NORTH DELTA – NDP MLA Guy Gentner is warning that the looming HST will have a negative effect on the bottom line for businesses along Scott Road, many of which are Indo-Canadian owned. He believes that for many small businesses, margins will be tough.

“With the pending implementation of the HST, retailing along Scott Road could be in the ditch. There is no doubt that for many businesses, especially for restaurants, many will be forced to close,” Gentner said. “According to the BC Business Council, in 2009, BC retail sales decreased by 6% and it is anticipated that consumer recovery will be slow in 2010.”

Gentner was updating his North Delta “Matrix” Service Directory and discovered along the seven kilometer Scott Road commercial corridor, and particularly along the stretch of the corridor that encompasses the South Asian Market, that in less than a year, there has been a 10% decrease in businesses with an overall vacancy rate of over 25%. “In an area where a majority of South Asian businesses operate, the vacancy rates is as high as 42%,” said Gentner “This is alarming, especially for family owned businesses in the South Asian community.”

Gentner went on to say, “What North Delta is witnessing is not comforting. As North Delta’s commercial district erodes so does the community’s tax base and the confidence of these family owned businesses. Although many economic forecasters may be upbeat for 2010, the commercial vacancy rates tell a different story. Given all the commercial vacancy rates along Scott Road, and particularly the Punjabi market, one has to question the timing of the BC Liberal’s implementation of the HST. The HST will effectively kill many of the 80 various restaurants in North Delta.”

About 17% of all retail businesses in North Delta are restaurants. In BC, 7.5% of the overall BC workforce work in restaurants and hotels which represents 22% of all BC youth employment according to the BC Restaurant Association. A large number of the restaurants in North Delta are owned and operated by South Asian families.

“I think it is fair to say that South Asian businesses will be adversely affected on July 1, 2010, when the HST is implemented. The BC Restaurant Association anticipates that in the first year of implementation from July 1 (2010/2011) there will be a $747 million drop in restaurant sales in BC” said Gentner, “Think of it this way, a $20 meal after taxes will cost you $25.40. The additional 7% on top of the present PST will break a lot of businesses, a retail downfall Delta can ill-afford.”

01 Feb 2010 by editor