The federal Conservative government calls it a growth budget, while opposition parties call it a mean-spirited document that will saddle future generations with economic difficulties and create hardship for people searching for work.
Finance Minister Jim Flaherty, dressed in his customary green tie reserved for budget announcements, provided details of the highly anticipated 500-page document from the House of Commons Thursday.
Cuts of $5.2 billion over three years from the government’s $250 billion in discretionary spending will set the country on a course to balance the books by 2015 with a $3 billion surplus by 2016. Not coincidentally, 2015 is an election year.
“It’s a long-term perspective on job growth and long-term prosperity,” said James Lunney, Conservative MP for Nanaimo-Alberni. “It’s the responsible thing to do because at the end of the day, somebody has to pay because there is no free ride and we’re determined to get there without raising taxes.”
Lunney said there is plenty of investment that could benefit Nanaimo, including $105 million over two years for forestry innovation, previously announced $5.2 billion over 30 years for Canadian Coast Guard replacement ships and helicopters, and $10.5 million in fisheries science activities.
Incentives for post-secondary apprenticeships will also provide $4,000 in grants for tools, travel and tuition for people entering the trades.
“We’re trying to encourage people to enter the trades through institutions like VIU and programs like this will help fill those worker shortages,” said Lunney.
First Nations across the country will receive $275 million over three years for improved education on reserves, an additional $330 million over three years to improve potable water on reserves, and $27 million for urban aboriginal strategies.
Jean Crowder, NDP MP for Nanaimo-Cowichan, said those are good programs, but added the budget mentions nothing about housing, a dire need in her constituency, and cutbacks to the federal human resources program will hurt people looking for jobs.
“It also appears as though the provinces overall will take a $31-billion hit on health care and that’s a big worry,” said Crowder. “We’ve already got a lot of people in our riding that don’t have a family doctor and so without that continued investment in health care it makes us worried that provinces will be driven into the direction of privatization.’
Crowder also expressed concern over the previously announced move to increase Old Age Security eligibility from 65 years to 67 years, which will take effect April 1, 2023.
Lunney said that change was made to reflect modern life expectations. When OAS was introduced in the 1970s, females were expected to live to 76 years while men were expected to live to 69 years. Today, women on average live to 83, while men live to 79.
“Also, back in the 1970s, we had seven workers for every retiree,” said Lunney. “Currently it’s four workers per retiree and in 2030 it will be two if we don’t make any changes. That’s a large burden for working people to carry and every G8 country has already made those changes.”
Steve Beasley, executive director of the Vancouver Island Students Union, said the budget is pushing responsibility onto future generations.
“It’s a terrible budget,” said Beasley. “It doesn’t put people back to work and for young people coming out of post-secondary education with thousands in student loans to pay off, there is an extra burden because they have to pay those loans off over 10 or 20 years and there is no work to enter in to. It’s an anti-job budget. It’s great to balance the budget but not at the expense of jobs.”
In all, about 19,200 public service jobs are expected to be cut. About 7,000 of those will be through attrition while the balance will mostly be in the back-offices of Ottawa departments. There are about 283,000 public service jobs across the country.
“We have to pay the bills is the bottom line and with modern technology there are more online services, there is information that is more readily available online and people are accessing it there,” said Lunney. “There is a lot of redundancy in old procedures in terms of the number of people who sign off on things. Every once in a while you have to hit the refresh button.”
Other budget items:
• Production of the Canadian penny will cease in the fall, and the penny will be gradually phased out over several years
• Duty exemptions at the border will increase for cross-border shoppers from $50 for a 24-hour period to $200, and from $400 for a 48-hour period to $800
• House of Commons will have its budget trimmed by $30 million, resulting in reduced travel and a reduction in members’ office budgets
• Canadian Forces members, RCMP, public servants and MPs will have to pay more for fewer pension benefits
• Environment offices will see a staffing reduction of 8.7 per cent
• It is expected there will be a $3-billion surplus by 2016. There is currently a deficit of about $30 billion.
