February 03, 2009
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MP, Provincial Minister differ on federal budget views
The Northern View
Finance Minister Jim Flaherty unveiled a federal budget on Tuesday that contained projections of an $85 billion deficit over the next five years – as well as tax cuts, $12 billion for infrastructure and a program that would provide tax breaks for home renovation projections – and while the NDP had said they would vote against it before the budget was tabled, MP Nathan Cullen said he was still thoroughly unimpressed with the what he heard in the House of Commons.
“In a general sense I would call this a missed opportunity and, in a way, a cynical budget. There is no help for the unemployed and there is no vision for where the country is going.It is a failed opportunity with no vision and no hope,” he said in a media call following the tabling of the budget.
“Money to renovate your cottage? What planet are these guys on? I have never seen such an unfocussed budget in all my time as a Member of Parliament.”
The federal budget includes $7.8 billion for housing, more than half in the form of a renovation tax credit of up to $1,350 for each family. The remainder is intended for social housing for seniors, the disabled and Aboriginal people, as well as low-cost loans to municipalities to fund housing.
Flaherty announced the extension of Employment Insurance payments for an extra five weeks for the next two years to cushion the blow for people losing their jobs in an international recession.
Federal tax cuts include an increase in the basic personal exemption amount to $10,320 for the 2009 tax year. The upper limits of the bottom two tax rates are being increased for 2009, meaning the first $40,726 of earnings will be taxed at 15 per cent, and earnings from there up to $81,452 will be taxed at 22 per cent. Income above that point is taxed at the highest federal rate, 26 per cent.
While noting that he is concerned that the portion on the Green Economy is only a half page in the budget document, Cullen said his biggest concern is that the money for infrastructure is still being tied to matching grants from municipalities and the province.
“During my economic forums I heard that people want the government to be a willing partner, and from municipalities there was a very clear message that they did not have the money to meet the requirements of these matching grants. Communities in a tough position are made worse by this while those that are prospering will be able to access this money, and that is not a formula for economic recovery. You don’t help a Whistler or Kelowna, you help a Hazelton or Prince Rupert, because they need the help,” he said.
“Municipalities are really going to be over a barrel.I just don’t know how Prince Rupert or Terrace or communities down the line can access this money.”
However, Provincial Finance Minister Colin Hansen said that shouldn’t be a concern.
“Some projects are going to require matching funds from the province, and we are quite prepared to do our part.We recognize that not all municipalities have the one-third for the matching grants, and we are looking to fund some projects that would not require those matching funds,” he said, noting that overall he was happy with the budget that was presented.
“We’re preparing to roll out an infrastructure plan to put people to work and create jobs throughout the province.”
As for the political implications, Cullen said that he believes, “Mr. Harper has been politically wounded by this budget. Perhaps fatally wounded.”
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