Finance minister Jim Flaherty released the federal 2013 budget with a cap on spending and emphasis on deficit reduction.
The budget, released on March 22, offered $900 million in new spending along with a new 10-year, $14.4-billion commitment to infrastructure, a $32-billion gas tax incentive indexed at two per cent of what was previously available, and a skills training incentive that will see $15,000 available for individual skills training split equally between the federal and provincial governments and the private sector.
But the budget announcement had little information on the nuts and bolts of how some of the programs will run, leaving local MPs to take a wait-and-see approach to questions on some portions of the budget.
Conservative MPs Michael Chong, of Wellington-Halton Hills, and Gary Schellenberger, of Perth-Wellington, spent much of March 23 talking up the budget, while Guelph Liberal MP Frank Valeriote criticized a lot of what was contained in it, giving it low marks.
When interviewed by the Advertiser both Chong and Valeriote were quick to highlight the doubling to $7,376 of federal money to cover the cost of veterans’ funerals and burials.
Chong said the doubling of the money is good News for Legion members who have been calling for an increase from the $3,600 previously available. Valeriote agreed the increase is one of the few “high points” in the budget.
“The budget focuses squarely on job creation and economic growth,” Chong said, noting the budget forecasts an $18.7-billion deficit that will be reduced to an $800,000 surplus in 2015-16. This year’s deficit came in $2.2 billion higher than Flaherty had predicted late last year.
Chong said the skills training program, set to be in place next year, is aimed at getting the unemployed into apprenticeship programs to fill jobs in the skilled trades.
“This program will more closely align unemployed Canadians with the jobs that are currently unfulfilled,” Chong added.
It’s the gas tax incentive that captured praise among all three MPs.
“The gas tax refund goes directly to municipalities for infrastructure,” Schellenberger said.
Gas tax revenue received by municipalities is not only earmarked for infrastructure projects, but can be used for community projects such as arenas.
Valeriote said the $32-billion gas tax revenue is the only certain amount spelled out in the budget.
“The $32 billion is all you can count on,” the Liberal MP said.
He pointed to Flaherty’s past failure to accurately predict spending and deficits.
“He’s never fulfilled any of his projections,” Valeriote added.
The Liberal was also critical of the skills program, which he said will take about $300 million out of an annual federal transfer to the province of $500 million.
“It’s really a shell game. He’s taking the very fund provinces have relied on, he’s taken it away,” said Valeriote.
The Liberals contend youth unemployment has grown by about 240,000 since the recession struck, despite the government’s claim that some 900,000 jobs have been created during their tenure.
“We’ve got jobs without people and people without jobs,” Valeriote said. “We’re not aligning people with the jobs today or in the future.”
Ontario finance minister Charles Sousa was also critical of the federal government’s involvement in skills education funding.
“Today’s budget suggests that the federal government thinks it is better placed to design programs that meet the needs of Ontario workers,” Sousa said in a statement released on budget day.
“We believe Ontario has the best understanding of the labour market requirements in this province, and how best to meet them.”
Chong said the 10-year commitments included in the federal budget represent a total commitment of $70 billion.
“That represents the largest and longest involvement by a government in Canadian history,” said Chong.
At the local level gas tax refunds will benefit municipalities along with long-term infrastructure funding. According to Wellington North treasurer Michael Givens, whose municipality will receive $342,793 this year, the two per cent index will add $6,855 when it comes in next year.
“This is an estimate, as the budget does not go into detail as to how the indexing will impact allocations amongst municipalities,” Givens said.
Centre Wellington Mayor Joanne Ross-Zuj, a member of the Federation of Canadian Municipalities which has been lobbying for a long-term federal commitment on infrastructure funding, said she is also pleased with the budget – and in particular the gas tax announcement.
“The federal budget was an important step forward for Centre Wellington,” she said in an email to the Advertiser.
“With such a volatile economy I am pleased to get some good News for our community.”
Ross-Zuj added, “Of particular significance is the indexing of the gas tax. This predictable funding will now keep up with the rate of inflation. Along with the gas tax we have a commitment to extend the long-term infrastructure funding for 10 years.
“This purchasing power of the gas tax and the long term infrastructure funding will be applied to Centre Wellington’s infrastructure deficiencies in roads and bridges. This budget was an indicator that the federal government is willing to work with their municipal partners.”
Wellington County Warden Chris White also welcomed the longer federal commitment to infrastructure funding.
“From a municipal perspective I think it’s good,” he said.
Schellenberger agreed, adding, “I think this is a prudent budget and I look forward to having a balanced budget in two years.”
