Plan doesn't impress locally
'They set the bar low ... and didn't even clear that bar'
Steve Arnold
The Hamilton Spectator
(Mar 5, 2010)
Local observers are unimpressed by yesterday's budget after earlier promises of an aggressive plan to prepare Canada for the economy of the future.
Federal Finance Minister Jim Flaherty called the effort "a jobs and growth budget," designed to secure long-term growth for the country.
"Canada's history shows what a free people served by good government can accomplish together. We are at a key moment in that history, as we emerge from the global recession. Our government means to be a partner in Canada's recovery, not an obstacle to its growth."
To do that, the budget promised:
* $3.2 billion in personal income-tax cuts by raising the point at which tax is due, tax breaks for the working poor, higher child benefits and lower taxes for low and middle-income seniors;
* $4 billion for job creation including more employment insurance benefits and training opportunities;
* $7.7 billion in infrastructure stimulus;
* $2.2 billion in industrial support including the elimination of tariffs on manufacturing inputs and equipment and the creation of free-trade zones for goods imported for further manufacturing in Canada.
Stoney Creek accountant Alan Rowell, president of The Accounting Place, was mystified by the promised personal tax cuts.
"I see some small measures here that are going to be good for some people, but I don't see anything major," he said. "They're claiming to provide $3.2 billion in personal tax cuts, but I don't see it. There's nothing new here that I see."
NDP politicians Wayne Marston (Hamilton East-Stoney Creek), Chris Charlton (Hamilton Mountain) and David Christopherson (Hamilton Centre) said the document mostly re-announced programs included in the government's stimulus package from last year. They were also bitterly disappointed in what they said was a preference for corporate tax cuts rather than direct help for seniors.
"The government chose Corporate Canada over seniors living in poverty," Marston said. "There's billions here in corporate tax reductions, but that just shifts costs over to working families so the bottom line for me is there's no way we can support this budget as it's written."
Charlton also mocked tax cuts for big banks and companies while the poorest parents in the country will get a paltry $3.25 a week in increased Child Tax Benefit.
"In Wednesday's throne speech, they set the bar very low for themselves and today they didn't even clear that bar," she said.
With 1.5 million people officially unemployed in Canada and 810,000 facing the end of employment insurance benefits, Charlton said thousands of new cases will be added to local welfare roles, increasing the burden on homeowners already struggling.
"We've got monied people telling us the recession is over but, if you're an unemployed Hamilton worker, it is far from over," Christopherson said. "It's almost like the government has washed its hands of these people."
Municipal, business and academic observers found at least small items that pleased them, including:
* $600 million over three years in support for core research and commercialization;
* $45 million over five years to establish a post-doctoral fellowship program;
* $32 million in budget increases for Canada's research granting councils;
* $135 million over two years to the National Research Council Canada's regional innovation clusters program;
* $40 million over two years for a small business innovation commercialization program;
* $108 million for young worker internships and skills development.
McMaster University president Peter George liked the extra funding for research granting councils.
"This is clearly a restraint budget but there is some money here to reinforce universities and the important work we do" he said. "On balance, given the atmosphere of restraint, the fact the government took pains to direct money to new research is important."
Ty Shattuck, co-founder and vice-president of Trivaris, a main tenant of the McMaster Innovation Park, liked the commercialization money but said more is needed.
"We need a shift from core research to applied research because all of the research in the world is for naught if we can't get it into the economy," he said. "Research is more than just startups. It's also about using new ideas to become more efficient and competitive."
Hamilton Mayor Fred Eisenberger saw the document as "a stay-the-course budget" that at least continued badly needed infrastructure support for a second year.
"I'm a bit concerned about the end of infrastructure support, we need a longer-term program," he said. "Those programs put people back to work and generate revenue, any economist will tell you that."
Hamilton Chamber of Commerce chairman Richard Koroscil found the budget "responsible" for the economic environment and especially liked funding for green energy initiatives, continuation of the stimulus spending, research support, income tax cuts at the lower end of the wage scale and the idea of free-trade zones.
"Setting up free-trade zones could be a real benefit for us as a community," he said. "They would allow us to attract all sorts of things that would be good for the community."