Give the profits back to businesses: Jack Layton, Glenn Thibeault and small businesses

TORONTO – The Canadian Restaurant and Foodservices Association has partners with New Democrat leader Jack Layton and New Democrat critic for consumer protection Glenn Thibeault to speak out against the unethical practices of credit card companies.

“We are all well aware of the problems with high interest rates charged by credit card companies, but the problem with transaction fees one that few people know about,” said Mr. Layton. “Small business owners work hard to keep local economies going, and all they want is to make a reasonable profit and grow their business.”

According to the Canadian Restaurant and Foodservices Association, transaction fees on credit cards average 2% of the total bill. The average profit margin of restaurant owners and foodservice businesses is around 4% before tax.

“After my personal expenses and my rent, the most significant cost is the transaction fees, which come before natural gas, taxes or hot water,” added the owner of the Batifole Restaurant, Jean-Jacques Texier.

New-Democrat MP Glenn Thibeault (Sudbury) has demanded that the Finance minister take the problem seriously and table legislation to regulate credit card company practices. Thibeault has already tabled a motion passed by the House of Commons that would crack down on several credit card irritants, including “any time, any reason” interest rate increases and account changes. “Even though the House passed the motion, the government is still unwilling to act,” said Thibeault. “Right now, the problem is that the government doesn’t care about small businesses and consumers. I’m confident we can find common ground but to do so, well have to pass legislation.”