Prime Minister Stephen Harper used an appearance at a Regina boating supply store Tuesday to try and resuscitate a tax break idea that sunk along with his government’s defeated budget.
Harper, surrounded by local Tory MPs, gave the speech early Tuesday from Performance Marine in Regina.
"Small business are the engine of job creation in Canada, and are indispensable in their role as job creators and innovators," he said.
The Tory government says the tax break would apply to more than a half-million employers in Canada and would further stimulate economic growth.
"It means a stronger recovery for Canada and greater financial security for hard-working families," Harper said.
The plan would be for the government to cover some of the cost of worker EI premiums typically paid by companies. Businesses would then be given a one-time credit up to $1,000 against the employer’s increase in its 2011 premiums over those paid in 2010. The credit only applies to businesses with less than 25 employees whose EI premiums were below $10,000 last year.
The total cost of the initiative would be $165 million.
The Conservatives currently have 13 out of 14 seats in Saskatchewan. Liberal MP Ralph Goodale holds the remaining seat.
Andrew Scheer, Tory MP for Regina-Qu’Appelle, says this initiative shows the Harper government is taking the economic recovery seriously.
"This particular announcement is very good news for Saskatchewan’s business community," he said. "A lot of employers want to expand and have more people and there’s often hurdles to doing that and of course EI premiums or other payroll taxes are one of those."
Canadians go to the polls on May 2.
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