The federal government has described the 2013 budget, presented in Ottawa on Thursday, as being "all about growth, jobs and long term prosperity".
The federal government has described the 2013 budget, presented in Ottawa on Thursday, as being "all about growth, jobs and long term prosperity".
They claim their budgets since taking office have improved life for Canadians in many ways including reducing taxes 150 times. The unemployment rate, currently at seven per cent, is at a four-year low with the addition of more than 950,000 new jobs since July 2009.
"However, we cannot be complacent if we, as most Canadians, wish to see an increase in jobs, growth, and long term prosperity," said Ed Komarnicki, MP of Souris-Moose Mountain.
The federal budget allows $53 billion over 10 years for long term infrastructure problems with provinces and municipalities. Included in that amount is $32.2 billion over 10 years for a Community Improvement Fund for an indexed Gas Tax Fund and the incremental GST rebate for municipalities, $14 billion for a new Building Canada Fund to support major economic projects of national, regional, and local significance, $1.2 billion for the renewal of the P3 Canada Fund, and $6 billion under current infrastructure programs for provinces, territories and municipalities for 2014 and beyond.
This is the longest and largest federal infrastructure investment in Canadian history.
"This creates jobs and builds the local conditions for new economic growth," said Komarnicki.
"Municipalities are pleased with the indexing of the gas tax at two per cent annually," said Mayor Debra Button. "As a board member of FCM (Federation of Canadian Municipalities), this has been our request of the feds, as well we have been in a dialogue with the feds for a long-term infrastructure plan. We were asking for a 20-year plan, so it was predictable we received a 10-year plan, the Building Canada fund."
Mayor Button added that this "is good news" considering there is an infrastructure deficit estimated at $123 billion in projects that need to be done right now across the country.
She said having this program in place "tells me the government is hearing us and is reacting. I view this as very positive for municipalities."
Health care, education and social service transfer payments to the provinces are remaining the same.
Other budgetary items of particular interest to the Souris-Moose Mountain riding are an extension of the Temporary Accelerated Capital Cost Allowance for new investments in machinery and equipment; an extension and expansion of the Hiring Credit for Small Business; eliminating the import tariff on certain children's and sporting goods; increasing the Lifetime Capital Gains Exemption to $800,000 from $750,000; a doubling of the current deduction limit under restricted farm loss from $8,750 to $17,000; an investment of over $1.25 billion to support investments in affordable housing; a new tax relief program for Canadians who give to charity, adopt a child, or rely on home care services; and an increase in the Funeral and Burial Program by simplifying it and more than doubling the current funeral services reimbursement rate from $3,600 to $7,376.
The Hiring Credit for Small Business was lobbied for by 109,000 businesses in Canada and could affect many small businesses in the area.
"Anyone who has new hires and whose contribution has increased would qualify," said Komarnicki.
Komarnicki said the import tariff relief was designed to decrease the price gap between goods sold south of the border and those sold in Canada. The federal government is hoping those savings will be passed onto consumers, but there is no stipulation requiring retailers to do this.
When asked about the Canadian manufacturers, who must typically pay higher labour costs than manufacturers in other countries, and the disadvantage the import tariff relief could put them at, Komarnicki responded, "What about that?"
"Helping young farmers get started," Komarnicki said is what the doubling of the current deduction limit for farm loss is for. The deduction is aimed at attracting and retaining new farmers.
"It's always a concern that you have those who are retiring replaced," said Komarnicki.
The affordable housing funding must be applied for through provincial programs and meet certain qualifications to receive the funding.
"Most will find the dollars allocated will be well spent," said Komarnicki of the entire budget and said it is a budget designed to stimulate the economy. He added he feels the Saskatchewan and federal budgets compliment each other.
" Overall, it's a good budget (...) in times of restraint," said Komarnicki.
