Dear editor:

With most financial experts predicting that Canada will experience a recession this year, it concerns me that Niagara-on-the-Lake might significantly increase its work force and program spending, (“Town proposing to hire 16 new staffers for 2023,” The Lake Report, March 23).

It also worries me that the town is considering imposing a substantial tax increase on residents in a time of extraordinary inflation, with the prices of essentials such as food and fuel remaining stubbornly high despite the efforts of the Bank of Canada to bring inflation under control.

I strongly believe the town should defer all new hires and all increases in its discretionary operational spending until inflation is under control and there is more economic certainty in Canada.

This is especially necessary when the proposed new expenditures represent long-term spending increases and financial obligations (including the need to provide benefits such as health and dental plans, disability plans and pensions).

Deferring would make economic sense and be fairer to residents in this time of high inflation, economic uncertainty and potential recession.

It surprises me that a tax increase of the magnitude being considered in NOTL’s 2023 budget is even on the table, given the new revenues the town has at its disposal from the municipal accommodation tax.

Perhaps the town should reconsider how these revenues can and should be used. A key intent of the tax, as I understood it, was to avoid residents having to bear the brunt of the costs associated with the high volume of tourists who visit NOTL each year.

It wasn’t all about promoting more tourism.

The town should also look at how it will cope if parking revenues decline this year, should the anticipated recession take hold.

That would constitute good planning, which I have yet to see from the current council despite all the talk around it.

Terry Davis
NOTL