City's inland port big budget winner
By: Mia Rabson and Mary Agnes Welch | Winnipeg Free Press
OTTAWA – Winnipeg’s inland port and a little known railway in northwestern Manitoba are among the biggest winners from the federal budget today.
Finance Minister Jim Flaherty’s much-anticipated document for Canada’s economic recovery singled out both the inland port at the Winnipeg airport and the Keewatin Railway Company for new cash from federal infrastructure programs which are being fast tracked and enlarged to get people working from coast to coast.
In all, the federal budget will inject almost $40 billion to the economy over the next two years via a series of targeted tax cuts, home renovation programs, expedited infrastructure spending and bailouts for hard-hit industries.
It means the government will run a deficit of $34 billion in 2009-10 and almost $30 billion in 2010-11, something Flaherty says is necessary given the dramatic downturn in the global economy.
“Don’t underestimate what has happened,” said Flaherty of the global economic crisis that has pushed most G8 nations into a recession as stock markets plummeted and employers laid off millions of workers worldwide.
Although some of the funding in the budget is targeted particularly at areas in Canada hardest hit by the economic slowdown – training money for example will be allocated based on unemployment and Manitoba has one of the lowest unemployment rates in the country.
But the province stands to get $132 million from a new $4 billion infrastructure fund for rehabilitation projects like upgrades to bridges and sewer repairs as long as they can be completed within two years.
In the same vein, the $125 million Manitoba is supposed to get over the next five years for infrastructure projects will be doled out over the next two if the province can prove it can spend it that quickly. That money potentially could be used for the new Blue Bomber stadium, a project that is almost ready to go and is just awaiting a pool of federal cash to help fund it.
There likely will also be additional money for recreational centres and university and college capital projects, but how much Manitoba gets will depend on how fast various projects can be ready to go.
Ottawa wants the money to be spent as quickly as possible to stimulate the economy now.
Manitobans will also benefit from personal income tax cuts that will cut between $33 and $633 a year from your annual federal tax bill, depending on how much you earn and the size of your family.
The construction trade in the province should get a boost from new renovation programs including a tax credit aimed at getting homeowners to take on renovation projects like kitchen renovations and exterior home improvements this year.
Flaherty said the tax credit will return up to $1,350 to homeowners who spend over $10,000 on house renovations, and is part of his government’s intention to target the new spending in this budget on places it will get used and make the biggest difference.
That includes the infrastructure spending, most of which is aimed at smaller scale renovation and repair projects for cities and universities which don’t need complicated environmental assessments or lengthy design processes.
“We’re focusing on renovations and repairs which can be done quickly,” said Flaherty.
The Winnipeg Technical College, a dock at Victoria Beach and Health Canada’s regional lab in Winnipeg are both in line to get money for upgrades and repairs.
The port project – mentioned recently by Premier Gary Doer as a priority for Manitoba – would see roads and rail lines near the Winnipeg airport upgraded to help make the city a hub of trade in North America.
The Keewatin railway which connects The Pas to Pukatawagan is scheduled to get a share of $7.9 million set aside for repairs to two First Nations-owned railroads. The other is in Quebec.
Aboriginal communities in the province should benefit from almost $1 billion set aside for First Nations to build new houses and schools on reserves, repair and install modern drinking and waste water systems, improve health care and get more First Nations Canadians trained and into the workforce.
mia.rabson@freepress.mb.ca
maryagnes.welch@freepress.mb.ca