Federal budget receives mixed reviews locally
Local groups saw some things in last week's federal budget that left them happy but they were not without concerns.
Local groups saw some things in last week's federal budget that left them happy but they were not without concerns.
Federal Finance Minister Ralph Goodale released last week's budget in Ottawa. The budget included a number of goodies to be spread out over the next five years.
Rick Karp, the president of the Whitehorse Chamber of Commerce, had some problems with the budget as it was announced.
'One of the big things we're concerned about is program spending is out of control,' Karp said last week.
He pointed out that in 1999-2000, program spending was $109 billion. In 2003-04, it went up to $141 billion. Karp said it is projected to go up another 11.8 per cent.
'There's some serious concerns there,' he said. 'It almost seems as if they're buying the next election.'
He is concerned the federal Liberal party is more worried about regaining its majority in the House of Commons.
'Over long periods of time, it's going to have a huge impact,' Karp said of the extra spending.
He cautioned that if the spending continues at these rates and there is no focus on debt reduction, then Canada will return to deficit budgets with the annual surpluses disappearing in two to four years.
That said, there were some positives for the business community.
'Obviously, because they're spending so much, there's some good things in the budget,' said Karp.
He pointed to the regional infrastructure money that had already been promised to communities throughout the country. The federal government will be taking money out of the gas taxes it collects and giving it to the communities over the next five years.
He was also happy with the planned reductions in income taxes.
'Tax reform is good,' he said.
'But we really have to be careful that we don't go nuts.'
Other groups in the community are happy to see the federal government spending money but have different concerns than Karp, including a desire to see more money spent.
Theresa Gulliver from the Yukon chapter of the Canadian Parks and Wilderness Society said that group is obviously focusing on the government's spending on parks, green energy and sustainable development
The federal government promised $1 billion over five years to 'encourage cost-effective initiatives that will reduce greenhouse gas emissions in Canada under a new Clean Fund,' the budget documents state.
As well, the government is putting $225 million over the next five years to retrofit houses under the EnerGuide program.
This spending is to try to get Canada to follow the Kyoto protocol that calls on countries across the globe to cut their production of greenhouse gases which are believed to cause global warming.
'It's great that the federal government is taking action,' Gulliver said.
But the group does have some concerns with what the government is doing to follow through on Kyoto.
'There is a lack of a meaningful plan on how this (money) will be used,' said Gulliver.
'It could be quite haphazard.'
Gulliver said it was great to see money for infrastructure in the nation's parks. The group is concerned that no money was set aside to create new parks.
She suggested an eco-region in southcentral and southeastern Yukon and into northern B.C. would be a great spot for a new park.
Ross Findlater of the Anti-Poverty Coalition said the budget is good in the long-term.
One example is the changes in income taxes which will make at least $10,000 a person makes deductible. However, he noted that won't take effect until 2009.
Findlater also liked some of the changes to employment insurance that will see the reduction of the number of weeks needed to qualify for benefits.
He said this will be especially beneficial in the Yukon with its seasonal employment.
Findlater also liked the increases to seniors benefits that will help 1.6 million Canadians. He said the majority of those seniors are women.
'Single, elderly women are among the poorest people (in) Canada.'
However, Findlater was not happy with the absence of any money for affordable housing.
'It's very disappointing. We had thought there'd been recognition in the budget,' he said.
He said more affordable housing is needed across Canada and especially in the North.
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