The provincial government has hit licensed restaurants and bars with $1.2 million in new fees.

This comes after the government clawed back VLT commissions and removed a large number of machines from small operators to subsidize racetracks and a new casino, according to the CRFA press release.

These changes, along with the increase in minimum wage last week, add up to more than $11 million in new costs, and more in lost revenues.

“Many restaurant and bar owners in New Brunswick are barely hanging on in such a tough economy, and this latest move by government will push some of them right over the edge,” Luc Erjavec, vice-president Atlantic Canada with the Canadian Restaurant and Foodservices Association (CRFA) said in a press release.

The average restaurant in New Brunswick has seen its pre-tax profits shrink to just 3.1 per cent of sales. The new costs in 2009 will reduce their profit margin to just two per cent.

The fee hikes include: $225 for a restaurant license up from $85; $850 for a lounge license, up from $575; and a new VLT license fee of $1,200 a year.