B.C. Premier Gordon Campbell was in Ottawa yesterday for the long-awaited unveiling of the federal budget and his message to the Conservative government was clear: show me the money.
"If we don't get that money on the ground where people can use it, it's going to have been a nice speech, but we're not going to do what we need to in the economy," Campbell told The Tyee.
Finance Minister Jim Flaherty's fourth budget is the first in a dozen years to post a deficit -- $64 billion over two years. The big-ticket items are permanent income tax relief worth $3.2 billion annually, a pot of $7 billion for infrastructure projects and a promise that all the measures the Conservatives propose will create 190,000 jobs over the next two years.
Of special interest to British Columbians, the budget includes $400 million for upgrades to housing on First Nations reserves, $170 million for the forestry sector and the expediting of Vancouver's Evergreen transit line. A good chunk of $175 million earmarked for Coast Guard ship building and repairs will go to B.C. shipyards, as well.
Wait and see: MP Davies
Much of what the federal government laid out today requires matching funds from provincial or municipal governments. Campbell said that wouldn't be a problem for B.C.
"This is a call to partnership and I think we're ready to step up to that call," he said.
Libby Davies, the NDP house leader and longtime Vancouver East MP, isn't so sure.
"They've got money in there for social housing, but it's all contingent on provincial funds and we have no assurance Gordon Campbell is going to do any of that," she said.
While the Liberals have said they will wait until today to announce their intentions, Davies confirmed the NDP plan to vote against the budget. The Bloc Quebecois are also expected to vote against it.
"You got to go beyond the words on the page," she said. "I think the real test here is, 'Do we believe this guy anymore?' You look at the budget and there's stuff in there on social housing, there's stuff in there on infrastructure, and seniors and people with disabilities and aboriginal people, but I really think it comes down to a question of confidence."
Potential payouts for BC
Among the initiatives in Budget 2009 are:
- $4 billion over two years for the Infrastructure Stimulus Fund that will provide funding to renew infrastructure
- $1 billion over five years for the Green Infrastructure Fund to support projects such as sustainable energy
- $500 million over two years to build and renew community recreation centres across Canada
- Accelerating up to $1 billion in payments over two years under the Provincial-Territorial Base Funding Initiative to expedite "ready-to-go" infrastructure projects
- Up to $500 million over the next two years for infrastructure projects in small communities
- $515 million over two years for "ready-to-go" First Nations projects in the key areas: schools, water and critical community services
- $72 million over five years to improve railway safety
- Up to $42 million for federal bridges in need of rehabilitation throughout Canada
- $323 million over two years to restore federally-owned buildings
- $20 million in each of two years to improve accessibility to federally-owned buildings for people with disabilities
- Undisclosed amount of funding to modernize and expand border service at Huntingdon, Kingsgate and the Pacific Highway
- $1 billion over two years for a Community Adjustment Fund to help mitigate the short-term impacts of restructuring in communities
- Extending for one year the temporary 15 per cent mineral exploration tax credit to help companies raise capital for mining exploration
- $80 million over two years to Natural Resources Canada for the Transformative Technologies program administered by FPInnovations, a not-for-profit forest research institute that focuses on the development of emerging and breakthrough technologies
- $40 million to Natural Resources in 2010-11 to develop pilot-scale demonstration projects of new products that can be used in commercial applications
- $40 million over two years to Natural Resources for the Canada Wood, Value to Wood and North American Wood First programs to help forestry companies market their innovative technologies internationally
- $10 million in 2009-2010 to Natural Resources to support large-scale demonstrations of Canadian-style use of wood for construction in targeted off-shore markets and non-traditional uses of wood in domestic markets
- $175 million for the procurement of new Coast Guard vessels and to undertake vessel life extensions and refits for aging vessels
- Five new Coast Guard lifeboats, including one home-ported in each Prince Rupert and Campbell River
- Vessel life extensions for CCGS Bartlett and CCGS Tanu, both home-ported in Victoria
- $60 million over two years to Canadian Heritage to support infrastructure-related costs for local and community cultural and heritage institutions such as local theatres, small museums and libraries
- $40 million over two years to the Canadian Tourism Commission -- including $20 million for domestic advertising and $20 million for new activity in international markets; additional promotional support for events such as the 2010 Vancouver Olympics
- $100 million over two years for marquee festivals and events that draw a significant number of tourists, such as the Vancouver International Jazz Festival
- $75 million over two years for upgrades to Parks Canada's campgrounds and visitor centres
- No new funding for the Vancouver 2010 Olympics, but funding for Special Olympics will be increased to $1.5 million for 09-10
The Tyee's political news blog The Hook will continue to report on federal budget reaction and analysis.
Today in Ottawa, Premier Campbell hinted that his government will be strained to balance the provincial budget, as is required by a law passed by his BC Liberals.
"I can tell you that every government is facing dramatically shifting economic projections, falling revenues," Campbell told CBC Newsworld. "And if you protect services and those revenues fall too much, there's a whole lot of choices you have to make and they're very difficult."
Related Tyee stories:
- Which BC party will come clean on 'balanced' recession budget?
- New Budget Will Be Lifeline or Noose for Tories
Liberals set to topple Harper if tax cuts too large. - How Harper Gov't Pushed Financial Deregulation Here, Abroad
Way cleared for US mortgage firms and easy credit, insured by Canadian taxpayers.
Read more: Politics
Tyee Commenting Guidelines
Comments that violate guidelines risk being deleted, and violations may result in a temporary or permanent user ban. Maintain the spirit of good conversation to stay in the discussion.
*Please note The Tyee is not a forum for spreading misinformation about COVID-19, denying its existence or minimizing its risk to public health.
Do:
Do not: