Tories present budget, includes cash for Quebec
Posted Jun 6, 2011 08:03:11 PM.
This article is more than 5 years old.
OTTAWA, Ont. – Federal finance minister Jim Flaherty and the Harper Government have unveiled what they call the next phase of Canada’s Economic Action Plan, in a new budget that includes cash for Quebec.
However, one could say the budget delivered in March has been re-introduced and recycled, as the first budget of the Tory majority era largely mirrors the one Flaherty delivered barely two months ago.
The new-old fiscal plan holds many of the same promises introduced in March, keeping measures like tax credits for caregivers and small business hiring.
The only add-ons are getting rid of the two-dollar per-vote party subsidies starting in April 2012 and setting aside $2.2-billion to bring the HST to Quebec.
It also promises to get rid of the deficit early, but Flaherty said that will mean program cuts.
“They’ll be some programs that will not continue. There’s no question about that. In strategic review, already we’ve seen some instances of programs that have outlived their usefulness, quite frankly,” he said, explaining they would ask the questions ” ‘why was this program created? Is it still necessary to have it? Is it fulfilling the goal for which it was created?’ “
“Governments are very good at creating programs. They’re not so good at ending them,” he added. “That’s why we are launching the strategic and operating review. Once complete, it will realize $4-billion in annual savings and allow the government to return to a balanced budget by 2014-15, one year earlier than previously planned.”
He did not give any details on where he believes he can find the $4 billion in savings, but confirmed the cuts will begin next year.
Some of the key measures from the March budget that will be implemented this time around include increasing the guaranteed income supplement for seniors, ending subsidies for the oil sands sector, a new hire tax credit for small businesses and the childrens’ arts credit.
The Harper Government also plans a $400 million extension to the home retrofit program and loan forgiveness for doctors and nurses in rural areas.
The opposition, meanwhile, immediately jumped on the budget, with Jack Layton saying it will hurt Canadians.
“I would have hoped we would have had more transparency. This government used to pride itself on being accountable, transparent, everything was going to be open.”
“Well, it looks like billions of dollars of cuts are being hidden away.”
In Ontario, the Liberals have expressed concern that there is still no commitment towards long-term health care funding.
Ontario Health Minister Deb Matthews said the budget was a missed opportunity for the Conservatives to show they are willing to hammer out a brand new 10-year accord with the provinces.
Matthews told reporters the provinces need a longer commitment than the Tories promised during the election campaign – to boost health care spending by six per cent for at least two years after the current agreement expires in 2014. She said it needs to be extended in order to make long term plans to keep rising costs down.
