On January 27, 2009 the federal government introduced the Home Renovation Tax Credit to try to help stimulate activity in our economy. This credit specifically EXCLUDES draperies and curtains. It does not provide a reasonable explanation and is not specific about other types of window treatments that may or may not be eligible. The only rationale provided is that renovations covered must be "enduring in nature”.
I believe that custom draperies are exactly the type of product that should be covered in this program. These products have a very high labour content and when custom draperies are sold we are guaranteed that the labour to produce these products will stay in Canada. The custom draperies that you are producing are not disposable products, to be put up for 3 or 6 months and then removed. They last for years and this certainly qualifies them as being “enduring”.
Custom draperies are an integral part of a dwelling. They are physically attached to the dwelling and represent an extremely important part of the energy efficiency of the building. Draperies can provide the highest “R” factor of any window covering. Again, this is an area that the government states as being important but acts indifferently.
As it stands, an individual can go into a major retailer, purchase flooring that is made in China, install it and the project will be eligible. In this case the winner is China and likely an American retailer. Let’s try to get our MP’s to do something real for small business.
The government states that small business is critical to our economy. Our industry certainly fits into this classification. The majority of the companies in our industry, both the retailers and the manufacturers, are small businesses. We do not even qualify for Employment Insurance if our companies fail. It is small businesses like yours that will directly benefit if we can convince the government to change its stance on this issue. Please contact your MP and let them know what a mistake we believe they have made. You can find your MP’s contact information at the website: webinfo.parl.gc.ca
Respectfully
Richard Turner
President
To My Member of Parliament
As a member of the home furnishings industry I feel that the government has erred in the specific exclusion of draperies and curtains from the Home Renovation Tax Credit. This could provide important help to our industry in these difficult times. Some of the reasons “Custom Draperies” should be considered an eligible expenditure for the HRTC are:
- This is a retail industry with the vast majority of custom draperies sold by small independent business including decorators, designers and small retail stores.
- Custom draperies have a very high labour content and 100% of the custom draperies sold in Canada are sewn in Canada, primarily by small businesses. One order can keep a small workroom busy for a week or more.
- Custom draperies represent an integral part of a home and is an extremely important part of the energy efficiency of a home (custom draperies have the ability to provide the highest insulating factor of any window treatment).
- Most of the fabric and hardware used in the manufacture and installation of custom draperies is supplied by independent Canadian distributors.
- Many of the participants in this industry are considered a “microbusiness”, as defined by Industry Canada, whose family members are ineligible for Employment Insurance should their business fail.
A person could go to a large retailer, purchase flooring and install it themselves. The flooring cost would be an eligible expenditure. The economic benefit would go to the retailer which is likely foreign owned and the plant in China that produced the goods for the retailer. We have a Made in Canada proposition that is not eligible for the HRTC. This is not fair.
I appreciate your taking the time to review this situation and would be pleased to discuss it with you should you require further clarification.
Respectfully
Respond and contact your MP’s office today.
The WWFA team.