Fraser Lyle Reacts to Federal Budget Announcement

VANCOUVER – January 28, 2009 - Fraser Lyle, President of Insurance Brokers Association of B.C (IBABC) has released the following reaction to the announced Federal Budget:

“I am pleased to see the government recognize how deep the recession is going to be. It’s important to remember how vital the major industries, such as construction and mining, are to the B.C economy.

Because of the inter-related nature of these industries and their requirement for insurance, it’s encouraging to see the Federal government’s acknowledgement of this. Of particular note are the homes 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.

This should ultimately result in increased economic activity among construction companies and their related industries, which should also instill a measure of confidence in the B.C. economy.

From an insurance broker’s perspective, the increased small business tax limit amount from $400,000 to $500,000 is helpful. $200 billion has also been earmarked for credit/lending to the Export Development Canada (EDC) and the Business Development Bank of Canada (BDC). This could create opportunities for brokers to invest and re-invest in their business.

When this is combined with the government’s intention to freeze employment insurance premiums and payroll taxes, it creates a good opportunity to retain current staff levels and could encourage hiring more people. ”

About IBABC

The Insurance Brokers Association of B.C. serves as the voice of the general insurance brokerage industry and promotes its members as the premier distributors of insurance products and services in British Columbia. IBABC is the primary provider of pre-licensing and continuing professional education for the general insurance brokers in B.C. IBABC represents the interests of the public and its member brokers to government and to industry stakeholders. 

IBABC represents in excess of 700 property and casualty insurance brokerages that in turn employ more than 8,000 people in approximately 140 B.C. communities. Member offices are the consumer's choice for the vast majority of all property and casualty insurance policies and premiums written in the province. Consumer satisfaction with their insurance brokers is high. In survey after survey, consumers report that they value their brokers' knowledge, professional advice, unbiased review of their needs and coverage options, and service and advocacy in the event of a claim. IBABC member brokerages have an average of 13 staff members and therefore fit within the small to medium-sized enterprise (SME) category. 

Enquiries should be directed to switchboard at 604.606.8000.

Visit our website at www.ibabc.org
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