. economy,” he said. “Because of the inter-related nature of major industries and their need for insurance, it is encouraging to see the Federal government’s acknowledgement of this.”