Retail Council of Canada (RCC) is encouraged by a number of economic stimulus measures announced by Finance Minister Jim Flaherty in yesterday's federal budget and welcomed the government's plans in response to the global recession.

Minister Flaherty's budget speech reflected a number of RCC's pre-budget recommendations submitted on behalf of Canadian retailers:

-  Tax relief for low- and modest-income Canadians

-  Investments in infrastructure to improve Canada's productivity and sustain or create jobs

-  A first step toward regulation of credit card industry practices in Canada

Tax breaks for low- and modest-income Canadians, representing approximately $2 billion in each of the next two years are positive steps to rebuilding consumer confidence. "These tax changes will put money back in the pockets of Canadians, boosting confidence and encouraging spending, which is critical to the retail sector and Canada's overall economic recovery," says Diane J. Brisebois, President and CEO, Retail Council of Canada.

New infrastructure spending will help increase the country's productivity - putting people back to work, restoring confidence and supporting healthy communities. This investment has a direct impact on the sustainability and growth of Canada's retail sector - a sector that already invests more than $8 billion every year into communities across the country.

RCC applauds the government for taking steps to regulate credit cards by strengthening disclosure requirements and limiting certain business practices to allow consumers to make informed decisions. Although this is a positive first step, merchants will continue to push government to address the skyrocketing fees paid by small businesses, retailers, hotels, restaurants, charities and others.

"These steps help to protect retailers' customers from the unfair practices of credit card companies and their issuing banks," says Brisebois. "However, Canadian businesses continue to pay some of the highest merchant fees in the world and we will continue to press for a formal review of the Canadian credit and debit card systems and the development of thoughtful regulations that protect all Canadians."

Dozens of countries around the world - the U.S., Australia, Colombia, Hungary, Romania and Spain - have been investigating the big credit card companies' fee practices and have moved to curb them. RCC leads a coalition of like-minded associations representing almost 200,000 businesses that launched "www.StopStickingItToUs.com," a national campaign against Big Credit Card companies who have been imposing skyrocketing hidden credit card fees on Canadians.