January 28, 2009
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Cullen slams budget, says Finance Minister offers no hope to northern communities
Budget is slammed by MP for failing to deliver; Finance Minister does not offer hope to our communities claims MP Nathan Cullen
The Daily News (Prince Rupert)
Wed 28 Jan 2009
Page: 1 / FRONT
Section: News
Byline: George T. Baker
Source: The Daily News
Well at least Rupertites can build a deck.
In what is being called a “missed opportunity” by critics, a budget that was given luke-warm praise at best was unveiled by Finance Minister Jim Flaherty yesterday.
It was attacked for having few real solutions for struggling municipalities trying to get access to funding grants for infrastructure improvements.
As expected, Skeena-Bulkley Valley MP Nathan Cullen came out firmly against Flaherty’s $34 billion gamble to rebuild the national economy through stimulus packages.
Cullen could not believe that the budget concentrated on helping Canadians rebuild their homes rather than focusing on municipalities’ ability to rebuild their infrastructure.
“I don’t know what municipalities are to do at this point. They are over a barrel if this budget passes because the poorer get poorer and the richer get richer,” said Cullen.
Cullen was in disbelief that Flaherty would focus on home renos when, in his estimation, the day called for serious availability of funding for municipalities.
“When your economy is hurting, by definition, there is less tax base in your community. This budget does not help communities in that situation.”
According to the budget, the proposed Home Renovation Tax Credit would provide a temporary 15-per-cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after Jan. 27, 2009, and before Feb. 1, 2010, pursuant to agreements entered into after Jan. 27, 2009.
Projects that are listed ‘tax exempt’ are renovating a kitchen, bathroom, or basement, new carpet or hardwood flooring, building an addition, deck, fence or retaining wall, a new furnace or water heater, painting the interior or exterior of a house resurfacing a driveway and laying new sod. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.
And the goal was to allow for more construction projects for carpentry firms around the country, allowing carpenters to stay employed as housing starts around the country slow.
“I just don’t know how Prince Rupert and Terrace, and all down the line, are able to access any of this without raising bonds or raising the tax level in their community, which hurts them further,” said Cullen.
Hurting municipalities may seem to be left wanting. The federal government has made $4 billion in funding available for provincial, territorial and municipal projects but will only cover up to 50 per cent of any given project, meaning the provinces and municipalities will have to come up with the rest.
B.C.‘s Minister of Finance, Colin Hansen, said he was actually pleased with the announcement regarding the HRTC, claiming that it would help the lumber industry.
“It will create additional demand for wood product across Canada,” said Hansen.
Hansen also said that hurting communities might not need to come up with the matching money on some infrastructure projects.
“We recognize as well that not all communities have the ability to come up with the one-third dollars. So, we’re looking at a lot of infrastructure initiatives that we are prepared to fund and that would not require participation by the cities,” said Hansen.
Some non-governmental organizations were not jumping for joy with the budget but many said the budget was a good start.
Association of Mining and Exploration BC President and CEO Gavin Dirom gave the budget a mixed review but was specifically not impressed with the lack of infrastructure help for communities.
He said there are, right now, 25 mining projects in B.C. and that infrastructure has been key in getting those up and running. For communities dependant on raw commodities it becomes more important to provide the necessary roads and hydroelectric facilities to facilitate projects.
“With infrastructure near-by it enables that to possibly happen. From the community perspective that perhaps is a missed opportunity,” said Dirom.
Cullen agreed and said this is a bad idea for municipalities in his riding because they are not exactly flush with cash.
“If your municipality is in the black, with millions of dollars to spend then you can access some of these things and leverage more funding. We are not in that situation in the Northwest and in most municipalities in Canada,” said Cullen.
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