P.E.I. tourism association concerned with minimum wage increase, lack of advance notice
'You have to consider the owner-operator'
The Tourism Industry Association of P.E.I. says it has concerns with the recently announced increase to the minimum wage.
The increase — announced Friday — will take effect on April 1, bringing the minimum wage up 60 cents to $12.85 an hour.
Association CEO Kevin Mouflier said that while this is good news for employees earning minimum wage, there are concerns about the effect this will have on small business owners.
He said the association would have liked more warning of the change so owner-operators would be able to plan better.
"We've been advocating to have at least one year's notice so that they can budget effectively," Mouflier said. He said "this time of year budgets are set."
"You have to consider the owner-operator also has to re-evaluate their pricing if it be in the food and beverage industry. They have to raise their prices on their menus."
He said TIAPEI has argued for several years that substantial increases to the basic personal tax exemption would provide more relief to low-income workers on P.E.I. than increases to the minimum wage.
The basic personal tax exemption was changed when the PC government brought in the latest provincial budget in June, increasing from $9,160 to $10,000. The budget also reduces the small business tax rate by 0.5 per cent to three per cent.
Mouflier said increasing the basic personal tax exemption would "put more money in workers' pockets."
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With files from Angela Walker